Transformation of Block J, PJS7/15

Much has been said in this blog about PJS7 where the new Taylors College main campus now resides. Apparently, Taylors College spend a few hundred million on this campus, hence the college is here to stay. So, like it or not, PJS7 have to develop. But it is difficult to develop this area because there really isn't many pieces of empty land left here. It consists mainly of residential terraced type houses and the only high-rise residentials are limited to Sunway Court, Mutiara Perdana and some low cost flats beside the College itself.

picture above: Block J

Block J is literally located beside the College. This location can mean 2 things for the future of this flat - many of them will be turned into students accomodation or it will be torn down for future development into commercial and residential properties. For both these reasons, it is worth if one can, to invest in this property.

picture above: View of the College Admin Block from Block J


picture above: Sunway Court

picture above: Mutiara Perdana

picture above: Block J Unit 2nd floor

Recently, a close relative of mine managed to purchase a unit in Block J above. So, they have engaged my help to transform this unit into a students' dorm until a time when they might want to move and stay here in the future. Or pass them on to their children when they grow up.

Of course, Block J being a low-cost flat was pretty run-down at the exterior. For a period of time, it was tenanted. While the tenant took relative good care of the place, it was still quite shabby after more than 20 years.

So began a transformation...

The flat is really very small, about 600sf. But it is really functional. There are 3 bedrooms, 1 of them bigger than the others. So it is really ideal for a family of 4 or even 5. There is a kitchen, a bathroom with WC and a living cum dining area. The previous owner, having just a small family decided to hack off the walls of the 3rd bedroom, converting it into his dining area.

The renovation was really very simple. Basically, we covered the floor with laminated flooring and painted the walls white. Besides some electrical wiring, nothing else was done but the results as you can see below, totally transformed the place...

This is the kitchen, below. It was actually quite a nice homely kitchen before we threw out all the stuffs. It has a window that looks out to a lovely garden where some families hang their clothes and the garden has various trees, including a coconut tree which made it have a kampung feel to the place. But the floor tiles and of course, the horrible green interior have to go.

Again, we white-washed the walls. Some simple retiling over the existing tiles, blended in well with the walls, washing machine and kitchen utensils. We maintained the tiles at the bottom of the kitchen top for some colour - and to save costs.... There is also an additional tap for filtered water at the sink (not visible from this photo below) for drinking.

The bedrooms are small and cramped. So, the white-wash, white curtains and white furniture added that feel of space.

Above, before and below after the room's transformation. Surprisingly, we still managed to fill it up with a 4 x 2 feet study table with enough room for a chair. There is even a 3 foot wardrobe at the foot of the bed.

Below is the former dining area which we have managed to box-up into a room again. Despite being the smallest room, it has 2 windows unlike the other 2 rooms.

I like this room the most because it has a nice view same as the kitchen's. The corner side window is covered with bamboo shade. It looks nice and at the same time, very cost effective.

The most obvious transformation happened in the bathroom. Being a very old low cost flat, it has the squat-type WC. Abuse by the previous tenant made it look very un-inviting... It was not dirty or smelly, just that mould has set into the paint which made the toilet looks bad.

Figuring that our modern kids might not be used to a squat-WC and they may even slip and fall inside, we changed the WC to a modern sitting type. White colour so it blends in with the white tiles and walls. We added a bidet for convenience...

The shower had also seen better days.

We tiled the wall half-way to save cost and also for future consideration in case we might want to change the colour of the walls. For now, it is going to be white. Standard in all my renovations, I added a "shoulder" for shampoo, shower gel, soap and other beauty products...

The aim is to control on the budget. The entire renovation still managed to fit in below RM20k; using cost effective yet good lasting materials. However, if we have more money to work on, I would change the piping and water tank. For now, it is still functional but not sure for how long.

One other major concern is security. While the renovations was on-going there was an attempt to break in through the main door. We immediately changed the locks and added a dead-bolt. Of course, we will now think twice to hang out our Prada and LV to dry on the balcony. So, we have to introduce a dryer. Shortly, we will also be installing burglar and fire alarms for added safety.

