JOHOR BAHRU (Nov 25): The state government's scheme to help the low-income group obtain loans for affordable homes in Johor will be available in January.
State Housing and Local Government Committee chairman Datuk Abdul Latif Bandi said the scheme drawn up by the state government and Ambank Islamic Bhd was a proactive move to help realise the people’s aspirations of owning a home.
"This scheme helps the target group obtain their housing loans, which are difficult to be approved by other commercial banks.
"Through this scheme, Ambank Islamic will provide funds totalling RM300 million to ensure that the target group obtain financing for their homes," he said at the Johor state legislative assembly sitting in Nusajaya yesterday.
Latif was replying to questions from Puan Sri Azizah Zakaria (BN-Parit Raja), Datuk Dr Adham Baba (Pasir Raja) and Datuk Syed Sis Syed A Rahman (Tanjung Surat) relating to the affordable housing applicants’ difficulty in securing a bank loan despite having received a eligible affordable housing certificate from the Housing Division of the Johor State Secretary.
Latif said the scheme was the brainchild of Menteri Besar Datuk Seri Mohamed Khaled Nordin, who announced it when tabling the 2016 Johor Budget on Thursday.
The scheme will assist those eligible to obtain financing for an affordable home, particularly Package A type units priced at RM42,000, and Package B at RM80,000.
Source: http://www.theedgeproperty.com.my/
Friday 27 November 2015
Monday 26 October 2015
RM130m data centre coming up in Nusajaya Tech Park
NUSAJAYA, Oct 26 — VADS Bhd is investing RM130 million to build its a two-phase purpose-build data centre in Nusajaya Tech Park, as part of its strategy to cater to the growing demand for data business in the region.
Chief Excutive Officer Massimo Migliuolo said the first phase of the data centre would comprise a built-up area of 30,000 square feet on a 3.213-hectare piece of land.
“The expansion for the second phase will be based on market requirements.
“What is important is that the market is growing very fast and the industry demands purpose-build data centre,” he told reporters after the ground-breaking ceremony for the centre by Johor Menteri Besar Datuk Seri Mohamed Khaled Nordin at the Nusajaya Tech Park here today.
The first phase is expected to be completed in the first quarter of 2017, Migliuolo said.
VADS Data Centre, which is a carrier neutral data centre, would also house Telekom Malaysia (TM) Iskandar international gateway, that would serve as a regional hub in providing services such as end-to-end managed information communication technology (ICT) services, cloud services via digital marketplace and high-speed broadband connectivity to its Malaysia and ASEAN customers.
Meanwhile, TM Group Chief Executive Officer Tan Sri Zamzamzairani Mohd Isa said the growth trend of data businesses have been growing quite steadily over the years.
“Over the past two years, data businesses for the group have been growing about 26 per cent. If you look at that, certainly the trend will continue, which is one of our important components in the business,” he said.
In terms of contribution to the group, Zamzamzairani said non-voice business had become a major contributor with 70 per cent contribution since 2012, with data businesses continuing to contribute to that segment.
VADS, which is a wholly-owned subsidiary of TM, provides managed integrated ICT/business process outsourcing services. — Bernama
Chief Excutive Officer Massimo Migliuolo said the first phase of the data centre would comprise a built-up area of 30,000 square feet on a 3.213-hectare piece of land.
“The expansion for the second phase will be based on market requirements.
“What is important is that the market is growing very fast and the industry demands purpose-build data centre,” he told reporters after the ground-breaking ceremony for the centre by Johor Menteri Besar Datuk Seri Mohamed Khaled Nordin at the Nusajaya Tech Park here today.
The first phase is expected to be completed in the first quarter of 2017, Migliuolo said.
VADS Data Centre, which is a carrier neutral data centre, would also house Telekom Malaysia (TM) Iskandar international gateway, that would serve as a regional hub in providing services such as end-to-end managed information communication technology (ICT) services, cloud services via digital marketplace and high-speed broadband connectivity to its Malaysia and ASEAN customers.
Meanwhile, TM Group Chief Executive Officer Tan Sri Zamzamzairani Mohd Isa said the growth trend of data businesses have been growing quite steadily over the years.
“Over the past two years, data businesses for the group have been growing about 26 per cent. If you look at that, certainly the trend will continue, which is one of our important components in the business,” he said.
In terms of contribution to the group, Zamzamzairani said non-voice business had become a major contributor with 70 per cent contribution since 2012, with data businesses continuing to contribute to that segment.
VADS, which is a wholly-owned subsidiary of TM, provides managed integrated ICT/business process outsourcing services. — Bernama
Iskandar Malaysia drew RM27.22b investments in Jan-Sept 2015
JOHOR BAHRU, Oct 21 — Iskandar Malaysia attracted committed investments worth RM27.22 billion between January and September this year, said Iskandar Regional Development Authority (IRDA) Chief Executive Datuk Ismail Ibrahim.
The economic region drew a total of RM185.34 billion in committed investments from 2006 to September 2015, with local investors accounting for 59 per cent or RM109.78 billion and foreign investors the remaining 41 per cent or RM75.56 billion.
“Of the total, realised investments in various sectors comprised 49 per cent or RM90.57 billion,” he said in a statement today.
Ismail said the top five countries investing in Iskandar Malaysia between 2006 and September this year were Singapore, China, the US, Japan and Spain.
The largest investments were in the manufacturing sector at RM52.10 billion, logistics (RM5.45 billion), tourism (RM3.10 billion), healthcare (RM2.65 billion), education (RM2.06 billion), financial services (RM0.74 billion) and creative industies (RM0.56 billion).
Other sectors that supported growth in the region were the property sector, with the residential, retail and industrial segments accounting for RM94.94 billion in committed investments, followed by utilities (RM12.64 billion), and government investments in infrastructure (RM8.99 billion) and new technologies (RM2.12 billion). — Bernama
The economic region drew a total of RM185.34 billion in committed investments from 2006 to September 2015, with local investors accounting for 59 per cent or RM109.78 billion and foreign investors the remaining 41 per cent or RM75.56 billion.
“Of the total, realised investments in various sectors comprised 49 per cent or RM90.57 billion,” he said in a statement today.
Ismail said the top five countries investing in Iskandar Malaysia between 2006 and September this year were Singapore, China, the US, Japan and Spain.
The largest investments were in the manufacturing sector at RM52.10 billion, logistics (RM5.45 billion), tourism (RM3.10 billion), healthcare (RM2.65 billion), education (RM2.06 billion), financial services (RM0.74 billion) and creative industies (RM0.56 billion).
Other sectors that supported growth in the region were the property sector, with the residential, retail and industrial segments accounting for RM94.94 billion in committed investments, followed by utilities (RM12.64 billion), and government investments in infrastructure (RM8.99 billion) and new technologies (RM2.12 billion). — Bernama
Tuesday 13 October 2015
Trends in the Malaysian property market
THE look and feel of Malaysian homes are changing, say members of the Real Estate and Housing Developers’ Association Youth Malaysia (Rehda Youth). They attribute this to changing demographics, more sophisticated property buyers, the rising cost of living and the need to keep property prices affordable. Here, young property developers describe the current and emerging trends in the local property market.
The general consensus among developers is that more mixed-use developments will be built across Malaysia over the next 5 to 10 years. These projects, which incorporate residential, commercial, entertainment, recreational and even cultural components, are already mushrooming across the Klang Valley, Iskandar Malaysia and in new townships.
These mix developments see homes, offices, restaurants, shops and entertainment outlets stacked vertically on each other or constructed within walking distance. Developers say the popularity of these projects reflects the changing behaviour and mindset of young home buyers.
“Young home buyers have different expectations and they want facilities that allow them to live a certain lifestyle. So, property developers are building an environment that fosters the desired lifestyle of our buyers.
Gone are the days when we only had to provide a swimming pool and playground. Now, we provide facilities, amenities and connectivity,” says KIP Group director Valerie Ong.
“In mix-use developments, property developers look at the physical layout, facilities, architecture and design of the residential units as well as the office space, mix of retail outlets, parks or recreational spaces and connectivity to roads and transport hubs. Ideally, all these are available and easily accessible. Mixed-use developments, which are also known as integrated developments, are transforming Malaysia’s property landscape.”
Datuk Seth Yap, executive director of M101 Holdings Sdn Bhd, says mixed-use developments have given rise to another trend in the Kuala Lumpur city centre.
Property investors are looking for “condotels”, or condominium hotels. These are residences that merge the best features of condominiums and hotels and offer a luxurious living experience for tenants.
“Condotels are currently very popular among global property investors. They are looking for condotels with a global brand name,” says Yap.
“This is a very competitive market and buyers are looking for more than just a home. They are looking for a lifestyle and association with a premium brand.
They want a home with the amenities and services of a four or five-star hotel.”
Mixed-use projects are touted as “greener” developments as they make the best use of the land and supporting infrastructure. Connectivity to a transport hub, such as a mass rapid transit or bus station, allows residents to take public transport and scale down the use of private cars.
“The living environment in these developments is more compact, but the quality of life is maintained or made better. Young adults have a tendency to look for things to do. Their lifestyle can be described as ‘living out’ as opposed to ‘living in’, which is the desire to spend time at home. The young want to socialise, engage and connect with each other and they are looking for property that enables this lifestyle,” says Ong.
To cater for this buying behaviour, developers have started to build more common facilities and amenities within their residential developments. “Facilities that used to be nice-to-have have turned into a competitive advantage. Now, developers have to provide residential units with beautiful landscaping and a swimming pool located on a high floor. They may even provide two or three swimming pools to stand apart from their competitors,” says Ong.
“Niche facilities, such as yoga rooms, movie room and bar with a view, are also increasingly common. When aspiring home buyers inquire about a project, they ask about the facilities and view before asking about the size of the unit and number of bedrooms. They will pick a development that has facilities they can enjoy with their friends. Unusual facilities give them bragging rights and are fun to use.”
More residential buildings are including food and beverage options as part of the development, she adds. Eating outlets trump retail space as the former supports the community-based lifestyle, which needs a physical place to congregate.
“Retail outlets, especially shops selling fashion brands, are increasingly less relevant. Young adults are going online to shop. The affluent would rather go overseas to shop. This means that retail outlets are less likely to pull a crowd,” says Ong.
“But everyone needs to eat and millennials eat out more often than the previous generations. Many younger adults are foodies; a lot of them love to eat. A restaurant or bar is also used as a space to gather and socialise. These days, even work meetings and networking sessions are held at dining outlets.”
Aged care facilities
Malaysia is expected have an aged population by 2030. Longer life expectancy and a rapidly greying population will require aged care facilities — another emerging trend in the property market, say developers.
“Caring for and supporting the needs of the elderly will become even more important in the coming years. Aged care is more than nursing homes. It refers to adequate housing, healthcare services, medical services, community and leisure facilities that meet the needs of the elderly,” says Kong Sze Choon, CEO of UOA Asset Management Sdn Bhd.
“Housing is essential for everyone. I hope to see a greater emphasis on aged care housing and facilities from developers and the government. Baby Boomers are getting older and they have their own set of needs. But it is getting increasingly difficult for a typical household made up of working parents with school-going children to provide the care required by their elders. Furthermore, homes are getting smaller these days. The older generation is less willing to stay with their adult children.”
Kong sees an opportunity for property developers to cater for the needs of the ageing Baby Boomers who want to maintain an active and social lifestyle. “This is a burgeoning industry in Malaysia. There are two aged care developments that are currently being constructed, but there is growing demand from ageing locals and foreigners who are looking to retire in Malaysia. Japan, the country with the largest number of elderly people in the world, is the world leader in aged care facilities. Aged care developments here are likely to take their cue from the facilities in Japan.”
Senior citizens who live in these developments are encouraged to maintain their independence and lifestyle, and medical services must be available. According to a report by non-profit organisation Help Age, people are living longer but they are also increasingly battling chronic illnesses such as heart and respiratory diseases.
M101 Holdings’ Yap says a number of Japanese investors have approached him to explore the possibility of developing aged care facilities in Malaysia that target the Japanese community. “Malaysia is an excellent location for aged care facilities. The weather is generally mild. Supporting infrastructure such as roads are available and the price of land is affordable when compared with neighbouring countries. The preference is to build a facility in or near a city. This way, senior citizens can enjoy urban living with a city buzz.”
The challenge is in providing professional care services. Medical expertise for age-related health problems is not readily available in Malaysia, he observes. “I would say that the property industry could easily develop the physical structure needed for an aged care facility. The challenge is in providing world-class medical and healthcare for the elderly. It is possible to partner an international service provider, a global brand name that specialises in aged care, but the development would have to be very big with a large number of residents to be cost-efficient and affordable. Aged care is a very young industry in Malaysia and still lacks critical mass, but the potential for growth is there.”
Smaller intelligent homes
The rising of property prices are perhaps the main concern of aspiring house buyers. Stringent lending regulations have also made it harder for them to seek financing. Developers are well aware of the need to keep prices affordable. To do so in the current environment of rising costs, and the need to offer more common facilities within a residential development, has resulted in smaller houses.
“It is a house buyer’s market for property now and the ceiling price for new developments are suppressed by the country’s income level. Property developers have to balance between cost of construction, the extremely high cost of land if it doesn’t have a landbank, and the price that the property can be sold at. The result is smaller homes, but this also fits the lifestyle of millennial house buyers. They prefer facilities over personal living space,” says Yap.
He points to the average size of homes in Singapore and Hong Kong. “In these countries, apartments and condominiums are generally between 600 and 1,000 sq ft. Buyers readily accept a 700 sq ft, two-bedroom unit.
I think Malaysia’s property market tends to trail that of Singapore and Hong Kong.”
