Eric Yong's Blog - Corporate

Menara Binjai, Jalan Binjai.

2012-01-09T09:52:00.001+08:00

Updates from skyscrapercity.com =)

Property Outlook 2012.

2011-12-31T09:45:00.002+08:00

Back in July this year, I wrote a little post on The Residential Property Market and Sector – and I had mentioned of a fair outlook for 2012. In comparison to 2011’s figures, I believe that the developers would be seeing fair growth numbers as the property markets cool down a bit. But – as I said before, I still think that 2012 will be a good year, just without the super impressive growth rates. In general, I believe that the property market would be expected to be moderate in 2012.

The Summary

I would love to say that the Malaysian property markets are not affected by the global economy; but the truth is, we do have quite a number of international and foreign investors – and our market will be affected for sure. However, I also believe that the markets, although affected – it would not be as bad as in 2007/2008 during the US subprime crisis. A lot will depend on how the European debt crisis comes out, and how many countries actually go ‘down’.

Despite the global economic slowdown, the economic situation in Malaysia is still rather bullish – especially with the rumours of the next general election happening in 2012. With various Government mega projects and incentives coming out, the property and construction industry has experienced and will continue to experience a further increase in labour and building material costs. As the mega projects are being rolled out – building material speculators have resulted in profiteering – pushing up material prices in view of an increased future demand.

Like I have said before, if you are able to find a property in Klang Valley – say 750 sq ft that sells at about RM 250,000, and assuming it is a genuine developer – go ahead and buy it. By the early 2013, I believe the prices of apartments and condominiums would have increased by at least 10% - which means the average medium cost homes would cost about RM 280,000 at least.

A lot of investors are concerned of a potential property bubble. The truth is – I believe there will be no bubble in Malaysia. Our markets are able to sustain the developments around – the only worry would be an oversupply situation. But bear in mind this – the prospect of an oversupply situation is suppressing the prices of properties in Malaysia. If there was an under-supply situation – surely prices would have start shooting up now.

In summary – I believe that 2012 will be a good year in general – and I would expect the market to be stable. There should not be a sudden increase or drop in prices – and property asset capital appreciation would be expected to be stable, rather than a windfall. Yields – should be the main driver of property investments; and in my opinion, property rental yields should come down to hover at about 2.5% - 3% to give a better indication of the current situation.

Even if 2012 turns out to be not so good for many industries, the property sector should still be good. Where there are risks, there will be opportunities. In a down market, investors would be going out to spot for the opportunistic deals – the ‘fire sale’, auctions, and basically below-market-prices. These would be the properties with high capital appreciation potential.

Residential Sector Outlook

If you ask me, I have always been bullish about the Malaysia Residential Property sector. As long as the speculators do not go overboard, the residential sector is always very encouraging. I was born in the early 1980s – which is part of the baby boomers generation which sparkled since late 1970s. Today, those born during the baby boomers era would be having their own families and going out to buy their own properties. I firmly believe that Malaysia has one of the fastest growing working population in this part of the world – as the general population is still very young. According to statistics, more than half of our country’s population is below the age of 30.

Of course, the main question is… what is the 2012 prospects of the Residential Property sector?

Firstly, you should read this post that I wrote previously about The Biggest Errors People Make When Investing in Properties. I had divided properties into 3 different categories.

The Chinese kopitiams that serves the regular chicken rice and char kuey teow - and generally RM6-8 per meal - is similar to properties in the range from RM300,000 downwards
The bak kut teh joints, with meals from RM20+ per person, relates to properties in the range from RM500,000-RM700,000
The restaurants like Oriental Pavilion or Ah Yat, meals ranging from RM40+, relates to properties from RM700,000 to just above RM1mil. =)

I had mentioned that the bak kut teh type of properties are amongst the safest, as it caters to the mid range market, and becomes the bridge between the cheaper and the more expensive, ideal for upgraders as well as the downgraders.

Just remember this – your Rental Returns (%) has to be of a realistic figure. I have said this before, and let me reiterate once again. I had mentioned that a lot of properties in Klang Valley are not fetching yields of 8% like how they were previously. Here's my reply to that... YOU ARE RIGHT! If you could get a property that fetches you a 8% yield, by all means, dont ever sell it - at least not yet.Based on the recent research and feedback from various agents, it seems like a lot of properties in Mont Kiara and KL area are fetching yields of 4-5%, which in my honest opinion, is very good. If you ask me now, any yields above 3% is a good deal.

What type of residential properties to invest or to buy? Any underpriced property in a prime location with a good yield would be a good buy. Vague, isn’t it? A specific type of property would be to get a landed property – be it a linked, or a semi detached or a bungalow, landed properties usually cant go wrong. Choose from Damansara Jaya, Damansara Utama, Bandar Utama, TTDI, Bangsar, Damansara Heights, Setia Alam, Setia Eco Park, Damansara Indah, Ara Damansara etc etc… all these are established neighbourhoods with plenty of good landed properties to choose from. Oh, I also noticed plenty of areas with Damansara too… LOL.

As for high rise properties – it is always a challenge to find the best deals. Do note that collectively in Klang Valley itself, there are over 25,000 units of high end condominium. I do not have the breakdown figures of units for lease and for own use – but I would say it is probably in a 50/50 balance.

The Capers by YTL.

Based on what I see, a common trend in the residential sector is the emergence of smaller unit sizes. Developers are creating smaller, and hence, more affordable units to cater to the market. Looking at what S P Setia did for Setia Sky Residences, what YTL did for The Capers and the Empire Group’s developments in Damansara Perdana – I noticed a major increase in demands for smaller units. Setia Sky Residences Block C and D were originally of larger sized units – but were converted and changed to smaller units after they witness the demands for those types at Block A and B. The Capers at Sentul East, achieved 100% take up rates at about RM600 psf, setting a new benchmark in the area.

Empire? Do I need to mention more?

Commercial Sector Outlook

While the residential sector remains encouraging, the commercial sector may seem a little gloomy – but that means there are plenty of opportunities! If you look at the 2011 statistics so far for the office markets – rental and occupancy rates were stable, and were slowly trending downwards as well – due to many new completed office buildings.

According to records, there are over 60 million sq ft of office spaces in Klang Valley itself. There are many newer commercial developments coming up, increasing the supply. But as far as many concerns of an oversupply situation, I think this would not be the case. Instead of worrying, we should be excited about what the owners of the older buildings do, how they refurbish and who else comes in as tenants next!

Avenue Crest, Shah Alam.

Like how I said before, the race now is for sustainable commercial developments. Newer projects are going for LEED, BCA Green Mark or GBI certifications to be a certified green building – on top of utilizing CONQUAS21 and QLASSIC to benchmark their quality. Some are even getting MSC Malaysia status to attract more tenants. Some of the newer and refurbished commercial buildings include 348 Sentral (LEED Gold), Intermark (MSC), Integra Tower (LEED Platinum), Bangunan Lestari EMKAY (LEED Gold), Menara Worldwide (GBI) as well as Menara Binjai (GBI and BCA Green Mark).

The commercial property sector would require some time to digest some of the new proposed mega developments in the KL City Centre itself. Together with the mega projects such as the Bandar 1Malaysia, KLIFD, the Warisan Merdeka development, Naza KL Metropolis at MATRADE and so on, my interests also lies in 2 very interesting developments – one would be the Pudu Jail Redevelopment at the end of the Bukit Bintang Shopping District; and the other would be the Tradewinds Centre – the redevelopment of Crowne Plaza Mutiara and Kompleks Antarabangsa. If you add all the above up, together with the new MRT, and the RRIM land at Sg Buloh – the cumulative total of projects in the Greater Kuala Lumpur New Key Economic Area (NKEA) would amount to over RM 81 billion.

Strata titled type of office projects were also well received. If you look at the office developments such as UOA Bangsar, Q Sentral at KL Sentral, KL Trillion at Jalan Tun Razak, the takeup rates for these ‘office suite’ type of projects are also looking good. In fact, this positive outlook was also one of the main reasons why I have decided to go ahead with my company’s Avenue Crest Office Suites project at Shah Alam. The target markets for these smaller office suites are similar to the medium cost residences – the upgraders and the newbies. During bad times, there are always those who lost their jobs and decided to start a new business instead – and they would be on the look out for small office suites to house their operations. The upgraders would be those who are currently in shop offices and shophouses, and want a more proper business address for their business. And of course… lets not forget the downgraders as well…

Other Major Catalysts

I believe that in the next 7-10 years, the Malaysian property industry is expected to remain robust. The Government continue to add sweeteners here and there to impress us further – and for those in the industry, they would love all these new additions to the sector. There are quite a number of major catalysts – I would like to sum it all into a few here.