This is no luxury condominium. I think the expectation is right, if we call this a low cost flat. The aim is to make the interior comfortable. Coupled with the good location, added security and safety, these will surely out-weigh the bad points.

Rebirth of Sunway PJS7 - Taylors College Lakeside Campus

Taylors College is one of the biggest and most established private college in Malaysia. Currently, their college is spread our over many locations throughout KL. With the construction of this Lakeside Campus, they are seeking to consolidate all the degree courses into one location.

At the peak of this campus' operations, they will have a total of 11,000 students and staffs on site. The location of this campus is on one side of the LDP highway, right by the Sunway toll on the PJS7 side. PJS7 is, one would say... the sleepy side of vibrant Sunway as it is isolated by the busy and traffic congested LDP highway. Before passing further comments, I'll take you through the campus:

picture above: The atrium of the college and the administrative block

picture above: A man-made stream for rain water collection


picture above: The retail and accomodation block. These students dorms will house 900 rooms and apparently each room is twin-sharing with each student paying close to RM700 per month

picture above: The esplanade and the lake which will host the water sports activities

picture above: View of Lagoon Perdana apartments which should provide housing for students in this campus but accessibility is totally cut off by the LDP highway. There is no pedestrian crossing and the only way to get from Lagoon Perdana to Taylors is to take a big loop from the junction of the NPE highway. Getting back is no problems though..

picture above: More parking space and more land for development of future phases South of the campus

picture above and below: Typical lecture theatres

picture above: Skylight along the corridors provide natural lighting

picture above: Inside the 3-storey library

picture above: The administrative block and atrium as seen from the library

picture above: The library

picture above: The academic block

The whole idea of the tour above is to let you sight an actual multi-million ringgit campus. And Taylors College would not have chosen a WORSE location. PJS7 is an "island" - sorrounded by the Klang river which cuts it off from Kinrara, the LDP Highway which cuts it off from the rest of Sunway, KESAS highway which cuts it off from Puchong and the NPE which cuts it off from Sunway PJS5. Hence, the place is a traffic nightmare. Once you get in, you hardly want to go out to face the traffic nightmare. Walking is not an option too. And accomodation and food is scarce and expensive here.

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As a result, the 3000 odd students already on campus in the 1st phase are stuck with little choice but to pay. This has a direct impact on the property prices. Although in a bad locality, a standard 2 bedroom link house price has gone up from RM280k in 2008 to RM340k in 2009 and RM450k in 2010. The only condominium in this area, Sunway Court has gone up from RM150k to RM250k for a 900sf 3-bedroom walk-up unit. If you are not already in, it's too late to even consider if you want to make decent returns. To top it all up, these are leasehold properties.

picture above: The Mutiara Perdana apartments as seen from the campus. Mutiara Perdana, a problem-logged project which at the beginning had problems getting a CF and was struggling to sell at around RM110k for each 3-bedroom unit has suddenly shot up to RM230k to RM240k. Owners are getting rentals of RM1500 to RM2000 for each unit depending on the furnishing. Mutiara Perdana is only 5 minutes walk to the campus

A Glimpse of UMLand-MMC's Suasana Ceylon

This project located in Bukit Ceylon is a UMLand and MMC joint venture development. There has been some controversy earlier with landslides occuring at the site, apparently killing a construction worker. However, UMLand has denied this citing a misunderstanding with an incident elsewhere. Apparently, the reporter had taken a picture of the site which is now covered with plastic sheets and hence the perception has stuck. However, the clearing of a big chunk of Bukit Ceylon for this project has caused a bungalow on top of the hill to lose part of its garden and wall.

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Anyway, the project has been halted for close to a year now pending approval from the authorities. UMLand is hoping that people will have short memories and the project will continue. Hopefully so, not for my lack of environmental concerns but the site really looks horrible now and as long as no piling is done to stabilize the earth, the whole Bukit Ceylon may come tumbling down one day.

This project will apparently consist of one bedroom, 2 bedroom and 3 bedroom units priced from RM450k onwards. The attraction are the units which faces the swimming pool, overlooking Bukit Ceylon and hence will have an unobstructed commanding view of KLCC and KL Tower. It will be breath-taking.

