Singapore property market booms despite recession

As reported by AFP today:

AFP - Wednesday, August 12SINGAPORE (AFP) - - Despite Singapore's worst economic slump since independence, the residential property sector is in the midst of a new boom reminiscent of 2007, when the city-state was known as the world's hottest real estate market.

Greed and its twin brother fear are back in play as punters stake out condo launches days before sales open, with some offering blank cheques to pre-book flats, prompting the government to hint it may have to cool things down.

"Some of the practices and habits that you saw in the last property boom are beginning to come back, so I think we'll have to be careful," said Minister for National Development Mah Bow Tan, whose portfolio includes housing.

"A little bit of speculation is inevitable in every market, but when it becomes excessive, then it is something that we should try to avoid," he said.

The minister's words of caution fell on deaf ears.

A 297-unit condo called Optima in the extreme east -- well outside prime districts -- sold out in within three days in early August after Mah's warning, fetching as much as two million Singapore dollars (1.38 million US) a unit.

The developer had to issue ballots "to address the needs of the genuine buyers" and disperse the huge crowd that turned up for the launch of the project, which will only be ready for occupancy in 2014, a spokesman said.

Within days, some units were already being advertised for resale in the secondary market.

An AFP reporter who recently walked into the sales office of another high-rise condo being built close to the Orchard Road shopping belt was treated like royalty by agents expecting to close deals within days, if not hours.

Bank officers were ready to process loans on the spot.

"Buy before prices go up further," an agent whispered in his ear, gesturing to a "sky garden" bisecting the scale model of a glass-clad, 45-storey tower.

Singapore's economic output is officially forecast to shrink by four to six percent this year -- less severe than earlier estimates, but still its worst economic performance on record -- and office rents are still soft, reflecting weak business activity.

"It is too early to celebrate," Prime Minister Lee Hsien Loong warned over the weekend as he spelled out the country's economic prospects. "The outlook remains clouded."

The property frenzy began in middle-class condo projects due to pent-up demand from families upgrading from public to private housing but scared off by the 2007 price spiral.

Their enthusiasm quickly spilled over to more exclusive developments.

Prices of luxury condos -- the segment worst hit by the recession -- are now inching toward peak levels achieved around mid-2007, according to an analysis by business weekly The Edge.

Foreign investors, including Asians looking for a secure place to park their money, are also back in the Singapore market.

Singaporeans enjoy one of the world's highest savings and home ownership rates, but most live in relatively spartan government-built flats, making owning condos an obsessive goal for families.

A pension system forces them to save more than a third of their monthly income, and the accumulated funds can be tapped before retirement to buy property, creating a massive pool of financing ready to be used when market conditions are good for buyers.

Chua Chor Hoon, senior director and head of Southeast Asia research at property advisers DTZ Debenham Tie Leung, said various factors combined to spur renewed buying in Singapore properties.

Signs of economic recovery, the stock market rally, the imminent completion of massive casino resorts, low interest rates and lack of confidence in complex financial products encouraged property buyers.

Asked if the government will have to intervene to stop a bubble from forming, she said: "There's froth but no excessive speculation."

"The government is likely to increase the supply of housing units through the sale of government land and monitor the situation first."

Chua Yang Liang, head of Southeast Asia research at Jones Lang LaSalle, said demand is largely driven by buyers upgrading from government housing due to strong wealth creation in recent years, and the shrinking gap in cost between public and private housing.

"However, unless we begin to record positive growth in the larger global and domestic economies, the recent spike in demand and prices is short-lived and could cause asset driven inflation in the longer term, especially if wage increases do not keep pace," Chua added.

"In our opinion, there isn't enough compelling reason for the state to want to interfere into the market phenomenon just as yet, unless it affects the overall affordability for the masses and causes asset-driven inflation in the economy," Chua said.

Landslide in Bukit Ceylon

Reported by The Sun, 16 December 2008.




I have a feeling The Sun may have made an error as the Verticas Residensi is not actually located beside St Andrews Church. The project beside St Andrews Church which is on the slopes of Bukit Ceylon is the UMLand-MMC JV which is currently unnamed. Something else serious happened later on February 13th. I have checked the UMland-MMC JV site. Indeed work has stopped.

