Mayland's Elements at Ampang

If Mayland has anything for us to remember them by, it's their densely congested "luxury" developments in strategic locations. This strategy has served them well, that is to buy into expensive pieces of land and cut the units up to small affordable bite sizes. Example is their Plaza Damas serviced apartment in Sri Hartamas. Each floor has almost 40 units of 500sf studios. While in the past 2 or 3 articles, we been talking about luxury condos with their individual lifts, these 40 units per floor in Mayland's "luxurious" Plaza Damas is served by only 3 lifts! Mayland's "luxury" is also defined by their long school-type corridors...

So, when Mayland invited me to their Elements @ Ampang preview this weekend, I was a bit sceptical but made the trip anyway to see what it is all about. Well, it is slightly different... though not a too pleasant surprise.

Elements @ Ampang, a JV between Mayland and L&G features 12 units per floor (instead of their usual 20 to 40!!), ranging from 630sf studios to 1550sf 3-bedroom units. Mayland "generously" included 4 lifts to serve the 41 floors. This "generosity" is obviously reflected in the price which ranges from just over RM500k for the studios to just over RM1million for the larger units.

The density is still there. The project consists of 2 blocks. Each block has over 500 units and the 2 blocks on this plot of land has more than 1000 units. This is the trademark of Mayland.



With this kind of density, it is possible to throw in lots of high-end condo facilities as these can be supported by the maintenance cost. Elements is the only Freehold plot amond the leasehold part of KL's Ampang. Interestingly, it is neighbouring another up-coming project D'Rapport which is leasehold. The location is about 8km from KLCC accessible via the busiest stretch of Jalan Ampang and the AKLEH highway. It is at the fringe of the exclusive Ampang Hilir dotted by various embassies and high commissions. The most attractive selling point is the nearby International School KL (ISKL) at Jalan Kolam Air across the MRR2 highway.




But I think there is a mismatch in the project and the location. 1st of all, if you buy a project near a school, e.g. Mont Kiara with the Garden School and Saujana with the Japanese School, you can't go wrong. Expat families tend to congregate there, no matter where they work, they rather have their kids closer to the school than them closer to their work. With majority being 630sf to 690sf studios and 1-bedroom units, Elements is not exactly catering to the families with school-going kids in ISKL.
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Junior expat officers at the Embassies normally have a budget starting from RM3k up to RM6k. But for what embassy officers are used to, they would be horrified at the thought of having an accomodation the size of 600sf because embassy staffs are expected to also do some entertaining. They would probably shop for the abundance of choices in Ampang Hilir which features larger units but much older design and up-keep. Perhaps they would consider the larger units at the Elements and with the 3-bedrooms starting at RM1.1million, they might just make it with a RM6k rental. But paying maintenance fees on a 1500sf unit with a RM6k tenancy might just be stretching the ROI a bit.
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As for the senior expat officers, i.e. those ranked 1st Secretary and up, forget about renting a condo which is located among densely populated studio units with hospital-like corridors to them...


Nevertheless, Mayland have their hardcore supporters. Those who made money from Parkview, Maytower etc. swear by them. They even ban people from property forums for criticizing Mayland. Sales have not been that bad considering the soft launch. Take up for the 1st block of 500 plus units are about 45% with a 10% discount off published prices. For me, Mayland still need some convincing to do about their quality of work.

I'll provide more comments when I have managed to scan in the floor plan... keep rooted here..

Greed can blind one’s vision

The following article, which I found at Malaysia-Today touches the morality issue behind our investments in Students Accomodation. Koon Yew Yin is a philanthropist who has donated a lot of money to the development of the UTAR campus in Kampar and provided scholarships to poor and deserving students to study there. He has found that there is a lack of affordable accomodation around the campus and hence offered to donate money to build a hostel for the students. Interestingly, the UTAR board has been slow to accept this donation as there are vested interests who are making huge profits renting properties at high prices to the students.

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On the opposite spectre of it, Taylors College hostel is charging RM870 for a room within campus. This is almost double the cost of accomodation outside the campus. While one might argue that students who study at Taylors are rich while those who go to UTAR are generally poorer, this inevitably affects students welfare and obviously the demographics of students who can afford to live in campus.

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I applaud Koon Yew Yin's intentions. While we are not as wealthy to emulate his examples, I wish that while we investors are in properties to make money, we should be considerate towards the students' welfare too.

