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New developments to share
- Thread starter wuqi256
- Start date
I gathered from HSBC that under bank negara new guideline only need to pay admin fee RM 500 if discharged the title within the lock in period. No other penalty will be incurred. Is it true?
Recent policies are very dramatic. They will widen the Gini coefficient and reduce social mobility. The lower class will be almost trapped. I also project a lot of middle class seeking getting squeezed hard and will be moving their investment $ to stocks n overseas properties, particularly in JB, UK and Australia over the next few years.
Singapore property developers are starting to pack up and go abroad
Singapore Business Review
Residential sector is scaring them off.
According to CIMB, developers' core 4Q12 results were mostly in line as lower development earnings have been built into expectations. This was evident for the more Singapore-centric developers.
The strong yoy gains came from 1) revaluation gains on compressed cap rates and rental reversions (REITs, CapLand and UOL) and completion of development projects (UOL, CMA and GLP) and 2) overseas profits on the hand over of the China residential projects (CapLand and KepLand).
Here's more from CIMB:
We expect these two trends to continue dictating earnings for developers in FY13. While the recent implementation of policy curbs in China is likely to curtail development volumes, most of the sales for FY13 delivery have already been locked in.
What stood out in this season outside the results were 1) developers' bearish view on the Singapore residential sector and 2) increased willingness to venture overseas to diversify income.
The latter was evident among the more Singapore-domiciled developers like CityDev, UOL and OUE which indicated that part of their excess capital could increasingly be allocated to overseas investments.
The common target areas mentioned were China and Iskandar/Malaysia though most also said that they will adopt a measured approach.
Another commonality is the preference for non-residential assets, both locally and overseas, a reflection of the developer‟s less sanguine view on the Singapore and China housing markets.
In Singapore, most believe that property prices will correct after the recent cooling measures. The latest cooling measures in Singapore and China have deflated RNAV upside potential for the Singapore developers though we note that exposures to these remain manage able.
Singapore Business Review
Residential sector is scaring them off.
According to CIMB, developers' core 4Q12 results were mostly in line as lower development earnings have been built into expectations. This was evident for the more Singapore-centric developers.
The strong yoy gains came from 1) revaluation gains on compressed cap rates and rental reversions (REITs, CapLand and UOL) and completion of development projects (UOL, CMA and GLP) and 2) overseas profits on the hand over of the China residential projects (CapLand and KepLand).
Here's more from CIMB:
We expect these two trends to continue dictating earnings for developers in FY13. While the recent implementation of policy curbs in China is likely to curtail development volumes, most of the sales for FY13 delivery have already been locked in.
What stood out in this season outside the results were 1) developers' bearish view on the Singapore residential sector and 2) increased willingness to venture overseas to diversify income.
The latter was evident among the more Singapore-domiciled developers like CityDev, UOL and OUE which indicated that part of their excess capital could increasingly be allocated to overseas investments.
The common target areas mentioned were China and Iskandar/Malaysia though most also said that they will adopt a measured approach.
Another commonality is the preference for non-residential assets, both locally and overseas, a reflection of the developer‟s less sanguine view on the Singapore and China housing markets.
In Singapore, most believe that property prices will correct after the recent cooling measures. The latest cooling measures in Singapore and China have deflated RNAV upside potential for the Singapore developers though we note that exposures to these remain manage able.
Election rhetoric or more mega projects to be announced?
Johor plans to attract an additional RM160bil in foreign investments by 2015
Posted on March 6, 2013 - Featured, Property News.
By DESIREE TRESA GASPER
[email protected]
TANGKAK: Johor is expected to garner investments of up to RM260bil by 2015 said Mentri Besar Datuk Abdul Ghani Othman.
Abdul Ghani said Johor currently has about RM100bil in investments and the recent joint projects between Singapore and Malaysia in Iskandar Malaysia was also a positive indication for things to come.
“The recent meeting between Prime Minister Datuk Seri Najib Tun Razak and Singapore premier Lee Hsien Loong resulted in the announcement of three major projects with a total investment of RM28bil.
“All these investments show that investors are confident with the current Government and are in support of our economic transformation policies and long term plans,” he said.
He was speaking during the Johor MCA Chinese New Year dinner held at SJKC Chi Ming 1 here recently.
