month: february 2017 issue: 02/2017 property...

PA INTERNATIONAL PROPERTY CONSULTANTS (KL) SDN BHD

Phone: 03-7958 5933

Fax: 03-7957 5933

Website: http://www.pa.com.my

Email: [email protected]

MONTH: FEBRUARY 2017 ISSUE: 02/2017

Property

News

PA International Property Consultants is a registered

real estate firm committed to providing a comprehensive

range of property solutions to meet the needs of investors, occupiers and developers.

The Research Division provides core real estate

information to clients and internal departments in order to

ensure accurate real estate decision-making. Our research

team has completed market studies and research work for

various ongoing development schemes within Klang Valley,

providing comprehensive economic analysis, property

market information, forecasts and consulting advice based

on reliable sources.

We constantly strive to present the most up-to-date

market knowledge in order to ensure clients are well-

armed with sufficient data to make the right property

decisions.

Issue 2: 1- 28 February 2017

Our philosophy is simple: A unique combination of People, Intellectual Property, Relationships, Services and Commitment

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GENERAL ECONOMIC & PROPERTY MARKET

1. Tighter rules for foreign buyers (New Straits Times, 6 February 2017 )

� The Penang government has introduced measures to control the purchase of properties by foreigners

in state which included the following:

- Allow foreigners to purchase only landed properties costing not less than RM2 mil on the island

and not less than RM1 mil on the main land.

- Foreigners were not allowed to purchase stratified properties costing less than RM1 mil on the

island and RM500,000 on the mainland.

- Foreigners had been subjected to an approval fee of 3% on top of the purchase price of the

property bought by them since April 2014.

2. PR1MA scheme to boost home ownership (The Star, 14 February 2017)

� Perbadanan PR1MA Malaysia has launched Special PR1MA End Financing (SPEF) scheme to improve

loan eligibility for prospective buyers and also increase home ownership among the bottom 40% and

middle 40% of Malaysian households.

� Under the SPEF scheme, home buyers are required to start repayment of the borrowed principal

amount beginning from the sixth year. For the first five years, the home buyers are only required to

pay loan interests via instalments.

� Alternatively, interested buyers also can opt for the Employees Provident Fund (EPF) Account 2

withdrawal option, by allowing the usage of future contributions in Account 2 to complement the

monthly house loan instalments.

3. GDP expands quicker in Q4 (The Star, 17 February 2017)

� The Malaysian economy grew 4.5% in the 4Q of 2016, supported by the strong showing in the

manufacturing and service sectors, while steady private spending helped to mitigate a decline in

government spending.

� In overall, the economy expanded 4.2% in 2016.

� As measured by the annual change in the Consumer Price Index (CPI), Malaysia’s inflation in the 4Q of

2016 rose by 1.7% compared to 1.3% in the 3Q, and was mainly driven by upward adjustment to

domestic fuel prices during the quarter.

4. CPI up 3.2% in January (The Star, 23 February 2017)

� Malaysia’s consumer price index (CPI) rose 3.2% to 118.2 in January 2017 from 114.5 in the

corresponding period last year, with a 1.1% increase in a monthly basis.

� The rise mainly driven by the higher prices in transport, food and non-alcoholic beverages and

recreation services and culture.

� The CPI is an index which measures the variation in prices paid by consumers for retail goods.



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5. Developers holding back on land banking (The Star, 25 February 2017)

� The slowdown in the property market will see plenty of developers holding back plans to purchase new

land bank this year, as commented by few consultants at the 2017 Property Market Outlook seminar

organized by the Association of Valuers, Property Managers, Estate Agents and Property Consultants in

the Private Sector Malaysia (PEPS).

� Comments by Kenanga Investment Bank Bhd: Developers are cautions about overloading their books

with land as sales may remain lackluster while they concentrate on cash flow and keeping their balance

sheets light. However, SP Setia Bhd and Eco World Development Group Bhd are likely to continue

heavy land banking.

� PEP president: The current growth level in residential prices is healthy and sustainable. The secondary

market has weakened, adding however that many owners are still unwilling to sell below their entry

cost. As for primary market pricing, developers are trying to maintain their asking prices due to higher

replacement costs, by offering incentives and smaller built-ups to increase affordability.