The MRT alignment.

THE MASS RAPID TRANSIT (MRT)

The MRT system, has been announced by the Government – with an estimated cost of about RM 50 billion. The system is expected to address the poor public transport system in Klang Valley – and would be completed by 2020. It is forecasted to increase utilization of public transportation by at least 40%.

The MRT would link all the new and major development areas in Klang Valley together. If you look at the alignment – I like the idea that the MRT is able to bring the human traffic from Kota Damansara and Bandar Utama (where there are a huge population), into the city centre and onwards towards Kajang etc. It also passes through a major shopping centre – One Utama – indirectly able to reduce the congestion on LDP.

Further to that, I believe the MRT can only bring positive impact to the property sector. Property prices will move up for sure. In my opinion, the impact would be even greater when seen at existing properties and the secondary market. This is because the MRT is passing through already established and well-populated areas.

THE MEGA PROJECTS

The 3,000 acre RRIM Sungai Buloh project may be a huge RM 10 billion project – but I think the impact that it has will not be in 2012, but perhaps starting 2014 onwards and throughout til 2025 or so. Developments of this scale takes at least 10-15 years to mature – hence, the impact it has on the market would be rather speculative. The Sungai Besi airport redevelopment, or codenamed Bandar 1Malaysia – would probably take at least 3-5 years before it has any immediate impact on the market.

One should be more interested in the KL International Financial District instead – due to its proximity to the city centre. The KLIFD is developed by 1MDB – and is expected to have a GDV of at least RM 26 billion. Filling up spaces at KLIFD has been made easier – especially when the Government is offering special incentive packages to attract investors to the KLIFD. KLIFD is expected to have about 8 blocks of 35-50 storey serviced apartments, at least 3 blocks of hotels, at least 12 office towers (of which one would be 80 storeys), and a massive shopping mall on its podium.

The Proposed RM 6 billion Pudu Jail Redevelopment.

Elsewhere, the RM 5 billion Warisan Merdeka development, developed by PNB is expected to have Malaysia’s tallest building. Looking at it, this development, together with the RM 6 billion Pudu Jail Redevelopment, codenamed the Bukit Bintang City Centre (BBCC), are likely to have some major announcements by end of 2012 – and this would have quite an effect on the KL Property markets.

Hotspots for 2012 and beyond

Back to everyone’s favourite question – where is the NEXT HOTSPOT for 2012?

KL’s hottest property hotspot still belongs in the KLCC vicinity. Most of these places are filled with high rise and high end developments, including Jalan Ampang, Jalan Binjai, Jalan Stonor, Jalan Yap Kwan Seng, Jalan Sultan Ismail, Jalan Pinang, Jalan Perak, Jalan Kia Peng… and of course, Jalan Bukit Bintang – amongst my favourites!

Looking beyond the KLCC region, my personal favourite is still Bangsar. I personally think that Damansara Perdana and Mutiara Damansara has plenty of potential – but it is starting to look overcongested and oversaturated over here.

The KLCC City Centre.

Mont Kiara – everyone’s favourite hotspot, had slowly drifted out of the investors’ radar due to the lack of expatriate based tenants offering exorbitant rental prices. However, I believe now is the time to jump back into Mont Kiara – when the markets there are slowing down, now is the right time to jump back in.

Cyberjaya remains my long term hotspot. I believe it has plenty of potential for your investments to grow, while still being rather cheap. It is on the uptrend though, so you might want to snap up some properties there before it gets too expensive. With the MEX highway, Cyberjaya is only a good 15 minutes (or to some slower driver, about 25 minutes or so) away from KLCC, perhaps reaching there faster than if you are coming from Petaling Jaya.

The other locations???

Like I mentioned, Old Klang Road / Kuchai Lama and OUG areas are existing matured neighbourhoods that I would put my money on, KL South area would need more time though. As for Setapak / Wangsa Maju area - the potential is there, but nothing great about it. Rental yields there are good because of the TAR College students though. I see a lot of potential in Kelana Jaya as it still has certain small tracts of undeveloped land.

As for Subang Jaya and USJ... I think lets not look in this direction yet. Subang Jaya, USJ, and its new fringe townships Putra Heights as well as USJ Heights represent a massive area to be developed - and I'm just hoping it wont become a situation of oversupply here. As for Seri Kembangan area - plus Balakong as well - there is some potential here as well. This place should also enjoy a good 20-25% appreciation over the next 1-2 years. Sentul has been a location that I havent touched on - but it has plenty of potential too.

Menara Binjai, Jalan Binjai - Updates.

2011-12-30T09:50:00.000+08:00

Updates from Skyscrapercity. =)

Verticas Residensi, Bkt Ceylon - Updates.

2011-12-15T10:13:00.002+08:00

Updated from Skyscrapercity. =)

Verticas Residensi, Bukit Ceylon - Updates.

2011-12-12T03:46:00.001+08:00

As taken yesterday.

Menara Carigali, KLCC.

2011-12-12T03:37:00.001+08:00

Basically, I have been going to town so often, and I am always stuck in the jams. So here's a pic of Menara Carigali - the 3rd tallest tower in the area. =)

The KLCC Petronas Twin Towers. =)

2011-12-10T03:35:00.000+08:00

A random shot taken yesterday.

The KL Tower, from KLCC. =)

2011-12-09T03:36:00.000+08:00

The shot of KL Tower, as taken from KLCC.

Menara Binjai, Jalan Binjai - Updates.

2011-12-06T06:49:00.000+08:00

Taken from Ampang Park. =)

Verticas Residensi, Bkt Ceylon - Updates.

2011-12-03T06:45:00.000+08:00

The site, as updated from skyscrapercity.com forum.

Cant find it? It is at the centre... notice the 3 blocks under construction?

Setia Sky Residences - Project Updates.

2011-11-23T14:56:00.000+08:00

Top right side of KLCC. Updated from skyscrapercity forum. =)

Verticas Residensi, Bukit Ceylon - Updates.

2011-11-10T04:39:00.000+08:00

Verticas Residensi, Bukit Ceylon.

Bring your QR code reader out now! =)

2011-10-24T13:30:00.002+08:00

Check out this... =)

Green Buildings.

2011-10-22T09:43:00.001+08:00

The Kuala Lumpur skyline.

This morning I had an interesting chat with the Devil - she asked me about green buildings and how am I involved in it and so on. We didnt elaborate too much on that, but it sort of gave me an idea what to blog about today - yes, Green Buildings.

Green Buildings. Source.

To be honest, when green building proposals were being introduced, I was rather skeptical. I had the opinion that it could work in places such as Singapore, Hong Kong, and most Western cities due to its selling prices, and not so much in Kuala Lumpur. This was back when condominiums were just touching RM1,000psf - yes, years ago.

Today, my opinions have changed tremendously. In fact, I think that Green Buildings is the way forward in Kuala Lumpur. If you look at the world environmental and disaster statistics - you'll realize that the world is somehow suffering. Somewhere at some part of the world is having massive floods, massive tornadoes, earthquakes, forest fires, and all kinds of natural disasters that were previously only heard or seen once in 50 years. Today, it seems to be happening quite frequently. I am not going to talk much on disasters - instead, I believe what the world, and in particular, Malaysia and Kuala Lumpur needs now are sustainable developments, and sustainable buildings.

The property sector accounts and consumes at least a-third of the world's energy - or perhaps even more. Having a green building that is energy and environmental friendly is able to reduce this energy consumption. There has been so much researches and studies on green buildings that there are so many different sectors and areas that can cover, and also make a building green. For example, a building that channels rainwater, back onto your landscape and planter boxes, as well as the toilets for flushing efficiently is able to save so much water in the long term. From the economists' point of view, there are so much savings from water bills and so on. Environmentalists would encourage that a lot too. But, developers and building owners will see the initial costs as a deterrent.

Having certain types of mechanical systems for your air-conditioning also makes your building energy efficient. When these elements are integrated together, the green buildings are designed and constructed to save much more energy - ultimately a reduction in your electricity bills. Energy efficiency would cover many different aspects in a building right from the air-conditioning, lighting, firefighting systems, lifts, escalators and much more. A building with environmental-friendly facades allows for lesser energy loss, while still maintaining the temperatures in the building. Further to that, the indoor environmental quality levels and standards are also being monitored.

The Menara Binjai.

There are many architects and designers today who are very familiar with green buildings. Having a north-south orientation of a building reduces the amount of sunlight on the building, keeping energy loss to a minimum. These are part and parcel of sustainable site planning and management. There are just too many items to cover in one article here; you could do some basic research by just googling 'Green Building'. Green Buildings do not just cover the completed buildings. For instance, while we are constructing the Menara Binjai, we have committed to use recyclable materials and formwork for the structures. Our plywood and various formwork materials are derived from imported pinewood, a source that is rather recyclable as compared to using local timber, which takes decades to grow.