Reported by Bernama - Friday February 13, 2009
Contract worker killed in landslide

KUALA LUMPUR: An Indonesian died when he was buried in a landslide in Jalan Ceylon, Persiaran Raja Chulan, here.

In the incident which occurred at about 4pm yesterday, Nur Salim Manan, 48, and another colleague, Imam Rafie, 37, were said to be carrying out drilling work at the construction site for a 43-storey condominium in the area.

“Fourteen personnel and a fire engine were rushed to the scene after a distress call was received at 4.27pm,” Hang Tuah fire and rescue station officer-in-charge Marzuki Shafie told reporters at the scene.

“Nur Salim was completely buried by the landslide while Imam was buried from the waist down.”

Marzuki said Nur Salim died on the spot.

The landslide was believed to have been triggered by drilling works. — Bernama

Updated: St Mary's Residence

Situated on a 4 acre plot beside MAS building and Menara Hap Seng, and behind the Weld. This plot used to be the old St. Mary's School which was demolished. The developer, a E&O (of Dua Residency and Sri Tanjung Pinang fame) and Lion Group JV, is building 3 tower blocks forming a quadrangle with 5-star common facilities. Currently, the East tower beside MAS building is being launched (very quietly) and I understand the take up rate has been quite swift. Apparently, 70% of the units been snapped up as of 1st August 09. The 2nd tower parallel with Jalan Tengah and the Weld will be launched later. The 3rd tower running parallel with Jalan P Ramlee is given en bloc to the St mary's foundation in exchange for the land. It is understood that the foundation is negotiating with a hotel group to manage the building as a serviced residence.

Apparently, the developer has gone to Singapore to launch Tower A this weekend 29th August at a minimum price of RM1200psf. At this price, it puts the 1453sf 2 bedroom units at RM1.7million. At this price, I would imagine the Singaporeans would get quite excited as the location is akin to Singapore's Marina Square or Orchard Road or Raffles Place and they can't even get a bathroom in a HDB flat for that in those areas. Let's wait and see.

As for Tower C which saw an enthusiastic take up the past couple of months, there are still a few units available at higher floors. Naturally the not so popular units facing the MAS building are still available and I think the developer will still end up with these up till vacant possession. These units facing the MAS building is not very popular due to Feng Shui issues. The sharp side of the building pokes into the master bedroom and living room of the unit only 40 ft or 13m away. This is not very far... According to Feng Shui masters, if you have this kind of feature affecting you, it means you will not stay long in that place. You will be evicted at some stage either through bankruptcy, redundancy or whatever unpleasant ways... However, at RM700psf it seems many people did not care as the units all the way up to the 10th floors were snapped up. Those 11h floor and above have what they call the higher floor premium and hence, from the 10th to the 11th floor, there is a RM200,000 premium. That's why they are still available....

picture above: Those units facing MAS building has feng shui issues, hence the 20% - 30% lower price

picture above: Concrete wall will replace window where the sharp edge points into the building and the developer is providing vertical lourves to ward off the bad feng shui

It is no more a secret that the MAS building next door has been sold to the Government's investment arm, Permodalan Nasional. They have got a permit to convert the building into a hotel. Some blogs such as skyscrapercity has published some architect rendering of the hotel and it seems, the ugly tall tower of the building will be maintained. The podium area at the back of the building will be converted into a 20+ storey hotel tower, which will essentially block out all views from St Mary tower C unit 3A whether you are on the 2nd floor or 20th floor.... makes no difference... haha

The popular units in Tower C and I can imagine Tower A as well are the 1 bedroom units. These are large size 1000sf and above units and I love them because they are bright and airy being corner units. For those buying for investment, I also do wonder how many tenants would be able to pay at least RM6000/month for a 1 bedroom unit for the owner to enjoy at least 7% returns. But then again, I wondered the same thing when Seri Bukit Ceylon was being built 5 years ago when a bedroom unit there only cost RM250k and rent back then was about RM1500/month in that area. When Seri Bukit Ceylon was completed, owners were able to get RM3000/month rent, offering more than 12% yield.

picture above: The one bedroom units are large and all of them are corner units

picture above: on the other hand, the 2 bedroom units have no windows for the bathrooms and the 3rd room

The direct competitor of St Mary at launch time is Verticas Residensi in Bukit Ceylon. I've posted a point by point comparison as at that time I was contemplating between the 2 and St Mary won my vote (and my money...). Still, I am unhappy about the unit layout and the extremely shitty view I am about to get but for the location and the prestige of the project, I am satisfied that this will be good money to spend.