With this project, the recent Bolton announcement for SixCeylon and the WingTai Asia's Verticas project which is on-going, there will be an addition of almost 1600 new units into the Bukit Ceylon/Bukit Bintang area. I think Suasana Ceylon will directly compete with SixCeylon as both offers small studio/1 bedroom units. With the current sluggish markets affecting high-end studio/1 bedroom units in One residency and Seri Bukit Ceylon, I think we are looking at a big challenge ahead to sustain the market. I would call for UMLand and Bolton to reconsider and instead go for the middle sector, i.e. make their units smaller and price them below RM350k so that a rental of RM2000 will be feasible. There is a huge shortage in this sector.

Kota Kinabalu, Sabah

Recently I have been to Penang and seen how properties have been booming there, despite the sluggish economy. The same phenomena seems to been taking place in Kota Kinabalu (KK) as well. I have always known KK to have one of the highest cost of living in Malaysia, even higher than KL in many cases. Average income here in KK is on the other hand, much lower than KL. So, how do we then describe how landed property, premium condominiums and commercial lots prices have almost doubled and rental is on an all time high?

Every year we have predicted that the property prices will right itself with the economic downturn and every year we get it wrong. Prices just keep climbing and climbing. And interestingly too, there are many vacant shop lots, businesses at the one time hot cake Warisan Square are closing one by one... so what is justifying those high prices?

picture above and below: Times Square located beside the Sutera Harbour resort is a new commercial block but largely vacant

One friend in KK pointed out that most of the properties, especially the commercial lots are actually bought en-bloc or owned by the few rich tycoons and politicians in Sabah. They would have paid cash and would not be bothered if they could rent them today or tomorrow. One day, Sabah's economy would pick up again and prices will continue to escalate. This speculative activity is no different from what we have seen driving prices sky high in the KL city center area - we have blocks of vacant luxurious condos which are vacant but prices are hardly affected.

picture above: Vacant shops at Lintas, a relatively more matured area

As it is today, everyone doing business in Sabah will tell you that it is very difficult for the economy to do well here as long as the level of corruption here persists. Sabah properties are owned by the few rich. There is a hope of change in government as the Federal opposition has promised an increase of oil royalty from the present 5% to 20%. The money, with better transparency and governance as displayed by existing Federal opposition ruled states in the Peninsular will mean more positive development and spending power for the locals. However, although Sabah has seen a change of state government 4 times in its history, it is understood that it will be impossible to happen in the near future - the number of "phantom voters", foreigners issued with citizenship for electoral purposes now outnumber the locals.

picture above: The Marina Court resort in the picture above is one of the few condos fetching good rental. However workmanship is very bad and the building is plaqued with problems. Warisan Square located just across Jalan Dua Puluh was a very well received commercial development but lately many shops closed. Opposite the Marina Court is the controversial KK Waterfront land reclamation which will block out all the sea views from Marina Court

So, the conclusion is... wait a long time if you are willing to invest here....

For Sale Update

One bedroom unit at Mutiara Villa, Bukit Bintang for Sale. (SOLD)

So far there has been a few viewings from some very interested buyers (and some not serious ones...). The highest offer I got is RM300,000. If you are willing to offer slightly higher, I will sell it to you.

I think it is a great property. It is tenanted for RM1800/month on 2 years contract expiring 31st December 2012. Upon transfer, I will pay you the rent deposit, which is RM4500 and you will be collecting rent monthly - with positive cash flow after costs.

At the end of this tenancy, you can easily raise the rent to RM2000/month because:

1. of high demand for studios/1br units for rent RM2000/month or below

2. limited number of studios/1br units in city center within RM2000/month price range

3. all new developments in city center cost their studios/1br units RM500k and up (meaning they have to rent above RM3000/month)

Breaking News - Friday 26 March 2010 - Singapore Condo Sold Out in 1 Day

Story in http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_506818.html

THE 76 Shenton condominium in the Central Business District sold out in one day during its preview as hundreds of buyers made a beeline for the prime project yesterday.
There were so many people vying for one of the 202 units that balloting was needed to sort out who got first crack.

The Straits Times understands that there were about 300 names in the ballot, with the buyers mostly Singaporean investors and permanent residents.