Many studies have indicated that green buildings would provide better cost savings in the long term. Furthermore, the Government is now also providing tax incentives for green buildings - making it another plus point for the green building initiative. In my opinion, these buildings are able to improve staff productivity, driven by the improvements in indoor air quality, better lighting, thermal comfort and an improved innovation in the work environment.

The PTM GEO Building.

With the rise in the demands of the owners, buyers and investors, the standards and quality of buildings today have improved tremendously. The values of properties have also went up. Today, we are in the generation of which property prices have went up so much, and allows for so much more enhancement of the building and property - so, there should be no reason why green buildings cannot be implemented. It has taken quite some time for the initiative to hit it off; I believe that in the next 5 years, four out of every 5 developments would be a Green-certified development. =)

Enjoy your weekend! =)

Menara Binjai, Jalan Binjai - Updates.

2011-10-15T00:18:00.000+08:00

Updates from skyscrapercity. =)

Verticas Residensi, Bkt Ceylon - Updates.

2011-10-10T15:57:00.001+08:00

Updates from skyscrapercity.com =)

Menara Binjai & The Meritz - Bird's Eye View.

2011-10-10T02:02:00.001+08:00

Bird's eye view of the KLCC area. =)

Verticas Residensi, Bukit Ceylon - Updates.

2011-10-04T02:20:00.002+08:00

Updated from skyscrapercity forum - Verticas Residensi clearly seen in the background of a skydiving shot.

Alam Idaman, Shah Alam - Updates.

2011-10-03T00:32:00.000+08:00

Updated picture as of yesterday.

Menara Binjai, Jalan Binjai - Updates.

2011-09-24T09:47:00.000+08:00

The view from Intercontinental Hotel. =)

Menara Binjai, Jalan Binjai - A Shot from Intermark.

2011-09-24T09:44:00.001+08:00

An undated shot of Menara Binjai, sourced from skyscrapercity.com forum. =)

Menara Binjai, Jalan Binjai - Updates.

2011-09-19T01:19:00.000+08:00

Updates from Skyscrapercity. =)

The 2020 Countdown Clock Urban Design Competition.

2011-09-10T02:23:00.000+08:00

My architect has been shortlisted for this competition... =)

They do have an awesome design - one that will change the face of Dataran Merdeka.

Go on.... and vote!!! =P

Menara Bank Islam, Jalan Perak.

2011-09-03T21:33:00.001+08:00

Updates from skyscrapercity.com =)

Menara Binjai, Jalan Binjai - Updates.

2011-08-29T10:33:00.001+08:00

Updates from skyscrapercity forum. =)

CBHB - 2nd Quarter FY2011 =)

2011-08-29T10:30:00.000+08:00

The following has been extracted and sourced from Bursa Malaysia. =)

For the 2nd quarter under review, Crest Builder Holdings Berhad's revenue increased by 21% to RM122 million from RM100.7 million in the corresponding 2nd quarter of the preceding year. The profit after tax increased by 6% to RM3.4million from RM3.2 million the in corresponding second quarter of the preceding year.

The increase in revenue and profit after tax were mainly due to the higher contribution from property development activities undertaken during the current quarter. =P

Eric Yong : Being Media Shy?

2011-08-27T10:05:00.001+08:00

Some people asked me recently what do I do - in which I replied; Property and Construction lorrr... and then some even asked me, how come I am not media shy, or not camera shy... and probably a lot of other random questions. Errr.... Okay, I am actually quite camera shy too LOL; but every now and then I do enjoy being in the media a bit. It is all about the branding and the good of the company, and ideally, it is about talking the markets up etc etc bla bla bla.

So, someone asked me how often have I appeared in the papers; I would say.. not many times. I used to appear considerably quite often - but none so far in 2011; perhaps thats why some say I am media shy.

The first time I appeared in the papers was way back in 2007. In a little interview with The Star's Bizweek - I mentioned about the company's business direction, the company's sector-by-sector performances, the order book and so on. Then, I also talked about the property division and its various upcoming projects.

And then fair enough, they interviewed me again when we secured the Verticas Residensi project; a massive prestigious project in the heart of Bukit Ceylon, developed by premium developers WingTai Asia of Singapore.

Awhile later, I also appeared in the Chinese papers; an interesting interview once again on the updates of the company's performances, and the outlooks of the company. It was a 2 part article - with a big mention on Tierra Crest - our new commercial office development in Kelana Jaya. Comparing the descriptions that I mentioned before and today - there have been some major upgrades and improvements to the design; and ultimately, even the Gross Development Value had increased quite a bit.

Then awhile later in middle of 2008, I was somewhat misquoted a bit on The Edge Financial Daily. I had mentioned that we might consider setting up other entities to enhance our earnings further, such as forming a Real Estate Investment Trust. This is something that I believe will enhance earnings for the Group - however there is nothing on paper yet. Even up til now, I still believe in that - but that is really the long term goal.

When it came to March 2009, I appeared on a full page for the first time ever. The Edge did a very comprehensive feature on Crest Builder in their weekly The Edge - with the main highlight being our acquisition of the 4.26 acre land in Damansara Perdana, the current property projects as well as an outlook onto the Group's Construction Division for 2009... Oh best part, and it had a mention of this BLOG too!

And then we went for the Bursa Malaysia Kuala Lumpur Rat Race, organized by The Edge Malaysia. I didnt run, but I formed the team and I went all out to support my boys.

2009 was also the same year that I was shortlisted under the Prestige Top 40 Under 40. It was indeed an awesome recognition of my contributions, despite my age - and I really appreciated it. And then I also appeared and featured on Property Buyer magazine, with a good interview and writeup. Amongst my favourite question/reply was this... "What is it like working with family?"

I just answered - Its like 18-hour long family days. I always say that I work 8 days a week and dinners are like half a board meeting because my two sisters work with the family plus my parents are both directors too!

And then The Edge's Financial Daily featured me on a cover story. I told Mr Chong Jin Hun that we are now on an expansion basis - of which apart from our expertise as a building specialist, we also want to eye other areas in the industry - areas with lesser projects and competition.

And then about a year ago, there was another article on me and the company, on the deferment of our Kiara Crest luxury condominium project in Mont Kiara. We were planning to develop a 38-storey luxury tower housing 178 condominiums with floor space of between 2,000 sq ft and 2,600 sq ft on a 2.93-acre freehold land. With only six units per floor on 32 levels, the average unit will have between two and four bedrooms. Each unit will have a minimum of three car parks... but the plans would probably be delayed a bit as there is no rush for this project.

So all in, I reckon I have been considerably quite media shy, just a handful of articles and interviews in the last few years. I am still rather active on Twitter as well, ready to answer and advice any questions on the construction and property industry, as well as questions on the government, politics, policies and perhaps, just ask me anything. I would answer based on what I know.

Anyways, I think I would still be rather 'media-shy' til end of the year at least, but look on the bright side... just look out for my blog here, and we shall see more exciting things brewing for the company. =)

Menara Binjai, Jalan Binjai - Updates.

2011-08-08T15:52:00.000+08:00

Updates from skyscrapercity. =)

Menara Binjai, Jalan Binjai - Updates.

2011-08-07T01:21:00.001+08:00

Updates from skyscrapercity forums. =)

MoF to decide on UDA partner @ Financial Daily.

2011-07-27T13:51:00.003+08:00

Yesterday, Crest Builder's name appeared on the front page of Financial Daily - linked to UDA's Pudu redevelopment project. Some people from the media and the industry have asked me about it - and here's my reply - yes, we did submit a bid for the turnkey investor/developer project, we were amongst the ones invited, and by merit, we are one of the shortlisted.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

KUALA LUMPUR: The Ministry of Finance (MoF) is soon due to make yet another crucial decision which could be a defining moment for UDA Holdings Bhd, which is caught between its own survival and its social responsibility to the bumiputera agenda.

A source from the ministry said UDA has been asked to make a submission on the shortlisted potential developers and their plans. It is also learnt that UDA’s board of directors has been asked to convene a meeting to shortlist the potential developers. This comes after UDA was said to have submitted a list consisting of five companies, and this initial list was said to have gone to the tender committee at the ministry. In the next few months, the MoF is to choose a partner to develop one of UDA’s last remaining crown jewels — the 8ha site on the former Pudu Jail.