I am not going to post any more copyrights pictures on my blog so for some idea how this place looks like, please go to the developer's website at www.stmaryresidences.com but please be careful with any beautiful marketing talk and renderings....

Verticas Residensi vs St Mary Residence

Two high value projects in the KL City Center. Which one to choose?

click on below map for clearer and larger view:



Location:
St Mary's wins hands down. As you can see from the map above, St Mary's is nearer to both Pavilion and KLCC. It's more central. The block where St. Mary's will be built is also the last open parcel of land for residential development. However, St. Mary's access can be a problem. Jalan Tengah is a one way street (often clogged up) and the other access via Sultan Ismail is also a one way. Verticas's road frontage is a dual way and you can either come in via Raja Chulan or Bukit Bintang.

Land Title:
For a residential project, Verticas wins. St. Mary's is a commercial title land which means higher rates. However, apparently the developer E&O-Lion JV has negotiated a residential rate for the electrical utility. Sewage treatment, water and quit rent remains at commercial rate but should be negligible amount for those who can afford to live here.

Floor Layout:
I'll find time to post the layout pictures here. If you ask my honest opinion, Verticas has the best floor layout. All rooms, including most bathrooms have windows which makes it bright and airy, and liveable. Tower A has 4 lifts serving 5 units per floor. The kitchens come in Wet and Dry ala Meritz which makes it suitable for own stay type cooking. The only kink is, no balcony but one can venture to the 27th floor common observation deck for some fresh air. St Mary's layout is a beautiful combination of retro and modern. But it's not suitable for long term stay. None of the bathrooms have windows. I think bathrooms are supposed to have natural light for hygiene and proper ventilation without having to rely on electronics. The +1 in the 2+1 room unit have no windows. The kitchen is open, so your couch will smell of whatever you had for dinner last night. But St Mary's have a nice balcony...

Price:
Verticas comes with a 20:80 financing package. High initial entry. But developer also pays the 1st year installment - so after the initial 20% outlay, you pay nothing until the 5th year.
St Mary's 10:90 package is more attractive but no 1st year installment paid. But that amounts to little over RM60k extra discount which is pocket money to those who can afford to live here.
The slightly higher price of St.Mary (almost 10% higher) is in the land premium because of the location. However, if one enters early, E&O offers up to 15% discount while Wing Tai Asia is only offering 8% discount although Wing Tai is threatening to reduce that to 5% if I don't book by this Friday.

Updated: Verticas Residensi Preview

Finally it is out. Wing Tai Asia's long overdue launch of Verticas Residensi in Bukit Ceylon. I've just got an invitation for an "Exclusive Private Preview" this weekend. They have set up a very impressive show room at the site.

The price will be starting at RM2.35 million and goes all the way up to RM6.35 million!! There will be a total 423 units, completing in April 2011. This means the smallest unit which is a 2 bedroom will be above RM2 million. I understand the size starts from 1400sf which means RM1600psf! This is certainly setting a record for KL, not just Bukit Ceylon! Wing Tai Asia's maiden project which is the Meritz is now trading at RM1 million for the smallest units which are just over 1000sf.

I am curious, as well as hopeful how this project will perform because it will certainly set a new benchmark. Even the upcoming One Residency in Bukit Bintang has slid down to RM680psf since the peak expectation of RM800psf. Somerset Seri Bukit Ceylon is hovering around RM850psf. One unit at old Menara Bukit Ceylon transacted at RM320psf last year. So, nothing else will come close to Verticas Residensi in Bukit Ceylon.

