House prices expected to stabilise as a result of measures

PROPERTY professionals, especially developers, continue to grumble about the challenging first six months of this year as a result of various government and banking measures kicking in with some developers delaying launches to the second half of the year.

A survey by the Real Estate and Housing Developers’ Association (Rehda) reveals that 87% of 150 respondents are “pessimistic or neutral” about the first half of the year.

While the situation may indeed be in a flux for some developers, especially the smaller ones as buyers turn cautious, all is not lost when one considers the big picture.

In an earlier seminar on the property sector, Valuation and Property Services Department deputy director-general Faizan Abdul Rahman said house prices were expected to stabilise as a result of these measures. He was speaking at the 7th Malaysian Property Summmit 2014 organised by the Association of Valuers,Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia late last month.

The distress among developers is understandable. Because of Malaysians’ general interest in this sub-segment, developers have focused on meeting this demand over the years. This focus on the residential market escalated considerably between 2010 and 2013, accounting for multiple launches among developers.

Faizan said residentials formed the bulk of transactions for the first nine months of last year, or 64% of about 280,000 transactions. In terms of value, it accounted for RM51.51bil of total value amounting to RM105.7bil, or 49%.

Faizan said the residential sub-segment would continue to drive the market in the months ahead with prices moving on a more even and moderate keel.

One of the speakers, property consultancy C H Williams Talhar & Wong managing director Foo Gee Jen said that looking ahead, property investment would continue to be relatively more popular than other forms of investments with rising demand for affordable housing.

“Genuine demand will lead the market. There will be no more double-digit price increases,” he said.

Analysing prices for the first nine months of 2013, Foo said serviced apartments had the highest price on a per square foot basis at RM609 per sq ft while terraced housing were the lowest, at RM327 per sq ft.

“In the landed segment, he said most prices had doubled over the years. Bandar Utama’s double storey housing was priced at RM280 per sq ft in 2005. It was RM620 per sq ft in 2013. The overall landed sector had average percentage increase of 8% between 2005 and 2010 but hit 18% a year for three consecutive years between 2011 and 2013.”

He came to this conclusion after analysing prices in Taman Tun Dr Ismail, Bandar Utama, Bukit Jelutong, Kota Kemuning and Bandar Kinrara.

Foo said gated and guarded housing experienced the greatest increase, averaging 10% between 2005 and 2012 with selected developments having a higher annual appreciation of 14.4%. Detached houses had the highest return at 27.2% per annum followed by semi-detached houses at 17.3%.

“Gated and guarded housing was introduced into the Malaysian market more than 10 years ago. In 2013, this segment outperformed the rest of the other types of housing. In 2005, a detached house in a gated and guarded community was RM600 per sq ft (2013: RM1,200 per sq ft), a semi-detached house was RM400 per sq ft in 2005, doubling to RM975 per sq ft last year,” he added.

Terraced housing averaged RM480 per sq ft in 2005 and increased to RM600 per sq ft last year, he said.

As for the condominium market, Foo said total stock had grown considerably over the years and as at 2013, there was more than 355,000 units. Of this, about 27,000 units are luxury condominiums. He did not defined what he considered as a luxury condominium.

Foo said: “The supply of luxury condominiums grew at an average rate of 20% a year between 2008 and 2013 with a vacancy rate of 25%.” He cautioned that more than 32,000 units are expected by the end of this year.

“It will be a challenging market for developers in 2014. Residential property market is expected to cool down, prices stable and secondary sales slow,” he said.

The trend for developers to seek development in fringe areas continue to escalate with developers now building in areas with a radius of about 40km away from the city centre.

Mah Sing Group Bhd is building M Residences in Rawang and Southville City in Bangi. In Shah Alam, Sime Darby group is development the Elmina township andIJM Land Bhd in Bandar Rimbayu. Puchong and Semenyih have the highest concentration of new launches.

With affordability being the main issue the last few years, Foo says this is expected to change with the government’s programme on affordable housing. The government aims to build 300,000 units of affordable housing for the next five years, of 60,000 units a year. - The Star

City & Country: Consumer confidence props up residential market

PRICES in Penang’s residential market continue to rise, although the overall volume of transactions has fallen, says Raine & Horne International Zaki + Partners director Michael Geh when presenting the Penang Housing Property Monitor for 4Q2013. This was gleaned from the National Property Information Centre’s data for Penang from 1H2010 to 1H2013, he adds.