Abdul Ghani said that Johoreans should be wise when casting their votes for the coming general election as a change in the Government could cause a disruption with current plans that have already been put in place.
“While Pakatan Rakyat is busy making promises, the Government has successfully attracted billions of ringgit in investment here,” he said.
He added that the investments had also generated job and business opportunities for the people here.
“These are promises which have been fulfilled and can be felt by the people,” he said adding that the Government was also sensitive towards the needs of all people including the Chinese and the Indian community.
The dinner which was attended by more 2,000 people including MCA president Datuk Seri Dr Chua Soi Lek and other state MCA leaders.
Johor plans to attract an additional RM160bil in foreign investments by 2015
Posted on March 6, 2013 - Featured, Property News.
By DESIREE TRESA GASPER
[email protected]
TANGKAK: Johor is expected to garner investments of up to RM260bil by 2015 said Mentri Besar Datuk Abdul Ghani Othman.
Abdul Ghani said Johor currently has about RM100bil in investments and the recent joint projects between Singapore and Malaysia in Iskandar Malaysia was also a positive indication for things to come.
“The recent meeting between Prime Minister Datuk Seri Najib Tun Razak and Singapore premier Lee Hsien Loong resulted in the announcement of three major projects with a total investment of RM28bil.
“All these investments show that investors are confident with the current Government and are in support of our economic transformation policies and long term plans,” he said.
He was speaking during the Johor MCA Chinese New Year dinner held at SJKC Chi Ming 1 here recently.
Abdul Ghani said that Johoreans should be wise when casting their votes for the coming general election as a change in the Government could cause a disruption with current plans that have already been put in place.
“While Pakatan Rakyat is busy making promises, the Government has successfully attracted billions of ringgit in investment here,” he said.
He added that the investments had also generated job and business opportunities for the people here.
“These are promises which have been fulfilled and can be felt by the people,” he said adding that the Government was also sensitive towards the needs of all people including the Chinese and the Indian community.
The dinner which was attended by more 2,000 people including MCA president Datuk Seri Dr Chua Soi Lek and other state MCA leaders.
Understanding the Iskandar property market using the iProperty Consumer Sentiment Survey 2013
By Getty Goh
The government announced the latest round of property cooling measures in Jan 2013. Since then, even more Singaporean investors have started looking to buy a property across the causeway in Iskandar, Johor.
As I run a real estate research consultancy, I frequently speak to investors and have come across some who willingly spend more the RM1million for apartments with the intention of getting rental yield as well as capital gains. Unfortunately, due to the lack of information, some of these investors may have entered the Iskandar property market, assuming it behaves somewhat similar to the Singapore property market.
To help our investors, we have been on a lookout for reliable sources of information that can give potential buyers an idea of how the Iskandar property market is really like. On 4 Feb 2013, iProperty.com released its latest consumer sentiments survey for 2013.
After reading the report, my team and I found many useful nuggets of information that buyers of Iskandar properties should be mindful of. A total of 8,048 residents in Malaysia responded to the iProperty.com online survey. Even though the survey reflects general property sentiments across Malaysia (and not specific to just Iskandar or Johor Bahru), we found that many useful insights could be gleaned from the report. In this article, I will share some of the key takeaways with you…
Takeaway 1: Malaysians prefer landed properties
I have come across some Singaporean investors who enter the Iskandar market with the belief that there is potential for capital appreciation. Due to space constraints, many Singaporeans have grown accustomed to the idea of living in non-landed condominiums. In addition, the convenience of having facilities such as a gymnasium and swimming pool add to the attraction of condominium living (see Figure 1). From the survey results, Private Condominiums garnered the most response with 69% of respondents in Singapore indicating their interests in buying this type of property. Inevitably, some Singaporean investors believe that Malaysian buyers have similar preference and they would be interested in condominium units in Iskandar as well.
Figure 1: Respondents from Singapore on the type of properties they are interested
Fig1
Source: iProperty.com Consumer Sentiment Survey for 2013 and Ascendant Assets Pte Ltd
Interestingly, from the consumer survey, my team and I noticed that Malaysians have a strong preference for landed properties (see Figure 2). Terrace houses garnered the most response with 58% indicating their interest. Collectively, terrace houses, semi-detached houses and bungalows received 103% share of the Malaysian response (i.e. 58% terrace houses + 31% semi-detached + 14% bungalow), while the Singapore survey only received 34% (i.e. 16% terrace houses + 12% semi-detached + 6% bungalow).
