Malaysia Property Inc To Kick Off In October

The soon to be launched Malaysia Property Incorporated (MPI), a joint public-private sector initiative to promote Malaysia's real estate internationally, will see the country getting into the limelight as a global property haven.

Promotional programmes that include road shows and conferences in the target markets of Britain, Japan and the Middle East have been drawn up and should take off later this year.

The Government has recently given the go-ahead for FIABCI Malaysia and Real Estate and Housing Developers Association (Rehda) to promote the country's real estate to foreign investors under the MPI umbrella.

Scheduled to kick off by October, the MPI will start off with a grant of RM25mil provided by the Economic Planning Unit (EPU).

FIABCI Malaysia president Datuk Richard Fong said the initiative, which was initially targeted for launch earlier, was delayed because of unforeseen circumstances.

“We are excited that everything is falling into place now and the MPI will be championing the country's real estate industry in the international arena,” Fong told StarBiz.

He added that Malaysia was still relatively unknown as a destination for international real estate investors.

Compared with other cities around the region such as Singapore, Bangkok, Phuket and Bali, Kuala Lumpur is getting just a tiny fraction of the investment in the region. This is despite the fact that Malaysia has the most attractive laws favouring foreign investment in real estate.

“The majority of the land is freehold and foreigners can buy any amount of residential properties priced above RM250,000. Our land laws are clear and transparent; there is also a waiver on real property gains tax.

“The Malaysia My Second Home (MM2H) programme is also not well known overseas. Most of the investors we met overseas are not aware of the benefits offered under this programme.

“MPI's objectives are aimed at creating awareness among the foreign investment community on the attractive conditions regarding investment in Malaysia's real estate,” Fong said.

According to Rehda vice-president Datuk FD Iskandar, the nine-member board on MPI comprising industry representatives is still working out the right package of incentives for developers to take part in the MPI initiatives.

“We are brain-storming and working out the key performance indicators (KPIs) to rate the effectiveness of the MPI programmes. The objective is for Malaysia to re-brand itself as an international real estate destination, be more transparent and attract more foreign investments,” Iskandar said.

Road shows and promotional activities in the target markets will bring together developers to showcase their property projects, especially high-end residences in the Kuala Lumpur City Centre (KLCC) enclave as well as offices and other commercial properties in the Klang Valley.

According to Iskandar, there has not been any long-term and effective initiatives in the past to promote and brand Malaysia as a major real estate investment destination, which explained why the foreign exposure in local property was still very low.

“Currently, Malaysia is being promoted on a piecemeal basis and the time is right for a well coordinated initiative such as the MPI to place Malaysia on the world map of investors,” Iskandar said.

Besides attracting high net worth investors for the MM2H programme, Iskandar said the MPI also wanted to attract foreign banks' data processing centres and back offices to set up their regional offices in Malaysia.

He said Malaysia was still a politically stable country and the current political developments showed that democracy was still very much alive in the country. Its other assets include a developed infrastructure system and a big pool of educated and skilled workers.

Rehda president Ng Seing Liong said if the objectives and direction for the MPI were on track, “this is definitely the right time for MPI to make a marked contribution to the local property industry.”

“Malaysia has quality projects that still lacked exposure in the international arena and there are many ongoing and planned developments that will be suitable for high net worth foreigners from other countries.

“The greater foreign interest will further add value and depth to our property market. KLCC residences, which are now fetching around RM2,000 per sq ft, are expected to move up to RM3,000 per sq ft with a few upcoming launches,” Ng said.

Meanwhile, Malton Bhd chief operating officer Yeoh Teng Tatt said to promote stronger foreign participation, the Government should adopt a more open policy for foreigners and relax restrictions on foreign ownership of properties.
“Quality high-end properties in Malaysia are still considerably more affordable compared with most other countries and the MPI initiatives will augur well for local real estate to get into the radar screen of foreign investors,” Yeoh said.

Lake now the pride of Puchong folk

It was once an eyesore but the lake near Taman Mutiara Puchong has now become a landmark that the residents can be proud of. A year ago, StarMetro highlighted the sorry state of the lake, which was polluted by construction debris and rubbish.

Fish in the lake died and the stench reached the residential areas nearby, making the residents both worried and angry.
“We bought the houses because we believed that there will be a beautiful lake in the area, as illustrated in the brochures,” said resident Gerard Lim, who brought up the matter last year.

The Subang Jaya Municipal Council (MPSJ) had taken action against the developers for illegal dumping and the fine was used to clean up the lake.