In 1H2010, transactions on the island’s primary and secondary markets totalled 8,301. Sales grew to 13,832 in 1H2011, but declined to 11,889 in 1H2012 and 8,547 in 1H2013.

“The fourth quarter of 2013 saw a continuous downward trend on the primary and secondary markets in terms of units sold,” remarks Geh. “One of the main reasons was that loans were hard to come by. This factor alone pulled the Penang developer-direct market down during the quarter. The secondary market was still active, but a little down in terms of units sold.

Geh: There was good take-up of anything less than RM500,000 as people are looking for affordability now. I would describe the market as price-sensitive.

“There was good take-up of anything less than RM500,000 as people are looking for affordability now. I would describe the market as price-sensitive.”

The 4Q2013 data shows there was double-digit year-on-year price growth in many of the areas sampled, which could spill over into 1Q2014.

“January would have seen strong activity because Penangites who work overseas or in KL come home for the Chinese New Year holidays and usually purchase properties for their family or help them upgrade,” Geh explains.

Overall, consumer confidence is strong, he comments, attributing this to the soon-to-be-opened second bridge, the RM1.25 billion worth of investments pumped into the state by the federal government and the opening of IKEA and the Penang Designer Village in Batu Kawan, among others. News that Sunway Bhd is buying acres of land on the island from Lee Rubber Co Ltd, which, once developed, will have an estimated gross development value of RM1.5 billion, has also boosted optimism in the property market.

As a result, consumers are on the hunt for good buys in the Penang housing market, says Geh, highlighting several hot developments and areas on the island and the mainland.

One is E&O Bhd’s Seri Tanjung Pinang in the northern part of the island while the 152-acre The Light Waterfront by IJM Land Bhd is another. Parts of the latter, which is very close to the first bridge, have been completed and handed over to the owners. According to Geh, The Light Waterfront properties have seen a lot of rental activity and secondary market sales in the last three to four years.

In the south, near the second bridge, Teluk Kumbar and Teluk Tempoyak are creating a buzz, he says, adding that areas south of Butterworth, such as Juru, Bukit Tambun, Batu Kawan and Sungai Bakap, are getting much attention, also thanks to their proximity to the second bridge.

A view of Penang taken from Komtar Tower

State housing policy and auctions
While the outlook is rosy, a possible roadblock is the state government’s new housing policy to curb speculation. It states that properties priced RM400,000 and below on the island and RM250,000 and below on the mainland can only be sold after the fifth year of purchase. There are also restrictions on the resale of low-cost (RM42,000) and low-medium-cost (RM72,500)homes within the first 10 years of purchase.

Then, there is the 3% levy on purchases by foreigners and 2% levy on the seller of any property within three years of the date on the sale and purchase agreement. The new policy was to have taken effect on Feb 1, but has now been postponed to March 1. However, the 3% levy, on top of the 30% Real Property Gains Tax, on foreign buyers took effect this month.

Geh feels that the new policy will impact the Penang residential market, although it is too early to say by how much exactly.

In 4Q2013, house transactions in the mature residential areas of the island were still strong. According to Geh, this was because people wanted to buy houses that were near their family homes or place of work.

Besides buying on the primary and secondary markets, Geh advises homebuyers to consider auctions. However, this can be a tedious process. “Auctioning is slow because the people who really need a house or want to buy something don’t get the relevant information easily to make a purchase,” he explains. “Information is not easily disseminated, like through a website, and people still need to look through the newspapers. It is still an adventure. When auction information is offered to purchasers efficiently, the market will get off the ground.”

Fourth-quarter performanceThe 4Q2013 Penang housing property monitor shows that the prices of houses in well-established suburbs continued to grow quarter on quarter while in other areas the prices held steady.

The prices of 1-storey terraced houses in Green Lane, for example, rose to RM650,000 for the highest q-o-q growth of 13.85% compared with such homes in the other areas sampled. Development in Green Lane began in the 1960s, transforming the small farming village into a bustling neighbourhood. One-storey terraced houses in other areas that showed price growth include those in Jelutong (+12.31%), Sungai Dua (+7.69%), Bandar Bayan Baru (+6.25%) and Sungai Ara (+4.76%).