Figure 2: Respondents from Malaysia on the type of properties they are interested
Fig2
Source: iProperty.com Consumer Sentiment Survey for 2013 and Ascendant Assets Pte Ltd
From this comparison, it is quite apparent that Singaporean and Malaysian buyers have difference property preferences. While Singaporean respondents are comfortable with staying in highrise condominiums, Malaysian respondents generally prefer landed properties. Hence, the assumption that Malaysians like condominium living and are prepared to pay a high price for it (in the resale market) may not be an accurate assessment of Malaysian buyers.
Takeaway 2: Majority of Malaysians have a property budget of not more than RM500,000
Based on the conversion rate of SGD1 to RM2.5, a RM1million property currently costs about SGD400,000. With an 80% loan from the Malaysian banks, the cash that Singaporean buyers have to come up with can be as little as SGD80,000. Hence, many Singaporeans find properties in Malaysia properties affordable and are jumping onto the bandwagon.
While a RM1million Malaysia property may be affordable for Singaporeans, not many Malaysian buyers have that type of property budget. Based on the iProperty.com consumer survey, up to 66% of Malaysian respondents have a budget of not more than RM500,000 (see Figure 3). Of the total respondents, 93% have a budget of less than RM1million and only 7% have a budget of RM1million or more.
In other words, if a Singaporean investor buys a RM1million unit and hopes to sell it for RM1.1million, there would not be many eligible Malaysian buyers as only a handful would have RM1million or more to spend on a property. This in turn would mean limited local/domestic demand for properties at that price range.
Figure 3: Property budget of Malaysian respondents
Fig3
Source: iProperty.com Consumer Sentiment Survey for 2013 and Ascendant Assets Pte Ltd
Takeaway 3: Not all Malaysians view Iskandar as the top property destination
With so much marketing efforts and hype surrounding developments in Iskandar, some Singaporean investors may intuitively think that the location is widely regarded, even by Malaysians, as the next property hot spot. However from the iProperty.com Consumer Sentiment Survey, it was revealed that 76% of respondents regard Georgetown, Penang as the top destination for property investments. From Figure 4, Johor Bahru and Nusajaya come in second and third with 50% and 49% respectively. In other words, more Malaysians view Georgetown, Penang favourably and would likely buy something there before looking at alternative investment location.
Figure 4: Respondents view on the top 3 investment locations in Malaysia outside Selangor
Fig4
Source: iProperty.com Consumer Sentiment Survey for 2013 and Ascendant Assets Pte Ltd
Conclusion
For any property investment to be profitable, there must be strong demand for the type of asset in the particular location. In other words, for Singaporean investors to make money from their Iskandar properties, there must be a situation where demand (from both overseas and local buyers) is more than supply.
While this survey does not specifically focus on the Iskandar property market, it gives property buyers a good idea of what Malaysian buyers look for. To summarise, the majority of Malaysian property buyers have a budget of less than RM1million and more than half prefer landed properties. For a portion of them, Iskandar may not be the first investment destination they will look at as they may head to Georgetown, Penang first.
I recognise that these findings are based on a sentiment survey and market situations do change over time. However, the point I am trying to highlight is that there is much more to the Malaysian and Iskandar property market than what many investors may have realised. For example, there were 38,640 residential transactions in Singapore in 2010. In comparison, the number of residential transactions in Malaysia during the same period was 376,583, almost ten times Singapore's transaction figure. Thus it may not be prudent for investors to assume that what works in Singapore will work in Iskandar or Malaysia, and they should understand the market a bit more before proceeding with their purchase.
If you would like to get a copy of the iProperty.com Consumer Sentiment Survey, you can download it for free at the following link: http://www.iproperty.com.sg/asia-property-market-sentiment-report.
Getty Goh has a Masters in Real Estate and a Bachelors in Building from the National University of Singapore. He conducts frequent talks on the topic of property investing. To sign up for his next sharing, please visit www.BuyByeProperty.com. For those who wish to know more about what are some of the factors that would impact the profitability of a development, please drop him an email to find out more.
By Getty Goh
The government announced the latest round of property cooling measures in Jan 2013. Since then, even more Singaporean investors have started looking to buy a property across the causeway in Iskandar, Johor.