The developer of Taman Mutiara Puchong has also landscaped the edge of the lake with perimeter fencing, benches, shrubs, lawns and a proper walkway of about 300m.

There is also a platform for the residents to view the scenery.

Lim said the residents were pleased with the current state of the lake.

“On a sunny day, the sunset here is very beautiful,” he said, gesturing at the shimmer of sunlight on the lake. The lake has 300m-long walkway with benches and plants lining the sides.

During StarMetro's visit to the lake recently, birds could also be seen gliding on the water surface in search of fish.
However, Lim pointed out that soil had eroded at certain spots of the lake's edge.

“Land reclamation was done previously on the lake, but the foundation was clearly not strong enough,” he said.

The residents association is hoping that MPSJ could put rocks or plant suitable trees along the lake to hold the soil together to prevent further erosion.

“The area is dark at night so we hope streetlights can be installed, too,” Lim said.

He added that there were still some irresponsible contractors who would climb over the barrier to throw debris into the lake.

“The residents association has to be alert to prevent these cases from happening,” he said.

MPSJ president Datuk Adnan Md Ikshan said the council would first determine whether the said problems should be tackled by the developer. “If not, we will look into the matter,” he said.

Source: The Star, 19 July 2008

Positive Response For Park Villa Townhouses

Bukit Hitam Development Sdn Bhd has sold 100% of the first phase of its garden-themed townhouse project, Parkville Townhouses since its launch in November last year. The second phase was launched on 01 March 2008 and more than 70% has been sold.

Setting a new standard for townhouses, Parkville offers living in an environment that breathes transquility and security. A sprawling 16-acre gated residency nestled within beautifully lanscaped garden, tree lined streets linked to a Central Park where the community can mingle, and children can have fun in nearby interactive playground, without a care in the world.

Located within the thriving township of Bukit Puchong, Parkville Townhouses is a gated development comprising 400 three-storey townhouses. Its lush gardens are designed by landscape architect Yap Nga Tuan.

Said Lim Jee Kong, Bukit Hitam’s General Manager, “The positive response from buyers of the townhouses means that there is a growing demand not just for the townhouse concept, but also for living in Puchong, which is experiencing a growth wave.”

At Parkville every space from indoor to outdoor is carefully laid out. Each 1 1/2 storey unit comes in two innovative configurations that are stylish yet practical to suit the lifestyle of families with young children. Relax, play, and entertain on your home ground. Unwind with loved ones or friends, enjoy a stroll in the park, or take a walk on the reflexology footpath. Lounge with a book by the garden, or watch the kids have fun on the Smart playground. Invite some friends over for an outdoor BBQ party or simply stretch in the specially designed Tai Chi and Zen lawns. Do as you please, Parkville is truly privileged living.

Bukit Puchong is close to the government administrative centre of Putrajaya, Cyberjaya, the KL International Airport and a short drive from the established townships of Petaling Jaya, Subang Jaya and Seri Kembangan.

Scheduled to be completed by October 2010, Parkville Townhouses will have a total gross development value (GDV) of RM88 million. Prices for the intermediate units of phase two start from RM228,888. Units have lot sizes of 24 feet by 60 feet and built-up areas of 1,259 square feet for the lower unit and 1,528 square feet for the upper unit.

Bukit Puchong By Bukit Hitam Development, TAHPS

Gateway to 'new' Puchong.

After going through a rebranding exercise, following a change in ownership, Bukit Hitam Development Sdn Bhd (Bukit Hitam) now wants to position its flagship development, Bukit Puchong, previously known as Bandar Bukit Puchong, as the "new" Puchong. "We are at the gateway to the new Puchong," says Lim Jee Kong, general manager of Bukit Hitam.

Established as a 50:50 joint venture between TAHPS Group Bhd (TAHPS) and the Selangor State Development Corporation (PKNS) in 1992, Bukit Puchong is a 1,290-acre freehold township project, with a gross development value (GDV) of RM3 billion. Currently 50% developed, with a total of 4,000 residential units and 350 commercial units completed and handed over, Bukit Puchong now boasts a 90% occupancy rate for its completed portions.

"Our advantages are our size and location. We are one of the last freehold tracts in Puchong situated on higher ground," says Lim. Last year, TAHPS gained full ownership of Bukit Hitam. "After the change in ownership, we began studying the change in market trends and we are now carrying out a new wave of development in Puchong," he says. "We are moving towards higher-end developments, with better quality in terms of design and environment".