Y-o-y, all types of houses cost more in the areas sampled except two. The prices of 1-storey terraced houses in Seberang Perai Tengah dropped 6.25% to RM160,000 while those of 2-storey terraced houses in Sungai Ara held steady at RM750,000.

Demand for houses in Seberang Perai Tengah is much less than that for houses in other areas of Seberang Perai, says Geh, adding that houses to the west of Bukit Mertajam, nearer Perak, are considered hot. The areas to the east of Bukit Mertajam are less developed, he points out, although it is just a matter of time before development reaches there and has a positive effect on prices.

As for Sungai Ara, Geh finds it to be a very stable residential area. “It is like Subang Jaya or Cheras, where property prices don’t go up or down quickly.”

Rents and yields in 4Q2013 remained relatively stable q-o-q and y-o-y. “Market values were at a record high in 4Q, so rents did not go up much on account of affordability. Thus, yields did not increase,” Geh points out. “In some places, yields came down but values went up. Rents cannot be increased in line with capital values because this could lead to tenants moving out.”

Penang’s housing market continues to be strong on the island and mainland. Will it react to the state’s new policy that takes effect on March 1? Only time will tell.


This article first appeared in The Edge Malaysia Weekly, on February 14, 2014.

BN government will pump RM1.25b into Penang projects this year

GEORGE TOWN: Determined to demonstrate that it is not side-lining Pakatan Rakyat-held Penang, the Barisan Nasional (BN) federal government has decided to pump in some RM1.25 billion in projects in the state this year.

Federal Action Council for Penang chairman Datuk Zainal Abidin Osman announced yesterday a slew of 19 new projects, mainly for traffic infrastructure and health, as well as a few for education, to commence this year.

Zainal, who is also state Umno chairman, stressed that these new projects are in addition to 24 projects worth a total of RM5.1 billion that have already been completed in 2013 — including the 24km Second Penang Bridge.

He said the RM4.5 billion bridge is scheduled for opening next month by Prime Minister and BN chairman Datuk Seri Najib Razak at a yet-to-be-determined date, following some final minor installations.

“All these show that the federal government is not marginalising or neglecting the people of Penang,” he said at a press conference at the federal building here.

“We are definitely concerned about improving the prosperity of Penangites.”

The projects slated for this year include an RM400 million multi-storey block with space for 331 beds at the Seberang Jaya Hospital, an RM250 million new wing for women and children at the Penang Hospital, an RM205 million upgrading of the narrow road between Teluk Kumbar and the Penang International Airport, and an RM60 million new flyover in Batu Maung at the southern end of the Bayan Lepas Free Industrial Zone.

Asked about the status of affordable housing projects under the federal PR1MA Corp Malaysia that were announced for Penang early last year, Zainal insisted that the projects are still on for implementation in next two years.

He stressed that the issue of confirming the sites is not easy in view of limited available land in Penang.

“In the process, we will have to get approval from the State Planning Committee (chaired by Chief Minister Lim Guan Eng). We therefore hope to get cooperation from the state government in this regard,” he added.

Zainal said the federal government is certain to develop 10,000 units of houses through PR1MA, as announced by Najib, and another 10,000 by federal agencies like the Penang Regional Development Authority, UDA Holdings Bhd and JKP Sdn Bhd.

Najib had on April 30 last year — five days before the last general election — announced 9,999 affordable housing units in Penang.

On Aug 28, almost four months after the BN retained control of the country, PR1MA announced that 20,519 affordable homes will be built in Greater Klang Valley, Johor, Penang, Sabah,  and Sarawak.

However, the Penang government has complained that its enquiries for details on the units in the state have failed to elicit response from PR1MA or the Urban Wellbeing, Housing and Local Government Ministry. 


For more stories, go to www.fz.com, the website for freedom of expression and fairness in articulation.


This article first appeared in The Edge Financial Daily, on January 29, 2014.

UBB, Ideal Property plan RM1.5bil projects in Penang

GEORGE TOWN: United Bintang Bhd (UBB), an importer and exporter of used and reconditioned heavy machinery, will pursue property development plans in Penang under the direction of its new majority shareholder, Datuk Alex Ooi.