� Finance Ministry: First timers should consider to purchase from secondary or the auction market as

only 46.5% of the residential units under the primary market were priced below RM300,000, whilst

close to 70% of the units in the secondary market were in that range during the first nine months of

2016.

� Kenanga Investment Bank Bhd: Overall residential transactions are expected to be similar to pre-2007

levels. The residential market is seeing a bottoming effect. The Malaysian residential absorption rate is

at a 14-year low, while the major states are seeing 9-10 years low. The population analysis indicated

that the incremental population base demand, namely those turning 30 years old or first home buyers,

has gone back to pre-2007 levels and transactions are likely to start leveling off. Rental yields within

the Klang Valley have been declining for both landed and high rise residential properties.

SIGNIFICANT TRANSACTIONS AND PARTNERSHIPS

6. Mammoth Empire sells Empire Shopping Gallery to PHB, has option to buy it back in 5 years

(The Edge Property, 1 February 2017)

� Property developer and asset manager Mammoth Empire Holdings Sdn Bhd (MEH) has signed the

agreement last week to sell Empire Shopping Gallery in Subang Jaya, Selangor, to Pelaburan Hartanah

Bhd (PHB) for RM570 mil cash.

� It is learnt that MEH has been granted a call option to buy back the shopping mall on the fifth

anniversary of the sale. It also has the right of first refusal to buy the mall should PHB decide to dispose

of it within the five years.

� The Empire Shopping Gallery has a gross built-up area of 600,000 sq ft and net lettable area of 350,000

sq ft spread over 5 levels. A total of 216 tenants occupy 98% of the shopping centre. The mall was

reported to have a net rental yield of 6.5% to 7%.

7. IOI, MJR to build condos at Resort City (New Straits Times, 1 February 2017)

� IOI Properties Group Bhd’s unit, Pine Properties Sdn Bhd, and MJR Investment Pte Ltd will jointly

develop a 676-unit condominium project on a 3.88ha plot at IOI Resort City, Putrajaya.

� The company had entered into a shareholders agreement with MJR Investment to dispose of its 45%

stake in PINE MJR Development Sdn Bhd to MJR Investment.

� IOI Resort City is an integrated development crafted by IOI Properties which comprises Puteri Palma

Condo, Green Building Index-Certified IOI City Towers, Putrajaya Marriott and Le Meridien Putrajaya

hotels, IOI City Mall, the biggest mall in southern Klang Valley, and Palm Garden Golf Club, home to an

18-hole championship golf course.



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8. Prestariang buys 8-storey Cyberjaya property for RM25 mil (New Straits Times, 2 February 2017)

� The building is part of the ongoing mixed development project known as Star Corporate, Star Central

@ Cyberjaya, which is currently developed by Joyful Star Sdn Bhd, a subsidiary of the Emkay Group.

� To-date, the building is 55% into completion and is expected to secure the certificate of compliance

and completion by the 1Q of 2018.

� This building will house EduCloud operations, an integrated education platform which entails campus

management, teaching and learning, entertaining, digital payment as well as online services and

applications, following a tri-patriate memorandum of understanding with Alibaba Cloud and

Singapore’s Conversant Solutions Pte Ltd to build EduCloud.

� Pretariang Bhd which is a computer services company will play the roles of platform owner, app

developer and serviced provider as well as training and certification delivery, among others.

9. Gadang to buy land for RM56 mil cash (The Star, 7 February 2017)

� Gadang Holdings Bhd’s indirect unit, Gadang Construction Sdn Bhd, has entered into a sale and

purchase agreement (SPA) with Nuvista Development Sdn Bhd to buy a 2.66-acre leasehold

commercial land in Damansara Perdana in Petaling Jaya for RM55.7 mil cash.

10. PLB to sell land in Kulim for RM9.6 mil (New Straits Times, 8 February 2017)

� PLB Engineering is disposing of 5,963ha freehold agriculture land in Kulim, Kedah, to Tiong Nam

Logistics Solutions Sdn Bhd for RM9.6 mil in cash.

11. Titijaya Land plans to buy Sri Komakmur for RM70.91 mil (The Star, 28 February 2017)

� Titijaya Land Bhd has proposed to acquire 3,000,000 ordinary shares equivalent to RM3 mil,

representing the entire issued capital of Sri Komakmur Development Sdn Bhd for a purchase

consideration of RM70.91 mil from Tan Chuan Cheong and Tee Tiong Lee.