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Here have a read:

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GREED CAN BLIND ONE'S VISION

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After receiving confirmation that UTAR has no plans to build hostels, exactly one year ago, on 20th Aug last year, I offered a RM 30 million donation to UTAR to build hostels with all the net profit to go towards building more hostels. (But) for the last one year, it appears as if the Board of Trustees of UTAR has been using various methods to delay or reject my donation offer. Various stakeholders whose names I shall not divulge who own land outside the university campus and are reaping windfall gains from the booming student rental market do not want me to disturb their fantastically profitable real estate business.
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By Koon Yew Yin
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Every past issue of the Ipoh Echo during the past several months has carried an advertisement of my offer of scholarships to help poor students whose family income is less than RM 2,000 per month. In the last three and half years, I have given scholarships to about 70 really poor students and most of them are studying in UTAR Kampar.
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Before the end of the year, my first scholarship holder will be graduating as an accountant. This student had 10A1 for his SPM but failed to receive a scholarship from anywhere. Moreover, his father died soon after he completed his SPM. He is one of many thousands of bright but poor students who do not have the resources to continue their higher education.
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My assistance on its own can only make a small dent in this large scale phenomenon of deserving Malaysian students who cannot further their studies and realize their potential unless the government, private sector and the well-to-do step in to provide assistance.
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Direct financial assistance by sponsors is one way to reach out to the poor and deserving students. There are other ways, including more structured approaches that are available, especially to higher educational institutions that can play such an important role in ensuring equity of access to poor bright students.
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Let me explain one of these structured approaches. There are currently 12,500 students in UTAR and 2,100 students in TAR College. The student population is increasing by 2,000 a year and is expected to hit well above the 20,000 mark soon. As reported the Perak Government has allocated 520 ha of land and UTAR has utilized less than 100 ha. for the current development.
After receiving confirmation that UTAR has no plans to build hostels, exactly one year ago, on 20th Aug last year, I offered a RM 30 million donation to UTAR to build hostels with all the net profit to go towards building more hostels. I have openly declared that my intention is to help the students and I do not want any part of the profit for myself.
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For the last one year, it appears as if the Board of Trustees of UTAR has been using various methods to delay or reject my donation offer. Various stakeholders whose names I shall not divulge who own land outside the university campus and are reaping windfall gains from the booming student rental market do not want me to disturb their fantastically profitable real estate business. Needless to say, whist they are making hay while the sun shines, the tens of thousands of UTAR students and parents supporting them are the big losers.
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Frequently my scholarship holders complain that the amount of money I give them is not sufficient because the room rentals continue to go up. Moreover, they have the constant fear that they might not get a place to stay on their return from the university break period. According to the last check I did, the monthly rental of a twin sharing room was RM 420 some months ago. It may have gone up more since then.
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I have been begging the Trustees of UTAR to accept my donation. To remind them of their fiduciary duty and their vision, I wrote this to UTAR Board of Trustees on 7th Sept 09 which should be of interest to all your readers.
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Advantages of hostel and recreational facilities within the campus:-
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1. To help students especially new ones and those from out of the state to solve their immediate housing problem.
2. The hostel environment is more conducive to learning as well as helping nurture the fuller development of human relationships.
3. There will be more than 10,000 UTAR students next year and all of them will be searching for accommodation. As they will be scattered all over Kampar, the University has practically no control or little control over them after lectures. They are free to drink, gamble and misbehave or engage in unhealthy activities which will influence their future life style. If hostel accommodation is provided, the house masters or wardens will be able to exert an influence over the students and have them engage in more wholesome and educational activities.
4. The rapid increase of the student population has created a big and urgent demand for accommodation and housing developers are taking undue advantage of the situation. Students have the constant fear that their landlords would kick them out or that their tenancies will not be renewed, and many will have to spend much time trying to find new accommodation before the start of the new semester. This situation can be quickly remedied if the UTAR Council accepts my Proposal.
5. University students are always burdened with a lot of difficulties. Many studies have shown that hostel living provides a stress free and healthier living environment, leading to better academic performance and more developed social skills.
6. Most parents will welcome the hostel facilities since they can enjoy peace of mind that their children are staying in the campus in secure and peaceful environments.
7. The problem of commuting between outside place of residence and the campus for students will be resolved. This will help reduce students’ living costs and also save on the time taken to travel to lectures and seminars.
8. Living in a university hostel is often the most pleasurable period of a student’s life. The hostel facilities will generate fellowship and comradeship among fellow students which will bring benefits long after they graduate. This sense of camaraderie will be a key factor in helping ensure strong alumni support for UTAR.
9. The availability of high quality and yet affordable hostel facilities will build up the image of UTAR as well as serve as a major attraction in attracting good students from all over the country and region.

I trust readers who feel as frustrated as I will persuade the leaders of MCA to instruct UTAR Board of Trustees to accept my donation to help students. I would like to complete the introduction I began with this conclusion.

Greed can blind one’s vision but at what price to one’s soul and peace of mind?

Koon Yew Yin

Malaysia Property Forum

Well today I found myself being banned from the Malaysia & Singapore Real Estate Forum. The admin and owner of this forum is rude, offensive and a coward.