According to another source, the five companies listed were China-based Everbright International Construction Ltd, a joint venture (JV) between Crest Builder Holdings Bhd and Detik Utuh Sdn Bhd; Asian Pac Holdings Bhd; a JV between Kumpulan Jetson Bhd and a China-based company; and a Sarawak-based company. The initial list of 11 companies that submitted proposals was said to include big names such as Malaysian Resources Corp Bhd, Bolton Bhd, Naza TTDI Sdn Bhd and UEM Land Bhd.

This would be the second involvement of the MoF in UDA. To recap, the MoF last week had rejected UDA’s proposed sale of 3.56 acres of prime land in Jalan Sultan Ismail in Kuala Lumpur to Nadayu Properties Bhd. That sale would have put RM215.5 million into UDA’s coffers. Although the ministry did not provide any reason for its decision, it is learnt that Nadayu, formerly known as Mutiara Goodyear Development Bhd, does not have the appropriate level of bumiputera shareholding.

Nadayu’s largest shareholder is listed Atis Corp Bhd, which owns 60.8% of the property developer. Atis Corp, in turn, is 42.88% directly and indirectly-owned by its managing director, Chen Khai Voon, according to its annual report for 2010.

UDA and its chairman Datuk Nur Jazlan Mohamed had earlier come under fire from bumiputera rights groups and Umno Youth members when the sale of the land was first announced. They had alleged that UDA was sidelining bumiputera interests in owning a piece of prime land in the city centre. While this issue has simmered down with the abortion of the sale, the key decision involving the Pudu Jail land is coming up soon.

And the Pudu Jail redevelopment project is vital to UDA.

It would bring in new sources of recurring rental income, estimated at RM200 million to RM300 million a year, and more importantly, a more secure future for the company, said Nur Jazlan in an interview with The Edge Financial Daily last month.

Several questions have arisen from this episode.

For a start the MoF-owned UDA appears not to have the powers to make decision on huge projects such as the Pudu Jail project, despite having a board of directors made up of professionals. Market observers say this does not bode well for UDA as it comes across as merely an intermediary between potential business partners and the government.

That being the case, why not revert to its old status as an authority body instead of being a private entity which is expected to be profitable and yet at the same time be tasked with carrying out its social responsibility for the bumiputera agenda? That’s the question asked by many observers, noting that it is difficult to balance between the two objectives.

Nur Jazlan had also said previously that in the light of UDA’s dire financial status (with debts of about RM900 million and cash of RM90 million), UDA must be smart when developing its assets. “For UDA, there has to be the profit motive first and the bumiputera agenda second,” he said. Nur Jazlan had also reassured the bumiputera community that UDA’s participation in the Pudu Jail project is assured. Even if a bumiputera company was not appointed the developer, he said that there are plenty of opportunities in the project.

For the Pudu Jail land project, it is understood that the JV partnership would have to first construct, at an estimated cost of RM600 million, a huge complex comprising several floors of parking spaces, a retail mall and a public transport hub that can house 180 buses. The RM600 million cost is to be borne entirely by the partner, but ownership of the complex goes to UDA, as consideration for the “land rights”.

With such stringent terms which UDA is not about to compromise on, a strong balance sheet and heavy financial commitment on the project from the JV partner are needed, as it will need to sink in RM600 million while not seeing any returns during the construction tenure of four years.

Most important of all, the partner cannot charge the “land rights” to secure financing for the project, and will still have to produce a bank guarantee amounting to RM600 million. It was learnt that it was the “no charging of land rights” clause that resulted in some of the big local names not making the cut. According to an industry source, there is preference to go with a foreign partner in developing the Pudu Jail land, as it will have the strong financial backing needed for the project.

“The main fear of having a local partner is the possibility of flipping the project to a third party. What happens if the third party is financially strapped halfway through the project? It will be very messy with many parties involved,” he said. Whether UDA can put profit first and the bumiputera agenda second will be another question that MoF needs to answer looking at both the financial health of the company and also the political scenario of the country, especially with snap general election looming. Already there are talk in the industry that the project’s forerunner China-based Everbright is no longer in the running due to the non-bumiputera and non-local factor.

It appears that MoF needs to strike a delicate balance of UDA receiving income (since it no longer receives injection from the government) for it to continue to survive and develop projects, while ensuring the bumiputera that the bumiputera agenda has not been sidelined.

This article appeared in The Edge Financial Daily, July 26, 2011.

Buying a Pre-Owned Property - The Checklist.

2011-07-26T17:05:00.000+08:00

Some of the things and items that a buyer need to look at before buying a property - say... an existing property, an old house, or a pre-owned property - includes many many items. Let me try to put in as much as I can here and hope not to miss out anything ya. =)

The name of the agent.

When you're going for the property inspection - do take note of... importantly, the property lot number, the name of the agency and its corresponding person, the name of the seller (if possible) and any other basic information that you can get... check if its freehold or leasehold etc. =)

Pre-owned properties tend to be renovated already - so it is best to observe for yourself on the general arrangements and layout of the property. Do take note of the number of bedrooms and bathrooms (important!), and then the condition of the interior walls and floors, the exterior walls and floors and roof, observe the ceiling for leakages, lighting points, the condition of the doors and door frames, the layout of the house etc.

Some of the items that I would usually check is the works that are required to be done up - for example, do check if the property has a water heating system, Astro TV or UniFi etc... those without would mean the property needs some extensive hacking and renovation to the walls and floors for it to comply with that. Air conditioning systems are also important. =)

If the property comes furnished, do check out the conditions of the beds, sofas, the white goods (such as the microwave oven, ovens, stove, television and so on...), the shower systems, the conditions of the built-in wardrobe/walk-in wardrobe (if any), the bathtubs (tend to crack or leak) and any other fittings there are in the property.

For an investor, it would be ideal to also check out the property's surroundings - after all, a property would be able to fetch a premium if it is close to a shopping centre or public amenities. Check out how far it is to walk to the LRT station, check if the new MRT will run nearby, any bus stops nearby, clinics and schools, gyms, kindergartens, parks and so on...

Setia Sky Residences - Project Updates.

2011-07-26T11:04:00.001+08:00

Avenue Crest, Shah Alam.

2011-07-26T00:43:00.002+08:00

Go register and check it out!

Menara Bank Islam, Jalan Perak - Updates.

2011-07-25T12:47:00.001+08:00

Twins, Bukit Damansara - Updates.

2011-07-18T00:24:00.000+08:00

Menara Binjai, Jalan Binjai - Updates.

2011-07-18T00:20:00.000+08:00

Updates from skyscrapercity forum.

Menara Binjai, Jalan Binjai - Updates.

2011-07-12T08:11:00.000+08:00

The Advantages & Disadvantages of the Industrialized Building Systems (IBS).

2011-07-06T09:01:00.001+08:00

Yesterday, my colleague asked me something on IBS; IBS has obviously been one of my favourite topics, and in fact, I have always been a believer in certain forms of IBS systems. I was the one who had 'pushed' for the introduction of system formwork usage in my office - since then, we used a lot of steel forms, table forms, the aluminium formwork system such as MIVAN, and most recently, the DOKA system.

The DOKA system formwork used at Menara Binjai.

Anyways, IBS is much more than just system formwork. I would say system formwork can only get 0.5 or 0.6 multiplier in terms of IBS scoring, cos it is still casted in-situ. In fact, The IBS is a system, or rather method of construction where the various components are constructed, and then assembled on site - similar like LEGO. =)

Precast elements plays a significant role in IBS.

In Malaysia, there are about 5 main IBS groups.

Pre-cast concrete frames, panels, columns etc
Formwork systems - tunnel forms, permanent steel formworks
Steel frame systems - portal frame, roof trusses
Prefabricated timber frames - i.e. for roof trusses
Block work systems - lightweight concrete blocks and so on...

My colleague got a little shock to see her newly purchased house - being built the un-conventional way - in the form of IBS. After explaining a bit to her on IBS systems, I have decided to come up with this post - to further explain on the advantages and... of course, disadvantages of IBS systems. Nothing is perfect in this world... so there are always pros and cons. =)

What would be the main advantages of the usage of Industrialized Building Systems?

The immediate advantage is... discounts on levy charges for contractors!!!!! Sorry - this is of course in the contractor's point of view - which would have plenty of advantages. But with due respect, it is the buyers/end users who need to worry about it - so here are some of the strong points.

Precast panels used in linked/terrace houses.

As most components are manufactured in the factory, the quality, or rather high quality can be consistent and maintained as the working environment in a factory is easier to control. The wall surfaces, the soffit surfaces and so on can be controlled right to the millimetres in dimensions, hence improved and consistent quality. Another good point for buyers is... IBS allows projects to be completed faster than conventional systems - due to the introduction of pre-fabricated components to replace on-site works. Assuming there is a massive amount of quantity - economies of scale-wise, IBS systems will result in cheaper total construction costs, and buyers can benefit if the savings are transferred to them.