� The proposed acquisition would enable Titijaya to gain access to 75.444 acres of prime land which is

located near Bank Negara building, Royal Malaysia Custom, Bukit Padang Hospital and Sabah Golf &

Country Club.

DEVELOPMENT LAND

12. Three-year RM1.2 bil Qi City project begins in Bandar Meru (New Straits Times, 2 February 2017)

� Green Venture Capital (GVC) has started work on the Qi City development in Bandar Meru Raya, near

Ipoh.

� The RM1.2 bil project, spread across 10.52ha, is a mixed residential and commercial development

comprising an 840-bed teaching hospital, 3 condominium blocks with 768 units, a lifestyle mall, a

convention centre to cater for up to 1,500 people, and 460 units of hotel suites, and the Quest

International University Perak campus, a subsidiary of Wawasan Qi Properties. The project is slated for

completion by 2020.

� China Energy Hua Ren Industrial Co Ltd has been appointed as the turnkey contractor for the mixed

development project.



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13. Sunway Property eyes RM1bil sales this year (The Star, 15 February 2017)

� Sunway Property has acquired 8.45 acres of land along Jalan Peel, Cheras which is located opposite the

Sunway Velocity Mall, and will develop Sunway Velocity TWO on it.

� With an estimated GDV of RM2 bil, more than 70% of Sunway Velocity TWO will comprise residential

units, complementing Sunway Velocity Mall which consists of 75% commercial units. It will be

developed over a 10-year period.

� The developer proposed to build linkways between Sunway Velocity and Sunway Velocity TWO within

the two integrated developments. Sunway Velocity Mall was launched on Dec 8 and is currently 97%

occupied.

14. RM750 mil mixed development on MCOBA land (New Straits Times, 22 February 2017)

� Sunrise Innovation Sdn Bhd, a wholly-owned subsidiary of UEM Sunrise Bhd will turn a 1.07ha site that

currently houses the Malay College Old Boys Association (MCOBA) building in Jalan Syed Putra into a

mixed development comprising 2 blocks of serviced apartments.

� Targeting mostly owner occupiers, especially families and upgraders from the surrounding areas, the

unit sizes will range between 1,000 sq ft and 1,500 sq ft.

� In return, MCOBA will get a new building and a banquet hall with a capacity for 1,200 people.

RESIDENTIAL PROPERTY IN KLANG VALLEY

15. Aset Kayamas’ Hamilton project sold out in less than four hours (The Edge, 1 February 2017)

Project name Hamilton

Developer Aset Kayamas Sdn Bhd

Location Wangsa Maju

Type of property Condominium (435 units)

Tenure Leasehold

Gross development value (GDV) RM250 million

Launch date Preview on 28 January 2017

Built-up area 1,000 sq ft to 2,200 sq ft

Selling price From RM498,000 onwards



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16. O&C Resources set to launch its first property project (The Edge, 1 February 2017)

Project name Isola KLCC

Developer

O&C Resources Sdn Bhd

(Renamed after the emerging of OCR Land Holdings Bhd and

Takaso Resources Bhd)

Location Jalan Yap Kwan Seng

Type of property Condominium (4 blocks with 140 units and a lift block)

Tenure Freehold


Land area 14,000 sq ft net

Launch date Scheduled to be launched by 1Q 2017

Built-up area 635 sq ft – 1,625 sq ft

Selling price Indicative at RM1,100 to RM1,600 psf

Features

� Each unit will have at least one parking bay

� The units will be partially furnished

� Mechanical car parking system will be implemented

Facilities and amenities

� Business centre

� Party suite

� Sky pavilion deck

� An outdoor screening area

� WiFi-enabled chill-out area

� Yoga deck

� Indoor gym

� 11m sky swimming pool

17. Chap Goh Meh revelry with buyers (The Star, 14 February 2017)

Project name OLO Residence (final tower of D’sara Sentral)

Developer Mah Sing Group Bhd

Location Sungai Buloh

Type of property Serviced residence (25-storey with 197 units)

Tenure Leasehold

Land area

2.7ha (D’sara Sentral is an integrated development

comprising 4 blocks of serviced residence, 1 block of smart

office versatile office (SoVo) and lifestyle retail shops).