He started off badly today by accusing a staff at Monoland and a friend I introduced to a buyer of ripping-off people and corruption. His claims were unsubstantiated and he offered no apologies for what he said, hiding behind his nickname and continued to post innuendos and implying that I have been dishonest in my dealings with regards to this Vipod deal since I introduced the buyer to the seller. The poor Monoland staff who merely helped the seller to explain to the buyer the choice of units available was accused of corruption!

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I also have the right to protect my integrity and reputation. As he felt the heat, unwilling to apologize and faced with the threat of legal action by me, he decided to ban me from the forum as an easy way out. Now forum readers should know that the one with an integrity and reputation issue is the forum.

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This is complete abuse of the internet and a free public forum. Although the internet is not regulated, it is morally and ethically wrong to use it to slander people, especially when specific names were used. Such attitude is totally uncalled for. I won't bother to go back to that forum for it's cowardness and lack of integrity.

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Updated: Apparently, there is another twist to the story. I could not be bothered to visit this forum again so I can't verify. However, friends have informed me that an Admin, using the nickname Pai has banned me for criticizing his vested properties. I remember being banned from another forum for criticizing 231TR, someone's vested property. Well, if this forum is no different from the other one, i.e. used to promote one's vested interests, then I shall be no part of it. You will continue to hear from me from this blog, criticizing all properties, INCLUDING those I am vested in.... and do feel welcome to provide opposing comments or criticize my views as well. You won't get edited or banned from posting in this blog. Your comments do not need my approval to be posted. I only remove ads and racial and vulgar comments. Other than that, you can say whatever you want.

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Further Updates: I have removed this forum from my favourite links. This blog shall not be used to promote other people's vested interests. Strictly no...

UPDATED: Monoland's Quadro @ KLCC

UPDATED 28/8/2010: Suddenly today heard a bombshell... Quadro's title is not residential as Monoland sales people have been promoting for weeks. They now say they have been misinformed. The title is actually commercial!!!! In my opinion, this is not an easy mistake to make. Have we all been misled by Monoland? Or Monoland been misled by the Land Office or City Hall? Surely... when you buy a multi-million ringgit piece of land, you don't make this kind of mistake. So, what's the big deal of buying a residential property that sits on a commercial title? The most tangible is the utilities - water, electricity and sewer are based on commercial rates. The Assessment is based on commercial rates. All of which are much higher than residential rates. The Assessment makes the holding cost much higher but for a million RM property, one might say it's negligible but for the reason it is a million RM property makes the assessment rates even much more higher!

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So, what's my stand on this matter? Well, if I have known from the start that this is sitting on commercial title, I would not have bought - despite the location, layout etc etc. Simple as that... Now, SixCeylon, Verticas Residensi and St.Mary (commercial but residential rates) suddenly overtakes Quadro in terms of attractability.

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Last weekend, Monoland soft launched both their premier projects in the KL city center - Vipod and Quadro. Of the 2, most people tend to be attracted to Vipod, due to the smaller sizes and the affordability. However, since Monoland requires all affordable Vipod small units purchases to be paired with a big one, surely the affordability factor has dissipated... (?)

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Monoland's Quadro features just under 40 floors, with only 7 units per floor. Each floor is served by 8 lifts!! Each unit has their own private lift lobby. Vipod is only slightly less exclusive, with 3 lifts serving 3 or 4 units. However, with the almost identical size of land, Vipod packed 11 units on each floor. So, Quadro has half the density of Vipod. Monoland's insider also informed that they paid more for the Quadro's Persiaran KLCC land compared with Vipod's Kia Peng's address.

Certainly then, the value has to be with Quadro. Interestingly, the price per sf for Quadro is less than Vipod.

picture above: The rendering of the Quadro as seen from Traders Hotel. Many online forumers baulk at the horrific Quadro architecture to be wasted on such a beautiful address.

Monoland positioned their Quadro as the higher end of the two. According to their Sales Agent, Vipod is their product for the "mass market", while Quadro is the exclusive market. It has a more exclusive address in Persiaran KLCC, sharing the same row as Traders Hotel, Menara Exxon-Mobil, Park Seven and Binjai on the Park. Buyers get 2 car parks instead of 1 with Vipod and the title is residential, while Vipod's commercial. The long term maintenance will be a lot different with a residential title.

picture above: The tanga shaped floor plan of the Quadro. Notice that there are 8 lifts serving just 7 units on each floor.

Really forgiven...if the floor plan reminds you of this...

The layout dictates that only 2 units actually get the KLCC view. Both are relatively large units and priced above RM2million at the special Preview launch. The floor layout of the units and designs are not really that interesting except for the Duplex units. The Duplexes face South, which means a Bukit Bintang view or in a few years time, Ireka's condo project... The layout is extremely thoughtful. They have their own lift lobby, just like the other 6 units on the floor. The upper floor has its' own entrance directly into a utility which can also double as a maid's room. So your maid, can have her own entrance!