We have the yin.. how about the yang?

In most cases, there is a high initial capital costs for the contractors - which might decide to transfer the costs to the buyers. Plus, with only a handful of IBS players in the country, there is quite a 'monopoly' system. Further to that, the standardization of building components and elements also results in a lack of aesthetics value - buildings tend to be very boxy and square-y, which may not look as impressive as the conventional curvy buildings. But this part here - IBS systems are being expanded to be more architecturally and eye-pleasing.

The Singapore's HDB flats - which uses a lot of IBS elements - looks pretty boxy to me.

Another major problem... is when the contractors have bad workmanship while using pre-fabricated panels. This can result in problems in the joints - resulting in water leakages. In a country like Malaysia where it rains practically everyday, the problem can be very severe. To counter this problem - one has to thoroughly check through the completed units during handover to make sure the developer sorts out these defects.

Owner tries to hack a precast wall - only to find steel reinforcements which he has a dilemma whether to cut or not to cut. Cutting it might result in affecting the structural integrity of the building.

Another disadvantage with pre-cast elements is that these components are considered to be inflexible, with respect to changes/renovations. Most people would want to drill holes for wall lamps and so on - which is okay. But for some, they want to hack to allow for additional conduit works and wiring works - which might be a hindrance. If one buys two adjoining units, they may have problems trying to hack down some walls to allow two units to breakthrough.

The Residential Property Market and Sector.

2011-07-05T09:46:00.000+08:00

Okay - what I am going to write about next might make you jump off your chair - or rather shocked - or some of you may already sense it already. =) I have been conducting a very thorough research on properties in Malaysia, the property markets - and for those who want to invest in property counters, yes, the property sector as well.

In my opinion, Malaysia's current residential markets look very good, and I would say that the likelihood of a residential property bubble bursting is very low. However, I do think that the larger developers would be seeing fair growth numbers for 2012 as compared to 2011. The rebound from 2008 saw a jump in 2009, a hike in 2010 and a pretty impressive 2011. But as the markets tend to hover and cool down a bit - I believe 2012 will still be a good year, just without the super impressive growth rates.

The Government - through the Economic Transformation Programme (ETP) has been releasing plenty of good news to the property markets. In a way, having new developments and so on are creating and increasing the supply numbers to cool down the high demands, on the other hand, the new developments also create an excitement amongst property players and investors.

I am a firm believer in properties in the Klang Valley region. I believe the Klang Valley properties will continue to be the main driver of the Malaysia property market - and I foresee the highest growth in terms of transaction values and capital appreciation for Klang Valley properties. As what I have seen in private developments and launches, I also noticed that in comparison to 2010 (in particularly 2nd half of 2010), housing launches have slightly slowed down. Assuming units are still being sold at the same rate, that would mean the numbers of unsold residential houses and units will continue to reduce, hence reducing the possibilities of the oversupply situation.

The MRT project under the ETP.

Some analysts and certain groups have said that the ETP projects - in particular with the Greater KL and the MRT will push the property sector further. In my opinion however, there are 2 schools of thought for this. The MRT is expected to be a RM35billion (or more) project, with multiple lines and stations. Yes - I would expect this to enhance/improve property values - however, in my opinion, implementation is always the key to success. In this case, a multi billion dollar project would take time to be implemented and constructed. The project will have its launch event next Friday - to be officiated by the PM himself.

On the Greater Kuala Lumpur part - I would say that there are plenty of good news to flow out from there. Smaller projects such as Damansara City, the redevelopment of Pudu Jail, the developments around Matrade and so on could be launched quite quickly, and actual physical works could hit the grounds as soon as early 2012. The larger projects such as the RRIM land in Sg Buloh, the Sg Besi RMAF land and the KLIFD project at Imbi side will take a much longer time for masterplan proposals, authority submissions and so on before any works can start - which I would look at about... earliest, 2nd half of 2012.

Nonetheless, I would think that the RM150k to RM500k properties are still seeing plenty of investors' attention - and would always remain within the radar. I have seen how properties in Desa ParkCity uptrend from the RM950k/unit to about RM1.2mil/unit - which is a good 26% upside. But I have also seen properties of the lower prices - go from the low RM350k to hit RM500k within the same period - which is an impressive 40+%! Hence, I believe that properties below RM500k are still very much in demand.

The Skim Rumah Pertamaku.

The Government introduced the 'Skim Rumah Pertamaku' - for 1st time home buyers to obtain 100% margin financing for homes below RM220,000. This clearly mean one thing - Affordable is the word, and very likely the word for 2012. To add on to this, the Government is also allowing those earning less than RM6k per month to obtain 90% loan margins with 10% guaranteed deposits for apartments between RM220k-RM300k. However, with the recent rise in building material prices and land costs, I would expect the developers to not focus so much on the RM220k and below units - and instead, on those above RM500k to have better margins.

Alam Idaman apartments, with units from RM240k-RM320k.

Conclusion

In general - while the residential markets look good overall, do be careful for the expensive properties. Properties at about RM200k will be a better bet, with plenty of potential upside. Those RM500k and above would always remain a fair/good bet, but easy disposal of the units will remain a question mark. Do note that the house affordability is very good, with very low interest rates and good options around the markets to scout. Banks are also experiencing better liquidity, and are giving out 30-40 year loan tenures to encourage property purchases.

The Intermark, Jalan Tun Razak - The Car Parks.

2011-07-04T09:47:00.000+08:00

Just a random post on some car park pictures of The Intermark that I took recently.

Upgraded from the darker, more run-down condition. All in, pretty nice now, but the ramps are still pretty tight for larger cars. =)

Twins, Bukit Damansara - Updates.

2011-07-03T19:28:00.000+08:00

Updated as of few days ago.

Menara Bank Islam, Jalan Perak.

2011-07-03T12:50:00.002+08:00

The completed Menara Wakaf is now called Menara Bank Islam. =)

Twins, Damansara Heights - Project Updates.

2011-06-28T12:08:00.001+08:00

Some recent pictures.

Menara Binjai, Jalan Binjai - Updates.

2011-06-27T14:58:00.000+08:00

Updates from skyscrapercity forums. =)

Verticas Residensi, Bukit Ceylon - Updates.

2011-06-09T00:37:00.000+08:00

See the construction on the right of the pic? Thats Verticas Residensi. =)

Twins, Damansara Heights - Project Updates.

2011-06-06T17:06:00.000+08:00

Updated as of today from SSC forums. =)

Menara Binjai, Jalan Binjai - Updates.

2011-06-06T11:51:00.000+08:00

Updates from SSC today. =)

Verticas Residensi, Bukit Ceylon - Updates.

2011-06-05T09:54:00.000+08:00

Updates from SSC today. =)

Menara Binjai, Jalan Binjai - Updates.

2011-05-27T01:23:00.000+08:00

As taken today. =)

The Biggest Errors People Make When Investing in Properties.

2011-05-25T14:08:00.000+08:00

I posted this up on my personal blog previously. =)

I read this article on The Star Property by Michael Tan - on the Three biggest errors people make when investing in properties. He spoke about whether the property was for keeping, or to sell... and then not understanding the mindset of the locals, as well as not getting to know the area well. I somewhat agree with what he said - and I would have some extra points to add on as well.

Condominiums in Penang.

If you ask me - understanding the locals would be amongst the toughest criteria to cover. It is tough to know what the local mindset is; but then again, sometimes the majority of the community can be quite predictable as most of us all are trend followers, arent we? LOL.

If you compare properties with food joints... the lower end properties are like your Chinese kopitiams, where you have your chicken rice, char kuey teow and so on for like RM6-8 and below. The higher end properties are like going to a proper restaurant like Oriental Pavilion or Ah Yat etc, and your meals are averagely RM40++ per person. The medium end... to me, are likened to bak kut teh joints, whereby your meals range from RM20+ per person.

Bak kut teh for lunch, anyone?

Say you're in the financial district of the city... i.e. KLCC area, or Jalan Raja Chulan for instance. On a bad day for the stock market, the high rollers go for a slightly cheaper meal at the bak kut teh joints, and the bak kut teh goers go to the kopitiams. On a good day, the kopitiam goers upgrade and end up at the bak kut teh shops, whereas the bak kut teh goers end up going for their abalones and shark fin's soup elsewhere. This is the same with properties. In my opinion, if you are going for the medium-end properties, which ranges from RM500k-RM700k, your investment is pretty safe, and there would be plenty of upgraders as well as downgraders - the in-between, the bridge...