Ooi, who now owns 32% of UBB, is the executive chairman of UBB and chief executive officer of Ideal Property Group.

He said UBB would work with Ideal Property Group, a Penang-based developer with 12 years of experience in the business, to pursue some of these projects, as the latter owns about 80ha of landbank on the island, located largely in the south-west district.

“We are looking at building more condominium properties priced between RM500,000 and RM700,000 per unit.

“The plan for this year is for UBB and Ideal Property Group to jointly launch some RM1.5bil worth of such projects on the island in the second half of 2014,” he said.

UBB is also looking to tap into the growing tourism market in Penang, which has attracted some six million visitors since it was declared a Unesco World Heritage Site in 2008.

“We plan to take this opportunity to invest in the development of new tourist attractions in the coming years as part of our diversification strategies, which include building a theme park in Penang.

“To cater to the increasing number of tourists in Penang, we plan to build two new hotels in Bayan Baru,” he said.

Ooi said UBB saw more future benefits for its shareholders from the development of high-quality premium development projects.

“This initiative will consolidate, strengthen our current finances and transform UBB and Ideal Group into one of the top property developers in Penang.

“With new funds, we want to be more than just a property developer. Being a Penang home-grown developer, Ideal Property wants to create a legacy for Penang, not by encouraging the appreciation of asset values but build properties that promote great appreciation of life for the next generations to come with great emphasis on wellness,” Ooi added.

He added that UBB’s board of directors had already endorsed the change of UBB’s name to Ideal United Bintang Bhd (IUBB).

The name IUBB has been approved by the Companies Commission of Malaysiaand is now waiting for the shareholders’ approval at the forthcoming EGM. - The Star

Property sales likely to drop amid stringent loan conditions

GEORGE TOWN: Property transactions are likely to decline this year amid cautious sentiment and stringent housing loan regulations by financial institutions.

Real Estate and Housing Developers’ Association (Rehda) Penang chairman Datuk Jerry Chan said the property market was likely to register a decline in both sales and value.

The market is likely to see a 20% decline in value, he said after briefing reporters on the three-day Malaysia Property Exhibition 2014 to be held from Feb 2.

Organised by Rehda Penang and Henry Butcher Penang, properties ranging from RM370,000 will be on showcase for prospective buyers.

Chan said the central bank’s move to tighten consumer loans was likely to impact the property market, and that between 80% and 90% of prospective buyers depended on loans to purchase houses.

Besides, he said, buyers were also becoming more cautious this year, given the backdrop of the rising cost of living.

However, Chan said Malaysia’s property market was still bullish, as the segment was driven by low interest rates and economic growth.

He explained that 2014 would be a good year for buyers to purchase properties despite the uncertainties. “Developers would sell new products at new costs and land values amid rising construction and labour costs,” he added. – Bernama

E&O unveils its latest luxury condo project

EARLIER this week, lifestyle property developer Eastern & Oriental Bhd (E&O) launched its latest downtown condominium project The Mews. When completed in 2017, it will be one of three high-rise residential developments on Jalan Yap Kwan Seng in Kuala Lumpur.

There will be three residential projects along that stretch of about 500m. The Mews starts at RM1,700-RM1,800 per sq ft (psf). It will be among the highest in terms of price point among the three on-going projects there currently.

The first project to be launched close to the Jalan Yap Kwan Seng-Jalan Tun Razak intersection is Mirage Residences. The Mirage was launched a couple of years ago at RM1,000 per sq ft with prices trending up to between RM1,300 and RM1,400 psf last year. According to a member of the marketing team, some of the units were sold at RM1,600 psf last year. The Mirage is 100% sold and is expected to be completed by May 2015.

It is a 25-storey block comprising 102 units developed by OSK Properties Holdings Bhd. Most of the units have built-up areas of between 1,000 sq ft and 1,200 sq ft with two bedrooms.

The second project to be launched closer to the Petronas Twin Towers at the Jalan Yap Kwan Seng-Jalan Ampang intersection is Star Development. This was launched late last year by joint-venture partners Symphony Life Bhd (previously known as Bolton Bhd) and United Malayan Land Bhd.