The lower floor features the adjoining living, dining and dry kitchen. Then, there is also a wet kitchen which really suits our Asian lifestyle and cooking. It's just so thoughtful...

However, the 3 bedrooms upstairs are a bit crammed. Monoland should have just done with 2 large bedrooms, rather than packing three in...

Duplexes generally do very well in the expat high-end tenancy market. This one is a little revolutionary because it is the only small sized residential Duplex in the KL city center. Everything else from Somerset's penthouses, to Binjai on the Park, OneKL, Dua Residency and Park Seven are large units from 2500sf and up. Quadro's duplex is only 1500sf. The fact that Quadro only offers 16 Duplex units mean that they will be in great demand!

pictures above and below: The Quadro is bordered by Jalan Kia Peng and Persiaran KLCC and the access to the site is via the more prestigious of the 2 addresses. Picture below shows the site as seen from Traders hotel.

It has to be also noted that the road access to Quadro is a dual-way - both Persiaran KLCC and Jalan Kia Peng. The Vipod's access road is a one-way stretch of Jalan Kia Peng. That's a huge difference. And comparing the 2, Quadro's access road is seldom jammed.

The googlemap picture above showing the entrance to the Quadro via Persiaran KLCC (in red), also shared with Menara Exxon Mobil to the north of Quadro and Traders hotel (north West, diagonally across)

pictures above and below: The roof top plan at the Quadro with the infinity swimming pool below

The land however is still tiny. But not much difference from OneKL's. So, they have to pack all the facilities onto the roof deck.

One huge concern I have about Monoland is their maintenance background. Although they have a slew of high end portfolios and references, their track record in managing their 2 hotels, Northam and Gurney in Penang has not been very good. They still have a long way before they get to likes of being truly 5-star. The fate of Quadro lies in this.

Finally Launched: Monoland's VIPOD @ KLCC

Move aside Wingtai's Verticas and Bolton's SixCeylon, here comes Vipod @KLCC. Finally, there is a match to rival St. Mary's in the uber saturated KLCC property market. This long awaited project by Penang's Monoland is thriving on it's prized location - literally in between KLCC and Bukit Bintang's Pavilion.

If one feels like he's behaving like Monoland's Sales Agent, one cannot be blamed. Since the soft launch on the 8th of August, Monoland's sales office has been inundiated by visitors. As of today, 11th August, all the units up to the 21st floor which was opened for soft launch has been booked. However, Monoland has been wise to come up with a method to erase the short term speculators. In past practices, for hot cake properties, touts or short term speculators visit sales offices upon launch and place their bookings on the best units. They then off-load their bookings at a premium to other investors who come late.

Monoland however, allows such bookings but no booking fee is collected. One is allowed to go away for 24 hours to raise cash and return to sign the S&P and place the 10% deposit straight away. If you do not pay the 10% deposit within 24 hours, your unit is released back to the market. This practice in effect removed all the touts. Bravo to Monoland!

The project consists of over 440 units on 41 floors. Typically, each floor has 11 units - 5 of them 2+1 bedrooms above 1000sf, 1 two-bedroom unit and the rest are little 653sf one-bedroom units. Initially Monoland had wanted to build more of the smaller units but faced restrictions from the City Hall citing the density limit. So, they had to merge some smaller units into 2+1 bedrooms which are priced from RM900k onwards. Realizing that the speculators market would tend to pick up the smaller units leaving the larger units unsold (example from E&O's St.Mary's), they introduced another revolutionary sales idea which is to pair up the large units with the smaller ones - one is only entitled to buy the small units if they have also purchased a large one. Buyers of their neighbouring project at the Quadro are also entitled to purchase a small unit at the Vipod.

The floor plan is divided into 3 clusters - each housing between 3 to 4 units. So, when you buy a large unit, you are entitled to buy a small unit which will be allocated to you on the same cluster and same floor. When one is about to feel being forced-sell a mass market product, it has to be noted that each cluster of 3 to 4 apartments are served by 4 lifts, including 1 utility lift!

Upon closer inspection, one observes that Vipod actually stands on a very small piece of land. As such, all the facilities befitting a high-ish end project are squeezed onto the roof-top (above).

Entrance to the site is from Jalan Kia Peng, which today is a one-way street heading towards Jalan Raja Chulan, both stretches being the most congested in KL during peak hours. Each unit is given a car park, whether they are the large 2+1 bedrooms or the 1+1 bedrooms. The car parks are under-ground.