SO... the next question is... to keep or to flip?

Like what Mr Michael said, properties for flipping are usually the ones with has the highest capital appreciation in the shortest amount of time. These are usually the landed properties. A simple formula to calculate capital returns would look like this...

The returns will be the total returns you would get. Assuming you achieved 30% returns in 3 years, the next thing you need to do is to divide that to determine your simple returns per year (as compared to compounded returns)

Properties for keeping are the ones that fetch rental returns higher than 6%. These are usually high-rise in nature. Here’s the formula for rental returns...

It is the main criteria to look into before you decide what strategy to adopt before deciding what type of property to invest into. Also, it’s crucial to estimate the returns of investment you desire and the timeline of which to exit. Having exit strategies prior to starting is critical to your success.

Once again, the question comes back to the same item. Rental Returns.

I had mentioned this before - and once again, my stand remains. It has come to my attention that a lot of properties in Klang Valley are not fetching yields of 8% like how they were previously. Here's my reply to that... YOU ARE RIGHT! If you could get a property that fetches you a 8% yield, by all means, dont ever sell it - at least not yet.

Based on the recent research and feedback from various agents, it seems like a lot of properties in Mont Kiara and KL area are fetching yields of 5-6%, which in my honest opinion, is very good.

TTDI Plaza.

Today, Malaysian banks are offering between 2.6% up to about 3% in interest rate returns for Fixed Deposits, a far difference from the 5-6% years ago - which had prompted property returns to about 8%. Today, at 3%, I believe that the proper adjusted property yields should hover at 4-5%. I believe that a lot of people may not agree with me - but I believe this is the scenario that we are facing now in Kuala Lumpur.

If you are hoping for capital gains, then expect your rental returns/yields to drop. =P

Centrestage, a new development in Section 13, PJ.

Developer sees 10% rental yields from office tower.

2011-05-25T10:04:00.001+08:00

An article on the Menara Binjai project in The Star today. =)

KUALA LUMPUR: Property developer Khor Joo Saik Sdn Bhd expects to generate a rental yield of 10% within three years of operations of its Grade-A office tower, Menara Binjai. The building, which has a gross development value of RM180mil, is strategically located along Jalan Binjai and Jalan Ampang, and will be launched in the final quarter of this year, according to director Chua Guan Hock.

“Our building is strategically located on prime (KLCC) land with a lot of amenities and a good transportation network,” he told StarBiz in an interview, adding that potential tenants would be offered a competitive rate of RM7.50 per sq ft. Khor Joo Saik Sdn Bhd owns the land where Menara Binjai is being built. “Good thing we don't have to buy the land with heavy borrowing costs. (Because of this) we have the strength to be very competitive with the rentals,” said Chua.

Chua said he expected 75% of the offices to be taken up within the first year of operations, adding that the company was looking to attract tenants within the oil & gas, finance, services and trading sectors. “We have had enquiries from multinational companies as well as embassies as many of them (embassies) are located nearby. We're looking at a good balance of locals and expatriates (as tenants),” he said.

Chua said another factor that made Menara Binjai appealing to potential tenants was the fact that it was a certified green office tower. The tower has received the Green Mark Gold Certification (Provisional) by the Singapore Building and Construction Authority (BCA) as well as the provisional certification from the Malaysia's Green Building Index (GBI), making it the first dedicated office tower in the country to receive both awards.

The 35-storey Menara Binjai will have four levels of basement parking and another four levels of podium parking. The office floors, which have a net lettable area of between 12,000 sq ft and 13,000 sq ft, start from level six onwards. “We're hoping to launch the building on Nov 11, which is a very auspicious date,” said Chua.

Alam Idaman, Shah Alam - Updates.

2011-05-22T22:19:00.000+08:00

Updates as of today. =P

Setia Sky Residences - Project Updates.

2011-05-22T00:48:00.000+08:00

Taken today. =)

Menara Binjai, Jalan Binjai - Updates.

2011-05-10T17:58:00.000+08:00

Updates from skyscrapercity.com =)

Menara Binjai, Jalan Binjai - Updates.

2011-05-02T00:30:00.000+08:00

Latest updates from Skyscrapercity.

Verticas Residensi, Bukit Ceylon - Updates.

2011-04-24T10:46:00.000+08:00

Latest updates from skyscrapercity forum. =)

Menara Binjai, Jalan Binjai - Updates.

2011-04-20T09:33:00.000+08:00

Updates from skyscrapercity forum. =)

Twins, Damansara Heights - Project Updates.

2011-04-07T14:57:00.000+08:00

Picture taken yesterday.

LAST 4 UNITS of ALAM IDAMAN!!! Grab it NOW!

2011-03-30T10:01:00.000+08:00

Yesterday I uploaded this picture of my sales chart for Alam Idaman.

Yes... last 5 units left. As of now... it is just 4 units left. =P

Interested to snap it up? Come and drop by the Sales Office...

Alam Idaman - A true investment opportunity NOT TO BE MISSED!!!

What are the units available now?

2 units on Level 17..... going for RM 266,480 (before discounts/rebates)

1 unit on Level 20... going for RM 285,080 (before discounts/rebates)

1 unit on Penthouse floor (Level 21)... going for RM 286,080 (before discounts/rebates)

The ones on Level 17 are 807 sf Type B units, while the rest are 883 sf Type B2 units. =)

There are various discounts and packages available... but I not gonna tell you here.

Why not pop by my Sales Office at Taman Megah, or the Site Sales Office (on site) and find out more??? You can also choose to call 03-7880 8889 right now too!!! To get the package... do mention my name "Eric Yong" - you'll get the best deal!!!

Menara Binjai, Jalan Binjai - Updates.

2011-03-28T23:53:00.000+08:00

Pictures from my Instagr.am.

Menara Binjai, Jalan Binjai - Updates.

2011-03-28T16:49:00.000+08:00

Updates from skyscrapercity forum. =)

Menara Binjai, Jalan Binjai - Updates.

2011-03-23T15:27:00.001+08:00

Updates from skyscrapercity forum.

Living It Up at Damansara Perdana.

2011-03-21T16:29:00.001+08:00

I recently did an interview with iProperty. Read all about it here.

Talk of Damansara Perdana, and most people would associate it with its proximity to IKEA, the Curve and Tesco, shopping malls that many urbanites can’t do without. It’s also famous for its duplex condominiums, Armanee Terrace built by MK Land Holdings Berhad, the main developer and owner of most of the land in the area.

No overview of Damansara Perdana is complete without mentioning MK Land and EMKAY’s founder, Tan Sri Datuk Hj Mustapha Kamal bin Hj Abu Bakar who is the driving force and the man responsible for the company’s success. Menara Mustapha Kamal, named after him is the headquarters for the group and is the landmark of Damansara Perdana.

Damansara Perdana is essentially a 750-acre integrated township launched in 1996 as a premier centre for business and living in Petaling Jaya. It is part of the Golden Triangle of Petaling Jaya, and is considered one of the most exclusive suburbs in Petaling Jaya. In its vicinity are other upscale neighbourhoods such as Mutiara Damansara, Taman Tun Dr Ismail, Bandar Utama, Damansara Utama and Damansara Jaya. It is also a short drive away from up-and-coming Kota Damansara.

The hilly and undulating terrain is served by the Damansara-Puchong Expressway (LDP), the North Klang Valley Expressway (NKVE), and the Sprint Expressway.

Due to its many obvious attractions, it is becoming a magnet for home owners and businesses looking for a convenient but upmarket location. A number of developers are also beating a path there, one of them being Crest Builder Holdings Bhd.

We spoke to its youthful executive director, Eric Yong Shang Ming to find out his views on the popular area.

iProperty.com: What new projects are you planning for Damansara Perdana this year?

Eric Yong: We have a sizeable plot of commercial land in the area, of which we have plans for a RM300 mil GDV mixed development project. In the proposed development, we intend to have a mini retail complex, acting as a neighbourhood mall whereby it can serve the local population there who do not want to go too far (i.e. The Curve / TESCO etc). On top of this complex would be the podium car parks as well as the serviced apartments of various sizes.

iP: What new transportation links eg. MRT, new highways are expected to pass by Damansara Perdana?

EY: Based on the latest MRT (Blue Line)’s alignment, the line is expected to cut across Persiaran Surian, not too far away from Damansara Perdana. There will be feeder buses that will serve the area. However, this would take at least the next 4-5 years before seeing its completion and operations. Based on my observations, there is not much that can be done for road transportation as the highway structure (LDP – Penchala Link) is already very advanced. Internally, I would expect the routing and roads to be upgraded to allow for higher traffic. The current system – including the internal roads within Damansara Perdana, the U-turns and so on are quite congested already – and a re-routing needs to be done.

iP: With the Rubber Research Institute (RRI) land in Sungai Buloh to be developed soon, how would this impact the Damansara Perdana area?