It comprises three residential high-rise blocks of which the first will be 57 storeys. Its next two blocks are expected to have 61 storeys. Besides the residential portion, there will also be a retail portion.

When completed, Star Development will have a total of 1,500 serviced apartment units, comprising mainly one-bedders with sizes ranging from 650 sq ft and 750 sq ft.

Each of these three projects have their pluses.

The Mirage, at RM1,000 psf seems like a steal considering today’s prices and when matched against The Mews. It is also not as dense as The Mews, which will have 256 units on 1.29 acres compared with Mirage’s 102 units on just under one acre. Both are on residential titles, which is a plus point.

The Mews will be more private than Mirage, located about 100m on one of the inner roads, and does not directly front Jalan Yap Kwan Seng.

Sizes range between 900 sq ft and 2000 sq ft for the one- and 3+1 bedroom units. There are four penthouses with built-up areas of about 2,500 sq ft each. Two of the penthouses have been sold. E&O is a lifestyle brand. It built St Mary Residences in Jalan Tengah, parallel to Jalan Raja Chulan in the main commercial district of Kuala Lumpur and Dua Residency along Jalan Tun Razak.

While St Mary Residences is both urbane and stylish, The Mews will have an understated elegance in earthy tones and colours. This will be E&O’s first joint-venture development with Japan’s largest developer Mitsui Fudosan Residential Co Ltd with E & O having a 51% stake.

When E&O’s deputy managing director Eric Chan first unveiled the company’s plans for this project a couple of years ago, they mulled over what would appeal to females. Hence, the large shoe cabinets and storage area. Units come with bedroom and kitchen built-ins.

There will be one parking bay for one-bedroom units, two for two-bedders and three for the larger units. The penthouses will have four parking bays.

The development will come with pool, gym and squash courts and concierge services. According to Chan, about 70%, or 180 units have been sold, of which about 20 units have been purchased by Japanese. About half the buyers are Malaysians. Shuttle services will also be provided to Twin Towers and the vicinity. With the traffic situation in the Klang Valley today, that will be a huge plus.

From what is seen of St Mary Residences and Dua, The Mews is expected to be another oasis in the busy and bustling city centre.

On how the various cooling measures will affect sales, Chan says the long term prospects for the sector are still good.

“We are still in the first three months of the year. We are focusing on the long term,” says Chan.

Mitsui Fudosan (Asia) Pte Ltd executive director (head of residential team) Tomoo Nakamura says it has been a good experience working with Chan and his team and this partnership will pave the way for further cooperation.

Dense development

The largest project along that Yap Kwan Seng stretch is Star Development with prices beginning from RM1,500. It will be built on commercial land and there will be 1,500 units on four acres, or 375 units of residences per acre compared with Mirage’s 100 units, and Mews’ 198 units. There will also be a retail portion. While there is convenience, it may not be that private.

It will be the most dense among the three projects but in terms of proximity, it will be the closest to the Twin Towers. Located behind Avenue K mall, it will be within walking distance to the KLCC LRT station via Avenue K. Because Star Development is built on commercial land, upkeep and maintenance will be a consideration. Also, the price of the unit does not include a car parking bay. Residents will have to rent it at RM150 to RM200 a month. Moving forward, having a unit that comes with a car park will be a luxury.

A point to note is this: If one is buying for investment, there are literally thousands of smallish one-bedders in the Klang Valley today and there will be more entering the market as projects come to completion. Getting it tenanted may not be that easy. Most of the buyers at Star Development may be foreigners as small units tend to attract investors.

Another thing to note is the price, which has moved up considerably from RM1,000 to RM1,700 psf in a matter of two to three years – a jump of 70%. All three projects are not comparable because they are not homogeneous, both in terms of location and finished product.

The steep rise in price is something to be considered, especially in today’s volatile times. There is a lack of clarity for now and with inflation at a 25-month high of 3.2%, those who have the means may well consider a branded unit. But there will be many others who will settle for bread-and-butter housing, without the frills.

Either way, with the various cooling measures in place and maybe more to come, a property investment is for the long term and for those who have the holding power. - The Star

An effortless way to get rental yield

Firstly, let’s define “effortless” in the context of rental yield.