New high-rise residential units in Kuala Lumpur are around 700 sq ft, says Yap. “Units of 1,000 sq ft or more are no longer being constructed. The average size is 700 sq ft. There are units that are smaller; 300 sq ft is not uncommon. If a development offers units of 300 sq ft and 1,000 sq ft, the former will outsell the latter. It is more affordable and from an investor’s perspective, there is more room for capital appreciation. The rental yield is also much higher for the smaller unit.”
KIP Group’s Ong notes that bedrooms are shrinking as houses get smaller. “This is in line with the young house buyer’s preferences. Personal space is less important, so the bedroom is becoming more compact. This way, more space can be allocated to the living and dining rooms,” she says.
Although smaller, new houses are increasingly fitted with technological innovations. Smart or intelligent homes appeal to the young tech-savvy house buyer. “Millennials are attracted by new concepts and features such as mobile security systems that allow them to use a mobile phone to view their home when they are outside. They are tech-savvy and are aware that such homes need to be protected from hackers. Given the choice, millennial house buyers would opt for a development with such connectivity and conveniences,” says Jane Leong, senior general manager for Mah Sing Group.
The dual key concept
A dual key home is a residential unit that can be split into two apartments. Both are self-contained and share a common foyer and single title. One apartment is typically smaller, much like a studio apartment with its own lock, small kitchen and bathroom. This concept allows several generations of a family or strangers to maintain their independence while living together.
“These homes are popular with investors and owner-occupiers because they offer flexibility for a multi-generational family to live together. It also presents the opportunity for passive income if one unit is rented out,” says Kong.
“Millennials are great influencers. They typically have a say in the type of property that is bought even if they are not the ones footing the bill. Dual key properties appeal to young adults who are starting their career but living with their parents, as well as families that are taking care of the elderly, says Leong.
Green homes
Sam Tan, group managing director of Ken Holdings Bhd, says green home building is still a growing trend. “The developer’s priorities have not changed. We still aim to provide our home buyers with a good quality of life. This often requires the best use of resources and a clean and green environment for the home. Green home building is a trend that can be seen all over the world.
“Interest in the concept is growing and I hope to see more developers adopting green features in their developments. This could be energy-efficient features that can lower utility cost or green designs that promote healthier living for the homeowner. Over time, buyers would appreciate the benefits of a green home and look for properties with such features.”
Source: www.theedgeproperty.com.my/
Mixed-use developments
The general consensus among developers is that more mixed-use developments will be built across Malaysia over the next 5 to 10 years. These projects, which incorporate residential, commercial, entertainment, recreational and even cultural components, are already mushrooming across the Klang Valley, Iskandar Malaysia and in new townships.
These mix developments see homes, offices, restaurants, shops and entertainment outlets stacked vertically on each other or constructed within walking distance. Developers say the popularity of these projects reflects the changing behaviour and mindset of young home buyers.
“Young home buyers have different expectations and they want facilities that allow them to live a certain lifestyle. So, property developers are building an environment that fosters the desired lifestyle of our buyers.
Gone are the days when we only had to provide a swimming pool and playground. Now, we provide facilities, amenities and connectivity,” says KIP Group director Valerie Ong.
“In mix-use developments, property developers look at the physical layout, facilities, architecture and design of the residential units as well as the office space, mix of retail outlets, parks or recreational spaces and connectivity to roads and transport hubs. Ideally, all these are available and easily accessible. Mixed-use developments, which are also known as integrated developments, are transforming Malaysia’s property landscape.”
Datuk Seth Yap, executive director of M101 Holdings Sdn Bhd, says mixed-use developments have given rise to another trend in the Kuala Lumpur city centre.
Property investors are looking for “condotels”, or condominium hotels. These are residences that merge the best features of condominiums and hotels and offer a luxurious living experience for tenants.
“Condotels are currently very popular among global property investors. They are looking for condotels with a global brand name,” says Yap.
“This is a very competitive market and buyers are looking for more than just a home. They are looking for a lifestyle and association with a premium brand.
They want a home with the amenities and services of a four or five-star hotel.”
Mixed-use projects are touted as “greener” developments as they make the best use of the land and supporting infrastructure. Connectivity to a transport hub, such as a mass rapid transit or bus station, allows residents to take public transport and scale down the use of private cars.
“The living environment in these developments is more compact, but the quality of life is maintained or made better. Young adults have a tendency to look for things to do. Their lifestyle can be described as ‘living out’ as opposed to ‘living in’, which is the desire to spend time at home. The young want to socialise, engage and connect with each other and they are looking for property that enables this lifestyle,” says Ong.
To cater for this buying behaviour, developers have started to build more common facilities and amenities within their residential developments. “Facilities that used to be nice-to-have have turned into a competitive advantage. Now, developers have to provide residential units with beautiful landscaping and a swimming pool located on a high floor. They may even provide two or three swimming pools to stand apart from their competitors,” says Ong.
“Niche facilities, such as yoga rooms, movie room and bar with a view, are also increasingly common. When aspiring home buyers inquire about a project, they ask about the facilities and view before asking about the size of the unit and number of bedrooms. They will pick a development that has facilities they can enjoy with their friends. Unusual facilities give them bragging rights and are fun to use.”
More residential buildings are including food and beverage options as part of the development, she adds. Eating outlets trump retail space as the former supports the community-based lifestyle, which needs a physical place to congregate.
“Retail outlets, especially shops selling fashion brands, are increasingly less relevant. Young adults are going online to shop. The affluent would rather go overseas to shop. This means that retail outlets are less likely to pull a crowd,” says Ong.
“But everyone needs to eat and millennials eat out more often than the previous generations. Many younger adults are foodies; a lot of them love to eat. A restaurant or bar is also used as a space to gather and socialise. These days, even work meetings and networking sessions are held at dining outlets.”
Aged care facilities
Malaysia is expected have an aged population by 2030. Longer life expectancy and a rapidly greying population will require aged care facilities — another emerging trend in the property market, say developers.
“Caring for and supporting the needs of the elderly will become even more important in the coming years. Aged care is more than nursing homes. It refers to adequate housing, healthcare services, medical services, community and leisure facilities that meet the needs of the elderly,” says Kong Sze Choon, CEO of UOA Asset Management Sdn Bhd.
“Housing is essential for everyone. I hope to see a greater emphasis on aged care housing and facilities from developers and the government. Baby Boomers are getting older and they have their own set of needs. But it is getting increasingly difficult for a typical household made up of working parents with school-going children to provide the care required by their elders. Furthermore, homes are getting smaller these days. The older generation is less willing to stay with their adult children.”
Kong sees an opportunity for property developers to cater for the needs of the ageing Baby Boomers who want to maintain an active and social lifestyle. “This is a burgeoning industry in Malaysia. There are two aged care developments that are currently being constructed, but there is growing demand from ageing locals and foreigners who are looking to retire in Malaysia. Japan, the country with the largest number of elderly people in the world, is the world leader in aged care facilities. Aged care developments here are likely to take their cue from the facilities in Japan.”
Senior citizens who live in these developments are encouraged to maintain their independence and lifestyle, and medical services must be available. According to a report by non-profit organisation Help Age, people are living longer but they are also increasingly battling chronic illnesses such as heart and respiratory diseases.
M101 Holdings’ Yap says a number of Japanese investors have approached him to explore the possibility of developing aged care facilities in Malaysia that target the Japanese community. “Malaysia is an excellent location for aged care facilities. The weather is generally mild. Supporting infrastructure such as roads are available and the price of land is affordable when compared with neighbouring countries. The preference is to build a facility in or near a city. This way, senior citizens can enjoy urban living with a city buzz.”
The challenge is in providing professional care services. Medical expertise for age-related health problems is not readily available in Malaysia, he observes. “I would say that the property industry could easily develop the physical structure needed for an aged care facility. The challenge is in providing world-class medical and healthcare for the elderly. It is possible to partner an international service provider, a global brand name that specialises in aged care, but the development would have to be very big with a large number of residents to be cost-efficient and affordable. Aged care is a very young industry in Malaysia and still lacks critical mass, but the potential for growth is there.”
Smaller intelligent homes
The rising of property prices are perhaps the main concern of aspiring house buyers. Stringent lending regulations have also made it harder for them to seek financing. Developers are well aware of the need to keep prices affordable. To do so in the current environment of rising costs, and the need to offer more common facilities within a residential development, has resulted in smaller houses.
“It is a house buyer’s market for property now and the ceiling price for new developments are suppressed by the country’s income level. Property developers have to balance between cost of construction, the extremely high cost of land if it doesn’t have a landbank, and the price that the property can be sold at. The result is smaller homes, but this also fits the lifestyle of millennial house buyers. They prefer facilities over personal living space,” says Yap.
He points to the average size of homes in Singapore and Hong Kong. “In these countries, apartments and condominiums are generally between 600 and 1,000 sq ft. Buyers readily accept a 700 sq ft, two-bedroom unit.
I think Malaysia’s property market tends to trail that of Singapore and Hong Kong.”
New high-rise residential units in Kuala Lumpur are around 700 sq ft, says Yap. “Units of 1,000 sq ft or more are no longer being constructed. The average size is 700 sq ft. There are units that are smaller; 300 sq ft is not uncommon. If a development offers units of 300 sq ft and 1,000 sq ft, the former will outsell the latter. It is more affordable and from an investor’s perspective, there is more room for capital appreciation. The rental yield is also much higher for the smaller unit.”
KIP Group’s Ong notes that bedrooms are shrinking as houses get smaller. “This is in line with the young house buyer’s preferences. Personal space is less important, so the bedroom is becoming more compact. This way, more space can be allocated to the living and dining rooms,” she says.
Although smaller, new houses are increasingly fitted with technological innovations. Smart or intelligent homes appeal to the young tech-savvy house buyer. “Millennials are attracted by new concepts and features such as mobile security systems that allow them to use a mobile phone to view their home when they are outside. They are tech-savvy and are aware that such homes need to be protected from hackers. Given the choice, millennial house buyers would opt for a development with such connectivity and conveniences,” says Jane Leong, senior general manager for Mah Sing Group.
The dual key concept
A dual key home is a residential unit that can be split into two apartments. Both are self-contained and share a common foyer and single title. One apartment is typically smaller, much like a studio apartment with its own lock, small kitchen and bathroom. This concept allows several generations of a family or strangers to maintain their independence while living together.
“These homes are popular with investors and owner-occupiers because they offer flexibility for a multi-generational family to live together. It also presents the opportunity for passive income if one unit is rented out,” says Kong.
“Millennials are great influencers. They typically have a say in the type of property that is bought even if they are not the ones footing the bill. Dual key properties appeal to young adults who are starting their career but living with their parents, as well as families that are taking care of the elderly, says Leong.
Green homes
Sam Tan, group managing director of Ken Holdings Bhd, says green home building is still a growing trend. “The developer’s priorities have not changed. We still aim to provide our home buyers with a good quality of life. This often requires the best use of resources and a clean and green environment for the home. Green home building is a trend that can be seen all over the world.
“Interest in the concept is growing and I hope to see more developers adopting green features in their developments. This could be energy-efficient features that can lower utility cost or green designs that promote healthier living for the homeowner. Over time, buyers would appreciate the benefits of a green home and look for properties with such features.”
Source: www.theedgeproperty.com.my/
Saturday 3 October 2015
Irda confident of hitting RM383bil target by 2025
JAKARTA: The Iskandar Regional Development Authority (Irda) is confident of achieving its investment target of RM383bil by 2025, said chief executive Datuk Ismail Ibrahim.
“We are very optimistic and we have been achieving the investment target every year, in fact last year we attracted over RM25 bil worth of investments, and this year we will get more than RM25 bil,” he told reporters here yesterday after briefing local business people on Irda.
Ismail said investments in Iskandar Malaysia from January 2006 to June 2015 totalled RM172bil, with local investments accounting for 65 per cent.
Singapore is still the biggest foreign investor with investments of RM146bil, followed by China (RM8bil) and the US (RM6bil).
Although Indonesia is not among the top 10 investors - its investments currently amount to only RM1.2 bil - Irda is confident Indonesian companies would expand to the 2,300 sq km region in southern Johor, and will step up promotions in major cities like Yogjakarta, Surabaya and Medan.
“We see Indonesia as having great potential, and we have received positive response.
“Some have already invested, some have yet to decide, and some are still hearing about Iskandar Malaysia," Ismail said.
IRDA is also working to attract investments from ASEAN countries.
Malaysia, the current chair of the regional grouping, wants to see a further strengthening of the Asean Community.— Bernama
Source:http://www.thestar.com.my/
“We are very optimistic and we have been achieving the investment target every year, in fact last year we attracted over RM25 bil worth of investments, and this year we will get more than RM25 bil,” he told reporters here yesterday after briefing local business people on Irda.
Ismail said investments in Iskandar Malaysia from January 2006 to June 2015 totalled RM172bil, with local investments accounting for 65 per cent.
Singapore is still the biggest foreign investor with investments of RM146bil, followed by China (RM8bil) and the US (RM6bil).
Although Indonesia is not among the top 10 investors - its investments currently amount to only RM1.2 bil - Irda is confident Indonesian companies would expand to the 2,300 sq km region in southern Johor, and will step up promotions in major cities like Yogjakarta, Surabaya and Medan.
“We see Indonesia as having great potential, and we have received positive response.
“Some have already invested, some have yet to decide, and some are still hearing about Iskandar Malaysia," Ismail said.
IRDA is also working to attract investments from ASEAN countries.