EY: The RRI land is quite a distance from Damansara Perdana. I believe that the RRI development would directly affect the Kota Damansara and its immediate surroundings in a positive way in terms of capital appreciations and values. As for Damansara Perdana, it is unlikely that the RRI land would have any major effect as a new development would usually take time to mature and fetch ‘current prices’. The hot spot would still be at Damansara Perdana / Mutiara Damansara area due to its connectivity via the LDP.

iP: What are your comments on complaints that Damansara Perdana is getting too crowded and congested with traffic jams? What steps could be taken to alleviate this?

EY: As mentioned above, various steps need to be taken. Another major thing to do here is the enforcement by MBPJ (Majlis Bandaraya Petaling Jaya). I notice that the parking is quite a horrendous problem here whereby car owners park all over the place. MBPJ and the local police need to take sterner action against these owners.

* * * * * * * * * *

About the same time of the interview - we at Crest Builder - has sold the land. It was indeed - an offer that we could not refuse. =)

10 Developments To Look Out For.

2011-03-11T13:58:00.000+08:00

This post was previously posted on my other blog here.

I have been having some chats with various bankers, developers and investors out there. In fact, some of them actually reads my blog here LOL and they requested me to come out with a post - with some developments to look out for or on-the-watch. I thought about it - took some drives here and there... and then I thought, yup - I would do this post. The below are 10 developments to look out for in Klang Valley right now. Some are still in proposal stage, some are already under construction.

Note: This is not a recommendation/suggestion to go purchase a unit at these development.

Empire Damansara, Damansara Perdana

Developed by perhaps, the most aggressive developer at the moment, the Mammoth Empire Group (who also owns Empire Subang, doing another Empire City development and will also develop the Armada Hotel carpark land)
Comprises a 40 storey STUDIO tower, and couple of other blocks (27, 25, 23 and 14 storey) of Hotel, residences and SOHO suites

Kumpulan Hartanah Selangor's development in Petaling Jaya.

The Development is about 3 minute's drive from 3 Two Square
It would open up a new access point into Section 14/Paramount area from the small road that currently ends at Menara LYL

IOI Resort City, Putrajaya

IOI's latest offering includes a massive shopping centre, to be constructed this year to add on to its super nice golf course and resort already there
It is apparently a RM2billion mixed development
The mall would have about 1.3million sqft of retail space, to be completed in 2013

Point 92, Damansara Perdana

Developed by Tujuan Gemilang Sdn Bhd, a company related to MKLand's owner, Tan Sri Mustapha Kamal
Grade A Corporate Office Tower, location Just off the main entrance to Damansara Perdana, Petaling Jaya (close to Mutiara Damansara, Bandar Utama and TTDI)
Land Size : 0.92 acre (40,075 sq ft.)
No of Storey : Office: 11 levels, Lobby: 1 level, Carparks: 7 levels; Total: 19 levels

Olive 108, Ampang

Olive 108 development - a wellness and medical hub along Jalan Ampang in Kuala Lumpur
Developed by the Al-Hidayah Group of Companies
Olive 108 comprises a serviced apartment block (210 units), three condominium blocks (258 units) and a 20-storey office tower. The apartment unit will have built-ups between 673 sq ft and 1,528 sq ft, to be tagged at RM595,400 to RM1.7 million after 5% discount for early birds. The developer is looking to sell the office tower en-bloc.

PJ Sentral

The development will be carried out in four phases comprising six blocks, and will take six to nine years to complete
Sub phase 1 has a 34-storey office tower and infrastructure
Sub phase 2 has a 44-storey tower including office, retail and food and beverage lots and infrastructure
Sub phase 3 has a 29-storey business hotel, 34-storey office and retail lots, and sub phase 4 has a 29-storey service apartments, a 29-storey office and retail lots, central park and infrastructure.

PJ Icon City, by Mah Sing

This is located at SS8 in Petaling Jaya, borders the LDP and the Federal Highway
There will be a retail mall, SOHO suites, residential suites, office suites all in one

The Centrestage, Section 13, Petaling Jaya

A RM500 million mixed commercial development in Section 13, Petaling Jaya from developer Cherish Springs Sdn Bhd
Site is about 3.66-acre leasehold and is scheduled for completion by mid-2014
Centrestage comprises 352 units of serviced suites, two office towers of 11-storeys and 14-storeys each and five levels of shops
The project is aiming for a Green Building Index (GBI) certification. The serviced suites will be serviced by the Inspiration Group
The indicative pricing for the office and retail units are RM700 psf and RM1,100 psf respectively. The company has not decided on prices for the serviced suites yet, said the spokesman.

The MATRADE Convention and Exhibition Centre, Jalan Duta

A massive development by NAZA TTDI, whereby they will construct the MATRADE Convention Centre in exchange for the land surrounding

The Kelana Sports City

To consist of 2 blocks of serviced apartments, SOHO and office towers, sports complex, shopping mall and a performing arts centre
GDV about RM1.07 billion
A joint venture between Melati Ehsan and PKNS

There you go... some of the recent developments that deserves a good mention. Based on these, I think Petaling Jaya would be extra vibrant and developed in the times to come. I heard the entire Section 13 will be regazetted as a commercial zone. Do check them out!

Menara Binjai, Jalan Binjai - Updates.

2011-03-01T10:16:00.000+08:00

Updates from skyscrapercity.

Menara Wakaf, Jalan Perak - Updates.

2011-03-01T08:14:00.000+08:00

Almost completed; as updated from skyscrapercity forum.

Menara Binjai, Jalan Binjai - Updates.

2011-02-25T14:42:00.001+08:00

Picture taken today on Instagr.am

The RM12.2b Klang Valley MRT (Blue Line).

2011-02-24T16:11:00.000+08:00

This post was previously posted here.

The recent display of the MRT Blue Line (Sungai Buloh - Kajang) is a clear sign of confidence and commitment that Syarikat Prasarana Negara as well as Land Public Transport Commission (SPAD) have in the execution of the construction and completion of this MRT.

The MRT Blue Line - which goes from Sungai Buloh all the way to Kajang, spans about 51km, reduced slightly from before. According to the information shown, 9.5km out of this 51 km will be underground, whereas the balance will be elevated (or ground level I guess). The estimated costs of the Blue Line... if benchmarked at a cost/km of RM240million - would cost about RM 12.24 billion. =) As for the tunnel portion of 9.5km, if benchmarked at RM325million per every km, that portion would be worth about RM3.1billion.

According to press reports, the Government is expected to acquire about 473 plots of land along the MRT route - totalling about 97 hectares of land for the Blue Line. The breakdown of these acquisition is about 103 lots will be acquired between the Sg Buloh and Semantan (Damansara Heights) stretch, 163 lots over the underground section running from Semantan towards the city and 207 lots along Maluri to Kajang town. Existing land usage along the proposed alignment includes residential, commercial, industrial, institutional and recreational uses. Significant stretches, especially segments passing through secondary business hubs and the central business district, are mainly commercial in nature.

My immediate concern here is the timely approval by the local authorities with regards to the stations and alignments. Do note that the MRT Blue Line would go through Majlis Perbandaran Selayang (MPS), a little bit of Majlis Bandar Shah Alam (MBSA), a major part of Majlis Bandar Petaling Jaya (MBPJ), Dewan Bandaraya Kuala Lumpur (DBKL), a little bit of Majlis Perbandaran Ampang Jaya (MPAJ) and of course, Majlis Perbandaran Kajang (MPKj).

Rail designation : Blue Line

Distance : 51km

Total tunneling length : 9.5km

Total elevated length : 41.5km

No. of stations : 35

End-to-end time: 90mins

Train specifications : Driverless 4-car trains

Train capacity : 1,200 people (300x4)

No. of train sets : 58

Service headway : 109 seconds

Maximum speed : 100 km/hr

Some of the information as obtained from online.

The 35 stations along the Blue Line will be positioned near these plots of land. One of the stations will be built near the Warisan Merdeka Development, a project that includes a mammoth controversial 100-storey skyscraper. At least 20 listed property players have parcels of developed and undeveloped land along the Blue Line - some of these to benefit potentially includes MRCB, Berjaya, Sunway City, Guocoland, Malton, YTL, Selangor Properties just to mention a few.

Like what I said before recently, this MRT Blue Line is expected to increase the capital appreciation of its surrounding properties tremendously. Prices of properties are already on the upside due to higher building material prices and so on - and having this MRT just makes it sweeter for the land owners/developers.