The invitation card says "Visit us for an enriching living experience".... certainly need to be very rich to consider this project...

Updated 29th August 09: So, I finally got to visit the show room and learnt more about this project.


This is certainly a very interesting project. There will be 4 towers in total. Tower A being launched now has about 170 units which, at over 40 storeys they have 5 units per floor and 4 lifts serving them. This is kinda low density although the entire project with over 600 units sits on under 1 acre of land. Tower B and D will be launched later while tower C has been sold en bloc to Lanson properties which is running a serviced apartment in Ampang Hilir today.


I am particularly attracted to Type A1 2 bedroom units. This is a 1400sf corner unit which at the right floor has a direct view over Bukit Ceylon and the KL Tower. The main attraction of these unit is the extremely airy and bright rendering with windows in every room. The kitchen has a wet and dry part; hence this is very good for own stay and long term stay. Regency Tower blocks any hope of a KLCC view below the 21st floor. Hence, any units above the 21st floor comes with a premium. But the architect, the same one who designed Meritz doesn't like balconies. So despite the views, one is not able to step out and enjoy it.


However, the developer has come up with a 27th floor viewing deck. But enjoying the view in the intimate company of a loved one is totally out with this well thought common facility.


The price? Starting from around RM760psf or slightly over RM1 million for the smallest 2 bedroom units. The cheaper ones faces the back which means you are looking at Times Square, Pudu Raya and the afternoon sun. But I don't like this unit's layout because one of the bedrooms faces Type A1's kitchen and one bathroom has no natural light. So Type A1 is the way to go...


Anyway, the Type A1 nice layout would have won my money but unfortunately, the downpayment at 20% is a bit steep and too much to tie up for 3 years. This is despite other perks such as free interest during construction and 1st year, no maintenance fees in the 1st year and free 2nd car park.... I am also a little concerned about the landslide issues affecting Bukit Ceylon.

Renting Out Your Property

OK, many people have been asking me... how do I rent my properties out? Do I use an agent? Or do I look for tenants' myself? If the latter, how do I go about doing it?

Well... I've done a bit of both but lately been using real estate agents more because it's becoming harder to find tenants. Not surprisingly, I'd get 5 or 6 agents calling me to arrange viewing for the same client. Times are bad... In such a scenario, to avoid a nasty situation, I would normally ask what nationality is the client first followed by other questions which may narrow down identity of the client. If I discover the client is the same one arranged by another agent, I'd be honest about it.

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Anyhow, coming back to the issue about estate agents... I've had my fair share of problems with bad agents. For one, I can't blame them for being extremely aggressive and downright cunning (cos everyone is just trying to earn a living). Frankly, that's alright. What I cannot stand are those who take the commission then disappear and leave all the problems to me to manage. These are what I'd expect a good agent to do:

1. Screen potential tenants before coming to me - obviously if the intention of the tenant is to rent my property to house his lot of labourers, I'm not sure I want to waste my time
2. Prepare the property for viewing - i.e. airing the rooms, turn on the lights and aircons etc.
3. Follow-up and negotiate with the clients - so that I don't have to!
4. Prepare the contract, signing and stamping
5. Collect the deposits and 1st month rent on behalf
6. Help make sure the tenant pays the rent on time and follow-up with requirements
7. Visit the tenant and the property every 3 to 6 months for inspection - to make sure they comply with the contract and not trash the place!
8. If there is a default by the tenant within the 1st 3 months, they should find a new tenant to replace free of charge
9. Become the arbitrator if any problems or misunderstanding occur
10. Helping to renew the contract upon expiry

Most agents don't even do half of the above. They show the client your place. Then disappears and prays the client will choose one of the 60 properties they showed the client. If it so happen to be your property the client chose, they will do everything until their commission is paid. After that, they disappear again until the contract is up for renewal. But to be fair, I have dealt with a few good ones who take away all the hassles from me. They are hard to come by and remain my friends as well as my trusted estate agents.