Since its rebranding exercise, which began early this year, Bukit Puchong has gone through several changes. Besides offering higher-end products, the developer is also upgrading its products, such as adding better landscaping. The company also sports a new logo. "We are upgrading our offices and showhouses to make them trendier than before," says Lim. "Consumers have changed: they want new and different products. That's the reason for our rebranding," he says. "People are more affluent, more educated and more exposed. They know what they want, and we want to cater to their needs." Their rebranding efforts can be seen in Ametis Terraces, a gated community with 120 units of 2 and 2½-storey terraced homes. About 70% sold since its launch in March, the homes come in two designs: Classic and Contempo. The former has a conventional home layout, while the latter has a reconfigured living space and a water feature added for feng shui or creative purposes. Targeted at newly married couples and young families, the Ametis Terraces homes come in sizes from 20ft by 75ft onwards. Intermediate units are priced between RM355,000 and RM389,000 while corner lots go for RM587,000 and above. With a GDV of RM46 million, completion is expected in early 2009.

According to Lim, Bukit Hitam assures early delivery of its products. Its Nilam Terraces, an enclave of 2½-storey terraced homes, was completed and handed over mid-November, six months ahead of schedule. A precursor to Ametis Terraces, the 105 units come in standard lot size of 20ft by 65ft with built-ups from 2,266 sq ft. They are set within a gated community and are pegged at RM348,000 onwards.

The first phase of its latest launch, the ParkVille townhouses, has been 62% sold. "We're expecting 90% sales by year-end, and will launch the remainder early next year," says Lim. He adds that the garden-themed homes place strong emphasis on parks and landscaping. "Maintenance fee for ParkVille is six sen psf; it's less than RM100 per unit for security and landscape maintenance." Set within a gated and guarded enclave, there are 400 units with standard lot size of 24ft by 60ft. Upper units with built-ups of 1,528 sq ft are priced at RM218,888 while lower units with built-ups of 1,258 sq ft (with an extra 5ft land at the rear) are going for RM223,888. There will be a 10% increase in prices for the second launch, says Lim. Construction has already begun on the RM85 million project and completion is expected by October 2010.

"Next year should be good. ParkVille is doing well and the demand should continue," says Lim. "People from other areas (besides Puchong) are buying our properties," he offers, adding that 50% of the buyers are from Puchong, with others coming from places like Petaling Jaya and Subang Jaya. "There is new interest in this township. There is good demand and we have sophisticated purchasers." He attributes the success of the township to its location. It's accessible via Damansara-Puchong Highway (LDP), South Klang Valley Expressway, Kesas Highway and the KLIA-KL Expressway (scheduled to open in January next year). "Value appreciation in Bukit Puchong is lower than in places such as Damansara Utama, but we are catching up. Our properties should see values appreciate by between 20% and 30%," says Lim. The group also plans to add landscaping. "A police station has been set up and we plan to build a post office next year," he adds. Next year will see the launch of another 200 ParkVille homes, as well as 50 linked bungalows and zero-lot bungalows next to Ametis Terraces. "We have also set aside 254 acres for an exclusive, gated and guarded project," says Lim. Touted to be a combination of high-end landed and strata properties, the plans are expected to be finalised early next year. Also coming up is a 100-acre regional town centre. "There will be comprehensive retail planning to cater to residents of Puchong within a 20km radius," says Lim. Targeted for completion in 2010 is the proposed 7.9-acre Taylor's Junior College. An agreement has already been signed. Another five acres have been set aside for a private institution, with plans for a high-end retail project on another plot.

Lim, who joined Bukit Hitam at end-2006, has been in the property sector for over 25 years. "I have always been in property development. It is an interesting and challenging job and the industry is getting more matured," he says. Before Bukit Hitam, he held senior management positions in Sumur Wang, Danga Bay and the IOI Group. His mission now is to make Puchong "the address of choice" and Bukit Hitam the "developer of choice". "Good living equals a nice house with good design, and good environment with landscaped park and facilities. We want to create a good buying experience and to provide good service," says Lim. "Communication is also important to bring us closer to purchasers because we are building a community," he adds. At present, Bukit Puchong contributes 80% towards TAHPS's revenue. With another 600 acres left, Bukit Puchong will keep the group occupied for another seven years.

Source: Yeong Ee-Wah, The Edge Daily

Puchong Link Finally Ready

The long and weary wait for an urgently needed link road is finally over for the residents in Puchong, Selangor.

Thanks to former Kinrara assemblyman Dr Kow Cheong Wei, the link road between Bandar Puchong Jaya Selatan and Pusat Bandar Puchong is now completed, although three months behind schedule.

Kow, who was also a former Subang Jaya Municipal Councillor, had initiated the project during his term.

He was invited to officially open the road last Friday although the road was ready for use since June 30.