Effortless means, without the huge initial capital, the hassle of securing tenants or the renovation costs involved to make a property “tenantable”.

Deep down, which property investor really enjoys managing tenants or is fond of the costs associated with it, such as renovation costs, repairs, etc?

Yet, this is a small inconvenience compared to the potential capital gain an investor can reap in a relatively short time, using the power of leverage.

For more sophisticated investors, they would gravitate towards the passive nature of rental income. Not as thrilling as capital gain, but this still outweighs the pain that comes with tenant management.

If any property investor were to have a magic wand to redefine the ideal property investment, I reckon it would be close to what is written below.

“Perpetual inflation-adjusted rental income and doubling of property value every (insert your desired number) years, with a competent manager to manage all tenancy related matters besides not being entry-cost prohibitive.”

That something “close”  lies in Real Estate Investment Trust (REIT) counters has dropped so much for the past month or so. Seriously.

Here’s a review of what kind of yield you’ll be getting with reference to closing prices on Dec 31, 2013. The actual Distribution per Unit (DPU) or final dividend for most REITs in the financial year 2013 will be published in each respective REIT annual report in two to three months’ time.

Note: Bear in mind – these are gross yields. The net yield is 90% of the gross yield which is the amount which goes into your pocket. The 10% gets deducted at the REIT level as withholding tax.

Retail REITs

Retails REITs are one of the most “defensive” but their profit margin is going to be impacted the most by the hike in electricity tariffs taking effect this year. It is interesting to see how retail REIT managers are managing this by passing on the costs to tenants so that their shareholders still get decent distributions.

Sunway REIT closed at RM1.24 for the year 2013. If its DPU is not less than 8.3 sen in future, the yield is at a minimum of 6.7%.

In relation to Pavilion REIT at a closing price of RM 1.28, its DPU of 6.8 sen will give you 5.3%.

Capita Malls Malaysia Trust will give you a 6.0% yield with DPU of not less than 8.44 sen with reference to a closing price of RM1.40.

If Hektar REIT can maintain its DPU at 10.5 sen, then you as the prudent investor, will get 7% easily at an acquisition cost of RM 1.50 per share.

Office REITs

Let’s look at offices, which are generally less defensive due to oversupply. However, bear in mind that it is mostly the new office buildings that are having difficulty in renting out their units due to this situation. So, I think it is fair that we apply a small “discount” to its last DPU in 2012 due to the overall market performance.

Let’s just assume UOA REIT is able to distribute not less than 10.2 sen per unit going forward, so you would have essentially locked your yield at 7.0% with a cost of RM1.45 per share.

How about Tower REIT? If it is able to declare at least a DPU of 11.2 sen (Its 2012 DPU was at 11.52 sen), then the investor is getting 7.47% return at an entry price of RM 1.50, doing nothing.

If AmFirst REIT is able to declare 6.7 sen DPU going forward, thena  6.7% yield is certain, if your cost of acquisition was at RM1 per share.

Similarly, Quill Capita Trust’s estimated DPU of 8.3 sen (or more going forward) will bring a 7.0% return with an entry price of RM1.18.

Industrial REITs

Axis REIT has dropped tremendously from its previous high to RM2.93 per share. It has enjoyed the reputation of increasing its DPU year after year even during times of economic recession. Therefore, it should be able to declare even a slightly higher DPU than last year’s 18.5 sen – say, 18.8 sen. Therefore, you will be effortlessly getting a yield of 6.41%.

Should the underdog in industrial REITs, Atrium, be able to distribute at least 8.80 sen per unit moving forward, a DPU of 6.77% is certain for cost per share at RM1.30.

The reader needs to understand that the DPU is correlated with rental income, which should increase over time, regardless of a bull or bear cycle. This is absolutely true for REITs with a long proven track record like Axis REIT. Also, there is no reason why quality assets acquired by REIT should outpace inflation in terms of rental income return.

It is true that property investments have made many millionaires in a relatively short time. However, I think it is also true that unsuccessful stories are seldom told, as evident in this article - Completed but empty: Will Budget 2014 help fill up vacant properties? You don’t want to be the proud owner of a luxury condo unit and yet be “bleeding money” internally – hanging on your property in the hopes of selling for a profit.