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The Hong Leong Holdings project has nothing over 1,000 sq ft: 134 one-bedroom units from 592 sq ft to 624 sq ft and 68 two-bedroom units of 968 sq ft to 975 sq ft. One-bedroom units were priced between $1,600 and $2,600 per sq ft (psf), or about $1.2 million, while two-bedroom units went for between $1,600 and $2,300 psf. That is about $2 million.

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Hong Leong credited the strong sales to the development's 'prime location, its attractive pricing, a solid design and healthy pre-launch interest'. Sources said property agents were apparently collecting cheques from keen buyers even before the project's launch.

Fire Insurance for Strata-Titled Properties

A few years ago I took out a loan to purchase a property. The loan agent also got me to get a fire insurance claiming that it was compulsory to get the loan. I had to pay over RM483/year for this insurance. At the same time, the condo that I bought made it compulsory for me to pay for their fire insurance. So, I have 2 insurance policies.

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Under the strata title act, it is mandatory for the management corporation of strata-titled properties to buy fire insurance. The management corporation will then charge the owners their portion of the premium. So, since I also got a fire insurance together with my loan, it seems there is a case of double insurance.

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I have just learnt that if the loan is obtained from any of the banks under the supervision of Bank Negara, there is no requirement to buy another insurance policy. These banks would accept the insurance policy purchased by the management corporation. So, it seems I was misled.

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Apparently I can get a refund for the pro-rata premium for the remaining period of the insurance. I am now applying for this...

Accident in a Gated Community

I have published comments about the implementation of Gated and Guarded communities in established residential areas here and here.

This morning there was an accident. It happened at about 615am when it was still dark. The driver of the car turning into USJ2 did not see the big oil drums put out to slow down traffic at the entrance by a security company hired by the Residents Association. As a result, the car swerved to avoid the drums but unfortunately it hit one of them and ended up on its side.

So Whose fault is it?

USJ2 is not a gated community although the "pro-tem committee" of the Residents Association (RA) is keenly garnering support for it. It is a mystery how many residents joined the RA however, it is unlikely to be the majority as apparently, members are required to pay a RM50 fee upon joining as required by its constitution. The RA for sure have not got the 85% consent from residents of USJ2 required to implement the Gated and Guarded (G&G) concept. But they went ahead to hire a security company, build guard posts and position oil drums in the middle of the road to slow traffic.

There is also a very passionate group opposing the G&G implementation in USJ2. It is understood that there has been a few police reports made against the blocking of public roads. While the security company has not begun to stop cars entering the USJ2 area for checks, the police did nothing to require them to remove the drums. So the drums stayed in the middle of the road and today there has been a serious accident.

While this blog will not favour, oppose, encourage or discourage any views on the G&G concept and implementation, it is important to highlight the issues so that people can decide what they want to do with their properties.

We have talked about good or bad development that can either promote or kill the value of properties. Well, this is one issue....

Note: Would really appreciate anyone with photos of this incident to send them to me so I can post them up

Low Cost Flats

It is common practice for developers of large housing estates to get their development permit with the condition that they set aside some land for construction of low cost flats for the poor. Usually, the cost of these flats ranges from RM20,000 to RM60,000 depending on the size and location. So, what happens then when the prices of these low cost flats appreciates and the owner now wants to sell it? Or what if investors want to buy them for investment purposes?

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If you are the investor, the answer is, don't touch it even with a barge pole. Low cost flats are for the poor and the title can only be transfered to the poor. Earlier I have seen many auctions involving low cost flats. There has been cases where investors went in for the auction, bid and won. Later, they found that the title could not be transfered because they obviously, being investors, do not really qualify to be poor. So, the sad story is, the deposit is forfeited....

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The land office have to consent to title transfer in any property transactions. In the case of low cost flats, one must fulfil the following criteria:

1. Married

2. Husband and Wife combined income must be less than RM2500/month

3. Both Husband and Wife have no other property or have taken out a mortgage

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Moral of the story is, do not buy low cost flats unless of course you are poor and you do not currently have a roof over your head. If let's say you are poor, you bought a low cost flat and then you work your way up to overcome your poverty - you can still keep the flat... but, if you want to sell your flat, your market is only those who qualify the 3 criterias above. That means, although you might be able to sell it easily considering there are many poor people in this country, you may not be able to sell it at a very high "market" price.