An honour: Dr Kow (seventh from left) cutting the ribbon to officially open the link. With him are representatives from residents associations.

The 0.3km two-way 6m wide road links Jalan Serindit in Bandar Puchong Jaya Selatan and Persiaran Wawasan in Pusat Bandar Puchong.

Kow said besides easing the traffic on the congested Damansara-Puchong Highway (LDP) during peak hours, the road could also hopefully help to enhance the economic life at the two Puchong townships and also Bandar Puteri Puchong.

“The businesses are moving towards Bandar Puteri Puchong now as the road access is inconvenient here in Bandar Puchong Jaya,” he said.

The new link will also serve as an emergency gateway to neighbouring areas when the LDP is jammed whenever there are serious accidents.

Kow said the MPSJ would wait for the road to stabilised before building road shoulders.

Meanwhile, IOI Properties is said to be constructing a link road between Puchong Hartamas and Bandar Puteri Puchong.

It is believed that another developer, Capital Land, is also responsible for building the link together with IOI.

Source: The Star, 08 July 2008

Remain Calm Through Market Turbulence

In the wake of the turbulence of stock markets in recent months, unit trust investors may be tempted to either sell or buy. However, investors are advised to remain calm and practise dollar cost averaging with their long-term goals in view.

When regional and global markets succumbed to panic selling in August 2007 and more recently in January 2008, the severity and sharpness of the correction was large enough to make unit trust investors ask themselves whether they should redeem now to stem further losses or buy more units at currently low prices. In fact, if they practise dollar cost averaging, they need not concern themselves with these timing issues. Dollar cost averaging enables investors to automatically buy more units when prices fall and fewer units when prices rise.

It is especially during times of market volatility that individual investors should remain focused on their long-term investment goals and keep their emotions from influencing their investment decisions. A disciplined and methodical approach to investing is the key to long-term investment success.

Unit trust investors are advised to buy and hold their investments for the medium to long term. The buy-and-hold principle is based on the notion that a good investment will generate reasonably attractive returns over the medium to long term. This also means that investors are able to distinguish between daily movements in the market and the underlying long-term value of their investments. Professional fund managers buy and hold for the medium to long term as they are prepared to wait patiently over several years for their investments to reach their intrinsic or fair values. For the unit trust investor, the 'buy-and-hold' strategy can also be applied by holding on to a well-selected unit trust fund over a period of at least three years.

There are some investors who believe they can achieve superior returns by timing the purchase and redemption of equity funds to profit from the stockmarket's short-term movements. These investors are tempted to engage in timing the market especially in an environment where equity markets are volatile. Such investors who wish to make quick gains in the stock market by switching from one fund into another fund will often be disappointed. Market timing strategies that are often recommended by 'investment experts' have seldom been successful. This is because stock markets are inherently volatile and are impossible to predict with numerous factors, both domestic and foreign, affecting daily and weekly fluctuations in stock prices.

Investors who wish to take a more active approach with their investments by timing the market will expose themselves to many risks. In order to profit from the market's short-term trends, the investor has to correctly predict the market's trend and its turning points.

Without the appropriate skills to discern signals and time the entries and exits, the market timer may not only miss opportunities, but also potentially suffer the blow of rapid losses. Also with a higher frequency of fund switching, investors will have to incur increased transaction costs.

Investors who are concerned about market volatility are advised to practise dollar cost averaging as this strategy enables investors to focus on the long-term investment goal and not worry about the prevailing level of the market. Dollar cost averaging is simply investing a fixed amount of money in a financial asset (such as a unit trust fund) on a regular basis (monthly, quarterly, biannual) regardless of the market cycle. By investing a fixed amount on a regular basis, investors will buy more units when the market is lower and fewer units when the market is higher. This strategy will produce a lower average cost of investment than the average market price over any given period.

In addition, investors are also advised to rebalance their portfolios regularly at least once a year to ensure that their portfolio allocation reflects their investment objectives and risk profile. Thus if, as a result of an uptrend in stock prices, an investor's equity exposure has exceeded a level consistent with his risk tolerance, he can trim a portion of the equity funds and switch into bond or money market funds to rebalance the asset allocation accordingly.

Maintaining a target asset allocation reduces the risk that the portfolio becomes too concentrated in a single asset class.

In conclusion, unit trust investors should always focus on achieving their medium to long-term investment goals. The practice of dollar cost averaging and regular portfolio rebalancing are effective tools that help investors remain focused on the long term horizon and prevent them from over-reacting to short-term movements of the stockmarket.

Source: www.publicmutual.com.my