Saturday, January 5, 2013

Of Kim Kardashian and Armenian Street


WHAT has celebrity Kim Kardashian got to do with Armenian Street? Well, for a start, she’s surely the most famous Armenian and the only one that young people can identify with although she lives in the United States.
She is a fourth generation Armenian and while her mother is English, she speaks strongly of her ethnic origins although she was born and raised in Los Angeles. Kardashian is a massive reality TV show star and more recently made global news for being pregnant with rapper Kanye West’s child.
Armenia is a landlocked country surrounded by Turkey, Azerbaijan, Iran, Georgia, but the Armenian diaspora are now spread all over Europe, Australia and the US.
During the early days of Penang, there was a significant number of Armenian businessmen and traders who made Penang their home.
Most of these Armenians were brought in from India and many settled in Penang, Malacca, Yangon, Singapore and Batavia, the old Jakarta.
But more importantly, they helped to make Penang grand. High on the list has to be the Sarkies Brothers — Martin, Togram and Arshak — who set up the E & O Hotel and the Raffles in Singapore. Certainly, these hotels remain among the grandest in the region.
The brothers also ran the Sea View Hotel in Tanjung Bungah and for a while the Crag Hotel in Penang Hill, according to reports.
The other famous Armenian included trader and planter Arathoon Anthony — in which Aratoon Road, off Burmah Road, is named after. He later founded the stock broking firm of A.A. Anthony and Co.
The Anthonys, according to reports, were among the Armenian diaspora that settled in Shiraz in Persia, now modern Iran, and then in Mumbai and in Kolkata before coming to Penang.
The well-known George Town Dispensary, opposite Komtar in Penang Road, was set up by Dr Thaddeus Avetoom, who is said to have set up practice in Beach Street.
Those keen to find out more about these respected Armenians can read the work by Nadia Wright who has researched the communities in Malaysia and Singapore.
Ilsa Sharp wrote: “The Sarkies of the E & O shared with their fellow Armenians a cultural trait: the sort of flamboyance and open extravagant often associated with Russians, or even Italians. The Armenians love entertaining, good company, song and dance, the arts, food and wine — even in hostile climes, they always try to plant their beloved grapevines, as they also did in Penang, at the church rectory.”
The local Hokkiens calls Armenian Street pun thau kong hang as there was a Tua Peh Kong kongsi-house in the street and is said to be also known as the Kian Tek Tong secret society where they kept their gods. Some older Penangites call the street phah tang keh or striking copper street as there was once Malay braziers’ shops there.
In fact, Armenian Street was once known as Malay Lane because it was an early Malay settlement.
According to Khoo Salma, there were powerful Malay chiefs at Armenian Street such as Syed Mohamed Alatas and Che Long — who forged an alliance with the Red Flag secret society.
Khoo Tian Poh, the Red Flag head, even gave his daughter to Syed Mohamed to be his second wife.
Today, Armenian Street has regained its shine — thanks to the work of Lithuanian artist Ernest Zacharevic with his beautiful murals there and in Muntri Street, Weld Quay, Penang Road, Ah Quee Street and Cannon Street.
Armenian Street is part of the heritage trail and has now become a must-stop for visitors, who want to catch a glimpse of the state’s history and the wall paintings. - The Star

Chor: Easing of condition to help the young own property


PETALING JAYA: The move to further liberalise conditions for the My First Home scheme is to make it easier for young working adults to own their first property, said Housing and Local Government Minister Datuk Seri Chor Chee Heung.
He said young adults who just joined the workforce, especially those in the Klang Valley, Penang and Johor, would need a permanent place to stay.
“I believe that with this new move, more young people will take up this scheme to fulfil their dreams of owning their own property,” said Chor, adding that renting was not justified because they would not eventually own the property.
Under the new conditions which came into effect on Jan 1, young adults can apply for loans to buy houses immediately after getting jobs. Previously, they had to work for at least six months before they could qualify.
The requirement to have a minimum savings record of three months in banks had been axed while the income limit of borrowers was raised to RM5,000 from RM3,000 previously.
For joint borrowers, the income limit had been increased to RM10,000 from RM6,000.
Describing the move as “one of the best news” for young adults, Chor said this showed that the Government had their interest at heart.
On whether such a move would get more young people in debt, he said this was one of the Govern­ment’s initiatives for them to own their homes and “no one was forcing them to buy”.
Beauty writer Samantha Chow, 23, said she would stick to her five-year plan to buy a condominium.
“I know what I earn and how much I can afford. I do not want to be in debt,” she said.
Account executive Yong Li May, 23, said she had no immediate plan to buy any property, adding that she would need to find out more about the scheme.
“At the end of the day, it depends on affordability as I do not want to pay high instalments,” she said.
However, National House Buyers Association secretary-general Chang Kim Loong claimed that the move would encourage impulse buying, which might lead the youths into debt at an early age.
“The Government should not be seen as marketing agents for developers or promoting financial obligations for banks. Youths should not be bound into debt so young for the next 25 to 30 years,” he said. - The Star