As I run a real estate research consultancy, I frequently speak to investors and have come across some who willingly spend more the RM1million for apartments with the intention of getting rental yield as well as capital gains. Unfortunately, due to the lack of information, some of these investors may have entered the Iskandar property market, assuming it behaves somewhat similar to the Singapore property market.
To help our investors, we have been on a lookout for reliable sources of information that can give potential buyers an idea of how the Iskandar property market is really like. On 4 Feb 2013, iProperty.com released its latest consumer sentiments survey for 2013.
After reading the report, my team and I found many useful nuggets of information that buyers of Iskandar properties should be mindful of. A total of 8,048 residents in Malaysia responded to the iProperty.com online survey. Even though the survey reflects general property sentiments across Malaysia (and not specific to just Iskandar or Johor Bahru), we found that many useful insights could be gleaned from the report. In this article, I will share some of the key takeaways with you…
Takeaway 1: Malaysians prefer landed properties
I have come across some Singaporean investors who enter the Iskandar market with the belief that there is potential for capital appreciation. Due to space constraints, many Singaporeans have grown accustomed to the idea of living in non-landed condominiums. In addition, the convenience of having facilities such as a gymnasium and swimming pool add to the attraction of condominium living (see Figure 1). From the survey results, Private Condominiums garnered the most response with 69% of respondents in Singapore indicating their interests in buying this type of property. Inevitably, some Singaporean investors believe that Malaysian buyers have similar preference and they would be interested in condominium units in Iskandar as well.
Figure 1: Respondents from Singapore on the type of properties they are interested
Fig1
Source: iProperty.com Consumer Sentiment Survey for 2013 and Ascendant Assets Pte Ltd
Interestingly, from the consumer survey, my team and I noticed that Malaysians have a strong preference for landed properties (see Figure 2). Terrace houses garnered the most response with 58% indicating their interest. Collectively, terrace houses, semi-detached houses and bungalows received 103% share of the Malaysian response (i.e. 58% terrace houses + 31% semi-detached + 14% bungalow), while the Singapore survey only received 34% (i.e. 16% terrace houses + 12% semi-detached + 6% bungalow).
Figure 2: Respondents from Malaysia on the type of properties they are interested
Fig2
Source: iProperty.com Consumer Sentiment Survey for 2013 and Ascendant Assets Pte Ltd
From this comparison, it is quite apparent that Singaporean and Malaysian buyers have difference property preferences. While Singaporean respondents are comfortable with staying in highrise condominiums, Malaysian respondents generally prefer landed properties. Hence, the assumption that Malaysians like condominium living and are prepared to pay a high price for it (in the resale market) may not be an accurate assessment of Malaysian buyers.
Takeaway 2: Majority of Malaysians have a property budget of not more than RM500,000
Based on the conversion rate of SGD1 to RM2.5, a RM1million property currently costs about SGD400,000. With an 80% loan from the Malaysian banks, the cash that Singaporean buyers have to come up with can be as little as SGD80,000. Hence, many Singaporeans find properties in Malaysia properties affordable and are jumping onto the bandwagon.
While a RM1million Malaysia property may be affordable for Singaporeans, not many Malaysian buyers have that type of property budget. Based on the iProperty.com consumer survey, up to 66% of Malaysian respondents have a budget of not more than RM500,000 (see Figure 3). Of the total respondents, 93% have a budget of less than RM1million and only 7% have a budget of RM1million or more.
In other words, if a Singaporean investor buys a RM1million unit and hopes to sell it for RM1.1million, there would not be many eligible Malaysian buyers as only a handful would have RM1million or more to spend on a property. This in turn would mean limited local/domestic demand for properties at that price range.
Figure 3: Property budget of Malaysian respondents
Fig3
Source: iProperty.com Consumer Sentiment Survey for 2013 and Ascendant Assets Pte Ltd
Takeaway 3: Not all Malaysians view Iskandar as the top property destination
With so much marketing efforts and hype surrounding developments in Iskandar, some Singaporean investors may intuitively think that the location is widely regarded, even by Malaysians, as the next property hot spot. However from the iProperty.com Consumer Sentiment Survey, it was revealed that 76% of respondents regard Georgetown, Penang as the top destination for property investments. From Figure 4, Johor Bahru and Nusajaya come in second and third with 50% and 49% respectively. In other words, more Malaysians view Georgetown, Penang favourably and would likely buy something there before looking at alternative investment location.