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Having said all that, unless the property is hard to rent out, I would normally try to do it myself. There are some very good websites where one can advertise for free such as w w w (dot) e x p a t k l (dot) c o m and w w w (dot) e x p a t r i a t e s (dot) c o m . These 2 are my favourite ones because they are really well patronized by potential tenants. Typically during good times, I'd get 10 - 15 calls a week when I advertise here and the property would be gone within 2 weeks. Nowadays, I'd be lucky if there are 5 calls a week and rent it out within a month. Still, the savings of a month's rental is enough incentive to do it myself.

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I use an old template which I gathered from various contracts I come across in the past. On and off, I'd come across new clauses which are good and I just throw them in. I'm not sure how this will affect the overall contract when read in whole but that's a risk I can take.

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Few months back I had a very difficult tenant. For some reason, she expected me to give her a 20% discount on rental after 6 months into the tenancy. Then when she managed to find another cheaper place to rent, she expected me to refund her deposit. Of course I refused and she threatened to take legal action against me. So after 8 months into the tenancy, she decided to move out anyway. Since I did not refund her deposit, she took off with my expensive beddings, smashed my vase, scratched the surface of my LCD TV, broke my fridge trays, peed on my sofa (yes... she URINATED on my sofa!!) and left the place absolutely filthy! She also did not pay the utility bills for 3 months and it looked like the aircons were switched on 24 hours.

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The whole repair bill and utilities came up to almost the full deposit she put down and really nothing for me to gain. On top of that, it took me a good 2 months to find another tenant. So lessons learnt? Yes. I decided there should be a clause in the contract that says that if the tenant decides to prematurely terminate the contract, the deposit shall be forfeited and the tenant shall

also be liable to pay the remaining rental of the year as penalty...or something like that.... Then, it would make it worthwhile to sue the tenant if they default. Also, I think if you are looking for a no hassle deal, appoint a lawyer to do the real estate agent's job. The only problem is, they don't go out aggresively looking for tenants for you but at least tenants are less likely to mess with lawyers.

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I would like to congratulate Helmy who posts comments in my blog and he made it an effort to come and see me last month. He managed to buy an apartment in Bukit Ceylon at a price (which in my opinion) 30% below market. It is freehold as well and with today's market, he should have no problems getting a tenant with at least 10% yield. He asked if I could share my contract template... so here it is:

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TENANCY AGREEMENT

This agreement is made on the __ day of ______ 2009, between ___________with an address at _________of ___________located at hereafter known as the Landlord. And _____________ (Passport Number:___________ issuing Country:________________ Expiry Date:_______________) with an address at ________________________________, hereafter known as the Tenant.

1. It is hereby agreed as follows:

1.1 the Landlord agrees to let and the Tenant agrees to rent the condominium, furnishings, structures and grounds (hereafter called the Premises). The monthly rental rate shall be as follows: RM________Unit, Structures and Ground rental Ringgit Malaysia (Ringgit Malaysia _________________________Only).

1.2 the tenancy period under this agreement shall be 12 (Twelve) months commencing on the ___day of _____ 2009, and ending on the ___day of ______2010, with an option to renew for an additional year. The renewal rental and the period of rental shall be discussed and agreed by both parties.

2. The Tenant agrees as follows:

2.1 to pay the Landlord a rental deposit equivalent to ­­2 (Two) months of rental payment or equal to Ringgit Malaysia _________ (Ringgit Malaysia____________ Only), which will be returned to the Tenant without interest 30 days (Thirty days) after the termination of this agreement subject that the condominium and it’s furnishings are returned in their original condition less wear and tear and that there are no out-standing rental. However, should any damage other than normal wear and tear have been caused to the Premises by the Tenant, the Landlord shall be entitled to retain all or any part of this sum depending on the extent of the damages or the costs incurred to remedy the damages. The Tenant shall not deduct the monthly rental from this security deposit;

2.2 to pay the Landlord a utilities deposit equivalent to ­­½ (Half) month of rental payment or equal to Ringgit Malaysia _________ (Ringgit Malaysia __________ Only), which will be returned to the Tenant without interest 45 days (Fourty Five days) after the termination of this agreement subject that all utilities bills have been cleared.