Malaysia, the current chair of the regional grouping, wants to see a further strengthening of the Asean Community.— Bernama
Source:http://www.thestar.com.my/
MMC unit inks 60 year land lease with Fuji Oil Asia
KUALA LUMPUR: MMC Corporation Bhd's (MMC) unit Senai Airport City Sdn Bhd (SACSB) has signed a 60-year land lease agreement with Fuji Oil Asia Pte Ltd (FOAPL) worth RM53.9mil.
MMC said on Monday the 10.02ha industrial land in Senai Airport City (SAC), Iskandar Malaysia, Johor would be used by FOAPL to construct and operate its manufacturing facility.
FOAPL, a subsidiary of Fuji Oil Group headquartered in Osaka, Japan, is a global supplier of intermediate food ingredients particularly in specialty oils and fats, confectionary and bakery, soy protein and related consumer foods products.
MMC said the plant would be FOAPL's largest facility outside Japan, adding SAC was selected for its strategic location adjacent to FOAPL's major client, Hersheys largest chocolate manufacturing facility outside North America.
MMC group managing director Datuk Seri Che Khalib Mohamad Noh said SAC has been dubbed by local and international investors as a southern gateway for high-value industries and a hub for international logistics for industries.
"Investors from Singapore, the US, Japan and Korea recognise the advantages of SAC, and I am confident that FOAPL will gain from these advantages as well, he said.
SACSB is SAC's master developer of a 1,099.94 ha. integrated industrial development, targeting various industrial segments such as Free industrial Zone, Hi-Tech and General Manufacturing, Aerospace Maintenance, Repair and Overhaul and Logistics as well as Mixed Development.
It is currently being developed in phases with 40 per cent of the area completed to date with basic infrastructure for various industrial sectors, said MMC.
It is gazetted as a free zone where investors enjoy various incentives under the Iskandar Region including pioneer status, investment tax allowance and Approved Developer Status, it added.
MMC said on Monday the 10.02ha industrial land in Senai Airport City (SAC), Iskandar Malaysia, Johor would be used by FOAPL to construct and operate its manufacturing facility.
FOAPL, a subsidiary of Fuji Oil Group headquartered in Osaka, Japan, is a global supplier of intermediate food ingredients particularly in specialty oils and fats, confectionary and bakery, soy protein and related consumer foods products.
MMC said the plant would be FOAPL's largest facility outside Japan, adding SAC was selected for its strategic location adjacent to FOAPL's major client, Hersheys largest chocolate manufacturing facility outside North America.
MMC group managing director Datuk Seri Che Khalib Mohamad Noh said SAC has been dubbed by local and international investors as a southern gateway for high-value industries and a hub for international logistics for industries.
"Investors from Singapore, the US, Japan and Korea recognise the advantages of SAC, and I am confident that FOAPL will gain from these advantages as well, he said.
SACSB is SAC's master developer of a 1,099.94 ha. integrated industrial development, targeting various industrial segments such as Free industrial Zone, Hi-Tech and General Manufacturing, Aerospace Maintenance, Repair and Overhaul and Logistics as well as Mixed Development.
It is currently being developed in phases with 40 per cent of the area completed to date with basic infrastructure for various industrial sectors, said MMC.
It is gazetted as a free zone where investors enjoy various incentives under the Iskandar Region including pioneer status, investment tax allowance and Approved Developer Status, it added.
Wednesday 23 September 2015
Investing in buy-to-lease property schemes
MANY of us have seen advertisements or heard about “buy-to-lease” property schemes especially, serviced apartments that are used as hotel accommodation. They sound really good as they allow property investors to gain returns without the hassle of managing the property.
Under such a scheme, owners who purchase a property have to lease the unit back to the property developer or property management company. In exchange, they will get rental returns either based on a guaranteed return model or a profit-sharing scheme, for a set period of time, explains property consultancy PPC International chief executive officer Siva Shanker.
He adds that buy-to-lease properties are not only limited to hotels, serviced apartments and resort homes, as they can be a normal residential property such as a house and condominium, or even student accommodation, office space and industrial property.
In countries such as the UK, investors have numerous choices from hotel rooms, apartments to purpose-built student accommodation where the whole building consists of studio suites that come with kitchenettes.
“However, in Malaysia, the choices are limited as there are not many investment-grade properties available,” says Siva.
According to Siva, buy-to-lease property investments have gained investors’ attention in recent years as most of these schemes promise very attractive rental returns. The average rental return offered is about 5% to 7%, some even up to 12%.
“But keep in mind, like owning a property, owners still have to pay maintenance charges and towards the sinking fund,” he reminds.
One of the recent property projects offering guaranteed rental returns is PTS Properties Sdn Bhd’s luxury condominium hotel The Pines Melaka with leaseback returns of 7.5% per annum for the first nine years and 9% for the following six years. Others include Shama Medini by United Malayan Land Bhd (UMLand), The Ruma by Ireka Corp Bhd and Angsana Teluk Bahang by Banyan Tree Group.
UMLand will launch its buy-to-lease Shama Medini serviced apartments located in Iskandar Malaysia, Johor by the end of this year. Shama Medini offers 196 units of fully furnished apartments for investors. The units with built-ups ranging from 583 to 2,015 sq ft, are available in four layouts — studio, 1-bedroom, 2-bedroom and 3-bedroom. The average selling price is RM1,300 psf.
The owners of Shama Medini will enjoy 6% guaranteed rental returns for the first five years of the leaseback scheme. The next five years will be a revenue-sharing model, in which 45% of the rental revenue will be shared by the owners.
Ireka Corp launched The Ruma hotel and serviced residences in Kuala Lumpur in 2013. The one-acre development, which is located at the Jalan Kia Peng-Changkat Kia Peng junction in Kuala Lumpur, has a gross development value of RM635 million. It offered 253 units of hotel suites for leaseback investment.
The Angsana Teluk Bahang, which is located in Penang, is developed by Senja Aman Development Sdn Bhd and is the first beach resort in Malaysia managed by the Banyan Tree group. It offered 83 units of serviced apartments for leaseback investment. Currently, there are fewer than 10 units available.
Zerin Properties chief executive officer Previndran Singhe says there are three main considerations before deciding on a buy-to-lease investment: yield, benefits (free stay, for example); and discounts on hotel or apartment rentals.
He explains that some operators give time-sharing benefits — certain days for free stays in their property. The stays could be under the same hotel brand, while others may extend the benefits to other brands under their umbrella.
For instance, “at Shama Medini serviced apartments, which will be managed and operated by the ONYX Hospitality Group, investors can enjoy 14 days free stay. They can choose to stay in Shama Medini for seven days, or OZO and Amari hotels, which are under ONYX’s umbrella, for up to seven days,” says Previndran.
Another important point for investors to note is, although you own the property, you can’t occupy it, because once the property is leased back, the owner will not have a say over the property.
“Even if some operators offer you free stays, these are subject to availability, if your unit has been rented out, you may end up staying in another unit,” Previndran explains.
Buy-to-lease schemes are not new to Malaysia, however, there are some things investors need to be aware of.
According to Carey Real Estate Sdn Bhd managing director Nixon Paul, the returns on investment attracted many in the early days, especially for projects located in prime locations catering to the expatriate community.
There were some good quality properties offering buy-to-lease schemes that were worth investing in, but as more investment schemes were introduced, not every one of them honoured their guarantees and many investors became apprehensive about these investments.
“Usually, young and new investors tend to subscribe to these type of property investments. The older and more savvy investors will stay away from guaranteed returns,” says Paul.
For investors who are interested in investing in a property offering guaranteed returns, the first thing to do would be to scrutinise the contracts closely. “Check on who is providing the guarantees and if there are escape clauses,” advises Paul.
Investors also need to check on the financial strength of the developer offering the guarantees. “Further to that, one would need to know if there is legal recourse if the rental payments due are not forthcoming,” he adds.
There are also some companies offering a profit-sharing business model instead of guaranteed rental return. Paul says investors may need to find out whether they possess a licence to do so.
“In Malaysia, profit-sharing on rental income with the developer or an investment company is illegal unless they have a licence from Bank Negara Malaysia to sell these type of investments,” he explains.
More due diligence would be required if the property investment is located overseas. On the checklist would be details regarding income tax, property management fees, commissions, repair and replacement costs, forex gains/losses and several other costs.
“When it comes to investing in a foreign property, it is best to visit the property and conduct a proper due diligence before making your decision,” he explains.
There are other issues related to valuations and property financing which can be a tedious and difficult experience. For instance, a developer overseas may promise to secure financing for the investor, but this may only be done when the property is nearing completion.
“At the time of completion, if the valuation on the property is unable to meet the price that it was purchased for. It means that the investor have to fork out more money for their investment,” he explains.
Hence, there are many things one needs to be aware of before jumping into an investment.
Source: The Edge Property
Under such a scheme, owners who purchase a property have to lease the unit back to the property developer or property management company. In exchange, they will get rental returns either based on a guaranteed return model or a profit-sharing scheme, for a set period of time, explains property consultancy PPC International chief executive officer Siva Shanker.
He adds that buy-to-lease properties are not only limited to hotels, serviced apartments and resort homes, as they can be a normal residential property such as a house and condominium, or even student accommodation, office space and industrial property.
In countries such as the UK, investors have numerous choices from hotel rooms, apartments to purpose-built student accommodation where the whole building consists of studio suites that come with kitchenettes.
“However, in Malaysia, the choices are limited as there are not many investment-grade properties available,” says Siva.
According to Siva, buy-to-lease property investments have gained investors’ attention in recent years as most of these schemes promise very attractive rental returns. The average rental return offered is about 5% to 7%, some even up to 12%.
“But keep in mind, like owning a property, owners still have to pay maintenance charges and towards the sinking fund,” he reminds.
One of the recent property projects offering guaranteed rental returns is PTS Properties Sdn Bhd’s luxury condominium hotel The Pines Melaka with leaseback returns of 7.5% per annum for the first nine years and 9% for the following six years. Others include Shama Medini by United Malayan Land Bhd (UMLand), The Ruma by Ireka Corp Bhd and Angsana Teluk Bahang by Banyan Tree Group.
UMLand will launch its buy-to-lease Shama Medini serviced apartments located in Iskandar Malaysia, Johor by the end of this year. Shama Medini offers 196 units of fully furnished apartments for investors. The units with built-ups ranging from 583 to 2,015 sq ft, are available in four layouts — studio, 1-bedroom, 2-bedroom and 3-bedroom. The average selling price is RM1,300 psf.
The owners of Shama Medini will enjoy 6% guaranteed rental returns for the first five years of the leaseback scheme. The next five years will be a revenue-sharing model, in which 45% of the rental revenue will be shared by the owners.
Ireka Corp launched The Ruma hotel and serviced residences in Kuala Lumpur in 2013. The one-acre development, which is located at the Jalan Kia Peng-Changkat Kia Peng junction in Kuala Lumpur, has a gross development value of RM635 million. It offered 253 units of hotel suites for leaseback investment.
The Angsana Teluk Bahang, which is located in Penang, is developed by Senja Aman Development Sdn Bhd and is the first beach resort in Malaysia managed by the Banyan Tree group. It offered 83 units of serviced apartments for leaseback investment. Currently, there are fewer than 10 units available.
Main considerations
Zerin Properties chief executive officer Previndran Singhe says there are three main considerations before deciding on a buy-to-lease investment: yield, benefits (free stay, for example); and discounts on hotel or apartment rentals.
He explains that some operators give time-sharing benefits — certain days for free stays in their property. The stays could be under the same hotel brand, while others may extend the benefits to other brands under their umbrella.
For instance, “at Shama Medini serviced apartments, which will be managed and operated by the ONYX Hospitality Group, investors can enjoy 14 days free stay. They can choose to stay in Shama Medini for seven days, or OZO and Amari hotels, which are under ONYX’s umbrella, for up to seven days,” says Previndran.
Another important point for investors to note is, although you own the property, you can’t occupy it, because once the property is leased back, the owner will not have a say over the property.
“Even if some operators offer you free stays, these are subject to availability, if your unit has been rented out, you may end up staying in another unit,” Previndran explains.
‘Scrutinise contracts closely’
Buy-to-lease schemes are not new to Malaysia, however, there are some things investors need to be aware of.
According to Carey Real Estate Sdn Bhd managing director Nixon Paul, the returns on investment attracted many in the early days, especially for projects located in prime locations catering to the expatriate community.
There were some good quality properties offering buy-to-lease schemes that were worth investing in, but as more investment schemes were introduced, not every one of them honoured their guarantees and many investors became apprehensive about these investments.
“Usually, young and new investors tend to subscribe to these type of property investments. The older and more savvy investors will stay away from guaranteed returns,” says Paul.
For investors who are interested in investing in a property offering guaranteed returns, the first thing to do would be to scrutinise the contracts closely. “Check on who is providing the guarantees and if there are escape clauses,” advises Paul.
Investors also need to check on the financial strength of the developer offering the guarantees. “Further to that, one would need to know if there is legal recourse if the rental payments due are not forthcoming,” he adds.
There are also some companies offering a profit-sharing business model instead of guaranteed rental return. Paul says investors may need to find out whether they possess a licence to do so.
“In Malaysia, profit-sharing on rental income with the developer or an investment company is illegal unless they have a licence from Bank Negara Malaysia to sell these type of investments,” he explains.
Overseas properties
More due diligence would be required if the property investment is located overseas. On the checklist would be details regarding income tax, property management fees, commissions, repair and replacement costs, forex gains/losses and several other costs.
“When it comes to investing in a foreign property, it is best to visit the property and conduct a proper due diligence before making your decision,” he explains.
There are other issues related to valuations and property financing which can be a tedious and difficult experience. For instance, a developer overseas may promise to secure financing for the investor, but this may only be done when the property is nearing completion.