Figure 4: Respondents view on the top 3 investment locations in Malaysia outside Selangor
Fig4
Source: iProperty.com Consumer Sentiment Survey for 2013 and Ascendant Assets Pte Ltd
Conclusion
For any property investment to be profitable, there must be strong demand for the type of asset in the particular location. In other words, for Singaporean investors to make money from their Iskandar properties, there must be a situation where demand (from both overseas and local buyers) is more than supply.
While this survey does not specifically focus on the Iskandar property market, it gives property buyers a good idea of what Malaysian buyers look for. To summarise, the majority of Malaysian property buyers have a budget of less than RM1million and more than half prefer landed properties. For a portion of them, Iskandar may not be the first investment destination they will look at as they may head to Georgetown, Penang first.
I recognise that these findings are based on a sentiment survey and market situations do change over time. However, the point I am trying to highlight is that there is much more to the Malaysian and Iskandar property market than what many investors may have realised. For example, there were 38,640 residential transactions in Singapore in 2010. In comparison, the number of residential transactions in Malaysia during the same period was 376,583, almost ten times Singapore's transaction figure. Thus it may not be prudent for investors to assume that what works in Singapore will work in Iskandar or Malaysia, and they should understand the market a bit more before proceeding with their purchase.
If you would like to get a copy of the iProperty.com Consumer Sentiment Survey, you can download it for free at the following link: http://www.iproperty.com.sg/asia-property-market-sentiment-report.
Getty Goh has a Masters in Real Estate and a Bachelors in Building from the National University of Singapore. He conducts frequent talks on the topic of property investing. To sign up for his next sharing, please visit www.BuyByeProperty.com. For those who wish to know more about what are some of the factors that would impact the profitability of a development, please drop him an email to find out more.
Gov't to call for HSR, new MRT line tenders by 2014
Mar 7, 2013 - PropertyGuru.com.my
By Farah Wahida:
Tenders for the Singapore-Kuala Lumpur high-speed rail (HSR) project and the next line for the mass rapid transit (MRT) project are expected to happen next year, according to The Land Public Transport Commission (SPAD).
“We were not surprised by SPAD’s estimate... Although feasibility studies have been completed, approval of alignments and the Cabinet go-ahead have yet to be secured with project structures yet to be finalised,” said Sharizan Rosely, an Analayst at CIMB Research.
“Factoring in the time needed for the Cabinet’s approval, public displays of alignments and tendering, we think an award is likely by mid-2014,” he noted, adding that investors are advised to stay on the sidelines for the meantime.
While the planning stage for the new rail jobs is gaining momentum, further progress appears unlikely as the next general elections draws closer. Consequently, “details of the feasibility studies, alignments and project structures will likely be unveiled only in the second half of 2013.”
Moreover, the RM30 billion reported cost of the HSR project is still not yet final as it will still take into account the rail’s actual alignment, number of stops and track profile.
“The alignments (320-330km) will be entirely new and are likely to cover the major part of the western corridor of Peninsular Malaysia. What is more certain is that the HSR will not likely adopt magnetic levitation (maglev) technology as this would be costlier.”
Hence, KL-Singapore HSR’s specification could be similar to that of Taiwan HSR, which started operations in 2005, opined Sharizan.
Notably, the Taiwan-Kaohsiung HSR project had taken over five years to build starting from tender award to completion.
Mar 7, 2013 - PropertyGuru.com.my
By Farah Wahida:
Tenders for the Singapore-Kuala Lumpur high-speed rail (HSR) project and the next line for the mass rapid transit (MRT) project are expected to happen next year, according to The Land Public Transport Commission (SPAD).
“We were not surprised by SPAD’s estimate... Although feasibility studies have been completed, approval of alignments and the Cabinet go-ahead have yet to be secured with project structures yet to be finalised,” said Sharizan Rosely, an Analayst at CIMB Research.
“Factoring in the time needed for the Cabinet’s approval, public displays of alignments and tendering, we think an award is likely by mid-2014,” he noted, adding that investors are advised to stay on the sidelines for the meantime.