2.3 to pay the Landlord the monthly rental payment of Ringgit Malaysia (Ringgit Malaysia Only) for the Premises in advance within the ___ of every calendar month commencing from ________2009;

2.4 to maintain the Premises in a good state, keep the interior in a clean and habitable condition and exercise reasonable care in keeping the grounds tidy and attractive;

2.1 to assume liability for costs incurred for damage to the Premises negligently or intentionally caused by the Tenant, his family or employees, or persons staying with the Tenant;

2.2 to permit the Landlord or his authorized agent to enter and inspect the Premises, and to effect repairs and renovations, at all reasonable times agreed between the Landlord and the Tenant;

2.3 not to make any alteration or addition to the Premises without prior written consent from the Landlord. Any fixtures, fittings, items of household decoration which are not of a permanent nature and which have been installed by the Tenant during the terms of this rental shall be removed by him at the termination thereof and put back as originally was;

2.4 not to assign or sublet the Premises or any part thereof without the written consent of the Landlord;

2.5 not to do or permit to be done on the Premises anything that may be or may become a nuisance or annoyance, or that may interfere with the quiet enjoyment of neighboring premises by the Landlord and other occupants and to act according to the condominium regulations;

2.6 to pay all bills relating to the rent of Premises for electricity, gas, water supply, telephone, satellite TV and others (if any);

2.7 to return all keys of the Premises to the Landlord at the termination of this agreement;

2.8 to use the Premises only for dwelling purposes;

2.9 not to keep any materials of a dangerous, combustible or explosive nature, or any illegal substances or narcotics in the Premises;

2.10 if the tenant fails to pay the rental fee according to sub-clause 2.3, the contract will expire automatically and the Landlord has the right to take all necessary actions to evict the Tenant including the changing of locks.


3. The Landlord agrees as follows:

3.1 to confirm that the Landlord is the sole owner of the Premises and has the right, without any restriction, to let the Premises. It is further agreed that the Landlord will fully inform the Tenant of any person to whom he may propose to sell or trade the Premises during the terms of this lease provided that there be no changes on the provisions and condition of this Lease Agreement;

3.2 that on commencement of this lease, the Premises shall be clean, complete and to be readily available for this lease. The landlord will only be responsible to the internal and external condition and any renovation of the Premises;

3.3 to allow the Tenant to peacefully hold and enjoy the Premises during the period of this lease, provided that the Tenant duly pays the rental payment and observes the other conditions of this lease;

3.4 to pay all land taxes and any other taxes levied on the Premises.

3.5 to pay monthly maintenance fee of the Premises to be imposed by the management of the condominium


4. It is also agreed between the Landlord and the Tenant as follows:

4.1 the Tenant has the option to renew the lease, in case that renewing the lease is agreed to by both parties;

4.2 In the event that the Tenant terminates this agreement before the expiry date, the Tenant agrees that the Landlord shall keep the whole security deposit as a penalty.


5. This agreement is made in duplicate, the Landlord and Tenant each to keep one signed original.

In witness whereof the Landlord and Tenant have hereunder affixed their signatures:


6. Place of Payment

Every payment to be made by the Tenant to the Landlord there under shall be made to the Landlord in bank transfer to:

Bank Name:
Branch:
Account No.:

Signed by,

Landlord Tenant


……………………………………… ………………………………………
(your name ) (_____________________________)

Appendix 1: Furniture List

No
Item Description
Quantity
Remarks

I verify that the above list have been received and inspected in the conditions noted under the remarks column:




Landlord: Tenant:

(your name) (_____________________)

Caveats on Buying a Property - Has it ever occured to you?

