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).

Economic tsunami heading our way

CPI Writings
Written by Dr Lim Teck Ghee
Thursday, 27 May 2010 23:11
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Most Malaysians are still blissfully unaware of the important economic changes that are just around the corner. These changes are going to affect not only their wallets but also way of life.
According to recent news report, the Cabinet is going to discuss the issue of subsidy cuts as early as next week. Although actual action on withdrawal or reduction of various subsidies may take some time to implement, it looks like the government is finally going to bite the bullet on this sensitive and contentious issue.
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In fact the government should be faulted for not taking earlier action to wean the Malaysian public away from subsidies. Subsidies on the pricing of essential goods and services that do not reflect market prices can only be sustained for a limited period of time in any country unless the country has permanently deep pockets.
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The phasing out of subsidies should have taken place much earlier in Malaysia but for political reasons and to curry favour with the electorate, that day of reckoning has been postponed several times by the BN government.
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In the last two years, it has become abundantly clear to many economic analysts that the longer the government waits to reform the pricing system, the more economic damage it will inflict on the country.
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In 2007, the government spent RM40.1 billion on subsidies. In 2009, the figure had ballooned to RM79 billion. This has led to the country’s biggest budget deficit in more than 20 years. The national subsidy bill on petrol and essential goods amounts to some 22 percent of government expenditure – a figure that has finally spooked the government.
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Economic impacts of subsidies

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It is well recognized that price controls and subsidies not only distort price signals, but they also result in over-consumption and waste. In a scenario where global prices are rising, imported price-controlled items will become increasingly costly to support. It is also important to note that subsidies were originally intended to support the vulnerable groups.
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However, what has taken place is that it has been extended to benefit a wider group, including the well-off. This absence of targeting has made the subsidy system in Malaysia wasteful and inefficient.
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What has also taken place has been the unintended impact in terms of smuggling and hoarding of subsidized items. Cooking oil which is subsidized for domestic use only, for example, has been hoarded by industrial users for industrial use. During periods of shortage – such as the January 2008 cooking oil crisis – the government imposed a 5kg limit for each purchase to restrain public demand. However, the limit on purchase resulted in buying, which necessitated theg to negotiate with cooking oil manufacturers to increase their supply.
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Another example is when vehicles (boats and cars) from neighbouring countries come to Malaysia or Malaysian waters to purchase or smuggle cheap petrol and diesel out of the country. Leakage of these subsidies is costing Malaysia at least several billion ringgit annually.
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It is not only the ordinary consumers that will be hard hit by subsidy withdrawal. Businesses such as the construction industry will be adversely affected by the withdrawal of subsidies on steel products and cement. The withdrawal of subsidies on gas and petrol will mean higher energy and transport expenses for all businesses and services, which in turn can be expected to pass on the higher costs to consumers.
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From paying more to buy a house to higher prices for public and private transportation, food items, restaurant bills, health care, utilities, Malaysian consumers can expect a steady escalation in their cost of living on all fronts.
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How will these higher prices and higher cost of living affect Malaysians?
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Various economists have speculated that the impending cuts in subsidies will add a relatively small burden to the Malaysian consumer because of their expectation of a very gradual phasing out of subsidies. Estimates of an increase in the consumer price index by a miniscule 1.5-3.5% for 2010 have been provided by the more optimistic economic analysts.
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Since we do not have details yet of the extent of subsidy cut, these low projections are premature.
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Any projected low inflation rate in the event of subsidy withdrawal this year, however, seems to be unrealistic if we take into account the Finance Ministry’s estimate that the Government is currently spending around RM8,000 per person annually for subsidies on various goods, including rice, sugar and fuel.