“At the time of completion, if the valuation on the property is unable to meet the price that it was purchased for. It means that the investor have to fork out more money for their investment,” he explains.
Hence, there are many things one needs to be aware of before jumping into an investment.
Source: The Edge Property
Tuesday 4 August 2015
Mitsui to offer build-to-suit properties for lease in Nusajaya, Iskandar Malaysia
SINGAPORE – Mitsui & Co Ltd, one of Japan’s largest general trading companies, has entered into a joint-venture (JV) agreement with Singapore’s business space solutions provider Ascendas and Malaysian property developer UEM Sunrise Berhad to offer build-to-suit (BTS) properties for lease in Nusajaya Tech Park in Iskandar Malaysia.
Nusajaya Tech Park Sdn Bhd (NTPSB) is jointly owned by Ascendas and UEM Sunrise. Nusajaya Tech Park will be developed in phases over nine years, according to its website, and is one of the closest industrial sites to the Malaysia-Singapore Second Link.
The JV marks the first Japanese partnership for industrial parks in Iskandar Malaysia, although Mitsui has already developed an extensive network in Japan, especially in sectors such as industrial property development and leasing.
Ascendas, which is a member of Ascendas-Singbridge group, has had over 30 years of experience and assets under management exceeding S$16 billion.
UEM Sunrise, a Malaysian public-listed company, offers services in macro township development, high-rise residential, commercial retail and integrated developments, as well as property management.
Said Reiji Fujita, Mitsui’s general manager of urban development division: “Japanese companies are increasingly seeking investment and expansion opportunities in South East Asia as part of their globalisation strategies. Our collaboration with two very formidable industry leaders in this market, Ascendas and UEM Sunrise, will cement our position as a preferred partner for Japanese companies seeking growth in this part of the world.”
Mitsui and NTPSB will hold equity stakes of 49 per cent and 51 per cent respectively in the JV entity, according to a press release on Tuesday.
Some 10.7 ha of land will be set aside for the development of BTS properties for lease within the 210-ha large Tech Park as part of their agreement, with total development costs estimated at S$167 million over four years.
Said its press release: “the Mitsui-NTPSB joint venture will provide one-stop solution to companies who prefer to operate in customised facilities on long-term leases, without the hassle and capital expenditure associated with the construction process”.
The BTS project intends to oversee and finance the real estate process for customers, including the design, construction and project management, and also offer integrated industrial, commercial spaces, dormitories, amenities and support facilities – all within Nusajaya Tech Park.
“We welcome Mitsui as a new partner in Nusajaya Tech Park,” said William Tay, chief executive officer of Ascendas South East Asia and director of NTPSB. “Through this new joint venture, our customers in Nusajaya Tech Park will not only benefit from solutions that are customised to their business needs, but also enjoy international standards of business space development and operations as a result of the collective strengths of all three partners.
“We are confident that Nusajaya Tech Park will continue to play an instrumental role in catalysing industrial growth and creating an eco-system of high value-added industries in Iskandar Malaysia.”
Source: http://business.asiaone.com/news/mitsui-offer-build-suit-properties-lease-malaysia
Friday 3 July 2015
Home prices trend sideways on Johor secondary market
PRICES of homes on Johor Baru’s secondary market remained firm in 1Q2015, according to The Edge-KGV International Property Consultants Johor Baru Housing Monitor for the period.
Prices held firm for the second straight quarter in most places sampled by the monitor.
Price growth of certain property types — such as 1-storey terraced houses in Taman Nusa Bistari and Taman Mount Austin, 2-storey terraced houses in Taman Setia Indah, Taman Nusa Bayu and Taman Setia Tropika — remained flat for at least three consecutive quarters.
The values of all high-rise homes in the monitor stayed firm for the past nine months to one-and-a-half years.
While anecdotes from property agents suggest that sales have slowed, data on transactions in 1Q from the National Property Information Centre (Napic) for the period has not been released yet, hence it is still “premature to comment” on the amount of transactions, says Samuel Tan, KGV International Property Consultants (Johor) Sdn Bhd director.
“My take on the same prices prevailing for the second straight quarter could be… the cautious stance taken by buyers. Most of them were, and are, careful not to overprice their purchase,” he tells City & Country.
He says the slower sales were likely a reflection of cautious sentiment among investors. “They are wary of the [current state of the] economy... and its effect on the property market.”
Likewise, the consultancy also found that primary market sales have waned over the quarter on poorer sentiment.
There were few launches in 1Q2015. Of the four landed schemes that were introduced to the market, Sutera 18 — at Bandar Selesa Jaya in Pulai — saw its launch postponed from February this year to next year. The freehold project by Liang Siang Capital Sdn Bhd consists of 18 units of 2-storey semi-detached houses with land areas of 3,520 to 5,162 sq ft, and built-up areas of 3,102 to 3,601 sq ft. Prices range from RM1.01 million to RM1.25 million. KGV International’s research shows there are more than 100 registrants for the project.
According to Tan, notable launches during the quarter were UEM Sunrise Bhd’s Estuari Garden 2-storey superlink homes and Senibong Hills Sdn Bhd’s 3-storey courtyard homes.
Estuari Garden is composed of 83 units of superlink homes with a standard lot size of 24 by 75ft. Their land area is 1,800 sq ft, while built-ups range from 2,708 to 2,989 sq ft. Prices are from RM1.35 million to RM1.8 million, with an 8% rebate and waivers on sale-and-purchase agreement, memorandum of transfer and loan agreement fees, and air-conditioning units for all rooms except for the maid’s room.
“This is one of the few landed residential developments to be launched. Prices reflect the scarcity of such properties,” Tan says.
The freehold Senibong Hills at Senibong Cove consists of 55 units of 3-storey courtyard homes and 3-storey garden terraced homes. The courtyard homes will come in two lot sizes: 35 by 85ft and 35 by 65ft. The units with the larger lot sizes have land areas that range from 2,975 to 5,036 sq ft and built-ups of 4,590 sq ft. They are priced from RM2.53 million to RM3.73 million.
The courtyard homes with the smaller lot sizes have a land area that ranges from 2,275 to 2,845 sq ft, and a built-up of 4,205 sq ft. These are priced from RM2.3 million to RM3.59 million.
Last but not least are the garden terraced homes that have lot sizes of 23 by 106ft and land areas of 2,438 and 5,355 sq ft and built-up of 4,030 sq ft. Prices range from RM2.24 million to RM2.7 million.
The units are currently open for booking. “This scheme shows a new concept within the popular Senibong Cove, which is jointly developed by Walker Group and Iskandar Waterfront Holdings Bhd. Senibong Hills had good response, considering the pricing,” Tan notes.
Issues and notable developments in 1Q15
While the property market in Johor Baru during this period was muted, it was not as uneventful overall in Johor.
Sunway Construction Sdn Bhd was granted a RM170 million contract to design and build the Coastal Highway Southern Link, which will connect parent company Sunway Bhd’s massive Sunway Iskandar township directly to the Second Link.
“This will spur the areas to grow, especially in Iskandar Malaysia-Medini area. Travelling time will be much reduced and Sunway will benefit the most,” Tan says.
Another major player, UEM Sunrise Bhd, launched the 4,500-acre Gerbang Nusajaya. “This area is where Singapore’s Ascendas and UEM Sunrise jointly developed the Nusajaya Hi-Tech Park and the sale rate is reportedly commendable,” he observes.
Meanwhile, Kuala Lumpur Kepong Bhd swapped its 2,000-acre tract in Frasers Estate, Kulai, for a 500-acre parcel in Gerbang Nusajaya.
Reports of an oversupply in high-rise houses led to more developers postponing or reviewing plans for such projects. While this problem had been building up since last year, a report by Maybank Investment on the glut — led by Chinese developers Guangzhou R & F Properties and Country Garden — and price wars in Iskandar have revived concerns among investors.
“Yes, the serviced apartments are over-approved and over-supplied, while the landed residential sector is still within reasonable range,” says Tan.
“Notwithstanding the above, it does not mean serviced apartments will not be in demand. The main criteria are location and selling price. If they are developed in areas where locals stay and the selling prices are within their means, these properties will still be popular.
“Areas such as these include the Tebrau Corridor, Tampoi and Skudai Areas and Permas Jaya area.”
Tan adds: “In terms of pricing, ideally those pegged at RM500 to RM600 psf, with floor area ranging fromfrom 600 to 1,300 sq ft should be able to cater to a wide range of potential local purchasers.”
Some projects have also been scaled down or postponed. For instance, Country Garden’s Forest City was scaled down by 30% to 3,425 acres. However, Tan says, it is not the size of the project that matters, but its contents that will determine whether it can draw regional or international attention.
“Personally, I do not think Forest City should be designed merely for the local market. It should be seen as a property where the global rich are attracted to invest in Iskandar. As a result of their investment here, there will also be spin-offs in the other sectors such as services and manufacturing,” he says.
There are plans to build a Customs, Immigration and Quarantine (CIQ) complex on the island, according to reports.
“If the CIQ centre is used as a transport hub for the rapid transit system linking to the bus rapid transit system as well as the proposed light rail transit and other modes of transport like trams within the city, it would impact JB tremendously. The surroundings will be made into a vibrant destination to buying into the ‘Malaysia, Truly Asia’ tagline,” he says.
On Guangzhou R & F’s Princess Cove, Tan says, the project is being developed very slowly. Owing to its position at the entrance into the city, which is the gateway to IM and Malaysia, a negative impression will be created if the project is halted. It will further reinforce the perception that the China-based developers have flooded the market with too many serviced apartments.
“We are at a stage where people are adopting a wait-and-see attitude. This comes on the back of the many changes in the economic climate of the world — the weakening ringgit, the drastic drop in fuel price where Malaysia is a net exporter and the implementation of the Goods and Services Tax causing cost of living to increase. The earlier cooling measures such as curbs on end-financing, abolition of the developer interest-bearing scheme, increase in Real Property Gains Tax, are still affecting the property market,” he says.
According to Tan, places populated by locals continue to be hot spots, with demand staying resilient. Currently, the favourite areas are in the Taman Austin locality, Bukit Indah/Nusajaya, Permas Jaya, Southern link and Skudai/Tampoi areas.
“In future, areas such as Pasir Gudang, Sedenak, Ulu Choh will be attractive to those interested in affordable housing,” he says.
Mixed results in commercial properties
Meanwhile, the Napic Property Market 2014 report showed a jump in transaction volume of commercial properties — to 3,068 from 2,562 units on an annual basis — compared with a huge fall in value to RM4.9 billion from RM10.1 billion.
“This gives the impression that the commercial sub-sector fared badly in 2014. In reality, shopoffices that are one to six storeys tall fared better in 2014 than in the preceding year,” he says, adding that transaction volume rose 30.2% per annum, while values rose 57.5% to RM2.2 billion from RM1.4 billion.
“The drop in the overall transaction value was due to the other property types such as purpose-built office, shopping complex and, particularly, commercial land. The [last category] showed that investors were careful in landbanking, especially for serviced apartments or shopping centres,” he says.
There was an announcement by the state announcing a freeze on any approval of serviced apartments. Even so, those approved previously are allowed to be developed. “Personally I feel a blanket freeze is too drastic. In areas where there is demand, they should be allowed to be developed,” Tan opines.
Source: http://www.theedgeproperty.com/my/content/home-prices-trend-sideways-johor-secondary-market
Prices held firm for the second straight quarter in most places sampled by the monitor.
Price growth of certain property types — such as 1-storey terraced houses in Taman Nusa Bistari and Taman Mount Austin, 2-storey terraced houses in Taman Setia Indah, Taman Nusa Bayu and Taman Setia Tropika — remained flat for at least three consecutive quarters.
The values of all high-rise homes in the monitor stayed firm for the past nine months to one-and-a-half years.
While anecdotes from property agents suggest that sales have slowed, data on transactions in 1Q from the National Property Information Centre (Napic) for the period has not been released yet, hence it is still “premature to comment” on the amount of transactions, says Samuel Tan, KGV International Property Consultants (Johor) Sdn Bhd director.
“My take on the same prices prevailing for the second straight quarter could be… the cautious stance taken by buyers. Most of them were, and are, careful not to overprice their purchase,” he tells City & Country.
He says the slower sales were likely a reflection of cautious sentiment among investors. “They are wary of the [current state of the] economy... and its effect on the property market.”
Likewise, the consultancy also found that primary market sales have waned over the quarter on poorer sentiment.
There were few launches in 1Q2015. Of the four landed schemes that were introduced to the market, Sutera 18 — at Bandar Selesa Jaya in Pulai — saw its launch postponed from February this year to next year. The freehold project by Liang Siang Capital Sdn Bhd consists of 18 units of 2-storey semi-detached houses with land areas of 3,520 to 5,162 sq ft, and built-up areas of 3,102 to 3,601 sq ft. Prices range from RM1.01 million to RM1.25 million. KGV International’s research shows there are more than 100 registrants for the project.
According to Tan, notable launches during the quarter were UEM Sunrise Bhd’s Estuari Garden 2-storey superlink homes and Senibong Hills Sdn Bhd’s 3-storey courtyard homes.
Estuari Garden is composed of 83 units of superlink homes with a standard lot size of 24 by 75ft. Their land area is 1,800 sq ft, while built-ups range from 2,708 to 2,989 sq ft. Prices are from RM1.35 million to RM1.8 million, with an 8% rebate and waivers on sale-and-purchase agreement, memorandum of transfer and loan agreement fees, and air-conditioning units for all rooms except for the maid’s room.