Launch date Scheduled in 2Q 2017

Completion date Expected to complete in 4Q 2018

Built-up area 782 sq ft – 1,388 sq ft (7 layouts)

Selling price From RM603,000

Features

� 8 units per floor.

� Living room with double volume which will have high

ceilings and high window panels.

� 50 units with dual key feature (856 sq ft)There will be a

covered walkway linking to Kampung Selamat MRT

station, which is located diagonally across from the

development. The link bridge is expected to be completed

in July 2017.



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18. SP Setia to launch Trio next month (The Star, 27 February 2017)

Project name Trio By Setia

Developer SP Setia Bhd

Location Bukit Tinggi, Klang

Type of property

� Serviced apartment (3 towers with 914 units)

� Commercial spaces (42 units)

� A retail podium


Land area 2.22 hectares

Launch date Targeted in March 2017

Completion date Expected in 4Q 2021

Built-up area

� 656 sq ft

� 915 sq ft

� 1,216 sq ft

Selling price RM412,000 – RM737,000

Facilities & Amenities

� A wading pool

� Viewing deck

� Yoga deck

� Gymnasium

� Playground

� Multipurpose hall

19. Putrajaya Condo project launched (The Star, 28 February 2017)

Project name Flora Rosa

Developer Putrajaya Homes Sdn Bhd

Location Precinct 11, Putrajaya

Type of property Condominium (4 towers with 676 units)

Launch date February 2017

Completion date Scheduled to complete in August 2020

Built-up area

� Type A: 1,399 sq ft

� Type B: 1,184 sq ft

� Type C: 829 sq ft

� Type D: 1,227 sq ft

� Type E: 2,250 sq ft

Selling price From RM426,800

Facilities & Amenities

� Infinity swimming pool and a learner pool

� Jogging and cycling tracks

� A gymnasium

� Surau

� All amid 11.29m acres of landscaped splendour

� Putrajaya Homes is offering a special PjHomes 10:90 scheme whereby purchasers only need to pay a

10% deposit to secure the property, with payment for the remaining 90% only commencing upon the

issuance of the Certificate of Completion and Compliance (CCC).

� Purchasers also get to enjoy the “PjHomes Advantage”, which includes no legal fees for the sales and

purchase agreement and no stamp duty on the memorandum of transfer.

� End-financiers participating in the PjHomes 10:90 scheme include Maybank, CIMB, Bank Rakyat and

HSBC.



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COMMERCIAL PROPERTY IN KLANG VALLEY

20. Genting Highlands to house country’s second Premium Outlet (The Star, 13 February 2017)

� Genting Highlands Premium Outlets is a 50:50 joint venture between Genting Plantations Berhad and

Premium Outlets, the outlet division of Simon Property Group. It will be the second outlet in Malaysia.

Johor Premium Outlets, opened by Genting Simon Sdn Bhd in 2011, was the first premium outlet in

Malaysia and South-East Asia.

� This first hilltop Premium Outlet Centre in South-East Asia will have 150 designer and brand-name

stores offering impressive savings of 25% to 65% daily.

PROPERTY IN SABAH & SARAWAK

21. Titijaya, CREC in tie-up for RM575 mil Kota Kinabalu project (New Straits Times, 27 February

2017)

� Titijaya Land Berhad has a joint venture with China Railway Engineering Corp (CREC) Development (M)

Sdn Bhd on a mixed-use commercial hub in Sabah.

� “The Shore” is a 25-storey project that has a gross development value (GDV) of RM575 million and set

to be the tallest building in Kota Kinabalu city centre upon completion. The project will take between 3

to 4 years to complete and construction is expected to start this year.

� “The Shore” will occupy 0.73ha from the total area of 30.5ha which belong to Sri Komakmur

Development Sdn Bhd that Titijaya acquired their share capital earlier.

� “The Shore” is expected to take three to four years to be completed and construction to start

sometime this year.

� At the same time, a serviced residence management agreement was also signed between Titijaya Land

and The Ascott Ltd to allow the latter to manage the serviced residence components of “The Shore” for

a period of 15 years.