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Another estimate is that subsidies amount to RM12,900 for every household annually. If these figures are to be believed, it will mean that each household will have to pay tens of thousands of ringgit more in the coming year for the same goods and services they spent on last year, should subsidies be completely removed in one stroke.
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Of course this complete withdrawal of subsidies will not happen since it is not desirable nor is it politically possible for the government to remove the subsidy system all at once. Such a drastic measure will certainly bring about a voter backlash that will mean the end to the BN government.
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However, even with a very gradual withdrawal of subsidies over a period of years and with the side effects of arbitrary price increases and the expected round of wave of profiteering minimized, we can expect the average Malaysian household to have to spend at least a few thousand ringgit more a year to maintain the present consumption and lifestyle.
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So, be prepared for this impending drop in your living standards and new demand on your savings!
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Worst hit will be the poorer households. Millions of Malaysians are already struggling to survive. To lessen the serious socio-economic impacts arising from the withdrawal of subsidies, it is essential that the government fully evaluates the impact on poorer households and vulnerable groups and puts in place complementary reforms aimed at reducing the burdens.
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As poor households in both rural and urban areas all over the country can be expected to be hard hit, the open day on subsidy rationalization organized by government in Kuala Lumpur on Thursday (May 26) should not be seen as the end of the process of getting public feedback – rather only the beginning.
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More details of how much subsidies are costing the country on an itemized basis; where cuts are intended; how much the cuts will add to the cost of the service or product; mitigation measures; etc. need to be made available in the mass media and in the internet so that we can have a meaningful dialogue on the way forward to counter the looming economic tsunami. Note: This article was initially written and sent for translation into Chinese for the 'Red Tomato' paper on May 25 -- two days before the Open Day on the subsidy rationalization plan organized by the Performance and Delivery Unit of the Prime Minister's Department. According to Idris Jala, Minister in the PM's Department in his opening address, "the time for subsidy rationalization is now. Otherwise we have a time bomb on our hands." We cannot agree more with the sombre but realistic assessment provided by the Minister, as readers can gauge from this commentary.

The Ritz Corporate Suites

The Berjaya project at the corner of Jalan Ampang and Jalan Sultan Ismail will consist of 2 blocks - a Serviced Apartment which is going to be managed by Ritz-Carlton and Grade A corporate offices. The Serviced Apartment which is the block nearer to KLCC is going to be launched next year. Unfortunately, there is no information about the price or layout but Berjaya has announced in the press conference that it will start from RM2000psf.

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The other block, which consists of 32 floors of Grade A offices has recently been launched for sale, starting from just over RM1000psf. The lower psf prices are applicable for the bigger units only. The smallest units at 755sf are going for about RM1300psf. There are 3 types of floors, each served by 10 lifts. Most floors have 7 units ranging from 755sf and 1012sf up to 2831sf. Some floors only have 4 units and the penthouses more exclusive, 2 units. Although each unit is equipped with a private toilet and shower, they also share common toilet facilities on every floor.

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Most units will not enjoy the famed KLCC view as they will be blocked by the Serviced apartment block. However, those facing the Serviced Apartments will enjoy the pool and tennis courts view and also view into any of the rooms who forget to close their curtains. There are only 2 units, both corner with these privileges. All the others face Bukit Nanas. Not bad since it is really green and the higher floors will enjoy the KL Tower view if it is not going to blocked by YNH's own corporate office project beside the Shangri-La. Unfortunately, this is also facing the afternoon sun and with 3 of the smallest units on this side, my own experience tells me it can get pretty hot. That means higher cooling bills but to most companies paying 5 figure rent for Grade A offices in this part of town, that is going to be quite negligible.

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The facade is nothing exciting for the building of this stature. The 2 blocks over an in-between podium design is similar to the Berjaya Times Square which despite all the fan-fare, ended up as just an over-rated version of Sungai Wang Plaza. It seems Berjaya have a lack of architect talent and they need to borrow the blue print of their Times Square for this project.

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As with most Offices, the units will be delivered bare with no fittings. Only air-conds will be provided. This is one of the advantages of investing in offices, in that they are normally rented out bare as well so that tenants can furnish and fit them as they please according to their own corporate image. Hence, the price you pay for the unit is the final investment figure unlike residential units which you will need to decorate and furnish nicely to get premium rental.