While the planning stage for the new rail jobs is gaining momentum, further progress appears unlikely as the next general elections draws closer. Consequently, “details of the feasibility studies, alignments and project structures will likely be unveiled only in the second half of 2013.”
Moreover, the RM30 billion reported cost of the HSR project is still not yet final as it will still take into account the rail’s actual alignment, number of stops and track profile.
“The alignments (320-330km) will be entirely new and are likely to cover the major part of the western corridor of Peninsular Malaysia. What is more certain is that the HSR will not likely adopt magnetic levitation (maglev) technology as this would be costlier.”
Hence, KL-Singapore HSR’s specification could be similar to that of Taiwan HSR, which started operations in 2005, opined Sharizan.
Notably, the Taiwan-Kaohsiung HSR project had taken over five years to build starting from tender award to completion.
According to MB Builders (the developer), the location of Tri Tower@JB Sentral is at Jalan Storey, Johor Bahru. This area is where pacific mall is.
Fares to be kept low on high-speed train to KL
[SINGAPORE] Making sure fares are "affordable and attractive" is one of the top priorities being discussed for the proposed high- speed rail link connecting Singapore and Kuala Lumpur, said Malaysia's International Trade and Industry Minister Mustapa Mohamed.
He revealed in an exclusive interview with The Business Times that he was informed that ticket prices for the rail link would be less than what it would cost to travel by air.
"From our initial study, it appears that the fare structures will be positioned such that we can attract passengers from across the board," said the 62-year-old, who was in Singapore earlier this week for a two-day working visit to promote Kelantan, his home state, as a tourism and investment destination.
"Based on what I've seen, the fares will be quite affordable and attractive that appeals not just to business travellers but to everyone," he added.
The high-speed rail link was formally announced by Singapore Prime Minister Lee Hsien Loong and Malaysian Prime Minister Najib Razak at their retreat in Singapore last month. The ambitious project is expected to be ready by 2020 with a one-way travel time of 90 minutes.
Mr Mustapa's comments come after Malaysia's Land Public Transport Commission said last week that it would ensure that ticket prices remained affordable while striking a balance with operational sustainability.
Mr Mustapa was hopeful that the joint feasibility study would be completed "soon" so that it could be reviewed by the two governments.
"If you ask me, hopefully this can happen within one year, on the decision of what kind of system to build, the type of funding structure, and the funding model," he said.
Another issue being explored is the location of the Singapore station, with some people speculating that it could be located in the vicinity of the Central Business District or somewhere further away such as Woodlands.
"Certainly, it's important that the Singapore stop is in the city; that will make a lot of difference to travellers," said Mr Mustapa. "But it's got to be balanced. If it's smack in the middle of the city, then there will be issues like traffic jams. But if it's too far away, it won't be able to attract enough passengers."
He also did not rule out the possibility of using magnetic levitation - or Maglev - technology for the high-speed rail link.
According to a New Straits Times report in Malaysia last month, a consortium is proposing a Maglev train that could reduce travel time even further between the two cities to just 55 minutes.
"It's still an open decision. We will leave it to the technical consultants," said Mr Mustapa, when asked if such technology was a realistic option. The most well-known Maglev train system is in Shanghai where the trains reach a top speed of about 430 kilometres per hour.
Turning to the Trans-Pacific Partnership (TPP) - an ambitious free-trade pact of which Malaysia is one of 11 countries involved in negotiations - Mr Mustapa said it would be a stretch to complete the talks by October this year.
Leaders from the TPP countries, including Singapore, agreed at a summit in Cambodia last November that they were aiming to reach an agreement in October 2013. Singapore, one of the TPP's founding members, is hosting the 16th and latest round of negotiations this week. The pact, if realised, would result in the largest free trade zone in the world with a combined GDP of about US$21 trillion.
"I've been informed that the October 2013 deadline is going to be a tough call, but we remain committed. It's tough but it's doable," said Mr Mustapa.
[SINGAPORE] Making sure fares are "affordable and attractive" is one of the top priorities being discussed for the proposed high- speed rail link connecting Singapore and Kuala Lumpur, said Malaysia's International Trade and Industry Minister Mustapa Mohamed.
He revealed in an exclusive interview with The Business Times that he was informed that ticket prices for the rail link would be less than what it would cost to travel by air.
"From our initial study, it appears that the fare structures will be positioned such that we can attract passengers from across the board," said the 62-year-old, who was in Singapore earlier this week for a two-day working visit to promote Kelantan, his home state, as a tourism and investment destination.