This is especially true if you do not have the holding power. While laymen investors might not be aware and are eager to jump on the bandwagon, insiders tell us that it is a distortion of the market. Too much money is spent speculating on property, while the main core of the market cannot afford them at these prices.

REIT investment is one alternative to shield ourselves from the hassle and risks associated with direct property investment, especially during times when the property market is hot. It may not be as exciting as direct property investment, but if you ask me, I will always consider the risks first before the potential returns that come along with it. In this case, the risk from direct property investment is quite evident from various independent sources should an investor lack holding power.

I am obliged to tell you that I am holding long positions in most of the REITs listed above. The above should be construed as an invitation to buy. If you buy, I have nothing to gain and am not responsible for your profit or loss.

Lieu Ching Foo is the founder of the Malaysian personal finance blog – “LCF on Personal Finance” and is the co-founder of the “REITMethod” online educational program. He is also an advisor with the financial advisory firm Fin Freedom. - The Star

The Mews Gallery launched in Kuala Lumpur

KUALA LUMPUR: The launch of the newly-opened gallery of The Mews serviced residences in Kuala Lumpur was attended by representatives of Malaysian premier lifestyle property developer Eastern & Oriental Berhad (E&O) and Japan’s largest developer, Mitsui Fudosan Residential Co. Ltd (Mitsui Fudosan).

E&O and Mitsui Fudosan inked a joint venture in March 2013 to develop The Mews serviced residences comprising 256 custom-designed residential units distributed evenly over 38-storey twin towers sited on 1.29 acres of land just off Jalan Yap Kwan Seng.

The Mews gallery, showcasing fully fitted one, two and 2+1-bedroom show units for The Mews, was officially launched at a Japanese-themed ceremony attended by E&O board members and senior management, representatives from Mitsui Fudosan and close to 100 guests.

A view of the dining area at The Mews serviced residences.

“This gallery brings to life the brand and persona of The Mews. Our appointed team of interior designers have meticulously infused different characters to each show unit, whilst subtly weaving in elements that reflect a refined Japanese style. Each element in the show unit is there to articulate the different lifestyles that The Mews caters to,” said E&O deputy managing director Eric Chan.Mitsui Fudosan residential overseas business department II general manager Ryousuke Uematsu said, “Together with our partners E&O, we are very proud to present our buyers and potential buyers with this elegantly furnished collection of show units that sets a new benchmark for modern urban living, reflecting the essence of The Mews – which is understated stylish simplicity.”

Targeted for completion in 2017, unit choices at The Mews range from built-up areas of 922sq ft to 2,619 sq ft, of which 75% of total units are 1- and 2-bedroom serviced residences. Meanwhile,  20% of the units follow a 2+1 layout, while the remaining four are penthouse units. The positive response to The Mews is evident with its take-up rate already reaching 70%, even at the soft launch stage.

In line with The Mews’ objectives of superior form and function, some of its features include master bedrooms paired with  en-suite bathrooms, a walk-in wardrobe and shoe closet, concealed split air conditioner system, water heaters and a full set of kitchen appliances.

The sixth floor of The Mews showcases the development’s water sanctuary facilities. A lawn and private garden are located on the 37th floor where residents can enjoy a view of the city.

Tapping on E&O’s hospitality and management expertise, The Mews come with E&O’s signature five-star concierge service and emphasis on security systems.

“The Mews is a testament of E&O’s passion in delivering properties that are ever cognisant of our customers’ aspirations. We are fortunate to be working with our highly-esteemed partners at Mitsui to deliver on this promise,” said Chan.

“We are very happy to see how the Mitsui-E&O partnership that began in 2011 has flourished and we look forward to strengthening our collaboration in the future,” said Uematsu. - The Star

KSL Week draws property enthusiasts

Members of the public were given an exclusive view of the property market at KSL Week which was organised by KSL Holdings recently.  KSL Week was held at Canary Garden@ Bandar Bestari, KSL’s 448-acre flagship development in the Klang Valley which boasts a French-inspired garden.

KSL Week’s activities include two talks, a property showcase by KSL Holdings and test drive opportunities by BMW Malaysia.