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It is indeed rare to get any Corporate offices for sale to investors, especially Grade A offices. There is only one other project in the KLCC area which is UOA's Binjai8 behind Nikko hotel. Even so, Binjai is peddled more as a SOHO concept rather than Corporate offices. The typical price tag for 1012sf unit in Ritz is RM1.3million which is not too bad considering a 1800sf office in Menara IMC close by is renting at RM14,000/month. However, the maintenance fee at RM1.50psf/month may become an additional holding cost if you are unable to rent it out. It is generally easier to rent a smaller office in KL city center, compared with larger units. That is the experience with UOA's Grade A office project in Bangsar. The result has been quite mixed with some owners fetching higher rental than others. But that's Bangsar area...

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Nevertheless, take up has been quite slow. At a week after launching, there is barely 10% sold. I think like many potential investors, I am tempted to pick up one of the smaller units facing Bukit Nanas but I am concerned about Berjaya's reputation with many of their projects, especially Times Square. That project took unusually long to build apparently due to Berjaya's cash flow problems.

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To be updated with pics

Property Launches All Over Again?

2007 and 2008 saw a flurry of launches at the back of a booming property sector especially around the KLCC area. Starting from a launch low of around RM400psf (e.g. Parkview), we saw for the 1st time condominiums being peddled up to RM650psf (e.g. Marc Residence, Meritz) and then over RM1000psf (e.g. Troika). Then, despite the slowdown, the prices continued to climb and soon reached even RM2000psf. Every new launch seem to set a new benchmark in price. During the slowdown, we wondered if it will ever continue or is there a glut?

Then came 2009, with the gloom still looming, E&O boldly launched St Mary which saw a 70% take up within a month. Fact is, during the market slowdown, a lot of cash rich people were itching to put their money somewhere and St Mary offered that opportunity. Subsequently, the take up rate of all the 2009 launches started to taper and we wondered if we were ready to invest so soon after.

Well, this is 2010 and get ready for the big bang of property launches which we are about to experience. The Berjaya group has relaunched their plot on the junction of Jalan Sultan Ismail and Jalan Ampang below as a mixed commercial-residence project in conjunction with the Ritz-Carlton. There will be 300 luxurious units which will be sold at a minimum of RM2000psf. They expect to complete by 2011 but judging from Berjaya's reputation for slow-cooking, that is really a tall order.

Next, Bukit Ceylon will see more high density additions in Bolton's SixCeylon, UMland-MMC JV's Suasana Ceylon and somebody's St.John's Wood Residences. Little is known about St.John's except that the location is behind the KLSE and opposite the Suasana Ceylon project. They will mainly consist of large multi-million Ringgit units and as its' name suggests, probably targeting rich alumnis of St John's school nearby. Both SixCeylon and Suasana has a starting price tag of around RM600k for studio units.

But I think the star of the attraction will certainly be little known Penang developer, Monoland's Vipod. The location is totally unrivalled, nicely positioned across the road from Pavilion mall and the KL Convention Center. The rendering of the building, layout and most details remain a mystery but punters in Skyscrapercity forum are claiming that the project will have more than 360 units over 41 floors, starting at RM668k. This is certainly very interesting to wait...

Monoland has also started ground works for another project closer to KLCC, beside the Esso building to be exact. The Quadro will have 36 floors and about 250 units starting at a price of RM2million. This one...not so interesting...

Closer down to earth, the developer of ultra-kitsch fame Casa Mutiara in Pudu has launched a second similar looking project called the Casa Residency. Location is slightly better than Casa Mutiara, right beside the Swiss Garden residences and hence reducing the risks of residents being mugged on their trek home through the lonely alley. This project has the smallest units being peddled at RM350k. With some furniture, white goods and kitchen thrown in, it is not a bad offer. But one would have regretted not getting a unit in Swiss Garden about 2 years ago at the same price.

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