All the 2+1 bedroom large units faces KLCC, well at least theoretically for some as the lower units will be blocked by the Grand Hyatt (below - under construction on the left) and Menara Kia Peng on the right. The lower picture taken at night shows how the Grand Hyatt effectively blocked out the KLCC view for some low units.

However, for those endowed with the KLCC view will forever have it as there is nothing else standing in the way.

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In my opinion, the best layout goes to the 2 corners. They are bright and airy and the kitchens are nicely cubicled to suit the Asian-cooking and lifestyle. The large full glass windows afforded to every unit presents a very nice breath-taking scenery (if you have it). The Western corner is preferred as the Eastern corner need to be at least above the 18th floor to enjoy any un-obstructed view.

However, the corner units are priced higher starting from RM1000psf. If one is looking to spend below RM1000psf, down to even RM900psf, go for the intermediate units. Type D below, being the cheapest is also probably the least desired as the kitchen is just a long piece of cabinet sharing the living room. It just feels like a studio unit - one which St.Mary's designer should learn too that this is not so suitable for long term stays.

Fortunately, Type C of the intermediate units offer an enclosed and separated kitchen.

In terms of positioning, St.Mary still offers a fight. St.Mary's 4 acre quadrangle offers the largest common play area in KL center besides the ageing Desa Kudalari. Monoland themselves admits that of their 2 products launched, Vipod is geared more towards the mass market, while their Quadro is for the exclusive end. Squeezing 440 units on a small piece of land, hardly 1 football field is really dense. With a majority of small units at play, the larger 2+1 bedrooms can't help but feel like being the bungalows in the middle of slums. Vipod offers a great location, unbeatable until the next project comes up on the parking lot next door. Probably sensing the already saturated market, Monoland has correctly priced their preview launch well below market. Early buyers at this stage will make money, no doubt. This explains the buying frenzy currently. The location promises that the un-even tenant spread in KL will be attracted to Vipod, especially more if Monoland do it right, with the right partnership and management.
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BTW, the rumour that the low maintenance fee of 20sen persf is not true. Reliable insider stated that the maintenance fee has yet to be fixed and when it does, will be according to market rate, which is at 36sen to 40sen.

Our Heritage Destroyed

Further to my earlier posting on Heritage buildings in Kuala Lumpur, here is a row of pre-war shophouses in Tengkat Tong Shin, Bukit Bintang destroyed for commercial gains. Back in year 2000, these shophouses were dilapidated and falling apart. Then, the owner had the wisdom to repair them and offered them off for rental. The earlier tenants were all restaurants, which included a Sao Nam Vietnamese restaurant, Thai restaurant the Old Siam and a friends venture called Jiak Guan. All but Sao Nam lasted only a few years.

Later, several other restaurants came and went. At last, they were taken over by a massage joint. The massage joint operator saw fit to build something at the front of the shops resembling some shack from Thailand.... or is it Bali? This would apparently attract tourists to have a massage inside. Why tourists who come to Malaysia will be attracted by Thai or Balinese architecture really defeats me....

Sao Nam is the yellow restaurant on the right of the picture below.

Right next door, an Arab entrepreneur has taken over the former Nyonya restaurant and turned it into a backpackers inn... that resembles Aladdin's den? The sign on the shop stating that the shop was built in 1939 totally evaded him. This same entrepreneur also destroyed 2 other shops in the same area with the same design.

On the 15th of December 2006, a historical mansion called Bok House in Jalan Ampang was demolished. There was a huge outcry. Our government is supposed to gazette these buildings as heritage buildings and prevent any form of destruction to them and preserve them. But how are we supposed to protect our heritage buildings when we have idiots like Rais Yatim as the Culture Minister?

Shortly after Bok House was demolished, he was reported to have said "The cost of rehabilitating Bok House will be high and there is no significant history or aesthetic value attached to the building"

"The Government could also not save Bok House from being demolished because it is privately-owned and not registered as a heritage building."

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The list of registered heritage buildings in Malaysia is in fact determined by the government.

Heritage of Penang

Downtown Penang is experiencing something of a property boom lately due to the Unesco Heritage City listing. I was expecting to spend close to or over a million on a shop or terrace house in Georgetown. While I dived further into heritage Penang , to my pleasant surprise, I found a lovely shop right bang in the heritage zone selling at RM351k.

The shop is located on Stewart lane, which is in the core of the Heritage zone. Obviously it is in a very bad condition but the shop is very long and has lots of commercial potential.

Unfortunately, when I called up it was already sold.... I fell into depression for 3 days, unable to sleep nor eat...

Now, that's an exaggeration. But I was really very sad to see it go. It is my hope that the buyer is not like the neighbour 2 doors away who installed an aircon sticking out right in the middle of the facade while destroying much of the beautiful louvre window.