“This is one of the few landed residential developments to be launched. Prices reflect the scarcity of such properties,” Tan says.
The freehold Senibong Hills at Senibong Cove consists of 55 units of 3-storey courtyard homes and 3-storey garden terraced homes. The courtyard homes will come in two lot sizes: 35 by 85ft and 35 by 65ft. The units with the larger lot sizes have land areas that range from 2,975 to 5,036 sq ft and built-ups of 4,590 sq ft. They are priced from RM2.53 million to RM3.73 million.
The courtyard homes with the smaller lot sizes have a land area that ranges from 2,275 to 2,845 sq ft, and a built-up of 4,205 sq ft. These are priced from RM2.3 million to RM3.59 million.
Last but not least are the garden terraced homes that have lot sizes of 23 by 106ft and land areas of 2,438 and 5,355 sq ft and built-up of 4,030 sq ft. Prices range from RM2.24 million to RM2.7 million.
The units are currently open for booking. “This scheme shows a new concept within the popular Senibong Cove, which is jointly developed by Walker Group and Iskandar Waterfront Holdings Bhd. Senibong Hills had good response, considering the pricing,” Tan notes.
Issues and notable developments in 1Q15
While the property market in Johor Baru during this period was muted, it was not as uneventful overall in Johor.
Sunway Construction Sdn Bhd was granted a RM170 million contract to design and build the Coastal Highway Southern Link, which will connect parent company Sunway Bhd’s massive Sunway Iskandar township directly to the Second Link.
“This will spur the areas to grow, especially in Iskandar Malaysia-Medini area. Travelling time will be much reduced and Sunway will benefit the most,” Tan says.
Another major player, UEM Sunrise Bhd, launched the 4,500-acre Gerbang Nusajaya. “This area is where Singapore’s Ascendas and UEM Sunrise jointly developed the Nusajaya Hi-Tech Park and the sale rate is reportedly commendable,” he observes.
Meanwhile, Kuala Lumpur Kepong Bhd swapped its 2,000-acre tract in Frasers Estate, Kulai, for a 500-acre parcel in Gerbang Nusajaya.
Reports of an oversupply in high-rise houses led to more developers postponing or reviewing plans for such projects. While this problem had been building up since last year, a report by Maybank Investment on the glut — led by Chinese developers Guangzhou R & F Properties and Country Garden — and price wars in Iskandar have revived concerns among investors.
“Yes, the serviced apartments are over-approved and over-supplied, while the landed residential sector is still within reasonable range,” says Tan.
“Notwithstanding the above, it does not mean serviced apartments will not be in demand. The main criteria are location and selling price. If they are developed in areas where locals stay and the selling prices are within their means, these properties will still be popular.
“Areas such as these include the Tebrau Corridor, Tampoi and Skudai Areas and Permas Jaya area.”
Tan adds: “In terms of pricing, ideally those pegged at RM500 to RM600 psf, with floor area ranging fromfrom 600 to 1,300 sq ft should be able to cater to a wide range of potential local purchasers.”
Some projects have also been scaled down or postponed. For instance, Country Garden’s Forest City was scaled down by 30% to 3,425 acres. However, Tan says, it is not the size of the project that matters, but its contents that will determine whether it can draw regional or international attention.
“Personally, I do not think Forest City should be designed merely for the local market. It should be seen as a property where the global rich are attracted to invest in Iskandar. As a result of their investment here, there will also be spin-offs in the other sectors such as services and manufacturing,” he says.
There are plans to build a Customs, Immigration and Quarantine (CIQ) complex on the island, according to reports.
“If the CIQ centre is used as a transport hub for the rapid transit system linking to the bus rapid transit system as well as the proposed light rail transit and other modes of transport like trams within the city, it would impact JB tremendously. The surroundings will be made into a vibrant destination to buying into the ‘Malaysia, Truly Asia’ tagline,” he says.
On Guangzhou R & F’s Princess Cove, Tan says, the project is being developed very slowly. Owing to its position at the entrance into the city, which is the gateway to IM and Malaysia, a negative impression will be created if the project is halted. It will further reinforce the perception that the China-based developers have flooded the market with too many serviced apartments.
“We are at a stage where people are adopting a wait-and-see attitude. This comes on the back of the many changes in the economic climate of the world — the weakening ringgit, the drastic drop in fuel price where Malaysia is a net exporter and the implementation of the Goods and Services Tax causing cost of living to increase. The earlier cooling measures such as curbs on end-financing, abolition of the developer interest-bearing scheme, increase in Real Property Gains Tax, are still affecting the property market,” he says.
According to Tan, places populated by locals continue to be hot spots, with demand staying resilient. Currently, the favourite areas are in the Taman Austin locality, Bukit Indah/Nusajaya, Permas Jaya, Southern link and Skudai/Tampoi areas.
“In future, areas such as Pasir Gudang, Sedenak, Ulu Choh will be attractive to those interested in affordable housing,” he says.
Mixed results in commercial properties
Meanwhile, the Napic Property Market 2014 report showed a jump in transaction volume of commercial properties — to 3,068 from 2,562 units on an annual basis — compared with a huge fall in value to RM4.9 billion from RM10.1 billion.
“This gives the impression that the commercial sub-sector fared badly in 2014. In reality, shopoffices that are one to six storeys tall fared better in 2014 than in the preceding year,” he says, adding that transaction volume rose 30.2% per annum, while values rose 57.5% to RM2.2 billion from RM1.4 billion.
“The drop in the overall transaction value was due to the other property types such as purpose-built office, shopping complex and, particularly, commercial land. The [last category] showed that investors were careful in landbanking, especially for serviced apartments or shopping centres,” he says.
There was an announcement by the state announcing a freeze on any approval of serviced apartments. Even so, those approved previously are allowed to be developed. “Personally I feel a blanket freeze is too drastic. In areas where there is demand, they should be allowed to be developed,” Tan opines.
Wednesday 10 June 2015
Iskandar Malaysia Second Comprehensive Development Plan CDP
NUSAJAYA: The second Iskandar Malaysia Comprehensive Development Plan (CDP) is expected to be launched at the end of the second quarter or early third quarter of this year.
Iskandar Regional Development Authority IRDA chief executive officer, Datuk Ismail Ibrahim, said the second CDP was a review of the first which was launched in 2006.
He said the new CDP has been submitted to the authorities including Prime Minister Datuk Seri Najib Tun Razak and Johor Mentri Besar Datuk Seri Mohamed Khaled Nordin.
On a separate note, Datuk Ismail Ibrahim said that in the first quarter of this year, Iskandar Malaysia secured RM7.8bil in new investments, of which 64% were domestic and the rest foreign. This brings the total realised investments to RM166 billion since the growth corridor was launched in 2006.
On the incentives given to Singapore's small and medium enterprises investing in Iskandar Malaysia, he said they would depend on the types of investments.
"Also the investments, be they in the services or manufacturing sectors, must meet our terms.
"They have to be environment-friendly, capital-intensive and use less labour," he said.
Iskandar Malaysia remains on track to attract between RM25bil and RM30 bil investments this year.
This is despite the scrapping of the RM600 million China Mall trade centre project by its main developer UEM Sunrise Bhd.
The main focus over the next few years will be in the creative and logistics sectors, said Iskandar Regional Development Authority CEO Datuk Ismail Ibrahim.
He was speaking at a media briefing "Elevating Cross-border Opportunities in ASEAN and Beyond" by Standard Chartered Bank, here today. The authorities have however cautioned property developers into the "feasibility of things" by ensuring the supply matches the demand in the long run.
Iskandar Regional Development Authority IRDA chief executive officer, Datuk Ismail Ibrahim, said the second CDP was a review of the first which was launched in 2006.
He said the new CDP has been submitted to the authorities including Prime Minister Datuk Seri Najib Tun Razak and Johor Mentri Besar Datuk Seri Mohamed Khaled Nordin.
On a separate note, Datuk Ismail Ibrahim said that in the first quarter of this year, Iskandar Malaysia secured RM7.8bil in new investments, of which 64% were domestic and the rest foreign. This brings the total realised investments to RM166 billion since the growth corridor was launched in 2006.
On the incentives given to Singapore's small and medium enterprises investing in Iskandar Malaysia, he said they would depend on the types of investments.
"Also the investments, be they in the services or manufacturing sectors, must meet our terms.
"They have to be environment-friendly, capital-intensive and use less labour," he said.
Iskandar Malaysia remains on track to attract between RM25bil and RM30 bil investments this year.
This is despite the scrapping of the RM600 million China Mall trade centre project by its main developer UEM Sunrise Bhd.
The main focus over the next few years will be in the creative and logistics sectors, said Iskandar Regional Development Authority CEO Datuk Ismail Ibrahim.
He was speaking at a media briefing "Elevating Cross-border Opportunities in ASEAN and Beyond" by Standard Chartered Bank, here today. The authorities have however cautioned property developers into the "feasibility of things" by ensuring the supply matches the demand in the long run.
Thursday 28 May 2015
Iskandar Malaysia Asian Trade Centre project scrapped
The principal developer of Iskandar Malaysia, UEM Sunrise Bhd, has ceased its plan to build Asian Trade Centre project in Nusajaya, Iskandar Malaysia.
Singapore's The Straits Times reported today that no reason was given for the decision to halt plans to build the huge Asian Trade Centre (ATC) in Iskandar Malaysia, Johor.
The newspaper noted that this would likely intensify concerns that the fast-growing region is hitting some "speed bumps".
The move has stunned property experts, especially since UEM Sunrise managing director and chief executive Anwar Syahrin Abdul Ajib was quoted in a New Straits Times report last December as saying the company was "in the midst of getting approvals from the relevant authorities" for the Iskandar project.
A property consultant noted the first phase of the centre's development, the China Mall, was supposed to be a catalyst - a mall "even larger than Pavilion in Kuala Lumpur", and meant to attract foreign investors.
'Further worries in the property market'
"Cancelling it is not good for business. Others may have made plans based on the announcement," the consultant said.
Others in the industry said the decision to drop such a large facility would create further worry in the Iskandar property market, which is already weakened by oversupply concerns in the residential sector.
ATC-China Mall was to be akin to the Dragon Mart in Dubai that Chinamall Holdings opened in 2004.
Anwar Syahrin said last December that UEM Sunrise was building the trade centre because it believed Malaysian products were not being marketed properly.
"We want international and local manufacturers to showcase their products and do trade shows at the ATC. We are tying up with Chinamall Holdings Pte Ltd from China,” he was quoted as saying in the New Straits Times report.
The 1.4 million sq-ft mall, worth more than RM600 million, was supposed to house more than 3,000 merchants offering products such as textiles, gifts, souvenirs, electrical and household appliances, furniture, toys and jewellery.
The ATC is in the Nusajaya area, about a five-minute drive from the Johor Bahru checkpoint at the Second Link with Singapore.
It was to have been part of the 1,840ha Gerbang Nusajaya, the site of the second development phase of Nusajaya city. The area includes Puteri Harbour and the upcoming Nusajaya Tech Park and Motorsports City.
UEM Sunrise had signed a memorandum of understanding with Chinamall Holdings in late 2012 to develop the China Mall.
According to its website, Chinamall Holdings, which is incorporated in Singapore, is a building materials trader and constructs and operates specialised wholesale markets.
The deal was for UEM Sunrise to own the mall, with Chinamall Holdings managing and marketing it on a long-term lease.
Source: http://www.malaysiakini.com/news/299656
Singapore's The Straits Times reported today that no reason was given for the decision to halt plans to build the huge Asian Trade Centre (ATC) in Iskandar Malaysia, Johor.
The newspaper noted that this would likely intensify concerns that the fast-growing region is hitting some "speed bumps".
The move has stunned property experts, especially since UEM Sunrise managing director and chief executive Anwar Syahrin Abdul Ajib was quoted in a New Straits Times report last December as saying the company was "in the midst of getting approvals from the relevant authorities" for the Iskandar project.
A property consultant noted the first phase of the centre's development, the China Mall, was supposed to be a catalyst - a mall "even larger than Pavilion in Kuala Lumpur", and meant to attract foreign investors.
'Further worries in the property market'
"Cancelling it is not good for business. Others may have made plans based on the announcement," the consultant said.
Others in the industry said the decision to drop such a large facility would create further worry in the Iskandar property market, which is already weakened by oversupply concerns in the residential sector.
ATC-China Mall was to be akin to the Dragon Mart in Dubai that Chinamall Holdings opened in 2004.
Anwar Syahrin said last December that UEM Sunrise was building the trade centre because it believed Malaysian products were not being marketed properly.
"We want international and local manufacturers to showcase their products and do trade shows at the ATC. We are tying up with Chinamall Holdings Pte Ltd from China,” he was quoted as saying in the New Straits Times report.
The 1.4 million sq-ft mall, worth more than RM600 million, was supposed to house more than 3,000 merchants offering products such as textiles, gifts, souvenirs, electrical and household appliances, furniture, toys and jewellery.
The ATC is in the Nusajaya area, about a five-minute drive from the Johor Bahru checkpoint at the Second Link with Singapore.
It was to have been part of the 1,840ha Gerbang Nusajaya, the site of the second development phase of Nusajaya city. The area includes Puteri Harbour and the upcoming Nusajaya Tech Park and Motorsports City.
UEM Sunrise had signed a memorandum of understanding with Chinamall Holdings in late 2012 to develop the China Mall.
According to its website, Chinamall Holdings, which is incorporated in Singapore, is a building materials trader and constructs and operates specialised wholesale markets.
The deal was for UEM Sunrise to own the mall, with Chinamall Holdings managing and marketing it on a long-term lease.