Office space developers need to adjust supply to market conditions


THE fundamental that bears watching for the office market is rents, and rents are a function of business profitability.
Ultimately, the general levels of profitability of businesses in any city sets the sustainable level of rents for that city and it also explains the different levels of rent that prevail for different cities.
The current average level of Grade A office rents in Kuala Lumpur can be pegged at RM6.50 to RM7 per sq ft per month, and the long term initial yield or return for Grade A office space is about 7%, on a net property income basis. From time to time this yield has compressed to lower numbers, pushing values up, but over the long term, the market seems to return to the “equilibrium level” of seven when the exuberance dies.
The existing office space in Greater Kuala Lumpur or the Klang Valley grew from 76.38 million sq ft in December 2004, to 99.62 million sq ft, by September 2012, i.e. adding 23.24 million sq ft or a high 2.91 million sq ft a year on average between the intervening eight years, according to figures from Napic.
Occupied space on the other hand increased by 1.95 million sq ft a year on average.
The office submarket, from an overall point of view, is in a state of oversupply. 23.85% of total space being vacant is certainly a high figure when a normal percentage ought to be between 5% and 10%.
Apart from this, there are 16.86 million sq ft of incoming space (under various stages of construction) and a further 5.21 million sq ft of planned supply, which are space that has been approved for development but for which construction has not commenced as yet.
This, however, could balloon to a substantially higher figure if all the new office space in the contemplation (now or in the near future) from major commercial projects, especially the ETP related projects, are taken into account.
In 2013, and the years to come, the challenge for developers (institutional and entrepreneur-driven alike) of office space is to make extraordinary efforts to adjust their supply to conditions in the market, or to find specific niches, new demand of the required magnitude stemming from the ETP projects notwithstanding.
The green agenda with its 10-odd percentage of added cost and lower annual running cost needs a higher rental to ensure long term sustainability and this question is yet to be confirmed as yet in Kuala Lumpur although early evidence from the first few green buildings indicate such possibilities.
Having said all that, it must be remembered that the office market cannot be looked at, solely, through the lens of total numbers. The market exists in various submarkets, depending on location and product type and each segment has specific demand and supply dynamics of its own.
A flash back to the Asian Financial Crisis of the mid-1990s and the Global Financial crises instruct us that the office market in particular, and unlike the residential subsector, is inclined towards higher degrees of volatility, and it did sink below replacement cost in the first crisis and stayed below that level for many years, whilst in the second crisis it took a dive of 20%, and has not recovered to previous peaks, five years hence.
The Klang Valley office market is by far the predominant office market in Malaysia. Penang, by comparison has only 9.03 million sq ft of equivalent, modern, existing space and Johor Baru, 6.21 million sq ft, but the fundamentals that drive those markets are similar.
The retail sector is also driven by income from rents and rents for this sector are dependent in-turn on retail turnovers and it is this that bears the closest study and monitoring.
Turnovers depend on the multitude of shoppers, including tourists, and their propensity to spend. In Kuala Lumpur the long-term rental return on average for Grade A shopping centres used to be about 8%, but this is on a structural transit towards 7% as shopping centres become a more mainstream asset.
Real Estate Investment Trusts or REITS which are at a high point in investor interest on account of a confluence of factors including the spill-over from continued, quantitative easing measures in the developed countries, are also being led by REITs with a bias towards the retail sector. The new, stapled structure for REITs that is to be introduced by the IPO from KLCCP properties, with its total portfolio of RM15bil, may add a further boost to this asset class the timing, in the introduction of such a big portfolio, insofar as the REIT industry as a whole is concerned, could be a major positive for the industry.
The retail submarket (modern shopping centres) in the Klang Valley is relatively stronger than the office market, but it also has shadows of looming oversupply as more centres from the pipeline come onstream. But a well-managed retail centre by its inherent higher sophistication (than an office building), has better strength, to tide over temporary downturns because once a shopping centre captures the loyalty of a target segment of clientele, usually through a prolonged period of astute mall management, it is extremely difficult for new comers to dislodge it.
Last year's buzz in the retail subsector in the Klang Valley was the addition of new malls such as the Setia City Mall and the Paradigm Mall and the introduction of fresh brands such as H&M and Uniqlo, two fashion brands that have come into the country and have started to shake up that segment.
Other sectors such as food and beverage and cineplexes are doing well in most of the shopping centres.
The hotel subsector is ruled by the twin, and interrelated income fundamentals i.e. the room revenue and occupancy rates. The value of a well-managed five-star hotel can be pegged at about RM1.5mil a room with a net yield of between 7% and 8%.
In the agricultural sector, oil palm plantation values, as indicated by asking and concluded prices, and since the heightened period of volatility in palm oil prices since five to six years ago, are still not clearly settled within a range to enable an easily predictable typical value.
We know that values, for the top, well-managed estates have gone up from the RM15,000 per acre benchmark of the past, but the new benchmark level, as to whether it is in the low RM20,000 or the higher RM20,000 is as yet to be clearly established.
Better clarity may come when global conditions in the bigger commodities market and underlying demand from the big emerging markets are also more settled. - The Star
Elvin Fernandez believes in the free market and timely nudging by policy makers and key market participants to iron out any, and only where needed, imperfections in the system. To do this, and over time, they need a steady stream of in-depth market knowledge and insight.

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Friday, January 4, 2013

Waterfront Wanted


Those who wish to sell or let his or her Waterfront Condo in Tanjung Bungah, Penang, pls contact us soonest possible. Ready buyer is awaiting for you. 

Strait Regency Wanted


Those who wish to sell or let his or her Strait Regency in Tanjung Bungah, Penang, pls contact us soonest possible. Ready buyer is awaiting for you. 

Gold Coast Resort Condominium Wanted


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Cascadia Wanted


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