Visitors and guests during the event received the latest updates on Canary Garden’s development progress for its residential phases, with completion slated for the second quarter of 2014. Also included in the presentation were the details of its 52-acre French garden and images depicting the progress of the first phase, the proposed Canary Garden club, as well as additional news and details of Canary Garden,  dubbed the ‘Commercial City’.

The first talk, entitled “Greater KL Update and Growth Pattern for Klang” was presented by property valuer Ho Chin Soon as part of KSL Week, which featured KSL’s portfolio of residential and commercial properties. The second, presented by TY Teoh International national tax director Richard Oon addressed the property market in light of Budget 2014.

Property expert Ho Chin Soon delivers his talk entitled ““Greater KL Update and Growth Pattern for Klang”.

Ho, a fellow of the Institution of Surveyors and a registered valuer with the Board of Valuers, Appraisers and Estate Agents presented on the connectivity of the MRT project and the growth patterns, showing images of the railway lines that are being developed while discussing rising property prices. Ho also explained the Quick House Price Index, pointing out that Kuala Lumpur house prices have increased by more than threefold in the past 22 years.

He also spoke on Canary Garden being situated on the last freehold land in Klang and its position as the next growth corridor, seeing that the township is aligned to many highways such as the  South Klang Valley Expressway (SKVE), Federal Highway, KESAS, the North- South Expressway Central Link and the proposed West Coast Expressway.

During the post-budget talk, Oon highlighted topics such as special relief for middle income tax payers and the decrease in individual income tax rates, also in view of the Goods and Services Tax (GST) that will implemented in 2015.

TY International national tax director Richard Oon.

Stating that “property investment is still a lucrative way of making money,” Oon said that the implementation of GST would affect investors during property transactions, and in relation to commercial properties prices as well as SOHO(Small Office/ Home Office) and SOVO (Small Office/ Versatile Office) units, depending on whether the units fall within the residential or commercial sector. Oon is attached to TY Teoh International,  a leading consulting service provider, a member firm of MSI Global Alliance with more than 20 years’ experience in taxation and business advisory.

Visitors at KSL Week were also invited to test drive various models of BMWs courtesy of KSL Holdings’ collaboration with BMW Malaysia, with interested buyers being offered rebates of RM150,000. - The Star

Ewein has value in mind

PETALING JAYA: Ewein Bhd’s joint venture with Consortium Zenith BUCG Sdn Bhd to develop a 3.67-acre freehold plot in Penang will be a mixed development which will provide high yields for purchasers.

Datuk Zarul Ahmad Zulkifli (pic), who is the chairman for both Ewein’s wholly-owned subsidiary, Ewein Land Sdn Bhd, and Consortium Zenith BUCG, said the planning for the project was still at a preliminary stage.

He pointed out that the joint venture would want to “do one thing at a time” and focus on establishing the Ewein Zenith brand first.

“Whatever we do, we will consider the buyers’ needs and will ensure that the properties we develop are able to provide high yields for them.

“Some of the value-adding features for the houses might include private lifts to apartments as well as medical facilities within the development to enhance response time,” he told StarBizWeek over the phone.

Ewein Land and Consortium Zenith BUCG’s 60:40 joint venture Ewein Zenith Sdn Bhd, had bought the land in Bandar Tanjong Pinang for RM133mil as part of Ewein’s intention to diversify its business. Ewein’s core business had been metal fabrication.

The land is the Penang state government’s payment to Consortium Zenith BUCG for its works for the multi-billion ringgit undersea tunnel project.

Zarul said: “As the consortium does not receive money upfront, we need to get the developer (in this case Ewein) to fund part of the construction works of the tunnel.”

Ewein is paying close to RM80mil for its 60% stake in this development project.

He explained that the consortium would be paid by the state government based on work completed and anticipated the milestone deliverable claims to be completed by March.

“However, we cannot wait for that as it will impact the developer’s cashflow. Hence, we are already planning while waiting for the land title,” he explained.

Once approvals from authorities are obtained, Zarul said he expected the project to be completed in two-and-a-half years.

Commenting on the property market, he said the economic growth in the northern region as well as the connectivity, which would in turn help to disperse traffic in the Pearl of Orient, would support the housing prices in Penang.

Asked if Ewein would get a share in the construction works of the third link, he said Ewein would be the partner for the property development but it would not be involved in the direct construction of the tunnel. The Star