Source: http://www.malaysiakini.com/news/299656
Saturday 16 May 2015
RM2.5b Venice-style project in Sungai Danga, Johor Bahru
Sungai Danga, one of the most polluted rivers in the Johor state is poised to undergo a facelift with the first development phase of the River City@Danga project involves the cleaning up, beautification and transformation of Sungai Danga valued at RM2.5 billion.
The project being developed by Riverside Terra Sdn Bhd, a wholly owned subsidiary of Iskandar Waterfront Sdn Bhd, focuses on clean-up and beautification efforts to turn the river into a 'Venice of the East' and make it a renowned riverine tourism destination.
Developed on a 21-ha site, it will transform the area with several attractions, among others, hotels, apartments and office suites that are equipped with open berthing facilities, retail shops and a 6km boardwalk on both banks of the river.
Iskandar Waterfront Holdings Sdn Bhd group executive director Lim Chen Herng said other development being planned was the construction of the two man made islands that have thematic features to reflect the ethnic and cultural diversity found in the state.
"Under the project, the river will be turned into a new tourist destination. It is no ordinary project but one that will become a new landmark," Menteri Besar Datuk Seri Mohamed Khaled Nordin said in the launch and ground breaking ceremony for the project, here yesterday.
"This is the first such island in the country where the Malays, Chinese, Indians and others could display their unique cultural heritage, customs, dances, traditions and art works for the sake of tourism," Mohamed Khaled said.
Meanwhile Mohamed Khaled in his speech said the project would become an important catalyst to the tourism sector in the Iskandar Malaysia Flagship A.
"Directly or indirectly, it offers significant benefits to the economy of Johor due to the diversity of tourism product components besides enabling local communities to raise their living standard," he said.
In a move to address fears of foreigners snapping up all available property, the state will designate international zones or housing development projects within Iskandar Malaysia.
Mentri Besar Datuk Mohamed Khaled Nordin said the state government had identified 2 areas for the international zones designated for foreigners and was finalising the details.
The plans would be publish to the public, either in July or August, and the public and developers would be invited to give their feedback.
“There are 2 areas that we want to present. The first part will be on the growth of the international area and the other related to our policies to control oversupply of service apartments,” he told reporters after launching the groundbreaking ceremony of The River City@Danga project by Riverside Terra Sdn Bhd, a subsidiary of Iskandar Waterfront Sdn Bhd.
“We have nothing to hide, and it will be a win-win situation for both sides,” he said, adding that the international zone would help increase the competitiveness of the Johor property market and protect local buyers.
The project being developed by Riverside Terra Sdn Bhd, a wholly owned subsidiary of Iskandar Waterfront Sdn Bhd, focuses on clean-up and beautification efforts to turn the river into a 'Venice of the East' and make it a renowned riverine tourism destination.
Developed on a 21-ha site, it will transform the area with several attractions, among others, hotels, apartments and office suites that are equipped with open berthing facilities, retail shops and a 6km boardwalk on both banks of the river.
Iskandar Waterfront Holdings Sdn Bhd group executive director Lim Chen Herng said other development being planned was the construction of the two man made islands that have thematic features to reflect the ethnic and cultural diversity found in the state.
"Under the project, the river will be turned into a new tourist destination. It is no ordinary project but one that will become a new landmark," Menteri Besar Datuk Seri Mohamed Khaled Nordin said in the launch and ground breaking ceremony for the project, here yesterday.
"This is the first such island in the country where the Malays, Chinese, Indians and others could display their unique cultural heritage, customs, dances, traditions and art works for the sake of tourism," Mohamed Khaled said.
Meanwhile Mohamed Khaled in his speech said the project would become an important catalyst to the tourism sector in the Iskandar Malaysia Flagship A.
"Directly or indirectly, it offers significant benefits to the economy of Johor due to the diversity of tourism product components besides enabling local communities to raise their living standard," he said.
In a move to address fears of foreigners snapping up all available property, the state will designate international zones or housing development projects within Iskandar Malaysia.
Mentri Besar Datuk Mohamed Khaled Nordin said the state government had identified 2 areas for the international zones designated for foreigners and was finalising the details.
The plans would be publish to the public, either in July or August, and the public and developers would be invited to give their feedback.
“There are 2 areas that we want to present. The first part will be on the growth of the international area and the other related to our policies to control oversupply of service apartments,” he told reporters after launching the groundbreaking ceremony of The River City@Danga project by Riverside Terra Sdn Bhd, a subsidiary of Iskandar Waterfront Sdn Bhd.
“We have nothing to hide, and it will be a win-win situation for both sides,” he said, adding that the international zone would help increase the competitiveness of the Johor property market and protect local buyers.
Tuesday 12 May 2015
Jurong Country Club for KL-Singapore HSR Terminus and expected HSR ticket price
Jurong Country Club (JCC) in Jurong East selected as KL-Singapore HSR Terminus in Singapore
The Singapore Government announced today that the Kuala Lumpur-Singapore High Speed Rail (HSR) terminus will be located at the current site of Jurong Country Club in Jurong East.
The terminus will take up about 12 hectares, or about 20 per cent of the Jurong Country Club site. Jurong Country Club has total land area of 67 hectares.
In a joint statement issued by the Land Transport Authority (LTS) and Singapore Land Authority and Urban Redevelopment Authority, the site will also be comprehensively re-developed for new mixed-use developments including offices, retails, hotels, shops and community facilities to serve Jurong residents, HSR passengers and visitors.
At the 6th Singapore-Malaysia Leaders’ Retreat on May 5, Prime Minister Lee Hsien Loong announced that the HSR terminus in Singapore would be located in Jurong East.
This is in line with the Government’s vision to develop Jurong into a second Central Business District and as a new gateway to Singapore.
The Jurong Country Club site is ideal due to its high connectivity, with close proximity to the existing two MRT lines (East-West and North-South Lines) at Jurong East MRT station, new MRT lines (the Jurong Region Line and Cross Island Line) being planned around the area, as well as the future integrated transport hub in Jurong East.
The terminus will also be located close to Jurong Gateway, which is already shaping up well as a vibrant mixed-use precinct.
Hence, the terminus location is compatible with the surrounding land uses, and well-supported by infrastructure and amenities.
Kuala Lumpur-Singapore High Speed Rail Ticket Price
Users of the Kuala Lumpur-Singapore high-speed rail can expect to pay around S$90 (RM240) each way once the line connecting the Malaysian capital to the republic is complete, according to estimates from transportation experts.
Polled by The Straits Times in Singapore, they suggested that KL-Singapore HSR expected ticket price could be between S$80 and S$90 in each direction, and said it was unlikely that prices will be low enough that the average office worker could expect to afford a daily commute between both destinations.
“I have great difficulty believing that the price of a ticket will be at a rate that regular workers can afford for daily commute,” Nanyang Technological University transport economist Walter Theseira told the Singaporean newspaper.
Theseira cited as example the 345-km Taipei-Kaohsiung high-speed rail line — of comparable distance to the KL-Singapore HSR link — which charges NT$1,630 (RM190) per trip as a likely benchmark for ticket prices.
Another analyst, National University of Singapore transport expert Lee Der Horng also predicted a low capacity for the high speed rail line, expecting it to be able to carry no more than 80 people in its 12-carriage trains.
Industry observers told the ST that the high speed rail link may also use budget plane tickets as a yardstick for its own prices, and is likely to adopt the fluctuating price model used by airlines that change according to low and peak periods.
The rail line is likely to boost tourism between the neighbours — Singapore is already Malaysia’s biggest source of tourist arrivals — as Ngee Ann Polytechnic tourism lecturer Michael Chiam said it will encourage more day trippers.
Malaysia and Singapore agreed to the high speed rail link between the two capitals following a retreat between Malaysian Prime Minister Datuk Seri Najib Razak and his Singaporean counterpart, Lee Hsien Loong, in 2013.
The planned high-speed rail link is expected to cover 300 kilometres between Singapore and Kuala Lumpur, and cut travel time to just 90 minutes.
It was initially expected to be completed by 2020, but both countries have since said that the deadline must be “reassessed”; industry experts expect that it will take another two years from the original date before the line is operational.
Seven stops have been identified in Malaysia, namely Kuala Lumpur, Putrajaya, Seremban, Ayer Keruh, Batu Pahat, Muar and Nusajaya.
The project’s actual cost has not been announced, but reports have placed it as possibly ranging from US$8 billion to US$ 24 billion (RM24 billion to RM72 billion).
Japan has been actively lobbying to be a partner in the Malaysia-Singapore high-speed rail project, but other countries such as China and South Korea are said to have approached Malaysia as well.
The Singapore Government announced today that the Kuala Lumpur-Singapore High Speed Rail (HSR) terminus will be located at the current site of Jurong Country Club in Jurong East.
The terminus will take up about 12 hectares, or about 20 per cent of the Jurong Country Club site. Jurong Country Club has total land area of 67 hectares.
In a joint statement issued by the Land Transport Authority (LTS) and Singapore Land Authority and Urban Redevelopment Authority, the site will also be comprehensively re-developed for new mixed-use developments including offices, retails, hotels, shops and community facilities to serve Jurong residents, HSR passengers and visitors.
At the 6th Singapore-Malaysia Leaders’ Retreat on May 5, Prime Minister Lee Hsien Loong announced that the HSR terminus in Singapore would be located in Jurong East.
This is in line with the Government’s vision to develop Jurong into a second Central Business District and as a new gateway to Singapore.
The Jurong Country Club site is ideal due to its high connectivity, with close proximity to the existing two MRT lines (East-West and North-South Lines) at Jurong East MRT station, new MRT lines (the Jurong Region Line and Cross Island Line) being planned around the area, as well as the future integrated transport hub in Jurong East.
The terminus will also be located close to Jurong Gateway, which is already shaping up well as a vibrant mixed-use precinct.
Hence, the terminus location is compatible with the surrounding land uses, and well-supported by infrastructure and amenities.
Kuala Lumpur-Singapore High Speed Rail Ticket Price
Users of the Kuala Lumpur-Singapore high-speed rail can expect to pay around S$90 (RM240) each way once the line connecting the Malaysian capital to the republic is complete, according to estimates from transportation experts.
Polled by The Straits Times in Singapore, they suggested that KL-Singapore HSR expected ticket price could be between S$80 and S$90 in each direction, and said it was unlikely that prices will be low enough that the average office worker could expect to afford a daily commute between both destinations.
“I have great difficulty believing that the price of a ticket will be at a rate that regular workers can afford for daily commute,” Nanyang Technological University transport economist Walter Theseira told the Singaporean newspaper.
Theseira cited as example the 345-km Taipei-Kaohsiung high-speed rail line — of comparable distance to the KL-Singapore HSR link — which charges NT$1,630 (RM190) per trip as a likely benchmark for ticket prices.
Another analyst, National University of Singapore transport expert Lee Der Horng also predicted a low capacity for the high speed rail line, expecting it to be able to carry no more than 80 people in its 12-carriage trains.
Industry observers told the ST that the high speed rail link may also use budget plane tickets as a yardstick for its own prices, and is likely to adopt the fluctuating price model used by airlines that change according to low and peak periods.
The rail line is likely to boost tourism between the neighbours — Singapore is already Malaysia’s biggest source of tourist arrivals — as Ngee Ann Polytechnic tourism lecturer Michael Chiam said it will encourage more day trippers.
Malaysia and Singapore agreed to the high speed rail link between the two capitals following a retreat between Malaysian Prime Minister Datuk Seri Najib Razak and his Singaporean counterpart, Lee Hsien Loong, in 2013.
The planned high-speed rail link is expected to cover 300 kilometres between Singapore and Kuala Lumpur, and cut travel time to just 90 minutes.
It was initially expected to be completed by 2020, but both countries have since said that the deadline must be “reassessed”; industry experts expect that it will take another two years from the original date before the line is operational.
Seven stops have been identified in Malaysia, namely Kuala Lumpur, Putrajaya, Seremban, Ayer Keruh, Batu Pahat, Muar and Nusajaya.
The project’s actual cost has not been announced, but reports have placed it as possibly ranging from US$8 billion to US$ 24 billion (RM24 billion to RM72 billion).
Japan has been actively lobbying to be a partner in the Malaysia-Singapore high-speed rail project, but other countries such as China and South Korea are said to have approached Malaysia as well.
Tuesday 5 May 2015
Malaysia and Singapore government back success of KL-Singapore high speed rail HSR project
SINGAPORE, May 5 — Singapore prime minister Lee Hsien Loong and his Malaysian counterpart Datuk Seri Najib Razak have reaffirmed that both countries are fully committed to the success of the high speed rail (HSR) project linking the republic and Kuala Lumpur.
In a joint statement released after the Singapore-Malaysian Leaders’ Retreat here, however, both leaders said the project’s initial completion target of 2020 needed to be re-assessed given the scale and complexity of the project.
The HSR is the first of its kind in the region and has received considerable attention, both domestically and internationally, with many countries offering to share their experience and expertise for the project.
Both leaders are encouraged by the support and attention from the global community, and looked forward to further progress on this game-changing iconic project, which will boost connectivity, facilitate travel between Kuala Lumpur and Singapore, whilst enhancing business linkages, and improve people to people ties.
Noting the steady progress on the project, the leaders said that agreements had been reached on the dual co-located Customs, Immigration and Quarantine (CIQ) configuration, the frequency bands to be reserved for HSR operations, as well as locating the depot and stabling facilities in Malaysia.
Meanwhile, Lee announced that the Singapore HSR terminus will be sited at Jurong East, which dovetails with Singapore’s overall plans to transform the area into its second Central Business District.