As in any remedy of a jilted lover, the best thing to do is to find a new one. So, I set off around looking and found quite a few properties priced below RM1m. Such as the one below at Jalan Sekarat. It is a pre-war building which unfortunately was badly renovated by the owner. The most unfortunate thing is, the owner was quite proud of his renovation and insisted on pricing the property at RM600m. This is despite the less favourable location which is outside the boundary of the heritage zone.

What would one do with pre-war heritage buildings in Penang?

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To me, even as an investor, such heritage buildings are not only for making money. It is for the love of the heritage, one would not only invest the money, but also the time to restore the buildings to their former glory. Obviously, this act while preserving the historic elements of the community and place, will also increase the value of the properties in the area in time to come. Brand Bon Ton is one such forward looking company. They have effectively restored a couple of rows of shophouses and also converted them for commercial value, running them as serviced residences called the Straits Collection. I would encourage one to visit their website (http://www.straitscollection.com.my/) and immerse yourself with the beauty.

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Some wealthy people have also turned these properties into their residences, while preserving the facade and original structure of the exterior, they have fitted the interior with modern comforts fit for everyday living. One would just need to look at such similar concepts in London, Paris and even Singapore to be able to appreciate and see the success of such venture.

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Do we all want to walk the streets of Penang and enjoy chic cafe's, antique shops, quaint back-packer inns and still be able to sample affordable local fares? Certainly, downtown Georgetown Penang has that charm and potential to make this happen. As long as the buildings don't fall into the wrong hands...

Preview of SixCeylon by Bolton

Earlier I blogged about the upcoming SixCeylon project by Bolton. Finally, it is out! I have just received some materials from Bolton's marketing agent, IP Global giving us a glimpse of what's in store. The Bolton Court is now in process of being demolished.


And up from its ashes, will rise SixCeylon...


It is a Freehold project, expected to be completed in Q4, 2013. They are going to have just over 200 units over 33 floors. There will be 8 units per floor, serviced by 4 lifts.


The sizes and prices are:

Type D 696sf - 1 bedroom intermediate units (beige colour below) starting from RM577k to RM732k

Type B 837sf - 1+1 bedroom intermediate units (blue colour below) starting from RM690k to RM866k

Type C 1200sf - 2 bedroom corner (red colour below) starting from RM960k to RM1.2million

Type A 1555sf - 3 bedroom corner (green colour below) starting from RM1.25m to RM1.5million
interesting...


From the plan above, it seems the smaller units are all facing Angkasa Impian II. Despite the less desirable view, these are expected to be sold out early. The more desirable views are the Type A and Type B, especially the bottom corner which will have a dual KLCC and KL Tower view - and an added bonus of the red-tiled swimming pool view right beneath.

The idea is somewhat similar to the Library resort in Koh Samui... (have we anything original in KL yet? sic..)

The hanging kitchen plus all other white goods are provided while the rest of the unit will be delivered unfurnished. There appears to be a show house somewhere, perhaps will be paying that a visit soon.

While it is tempting to snatch a unit, especially the Type B 1+1 bedroom, I am mindful of the fact that one has to price the rental above RM4000/month in order to make ends meet. The market for this range of rental is a bit saturated and judging from the performance of Idaman Residence's own 1+1 units and nearby Somerset's 2 bedroom units, it is going to be very challenging.

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There are also a few hundred 2 bedroom units coming up next door at Wing Tai's Verticas which will see punters pricing their units from RM6k onwards. Currently, Somerset's 2 bedrooms are struggling to fetch tenants at RM5500 to RM6000/month and with these more modern and luxurious units entering the market, the going will get tougher.

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P.S. All pics above are courtesy of IP Global who is the marketing agent for SixCeylon and The Library, Koh Samui

It's Only Hot Cake If You Rent It Cheap

As I was trawling the internet for properties in Sunway PJS7, which apparently has been in high demand due to the neighbouring Taylors College main campus, I chanced upon some advertisments for Mutiara Perdana. This apartment is located just minutes walk from the campus' main door. One ad claim that their unit is the only one available in market currently, giving the impression that it is really hard to find.

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I recently went for a survey and found that the claim is indeed true. The unit advertised for RM200k is the only one I can find for sale. The asking price also seems to be higher than the bank's valuation which is between RM150k to RM160k for these 3 bedroom units. I don't know how long it will stay in the market but when I looked around the place, I found at least 6 units available for rental.

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It might be understandable considering that the semester is coming to an end and most students won't be rushing for accomodation until the intake around August. However, what I found was, the units being occupied or taken were all rented below RM1000/month for an empty unit. Fully furnished ones go for around RM1400 and some even asking for RM2000. I came across one owner who wanted RM1200 for a completely empty unit - no fittings, no furnishings... One agent told me that the unit has been in the market for a long time. The previous tenant who was paying RM800/month left and the owner now wants to increase the rent.