INFRASTRUCTURE AND FACILITIES

22. Matrix in hospital tie-up with Taiwan’s Changhua (New Straits Times, 27 February 2017)

� Matrix Concepts Holdings Bhd, which is the master developer of Bandar Sri Sendayan, Negeri Sembilan,

will partner Taiwan’s Changhua Christian Hospital group to build a RM200 million 400-bed hospital in

the 2,118ha township.

� The 400-bed hospital is to cater for the current population of more than 30,000 residents with a future

target of more than 120,000 by 2022. The hospital is part of a long term development of Bandar Sri

Sendayan, which is fast rising playing host to residential, commercial, industrial, an international school

and the Royal Malaysian Air Force new training and academia centre.

� Changhua Christian Hospital, established in 1896 in central Taiwan, offers more than 3,200 beds and

the full range of specialty departments with specialists in medicine, nursing, medical technology and

management.



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LEISURE & HOSPITALITY

23. Hilton boost for i-City development (The Star, 25 February 2017)

� The DoubleTree by Hilton i-City hotel will take up 23 levels of a 42-storey tower in I Bhd’s i-City

development in Shah Alam, while the remaining floors will comprise 200 units of home suites.

� The 300-room 4-star hotel will have a gross development value of RM250 mil and is slated to be

opened in 2019. Construction began in 2016 and pilling works are in progress.

� The hotel will feature the first 360-degree LED digital canvas in its grand ballroom, supported by state-

of-the-art light and sound systems that surround its circumference to provide guests an unparalleled

experience.

� The hotel will have an 11,000 sq ft of function space spread over 2 floors, 6 versatile meeting rooms

and suites starting from 450 sq ft.

� The 200 units offered for sale will range from 480 sq ft to 880 sq ft. Price starts from RM480,000 per

unit with a GDV of RM124 mil. All the units will come fully-furnished (similar to the hotel) and be an

intelligent home, featuring Internet of Things (IoT) technology.

� The other international hotel in I-City is the 3-star Best Western, which was opened in 2015. The Best

Western has an average occupancy rate of around 80%.

OTHERS

24. Mah Sing’s Icon City gets Cyber-centre status (The Star, 21 February 2017)

� Mah Sing Group Bhd has obtained Multimedia Super Corridor (MSC) Malaysia Cyber-centre status for

its Icon City in Petaling Jaya. Cyber-centres function to create an ecosystem that fosters a competitive

environment to attract, nurture and retain information technology-enabled industries.

� The Cyber-centre status allows companies within Icon City to enjoy competitive financial incentives,

namely the pioneer status which is a 100% tax exemption for up to 10 years or an investment tax

allowance for up to 5 years and duty-free importation of multimedia equipment.

� The status will also give companies the freedom to source capital globally for MSC Malaysia

infrastructure, freedom of ownership by exempting companies from local ownership requirements, the

right to borrow funds globally, the right to employ local and foreign workers, and no Internet

censorship.

� With an estimated gross development value of RM3.2 bil, Icon City, the 20-acre integrated

development, is located at the intersection of Federal Highway and Damansara-Puchong Highway.



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25. BBCC developer signs deal for Zepp concert hall (The Star, 11 February 2017)

� BB Development Sdn Bhd, the developer of the Bukit Bintang City Centre (BBCC) project, has signed an

agreement to lease with Zepp Hall Network Inc (Zepp Hall), for the latter to operate a Zepp branded

concert hall at BBCC.

� Zepp Hall is a subsidiary of Sony Music Entertainment (Japan) Inc (Sony Music Japan) and its core

business is concert venue operations.

� Besides bringing a refreshing and unrivalled experience for concert goers, Zepp Hall will introduce their

first-of-its-kind VIP boxes in their venue in BBCC.

� The Zepp concert hall will span over 70,000 sq ft, making it the anchor operator in the Entertainment

Hub which will also house a multi-hall Cineplex, the Malaysian Grand Bazaar and a Banquet Hall at

BBCC and is slated to open by 2020. The entertainment hub is directly connected to a 1.4 million sq ft

lifestyle retail mall.

� BBCC sits on 19.4 acres of land and will have a total gross built-up area of 6.7 million sq ft, and will

comprise six blocks of serviced apartments, a retail and entertainment block, a 4-star hotel with

branded residences, a strata office and an 80-storey three-in-one signature tower housing a 5-star

hotel, luxury residences and corporate offices.

-END-

month: february 2017 issue: 02/2017 property...

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