Touching on Iskandar Malaysia, both leaders reaffirmed the strategic importance of the region for both countries and welcomed the progress made by the Work Groups under the Joint Ministerial Committee for Iskandar Malaysia (JMC).
They took note of the decision by the JMC to conduct a study on Causeway congestion with a view to exploring measures to further enhance connectivity between the two countries.
Both Leaders commended the efforts by the Immigration Work Group of the JMC to reduce congestion at the Causeway and the Singapore-Malaysia Second Link while taking security requirements into account.
Both countries have committed to reducing congestion and have taken steps to achieve this.
The statement said Singapore is automating all motorcycle counters at the Woodlands and Tuas Checkpoints by the end of 2016, compared to about a quarter currently.
Automated counters at the Singapore checkpoint will speed up motorcycle immigration clearance by up to 30 per cent and help reduce congestion for all checkpoint users.
Malaysia is studying the introduction of RFID (Radio Frequency ID) stickers in passports for Malaysian motorcyclists to allow for faster self-clearance at the Causeway.
According to the statement, both sides are also working towards increasing daily laden train services between Johor Baharu and Woodlands Train Checkpoint.
In addition, Singapore is also developing a BioScreen project to capture and tag biometric identifiers of visitors to facilitate immigration clearance at the Singapore checkpoints.
The leaders also welcomed the signing of the Supplemental Agreement to the Agreement for the Construction and Operation of a Ferry Terminal and the Operation of a Ferry Service between Peninsular Malaysia and Singapore.
They stressed the importance of strengthening bilateral economic cooperation, and discussed the opportunities and challenges in business and industrial cooperation, noting the good progress made by the Industrial Cooperation Work Group (ICWG) under the JMC.
They affirmed the benefits to Iskandar Malaysia from cooperation in manufacturing and other industrial activities, and looked forward to the holistic and comprehensive development of Iskandar Malaysia by leveraging on the complementarities between Iskandar Malaysia and Singapore.
The leaders called on the ICWG to continue its efforts to strengthen the Singapore-Malaysia ecosystem through approaching companies with synergistic investment linkages across both countries, particularly in advanced materials engineering, electronics, creative services, and food industries.
The Leaders agreed to work together to realise the full implementation of the ASEAN Economic Community (AEC) measures before the end of the year and to further deepen economic integration beyond 2015. — Bernama
Source: http://www.themalaymailonline.com/malaysia/article/malaysia-singapore-back-success-of-high-speed-rail-project
In a joint statement released after the Singapore-Malaysian Leaders’ Retreat here, however, both leaders said the project’s initial completion target of 2020 needed to be re-assessed given the scale and complexity of the project.
The HSR is the first of its kind in the region and has received considerable attention, both domestically and internationally, with many countries offering to share their experience and expertise for the project.
Both leaders are encouraged by the support and attention from the global community, and looked forward to further progress on this game-changing iconic project, which will boost connectivity, facilitate travel between Kuala Lumpur and Singapore, whilst enhancing business linkages, and improve people to people ties.
Noting the steady progress on the project, the leaders said that agreements had been reached on the dual co-located Customs, Immigration and Quarantine (CIQ) configuration, the frequency bands to be reserved for HSR operations, as well as locating the depot and stabling facilities in Malaysia.
Meanwhile, Lee announced that the Singapore HSR terminus will be sited at Jurong East, which dovetails with Singapore’s overall plans to transform the area into its second Central Business District.
Touching on Iskandar Malaysia, both leaders reaffirmed the strategic importance of the region for both countries and welcomed the progress made by the Work Groups under the Joint Ministerial Committee for Iskandar Malaysia (JMC).
They took note of the decision by the JMC to conduct a study on Causeway congestion with a view to exploring measures to further enhance connectivity between the two countries.
Both Leaders commended the efforts by the Immigration Work Group of the JMC to reduce congestion at the Causeway and the Singapore-Malaysia Second Link while taking security requirements into account.
Both countries have committed to reducing congestion and have taken steps to achieve this.
The statement said Singapore is automating all motorcycle counters at the Woodlands and Tuas Checkpoints by the end of 2016, compared to about a quarter currently.
Automated counters at the Singapore checkpoint will speed up motorcycle immigration clearance by up to 30 per cent and help reduce congestion for all checkpoint users.
Malaysia is studying the introduction of RFID (Radio Frequency ID) stickers in passports for Malaysian motorcyclists to allow for faster self-clearance at the Causeway.
According to the statement, both sides are also working towards increasing daily laden train services between Johor Baharu and Woodlands Train Checkpoint.
In addition, Singapore is also developing a BioScreen project to capture and tag biometric identifiers of visitors to facilitate immigration clearance at the Singapore checkpoints.
The leaders also welcomed the signing of the Supplemental Agreement to the Agreement for the Construction and Operation of a Ferry Terminal and the Operation of a Ferry Service between Peninsular Malaysia and Singapore.
They stressed the importance of strengthening bilateral economic cooperation, and discussed the opportunities and challenges in business and industrial cooperation, noting the good progress made by the Industrial Cooperation Work Group (ICWG) under the JMC.
They affirmed the benefits to Iskandar Malaysia from cooperation in manufacturing and other industrial activities, and looked forward to the holistic and comprehensive development of Iskandar Malaysia by leveraging on the complementarities between Iskandar Malaysia and Singapore.
The leaders called on the ICWG to continue its efforts to strengthen the Singapore-Malaysia ecosystem through approaching companies with synergistic investment linkages across both countries, particularly in advanced materials engineering, electronics, creative services, and food industries.
The Leaders agreed to work together to realise the full implementation of the ASEAN Economic Community (AEC) measures before the end of the year and to further deepen economic integration beyond 2015. — Bernama
Source: http://www.themalaymailonline.com/malaysia/article/malaysia-singapore-back-success-of-high-speed-rail-project
Tuesday 14 April 2015
Malaysia’s Data Hub in Iskandar to accelerate datacentre industry growth
Multimedia Development Corporation, Performance Management and Delivery Unit , Johor Corporation and the Iskandar Regional Development Authorityhave made two key announcements on Malaysia’s cloud services and datacentre industry: Malaysia’s 2014 datacentre industry performance and the new Data Hub in Sedenak, a 700-acre area, earmarked in the Iskandar Region for local and global datacentre companies.
The announcements were officiated by YBhg Dato’ Sri Ahmad Shabery Bin Cheek, Minister of Communications and Multimedia Malaysia, in the presence of YBhg Senator Dato’ Sri Idris Jala, Chief Executive Officer of PEMANDU, YBhg Dato’ Yasmin Mahmood, Chief Executive Officer of MDeC, Engku Ahmad Kamel, Director of Economics and Investment, representing IRDA and Ibrahim Bin Abdul Samad, Managing Director, Property Services, representing JCorp.
“In the data economy, creating wealth requires the skill of an alchemist. It is about selecting, sifting through, separating, combining, cleansing and purifying the almost unlimited amount of raw data to produce the ‘gold’ that provides value for businesses, people and the nation. In other words, management of this abundant resource will be key for countries and companies that aspire to surge ahead,” said YBhg Dato’ Sri Ahmad Shabery Bin Cheek.
Speaking at the press conference YBhg Senator Dato’ Sri Idris Jala, Chief Executive Officer of PEMANDU said, “Through the Economic Transformation Programme, the Data Centre industry will continue to be supported by the Government. The past five years has brought great progress in the Data Centre ecosystem, and I look forward in seeing exciting projects coming to fruition within the next five years.”
The Malaysian Cloud Services and Data Centre industry is marked by broad trends of expansion, efficiency and consolidation in 2014. The industry recorded RM795mil in revenue for 2014, a 26% growth from RM630mil in 2013. Exports grew from 7% to 18%.
Key industry sectors that contributed to the industry revenue include the federal government (29%), banking and financial (19%), and content and technology (17%).There was also growth in High-value Data Centre Services such as Managed Services that accounts for 50% of the total revenue, a 20% increase from 2013.
“Growth in the data centre industry showcases a positive development and confidence from local and global investors in Malaysia. We are targeting the industry to grow by 15% to RM915mil by end of 2015,” said YBhg. Dato’ Yasmin Mahmood.
Building on the encouraging performance results of the industry, the new Data Hub in Sedenak is set to meet the region’s rising demand for datacentre space and services. The hub is equipped with robust, state-of-the-art infrastructure; supported by high capacity power and reliable connectivity; and comes with friendly cloud and datacentre policies.
“Cloud services and data centre is a key sector identified to contribute to the national gross income. With the new Data Hub, we aim to attract high value investments from top cloud services and data centre providers to Malaysia, to further accelerate the growth of industry and position Malaysia as a world-class data hub in the region,” said YBhg Dato’ Yasmin Mahmood.
The Data Hub will create a healthy ecosystem for local businesses to scale their capabilities and competencies with knowledge sharing from established data centre players. The hub will also contribute to the development of sustainable communities where future generations can continue to thrive and expand.
YBhg Datuk Ismail Ibrahim, Chief Executive Officer of IRDA said, “We will continue to support these data centre initiatives as part of Iskandar Malaysia’s efforts to provide state-of-the-art ICT infrastructure and connectivity under our Smart City Framework.
“We would like to thank MDeC, as the lead agency developing and promoting the datacentre industry, for their advice, support and promotion of Sedenak as a prime location for the Data Hub. We are confident that our location is conducive and strategic in supporting data centre infrastructure for the Data Hub,” said YBhg Dato’ Kamaruzzaman Abu Kassim, President and Chief Executive Officer of JCorp.
The Data Centre Task Force consisting of MDeC, MIDA and PEMANDU will continue to work together with Johor partners, IRDA and JCorp, to further develop the cloud services and data centre ecosystem and industry towards positioning Malaysia as a world class data hub in the region.
Source: http://www.datacentres.com/dc-news/malaysia%E2%80%99s-data-hub-iskandar-accelerate-datacentre-industry-growth
The announcements were officiated by YBhg Dato’ Sri Ahmad Shabery Bin Cheek, Minister of Communications and Multimedia Malaysia, in the presence of YBhg Senator Dato’ Sri Idris Jala, Chief Executive Officer of PEMANDU, YBhg Dato’ Yasmin Mahmood, Chief Executive Officer of MDeC, Engku Ahmad Kamel, Director of Economics and Investment, representing IRDA and Ibrahim Bin Abdul Samad, Managing Director, Property Services, representing JCorp.
“In the data economy, creating wealth requires the skill of an alchemist. It is about selecting, sifting through, separating, combining, cleansing and purifying the almost unlimited amount of raw data to produce the ‘gold’ that provides value for businesses, people and the nation. In other words, management of this abundant resource will be key for countries and companies that aspire to surge ahead,” said YBhg Dato’ Sri Ahmad Shabery Bin Cheek.
Speaking at the press conference YBhg Senator Dato’ Sri Idris Jala, Chief Executive Officer of PEMANDU said, “Through the Economic Transformation Programme, the Data Centre industry will continue to be supported by the Government. The past five years has brought great progress in the Data Centre ecosystem, and I look forward in seeing exciting projects coming to fruition within the next five years.”
The Malaysian Cloud Services and Data Centre industry is marked by broad trends of expansion, efficiency and consolidation in 2014. The industry recorded RM795mil in revenue for 2014, a 26% growth from RM630mil in 2013. Exports grew from 7% to 18%.
Key industry sectors that contributed to the industry revenue include the federal government (29%), banking and financial (19%), and content and technology (17%).There was also growth in High-value Data Centre Services such as Managed Services that accounts for 50% of the total revenue, a 20% increase from 2013.
“Growth in the data centre industry showcases a positive development and confidence from local and global investors in Malaysia. We are targeting the industry to grow by 15% to RM915mil by end of 2015,” said YBhg. Dato’ Yasmin Mahmood.
Building on the encouraging performance results of the industry, the new Data Hub in Sedenak is set to meet the region’s rising demand for datacentre space and services. The hub is equipped with robust, state-of-the-art infrastructure; supported by high capacity power and reliable connectivity; and comes with friendly cloud and datacentre policies.
“Cloud services and data centre is a key sector identified to contribute to the national gross income. With the new Data Hub, we aim to attract high value investments from top cloud services and data centre providers to Malaysia, to further accelerate the growth of industry and position Malaysia as a world-class data hub in the region,” said YBhg Dato’ Yasmin Mahmood.
The Data Hub will create a healthy ecosystem for local businesses to scale their capabilities and competencies with knowledge sharing from established data centre players. The hub will also contribute to the development of sustainable communities where future generations can continue to thrive and expand.
YBhg Datuk Ismail Ibrahim, Chief Executive Officer of IRDA said, “We will continue to support these data centre initiatives as part of Iskandar Malaysia’s efforts to provide state-of-the-art ICT infrastructure and connectivity under our Smart City Framework.
“We would like to thank MDeC, as the lead agency developing and promoting the datacentre industry, for their advice, support and promotion of Sedenak as a prime location for the Data Hub. We are confident that our location is conducive and strategic in supporting data centre infrastructure for the Data Hub,” said YBhg Dato’ Kamaruzzaman Abu Kassim, President and Chief Executive Officer of JCorp.
The Data Centre Task Force consisting of MDeC, MIDA and PEMANDU will continue to work together with Johor partners, IRDA and JCorp, to further develop the cloud services and data centre ecosystem and industry towards positioning Malaysia as a world class data hub in the region.
Source: http://www.datacentres.com/dc-news/malaysia%E2%80%99s-data-hub-iskandar-accelerate-datacentre-industry-growth
Saturday 4 April 2015
RM20 VEP for Singapore cars
JOHOR BARU: Come Aug 1 2015, foreign vehicles entering Malaysia through the Causeway here and the Second Link Expressway in Tanjung Kupang, Gelang Patah, will have to pay the vehicle entry permit (VEP) fee.