By the looks of things and news reports, the tenders for this MRT is to be called - earliest also April 2011. The Government has targetted to commence work in July 2011 - hence I believe the earliest also would be April 2011 to call tender, and awarded by June/July. However, this rush also mean that perhaps only the general earthworks and site preparation works can be started - rather than the major civil works as those would require a more in-depth study on all logistics, traffic diversion as well as land acquisition matters.

With the Blue Line targetted to be completed in 2016 to operate a daily ridership of over 400,000, I trust that the public transport usage would be increased substantially, but I dont have the percentages with me though. 2011-2016 - that is about a 5 year contract period - making the Blue Line a fast-track project. There will be two other MRT lines that will be announced within the next 3 months - being the Circle Line as well as the Green/Red Line.

Some of the key locations within the MRT alignment.

* * * * * * * * * *

I guess this post needs a little disclaimer. Note: This post represents the personal opinion of Eric Yong only (Yes, it is all my personal opinion/thoughts) - and does not represent a recommendation to buy the stocks of the abovementioned public listed companies. Thank you.

Menara Binjai, Jalan Binjai - Updates.

2011-02-20T22:39:00.000+08:00

Updates from skyscrapercity forum.

Menara Binjai, Jalan Binjai - Updates.

2011-02-14T00:19:00.001+08:00

Taken few days ago. =)

Setia Sky Residences - Project Updates.

2011-02-11T00:44:00.001+08:00

Picture taken on Monday. =P

Menara Worldwide, Jalan Bukit Bintang - Updates.

2011-02-08T01:31:00.000+08:00

Can you spot Menara Worldwide in this picture?

Menara Binjai, Jalan Binjai - Updates.

2011-02-01T23:53:00.000+08:00

Updates from skyscrapercity.com =)

Twins, Damansara Heights - Project Updates.

2011-02-01T10:49:00.001+08:00

Picture taken by Chin Ann using Instagr.am =P thanks.

Setia Sky Residences - Project Updates.

2011-01-31T10:43:00.000+08:00

The view from the KLCC parking tunnel - updated from skyscrapercity.com.

Verticas Residensi, Bukit Ceylon - Updates.

2011-01-24T01:34:00.000+08:00

Updates from skyscrapercity forum.

Menara Wakaf, Jalan Perak - Updates.

2011-01-21T01:11:00.000+08:00

Taken today at site.

Northshore Gardens, Desa ParkCity - Updates.

2011-01-18T01:17:00.001+08:00

More pictures taken the other day.

Northshore Gardens, Desa ParkCity - Updates.

2011-01-16T09:25:00.000+08:00

Picture taken yesterday from the Waterfront.

Menara Binjai, Jalan Binjai - Updates.

2011-01-16T01:23:00.000+08:00

Picture taken on Friday at Ampang Park.

Menara Wakaf, Jalan Perak - Updates.

2011-01-14T15:39:00.001+08:00

Updates from skyscrapercity forums. =)

Menara Wakaf, Jalan Perak - Updates.

2011-01-12T17:13:00.000+08:00

Updates from skyscrapercity.com =P

Twins, Damansara Heights - Project Updates.

2011-01-03T10:09:00.000+08:00

Pictures taken yesterday at site.

Menara Binjai, Jalan Binjai - Updates.

2011-01-02T20:23:00.001+08:00

Pictures taken at site.

Menara Worldwide, Jalan Bukit Bintang - Updates.

2011-01-02T11:22:00.000+08:00

Pictures taken today at site.

Menara Wakaf, Jalan Perak - Updates.

2011-01-02T03:37:00.000+08:00

Updates from skyscrapercity.com =)

Setia Sky Residences - Project Updates.

2010-12-27T10:13:00.000+08:00

Updates from skyscrapercity forums.

The Crest, 3 Two Square. =)

2010-12-24T00:45:00.000+08:00

The view of my office. =P

Menara Binjai, Jalan Binjai - Updates.

2010-12-23T00:56:00.001+08:00

Taken from skyscrapercity forum.

Menara Binjai, Jalan Binjai - Updates.

2010-12-19T02:37:00.001+08:00

Picture taken today at site. =)

Twins, Bukit Damansara - Updates.

2010-12-15T04:46:00.000+08:00

Pictures taken today at site =)

The Northshore Gardens, Desa ParkCity.

2010-12-14T00:39:00.000+08:00

The Northshore Gardens - is a 40-storey high-end condominium project in Desa ParkCity, one of the most prestigious newly established gated neighbourhoods in KL. The Northshore Gardens boasts of a scenic natural landscape overlooking a park and a lake, and has a commanding view of the city skyline.

The Northshore Gardens, Desa ParkCity.

A super awesome view of the entire Desa ParkCity - including the famous lake. =)

The Developer

Incorporated solely for property development in 1990, Perdana ParkCity has since successfully completed One Ampang Avenue, a 640-unit high-rise condominium project in Jalan Ampang. Currently, through a subsidiary company, Sarawak Land (Kemena Park) Sdn Bhd, it is developing the master- planned Bintulu ParkCity in Bintulu, Sarawak. This 180-acre project is an extension of the existing Bintulu Town, and is projected to be the new business focus and residential enclave of the community.

Strategic location.

Perdana ParkCity Sdn Bhd, the developer of Desa ParkCity, is a Samling-controlled company. Samling Strategic Corporation, the principal shareholder, is a Malaysian conglomerate with diverse local and international businesses that include forest management, wood products, plantations, and property development. In addition, it is also the controlling shareholder of two public companies listed in the KLSE, namely, Lingui Developments Berhad and Glenealy Plantations (Malaya) Berhad.

The view from the Northshore Gardens. =)

Most of its surrounding is low rise, so your views are uninterrupted. =)

A breathtaking view from the Penthouse floor.

The swimming pool.

Who said that you cant get greens in a condo project?

The beautiful full-glass gym, facing the swimming pool.

The podium floor.

The podium floor houses some nice deckchairs for a good view of the park.

This is what relaxation is all about.

The Zen garden.

All the best environment and setting for your beloved condominium.

A towering 40 storeys, with only 274 units.

The grasscrete driveway.

Vertical landscaping at its best.

Another view of the supertall tower.

I bring you - the Northshore Gardens, Desa ParkCity.

The Northshore Gardens – a showcase of ingenious architecture and planning with lavishness and grace – marking the loftiness of the owner’s living standard. This is a modern 40-storey condominium tower overlooking the Central Park lake garden and the Waterfront commercial cum retailed outlets. It is strategically located at the most prime area of Desa Parkcity. There are 8 basic floor layout plans offering from 904sf to 2,476sf, from the smallest 1+1 rooms (studio unit) to the biggest 4+1 rooms (family unit), catering the needs of different groups of residents.

Other than the stylish modern chic design, what else can we expect from this condo?
High level of security /
Beautiful lawn and pavilion /
Water features /
Adult and Kid’s Pool /
Thematic pool and pool decks /
Saunas and jacuzzi /
Barbeque area /
Multi-purpose hall /
Garden party lawn /
Landscaped garden and cabanas /
Recreational deck / Outdoor fitness area /
Floating Gym

AND also:
Designer’s kitchen cabinet with hob and hood
Split units of air-conditioners for living, dining and all rooms
Water heating system
FREE membership of the exclusive Parkcity Club
Enrollment privilege to SJK(C) Kepong 3, Parkcity

Northshore Gardens, Desa ParkCity - Updates.

2010-12-06T00:18:00.000+08:00

Took the pictures yesterday at site. =)

Menara Wakaf, Jalan Perak - Updates.

2010-11-29T01:26:00.001+08:00

Updates from skyscrapercity.

Menara Binjai, Jalan Binjai - Updates.

2010-11-28T21:53:00.000+08:00

Updates from skyscrapercity.com

Tierra Crest, Kelana Jaya - Updates.

2010-11-28T00:13:00.002+08:00

Tierra Crest, Kelana Jaya - our next property development project.

Tower crane installation underway at site.

Part of B3 and B2 slabs under construction.

Menara Worldwide, Jalan Bukit Bintang - Updates.

2010-11-23T02:15:00.000+08:00

Updates from skyscrapercity.com.

Northshore Gardens, Desa ParkCity - Updates.

2010-11-17T23:45:00.001+08:00

Picture taken yesterday at site. =)

Menara Wakaf, Jalan Perak - Updates.

2010-11-03T17:17:00.000+08:00

Updates from Skyscrapercity.com

Menara Binjai, Kuala Lumpur.

2010-11-03T17:16:00.000+08:00

Updates from Skyscrapercity.