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I don't think it will be impossible for the rental to go up in the future but at this stage, it is still too early. The campus is not yet even half it's capacity. Some owners yet to be realistic. No doubt some students are paying up to RM800 for their room but they will move as soon as they find a cheaper option. And there are owners providing this cheaper option.

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Also a great concern with the building of a bridge linking the Lagoon Perdana apartments due to be completed end of this year will add another 1000 rooms into the equation. Then the market may become more realistic and the bankers' valuations may seem to be right after all...

Penang Property Has Prospects

Last year in December, I visited E&O's much hyped Seri Tanjung Pinang project. It is interesting to find terraced houses here, modelled after the colonial heritage houses in downtown Penang, fetching over RM1million in the sub-sale market. Unfortunately, I have reservations about the location and the fact that it is on reclaimed land. Hence, I ventured into town and found some interesting old houses between Jalan Sultan Ahmad Shah and Jalan Burmah. The asking prices were just under a million but they looked like needing at least another half a million to fix them up.

As I was doing my search to invest in Penang heritage houses, I chanced upon this interesting article in the Senses of Malaysia July 2009 edition. The article says it all about the prospects of Penang properties. Although we are now probably experiencing the higher plateau of the Penang property boom, I think it is still worth buying into Penang for own-stay if not for investments. Since the World Heritage Site been bestowed on Penang, heritage buildings here have been wildly popular. Here is the piece, with permission from the Expat Group:

Historic Penang has a holiday feel that has tempted a lot of expats to make this seaside state their home. Douglas Williams takes a look at some of the properties available on the island just now.

Word is getting out about Penang and one of the key messages doing the rounds regarding the island state is that it’s good value, an important attribute these days.

This applies not only to the food but also to the property, those thinking of being in Malaysia long term should investigate further, we did. We took a gander at a variety of properties on offer, both residential and commercial.

First things first, Penang is famous for its pre-war shop houses and these are proving increasingly popular with expats looking for a challenge and their very own bit of Oriental history.

We started with a short row of functioning shops, five units in a very central location, in not bad condition and currently operating commercially. There is a slight issue with occasional flooding but this should be over-comeable with a clever drainage engineer.

This place has those three Ls in spades, yup – location, location and location. Chances are the seller will take less than the RM6.8m asking price for the lot which is more than 1,100 square
metres in total.

For many that might sound like just a little bit too much work but fear not, there are easier options. How about a fully renovated if slightly neat split-level, heritage house in a very cute lane just off one of the main Penang drags? Nearly 50sqm per floor selling at RM300,000. Bring your toothbrush and move right in to the thick of it with traditional eateries across the road and all the fun of the fair just round the corner.

One block away another fully attached property but an altogether differentproposition. This property is currently acting as an office and storage space and is basically a shell but it’s nearly 300sqm with the potential to add on half that area again.

At RM650,000 this property would require top to bottom redoing and this might cost the same again particularly if the aim was to retain the heritage character. Next door an expat has fully restored the property retaining exquisite heritage detail. Along the street next to a small hotel a former coffee shop is on the market at just shy of one million ringgit. This property is in good condition with a nice corner balcony and it is in a superb location slap bang in the middle of the heritage area. There is potential for reopening this property as a coffee shop but given the foot fall the area would benefit more from a gelateria.

There are those for whom all this heritage stuff is better observed than lived among. For those who prefer their home to have been built this millennium, Penang can also oblige. The Times quare development in down town Georgetown was completed earlier this year. It offers modern, apartment living with a superb pool, gym and quality shopping downstairs. Many of the apartments have stunning views over the city and out to the Straits of Melaka.

We saw a corner apartment, three bedrooms, one en suite, open plan sitting room/kitchen on the market for RM420,000 which is just over 80,000 pounds. North around the coast in Batu Ferringhi we saw a luxury six-bedroom apartment occupying the entire 38th floor of a superb development that overlooks the ocean. This property is being sold fully furnished and it has two huge balconies with spectacular views. It is on the market at RM3 million.

An IJM Properties Sdn Bhd signature development, Platino’s two tall towers house 228 freehold sky bungalows that have amazing views and offer resort style living amidst the peaceful ambience of a rainforest.

Despite the growing number of tourists and reports that there is something of a room shortage on the island there are a number of hotels for sale in Penang. We took a look at a variety, from derelict to fully occupied, all seeking buyers now.

In the heritage area of Georgetown we saw two charming pre-war hotels, one in operation with about 20 basic rooms and communal washrooms. It has a new café bar area. This is being sold with five street-front shops that include a currency exchange and an internet café.
The asking price is RM5.5m.