Deputy Transport Minister Datuk Abdul Aziz Kaprawi said the proposed RM20 VEP rate would remain as it was seen to be “appropriate at this point of time”.
He said there were several issues that needed to be fine-tuned before implementing the VEP, hence the postponement from June to August.
“Among the aspects that we have to look into are the installation of the gentries at the entry points in Johor Baru and the procurement process,” Abdul Aziz told reporters after flagging off the Funride and Criterium run.
The event was held in conjunction with the coronation of Sultan Ibrahim Ibni Sultan Iskandar which was held on a grand scale on March 23.
He said the Government also planned to extend the VEP to entry points on the northern states for foreign vehicles entering Malaysia from Thailand.
“This will be implemented for next year,” Abdul Aziz said.
“Foreign vehicles entering Johor Baru have to pay the VEP daily.
“There won’t be any exemption like what is being done in Singapore (no fee is collected on weekends and public holidays).”
On Aug 1, 2014, Singapore increased the VEP fee for foreign vehicles entering the republic from RM51 (S$20) to RM90 (S$35) daily.
The republic had also raised the Goods Vehicle Permit from RM26 (S$10) to RM103 (S$40).
Source: www.thestar.com.my/News/Nation/2015/04/05/RM20-VEP-for-Singapore-cars/
Deputy Transport Minister Datuk Abdul Aziz Kaprawi said the proposed RM20 VEP rate would remain as it was seen to be “appropriate at this point of time”.
He said there were several issues that needed to be fine-tuned before implementing the VEP, hence the postponement from June to August.
“Among the aspects that we have to look into are the installation of the gentries at the entry points in Johor Baru and the procurement process,” Abdul Aziz told reporters after flagging off the Funride and Criterium run.
The event was held in conjunction with the coronation of Sultan Ibrahim Ibni Sultan Iskandar which was held on a grand scale on March 23.
He said the Government also planned to extend the VEP to entry points on the northern states for foreign vehicles entering Malaysia from Thailand.
“This will be implemented for next year,” Abdul Aziz said.
“Foreign vehicles entering Johor Baru have to pay the VEP daily.
“There won’t be any exemption like what is being done in Singapore (no fee is collected on weekends and public holidays).”
On Aug 1, 2014, Singapore increased the VEP fee for foreign vehicles entering the republic from RM51 (S$20) to RM90 (S$35) daily.
The republic had also raised the Goods Vehicle Permit from RM26 (S$10) to RM103 (S$40).
 |
| VEP fee for Singapore cars entering Malaysia |
Source: www.thestar.com.my/News/Nation/2015/04/05/RM20-VEP-for-Singapore-cars/
Saturday 14 March 2015
Iskandar Malaysia Secures RM26.77 Billion New Investments In Year 2014
JOHOR
BAHARU, March 10 – Iskandar Malaysia secured RM26.77 billion in new investments
last year, bringing the total cumulative committed investments amount to
RM158.3 billion since 2006. It gained 1.8 billion of new investments on 4th
quarter of 2014.
In 2013, the Iskandar Malaysia new investments were
RM25.05 billion.
Iskandar Regional Development Authority chief executive,
Datuk Ismail Ibrahim, said of the total of cumulative committed investments,
RM77.07 billion or 49 per cent, represented investments that had been realised.
He said
the figure showed that Iskandar Malaysia continued to do well despite the
challenges facing the global economy.
“It
also shows the confidence in Iskandar Malaysia, especially among local
investors, with domestic investments making up RM101.14 billion, or 64 per
cent, of the total cumulative committed investments to date,” Ismail said in a
statement here Tuesday.
From the total cumulative committed investments, 36 per
cent or RM56.99 billion was came from foreign investors.
From
January until September last year, top foreign investors were Singapore, US,
Spain, Japan and China.
With
such huge investments, Ismail said, they would bring ample business
opportunities for entrepreneurs and small and medium enterprises SME as well as
creating more jobs opportunities in Iskandar Malaysia.
In 2014
alone, a total of 651,536 jobs have been created in Johor from various sectors
in Iskandar Malaysia including manufacturing, hospitality, food and beverage,
and education, he said.
Ismail
said with the launch of the enhanced Iskandar Malaysia Comprehensive
Development Plan (CDPii) by the second quarter of this year, investors and
stakeholders may also get an insight into the outlook and opportunities in
Iskandar Malaysia as it moved into its third phase towards maturity in 2025.
“The
CDPii encompasses several aspects related to the environment, economy and
social development strategies for Iskandar Malaysia, an inclusive plan that
would benefit the communities in Iskandar region,” he said.
Source: www.star.com
Wednesday 21 January 2015
China-based Greenland enters into RM2.4b land transaction with Malaysia's IWCB
PETALING JAYA: At a time when there is an increased level of cautiousness in the Johor property scene, a Chinese developer has inked an RM2.4bil deal with Iskandar Waterfront City Bhd (IWCB) to acquire 128 acres of land, a value that underscores one of the highest land transactions in the Iskandar region to-date.
A subsidiary of Shanghai-based state developer Greenland Holdings Group Ltd has established a joint venture (JV) with IWCB unit Southern Crest Development Sdn Bhd (SCD) to buy the land, which is mostly submerged, from IWCB for a sum of RM2.4bil.
The RM2.4bil deal works out to about RM430 per sq ft, which property consultants said set the benchmark for property prices in that area as there had not been any transaction of that size in that area previously. Most previous transactions were at Danga Bay, which is at the Causeway and near the Second Link.
The agreement is to acquire property and undertake the development and construction of a mixed development comprising commercial and residential components in Plentong, Johor Baru, via a special-purpose vehicle, Greenland Tebrau Sdn Bhd (GTSB).
Together, Greenland and Johor state government-linked company IWCB will develop an RM3bil new waterfront city on the land in Tebrau Bay.
The transaction comes amidst an environment where there are concerns of an oversupply of high-end condominiums in Johor. This has been evidenced by a lacklustre response from buyers for property launches in the Puteri Harbour area in the Iskandar Development region.
Iskandar Development is the authority overseeing the development of an area measuring 200,000ha in South Johor.
There are several companies undertaking the development, with UEM Sunrise Bhd being a key player. However, the recent poor take-up rate for the high-end condominium market was seen in a project at Tanjung Puteri Cove.
Apart from a vast hinterland waiting to be developed, more land is being reclaimed on the Straits of Johor near the Second Link, adding more supply of land for development.
This is particularly from the approval given to a JV between Country Garden Holdings Ltd and Kumpulan Prasarana Rakyat Johor (KPRJ) to reclaim and develop 1,368ha of land on the Straits of Johor to develop what is termed as the Forest City project that will be carried out on four man-made islands over a 30-year period.
In IWCB’s filing yesterday, it said its unit SCD would hold a 20% equity interest in GTSB, while Greenland Malaysia Real Estate Operator Sdn Bhd (GL) would hold the remaining 80%.
GL is a wholly owned subsidiary of Greenland Hong Kong Investment Group Ltd, which, in turn, is a 60%-owned subsidiary of the Greenland group.
KGV International Property Consultant executive director Samuel Tan said while more details were needed to determine if the deal was fair, it sent a strong signal to the investment market that Iskandar Malaysia was still a destination for property development in the long run.
“Development by foreign players is not confined to the usual Danga Bay, Medini Iskandar Malaysia and Nusajaya. This is good, as it will result in a more balanced geographical growth within Iskandar Malaysia,” he added.
It is learnt that IWCB chose the Greenland group, which is one of China’s biggest developers, because of its experience in building a city over a long term.
Already, some 13 local and foreign companies are actively involved in developing Iskandar Waterfront City in Danga Bay with a cumulative gross development value of RM125bil on the western corridor, which stretches from Johor Baru to Nusajaya.
“I now want to develop the Eastern Corridor of Johor Baru, stretching from Tebrau Bay to Pasir Gudang,” said Johor Mentri Besar Datuk Seri Mohamed Khaled Nordin in a statement.
Khaled envisions the Eastern Corridor to be South-East Asia’s new lifestyle destination, much like Australia’s Gold Coast.
The urban development of Tebrau Waterfront City will span a 15-year period and will feature a snow world theme park, an opera house, a hospital specialising in Chinese traditional medicine and a school.
“I welcome their long-term strategic interest to jointly transform Johor Baru into a modern international waterfront city and destination,” Khaled said.
IWCB is a listed entity which is 47%-owned by Johor-based Iskandar Waterfront Holdings Sdn Bhd (IWH). The Johor Government, via state investment arm KPRJ, has 40%.
The JV would enable IWH to leverage on its Chinese partner’s strength in mixed commercial development, including high-end hotels and residential towers, to reshape its waterfront land in Danga Bay and Tebrau Bay.
“We’ve undertaken urban development in over 80 cities throughout China. We’re keen to share the experience with IWH as our long-term JV partner and help transform Iskandar Malaysia into an international destination,” said Greenland group executive vice-chairman Xu Jing.
This is Greenland’s second investment in Iskandar Malaysia.
In April 2014, Greenland signed an agreement with IWH to jointly develop 13.6 acres in Danga Bay for RM600mil, comprising an RM2.2bil integrated mixed-property project, which includes the recently launched Jade Palace luxury condominiums.
Source: http://www.thestar.com.my/
A subsidiary of Shanghai-based state developer Greenland Holdings Group Ltd has established a joint venture (JV) with IWCB unit Southern Crest Development Sdn Bhd (SCD) to buy the land, which is mostly submerged, from IWCB for a sum of RM2.4bil.
The RM2.4bil deal works out to about RM430 per sq ft, which property consultants said set the benchmark for property prices in that area as there had not been any transaction of that size in that area previously. Most previous transactions were at Danga Bay, which is at the Causeway and near the Second Link.
The agreement is to acquire property and undertake the development and construction of a mixed development comprising commercial and residential components in Plentong, Johor Baru, via a special-purpose vehicle, Greenland Tebrau Sdn Bhd (GTSB).
Together, Greenland and Johor state government-linked company IWCB will develop an RM3bil new waterfront city on the land in Tebrau Bay.
The transaction comes amidst an environment where there are concerns of an oversupply of high-end condominiums in Johor. This has been evidenced by a lacklustre response from buyers for property launches in the Puteri Harbour area in the Iskandar Development region.
Iskandar Development is the authority overseeing the development of an area measuring 200,000ha in South Johor.
There are several companies undertaking the development, with UEM Sunrise Bhd being a key player. However, the recent poor take-up rate for the high-end condominium market was seen in a project at Tanjung Puteri Cove.
Apart from a vast hinterland waiting to be developed, more land is being reclaimed on the Straits of Johor near the Second Link, adding more supply of land for development.
This is particularly from the approval given to a JV between Country Garden Holdings Ltd and Kumpulan Prasarana Rakyat Johor (KPRJ) to reclaim and develop 1,368ha of land on the Straits of Johor to develop what is termed as the Forest City project that will be carried out on four man-made islands over a 30-year period.
In IWCB’s filing yesterday, it said its unit SCD would hold a 20% equity interest in GTSB, while Greenland Malaysia Real Estate Operator Sdn Bhd (GL) would hold the remaining 80%.
GL is a wholly owned subsidiary of Greenland Hong Kong Investment Group Ltd, which, in turn, is a 60%-owned subsidiary of the Greenland group.
KGV International Property Consultant executive director Samuel Tan said while more details were needed to determine if the deal was fair, it sent a strong signal to the investment market that Iskandar Malaysia was still a destination for property development in the long run.
“Development by foreign players is not confined to the usual Danga Bay, Medini Iskandar Malaysia and Nusajaya. This is good, as it will result in a more balanced geographical growth within Iskandar Malaysia,” he added.
It is learnt that IWCB chose the Greenland group, which is one of China’s biggest developers, because of its experience in building a city over a long term.
Already, some 13 local and foreign companies are actively involved in developing Iskandar Waterfront City in Danga Bay with a cumulative gross development value of RM125bil on the western corridor, which stretches from Johor Baru to Nusajaya.
“I now want to develop the Eastern Corridor of Johor Baru, stretching from Tebrau Bay to Pasir Gudang,” said Johor Mentri Besar Datuk Seri Mohamed Khaled Nordin in a statement.
Khaled envisions the Eastern Corridor to be South-East Asia’s new lifestyle destination, much like Australia’s Gold Coast.
The urban development of Tebrau Waterfront City will span a 15-year period and will feature a snow world theme park, an opera house, a hospital specialising in Chinese traditional medicine and a school.
“I welcome their long-term strategic interest to jointly transform Johor Baru into a modern international waterfront city and destination,” Khaled said.
IWCB is a listed entity which is 47%-owned by Johor-based Iskandar Waterfront Holdings Sdn Bhd (IWH). The Johor Government, via state investment arm KPRJ, has 40%.
The JV would enable IWH to leverage on its Chinese partner’s strength in mixed commercial development, including high-end hotels and residential towers, to reshape its waterfront land in Danga Bay and Tebrau Bay.
“We’ve undertaken urban development in over 80 cities throughout China. We’re keen to share the experience with IWH as our long-term JV partner and help transform Iskandar Malaysia into an international destination,” said Greenland group executive vice-chairman Xu Jing.
This is Greenland’s second investment in Iskandar Malaysia.
In April 2014, Greenland signed an agreement with IWH to jointly develop 13.6 acres in Danga Bay for RM600mil, comprising an RM2.2bil integrated mixed-property project, which includes the recently launched Jade Palace luxury condominiums.
Source: http://www.thestar.com.my/
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