Stamping Your Tenancy Agreement

After you have signed the tenancy agreement, you need to get it stamped. The tenant pays for this. Usually, I have got the lawyers, the real estate agent or sometimes, the tenant themselves to get the document stamped. So years of getting people to do things for me has made me ignorant of this process until now.

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Suddenly, I have found myself in the stamping office last week. It is basically the Inland Revenue Board's office - same place where we submit our income tax before the online format is used. Like all government departments, there is a queue and you need to be there during designated times. I was extremely lucky that I got there 10 minutes before they closed for lunch at 12.30pm. If I missed that, I would have to go back at 2.30pm. 2 hour lunch time??

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Fortunately the queue moved very quickly. First one has to fill in a form. All the details required are in the tenancy agreement. After submitting the form at the counter, one has to pay the stamping fees which is computed as follows:

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1. Monthly rental minus 200

2. Multiply by the number of months rental

3. Divide by 250

4. Add RM10 for the duplicate

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So, if you are renting your place for RM2000 over 1 year, the stamp fees is as follows:

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1. RM2000 - 200 = 1800

2. RM1800 x 12 = 21,600

3. RM21,600/250 = 86.40

4. RM86.40 + RM10 (1 copy) = RM96.40

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Apparently they round the figure up to the nearest Ringgit which explains why I never got any coins change back.

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Immediately after the stamping fee is paid, the document is passed into a window beside it. There a lady checks the document and passes it to a guy who operates a stamping machine. He runs your documents through the machine and voila.... it is stamped!

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The whole episode was over in less than 15minutes. Only after the tenancy agreement has been stamped, it becomes a legal document.

Upcoming Project: SixCeylon at Bukit Ceylon

It is confirmed now, the 1970s Bolton Court at No. 6 Jalan Ceylon will be demolished and in its ashes rise the "SixCeylon". Bolton owns Bolton Court which consists of large duplex units for rental income. As it is 40 years old now and looking extremely tired, it's time for Bolton to tear it down and use the land for more income.

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The project is expected to be launched this June. It will consist of small 600sf studio units right up to larger 2, 3 or 4 bedroom units and apparently will be priced from RM750psf onwards. As the developer has announced that the price will start from RM600k, it is likely the studio units will be priced at RM1000psf. Like Wing Tai's Verticas, Lion's One Residency and UMLand's Seri Bukit Ceylon before it, every new project in Bukit Ceylon happens to be priced one step higher than the last one.

Will this be a good buy? I won't be queueing up for it. There is a huge glut in high end condos in KL at the moment. Tenants who are willing to pay for expensive condos are currently lacking severely. Bolton is touting 6% to 7% returns on SixCeylon which means one is expecting a rental of about RM3500/month. This is currently the rent in Seri Bukit Ceylon although many owners have pushed their rent downwards to grab tenants. So when the newer and better SixCeylon comes into the market, it means Seri Bukit Ceylon and One Residency will be pushed below RM3000.

No problems so far for rentals RM2000 or less. Today alone I had to turn down 2 prospective tenants.

St Mary Construction Has Begun

So, E&O has sorted themselves out and begun the construction of St Mary. As of today, they are at the Ground level, having already done 3 levels of basement car park.

These pictures were taken from the neighbouring MAS building. It seems from the picture below, the wall of the MAS building tower is quite close to Block C.

The ground level actually starts from the 1st floor of the MAS building and I have been adviced that the 2nd floor units will clear the pointed roof of the MAS podium block by almost 1.8m. This means, the lobby of Block C will actually be quite high, considering that the top of the podium block of the MAS building is at level 5 or 6.

Where the meshed wire wall is at today is the wall of Block C. You can imagine the closeness and this will obviously mean no view at all for those units facing the MAS tower...

My remedy would be to use horizontal shutters. Since we are not going to get any view, might as well get a nice looking window. This would be quite good as it actually prevents people from spying inside the apartment.