When you buy a property in Malaysia, you would employ the services of a lawyer. This is the most important thing because the lawyer would not just be preparing the contracts, they would also be doing a search on the property and the owner and loads of other stuffs. The lawyer would check things like, does the seller own the property, is there a title etc etc... In Malaysia, it is on the onus of the buyer to look up on these things. So, make sure you have a good lawyer because if the lawyer misses out on any search and you go on and sign the contract, you can't back out of the sale. Unfortunately that's how our law works. You go and buy a property, you would ask the seller, "Why are you selling the property?" Obviously the seller is not going to say because the council is going to build a graveyard next door or the next door neighbour are a bunch of maniacs who turn on the music full blast every night. These are the things that buyers should be looking out for. Same goes for developers... I remember few years back when Titijaya was launching their 1st project in Subang Jaya SS16, Tiara something.... They were promoting the fact that Inti College actually owns the plot of land next door. Whether Inti College actually owns the land or not, I don't know but it seems immediately after the project was sold out, the same developer went on to launch a huge high density condo project right next door where they claimed Inti College owns and implied that Inti College would be building their next college there.

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In Australia, it is actually by law that it is the onus of the seller or the developer who has to inform the buyers of any issues relating to the property they are selling. Back to the Titijaya case, if this is Australia, buyers would be allowed to back out of the sale and get a full refund from the developer.

Updated: Fairlane Residence

Finally, I've got the time to sit down and write about Fairlane Residence. This building is located behind Lot 10 and it literally wraps around the adjacent hotel. There are 2 entrances to this building, depending on the location of your unit. If you get the main entrance, it is actually quite a grand lobby adorned with lots of glass and marble, although small.

It seems the developer has tried very hard to squeeze as many units as they can into the building and as a result, you either get those with nice views or you are facing the carpark of Park Royal hotel or the back wall of the adjacent hotel. As you can see from the picture below, it's hardly 20 feet and very little natural light trickles down especially to the lower floors.

However, most units face the low lying shop houses of Bukit Bintang and some even get a KLCC view.

But unfortunately, the way they cram the units into each floor and due to the extremely narrow parcel of land, this 2 bedroom unit I saw does not have the best of any layouts. Probably suitable for short term stays, like a hotel but for anyone to stay here for longer term would be harrowing. It is extremely cramped for a start. This 2 bedroom unit is just 670sf.

As you can see from the above picture, this owner does not seem to care about furnishing.... The back room and bathroom has no natural light.

And despite this beautiful kitchen, I don't see how one can do any cooking without oiling the whole house.

This is an intermediate units and most units are intermediates. With the L shape of the building wrapping the adjacent hotel, there are only 3 corners. I can probably imagine the cost would be high for these. The intermediate units are going for at least RM1000psf with each unit averaging 500 - 600sf.

Due to the lack of space, the facilities are quite generous although the swimming pool is very small. The pool is located at the top of the building and one has to climb quite a number of steps to get there. But once you get there, it seems like a very nice place to catch a tan and enjoy the beautiful scenery.

There is also a play room for you to dump your kids while you go off to work. Truly the place for working couples.

Sweat before, in between or after work...
And a business center if you wish to work from home...

So, in all I sum that the Fairlane Residence is the kind of project for investors who would like to go for short term tenants. This means a high turnover of tenants and a mecca for estate agents. This also means higher rental. Typically, a 1-bedroom unit in the high end marker would be going for RM3500 to RM4500/month. So, with short term stayers, one would be able to expect even up to RM6000/month or RM1500/week and RM200/day. The location and facilities would attract high volumes of tourists and business tenants; hopefully would reduce the vacant period of the units. KL is seeing longer and longer vacant periods for the luxury market.

But unfortunately for investors, the entry cost is high judging from the unwillingness of the owners to release their units below RM1000psf.... maybe if we suddenly take a turn for the worse but there won't be many buyers then, would there? This is also a commercial title with high utility rates, the maintenance fee is RM0.60psf and no parking is provided. One have to rent the parking from the management and at the time of visit, the management has not decided on the parking rate but they are looking at around RM200/month. So, with a typical 600sf unit, your maintenance fee + parking would come up to RM560/month.

The Bukit Bintang monorail is steps away. Although one would argue that most of these kind of tenants don't have cars to park, I would rule out this kind of investment... because I don't want to rule out the percentage of tenants who have cars and want a car park at the time when tenants are hard to come by...