Along the street and currently derelict there’s another charming old property, slightly larger, that’s simply crying out to be turned into the queen of all boutique hotels. It is similarly priced.
Nearby there are a couple of very dowdy establishments – a 23 floor, 200 room monolith with an international style name for RM46m and an even scruffier 17 storey joint that is poised to catch Traders’ overspill perhaps. Centrally located it’s on the market for RM17m.

Back up in Batu Feringghi there’s a licence to print money in the shape of a mid-sized, beach front, three star hotel that averages between 80 and 90 percent occupancy year round. As somewhere to invest the asking RM100m price in these troubled times it could scarcely be safer.
Around the bay there is the Lost Paradise Estate which has three properties. The one we saw was Ombak Kasih, Waves of Compassion, a “resort” home with beach frontage, nine bedrooms and 11 bathrooms, a separate guest house, a 20 metre infinity pool and a great view over a private beach. The interior is Minangkabau/Balinese styled, the owner of the estate lives in one of the houses.

Overly Aggressive or Just Plain Idiots?

I have an issue with some Property Agents. They are behaving rather thuggish. Recently I came across one particular agent who is trying to peddle an apartment in Sunway. No doubt it is a very good location and can command good rental. But in my opinion, the asking price is a bit high. On top of that, the agent demands a RM50k booking fee plus his commission of RM10k paid upfront (Yes... he wants the buyer to pay his commission...).

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Anyway, it warrants further checking so I just exchanged some emails with him to find out more. Then he wrote rather sarcastically, " m impressed by ur way of Qs in email the speed i think u need to intro urself, wat u seek,budgetby the time the email is done, maybe ppl took alrdy".

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To be honest, I don't care if someone else wants to take it. After I replied that I am not in a hurry to buy, he said I don't have to "move... cuz many people want". In my opinion, if anyone got money, they can do whatever they want. As an investor, I am not going to be pressured into buying something just because others are also rushing in to buy it. That's how one would end up paying too much.

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In Lowyat forum, there is another agent trying to peddle a "Very good investment, at least 10% returns". Then someone replied in the forum that the price should be between RM200k to RM300k. She responded "You must be joking, developer price is already RM 290k that's 4-5 years ago, I don't think you know what you are talking about... ".

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Again, one wouldn't care how much the developer price was. At the end of the day, the investment is based on returns. When I pointed out that her 10% yield is quite misleading since she did not cost in maintenance charges etc., she started to attack me and at one point she stated that "Different people calculate ROI differently, maybe urs is nett yield, that does not give u the right to disturb my post if you do not have interest in the property".

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Frankly, I did have interest in that property. But with that kind of attitude, I will buy it from someone else. There are so many Property Agents out there. Exclusive or not, if the owner still can't sell it after a few months, whoever the agent can bring the right offer to the table I am sure the owner will forget about exclusivity.

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She posted the ad in March and this is June.

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Property trading should always be on a willing seller, willing buyer basis. Of course when I'm selling or renting my properties, I want to do some marketing to try and convince buyers or potential tenants - at the end of the day, the buyers or tenants make their decision after comparing the various options. Here we are talking about properties, we are not dealing with biscuits, so it is only fair that whoever is parting with their sum of money should have the right to their own decision.

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People have accused me of being aggressive too. Some parents came to view my student rooms. They like it and said they wanted to book it. So, I adviced them to leave a deposit so I can hold it for them. But at the same time, they want to go view other rooms before putting down the deposit. I told them it is going to be 1st come 1st served - this, they felt is me trying to pressure them. Then someone else came along, viewed the room and paid on the spot. When these parents came back to me with the deposit and I told them the room is gone, they scolded me for not holding the room for them. WTF....

Refurbishing Old (Heritage) Houses

I have always taken a great interest in heritage houses. Some heritage or old houses in the old quarters of Bangkok and Penang are being converted into trendy homes. One such home in Bangkok located in Yaowarat China Town was converted from an old rice mill. The owner has now put a price tag on the house with a ten-fold increase from the original value.

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Lately old houses are being snapped up in the KL city center and converted into Back-packer Inns, pubs and many were demolished so their land can make way for taller commercial lots. In the Bukit Bintang area, especially around Changkat Bukit Bintang, these houses were priced just below RM1million 5 years ago and recently climbed close to RM2.5million today.

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While it is heartbreaking to see some of these beautiful solid and historical houses being pulled down, it is equally sad that some new owners have no appreciation for heritage houses at all when they renovated the facade beyond recognition. Examples are those in Tengkat Tong Shin. The row of houses opposite Mutiara Villa have been turned into massage joints and the owners turned the front of the houses into something totally ugly. One such house was torn down and converted into a Mamak restaurant!

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Luckily, albeit in a minority, there are some owners who still have taste (and conscience!). Below picture shows 2 such charming refurbished houses (OK, these are not quite heritage houses, but they were built in the 60s and pretty run down before being refurbished).