Suria Stonor @ KLCC

Some time last year when I was at the Japan Embassy to get my visa, I strolled into a showroom across the road from the embassy in Jalan Stonor. At that time, Glomac still had quite a few units of condominiums to sell in their premier KLCC project, Suria Stonor. Glomac as we know specializes in ex-oil palm estates residential and commercial development out in the suburbs. They've got a few good ones in Kelana Jaya and this would be their first dabble in the city center high end area.

At the time before completion, Glomac was positioning their 3 to 4 bedroom condominiums, each in excess of 3000sf at around RM2.5 million per piece. This would seem a fair price for a luxury property in the heart of the KLCC area. Each of these units have their own private lift lobby. While I was initially impressed with this offer, I am not so sure about now.

I would normally not look at anything with a budget above RM1 million investment, until this year when a good old friend who reappeared from the wilderness invited me to join him and the family for viewing at Suria Stonor, I snapped up the opportunity. My friend was looking for a unit suitable for him and his young family around the budget of RM7k to RM8k per month. One would imagine that since even a small 2 bedroom unit at Marc Residence or The Meritz can fetch RM8k/month, what would a 3000sf mega condo in Jalan Stonor? But judging from the occupancy rate and the timing of vacant possession, it is all not too surprising.

Suria Stonor is very near some very successful stories. Park Seven and Stonor Park pictured above (as seen from Suria Stonor) are enjoying close to 90% occupancy rates; apparently with a waiting list and rental in excess of RM13k per month. Obviously Park Seven and Stonor Park entered the market earlier, most of them have already signed year on year tenancies and their tenancy list will probably stay that way with an established market base. Both of these are also adjoining the KLCC park and some units even have the prime unblocked view of the twin towers.

However, it is not to be for Suria Stonor...

Suria Stonor is sorrounded by empty plots. Some of these plots have already been cleared for construction. The picture above shows the Platinum Park construction which will block Suria Stonor from viewing KLCC when completed. Fortunately, the economy is delaying the project start and residents will enjoy some peace and quiet for a few more years.


I would also take issue against the floor layout of the development. One would not be able to enjoy much privacy with an L-shaped layout facing other units, especially when one would expect the curtains to be drawn most of the time to enjoy the views abound.

Indeed it is a trend these days to incorporate large windows so that not only one can look out to enjoy the view, but also for people to peep in! These large windows in the bathrooms are some examples. Not only are the bathroom windows large, they are skewed to position directly opposite your neighbours so the "guy next door" can have a great view. Of course, shut the curtains if he's fat and ugly...

The kitchen has 3 parts. Here below we have the presentation kitchen... rather small if you ask me...

But, hidden behind is where the real cooking is done. In a dark and dinghy kitchen which also incorporates the maid's room, maid's bathroom and the wet kitchen. So that nobody would be able to find out that it wasn't really you who did those wonderful cooking, this kitchen is hidden and without any windows or natural light.

The living room and adjoining dining hall is large. There is also an area which could be converted into another bedroom but most likely to be used as a TV area, study or tea room pictured below.

The spacious bedrooms, with large bright and airy windows, some with a glass balcony is probably the best feature in Suria Stonor.

Befitting the status of a luxurious condominium, the fittings are actually good such as wood flooring in bedrooms and marble floors elsewhere etc.

The facilities deck below are quite impressive. These is a well-stocked although small tuck shop. Which I would imagine is running at a great loss considering the poor occupancy rate.

They have also got a nice, well-equipped and surprisingly well-utilized gym.

The swimming pool with an infinity edge faces Dua Residency.

And I should think this is very good for young families...

In summary, Suria Stonor has all the trappings of a luxury project, great facilities and nice quality finishings. Unfortunately, Glomac failed to hire a good architect and wasted all the good things in a premium plot of land. As I've attempted to emphasize earlier, the kitchen is a disappointment. Coming back to the private lift lobby I was initially so excited about... it has no natural light, no windows, hot and stuffy unless you want to air-condition your own private lift lobby. I wouldn't like to imagine how it will smell with all those shoes in there.

To rent, I think a bargain at below RM10k/month. Advertised at RM800psf in classifieds, at RM2.4million and up, I'd give it a pass..