"Based on what I've seen, the fares will be quite affordable and attractive that appeals not just to business travellers but to everyone," he added.
The high-speed rail link was formally announced by Singapore Prime Minister Lee Hsien Loong and Malaysian Prime Minister Najib Razak at their retreat in Singapore last month. The ambitious project is expected to be ready by 2020 with a one-way travel time of 90 minutes.
Mr Mustapa's comments come after Malaysia's Land Public Transport Commission said last week that it would ensure that ticket prices remained affordable while striking a balance with operational sustainability.
Mr Mustapa was hopeful that the joint feasibility study would be completed "soon" so that it could be reviewed by the two governments.
"If you ask me, hopefully this can happen within one year, on the decision of what kind of system to build, the type of funding structure, and the funding model," he said.
Another issue being explored is the location of the Singapore station, with some people speculating that it could be located in the vicinity of the Central Business District or somewhere further away such as Woodlands.
"Certainly, it's important that the Singapore stop is in the city; that will make a lot of difference to travellers," said Mr Mustapa. "But it's got to be balanced. If it's smack in the middle of the city, then there will be issues like traffic jams. But if it's too far away, it won't be able to attract enough passengers."
He also did not rule out the possibility of using magnetic levitation - or Maglev - technology for the high-speed rail link.
According to a New Straits Times report in Malaysia last month, a consortium is proposing a Maglev train that could reduce travel time even further between the two cities to just 55 minutes.
"It's still an open decision. We will leave it to the technical consultants," said Mr Mustapa, when asked if such technology was a realistic option. The most well-known Maglev train system is in Shanghai where the trains reach a top speed of about 430 kilometres per hour.
Turning to the Trans-Pacific Partnership (TPP) - an ambitious free-trade pact of which Malaysia is one of 11 countries involved in negotiations - Mr Mustapa said it would be a stretch to complete the talks by October this year.
Leaders from the TPP countries, including Singapore, agreed at a summit in Cambodia last November that they were aiming to reach an agreement in October 2013. Singapore, one of the TPP's founding members, is hosting the 16th and latest round of negotiations this week. The pact, if realised, would result in the largest free trade zone in the world with a combined GDP of about US$21 trillion.
"I've been informed that the October 2013 deadline is going to be a tough call, but we remain committed. It's tough but it's doable," said Mr Mustapa.
These info are in The Edge article. trying to connect the dots to validate the location.. u call MB?
Tri Tower Residence comprises two 55-storey serviced apartment towers linked by a skybridge and a 52-storey hotel situated in Johor Baru Sentral with a GDV of RM450 million. </p><p>The project will feature 360 apartment units and 360 hotel rooms. The hotel will be called Capri by Fraser and managed by Fraser Hospitality. </p><p>The apartment built-ups are from 696 to 2,719 sq ft with selling prices from RM800 psf.
MB Builders is also planning the development of two malls called MB City Mall (formerly Pacific Mall) and Desaru Mall with a net lettable retail area of 370,080 sq ft and 150,695 sq ft respectively.
Easily way is to call the developer of Tri Tower i.e MB Builders directly. I got the answer from the sales office of MB Builders. I am not very confident about this developer, its development plan for this area and location. I will give it a miss.
May I check if purchasing sub-sale, when does the buyer usually pay 1% agent fee? Is it after both parties have signed the S&P? (no state consent required)
What about full settlement lawyer legal/ disbursement fees for the S&P and loan agreement? I was told to place a deposit of MYR 2,000 first and the rest of full settlement when the current owner receives the TOP (about 1 month later) and only then,will the lawyer send the S&P and loan documents for stamping. The lawyer said this is because if he is to send for stamping now, the current owner has to pay a capital gains tax immediately.
Or should I insist full settlement only upon receiving keys?
What about full settlement lawyer legal/ disbursement fees for the S&P and loan agreement? I was told to place a deposit of MYR 2,000 first and the rest of full settlement when the current owner receives the TOP (about 1 month later) and only then,will the lawyer send the S&P and loan documents for stamping. The lawyer said this is because if he is to send for stamping now, the current owner has to pay a capital gains tax immediately.
Or should I insist full settlement only upon receiving keys?
Well, the success depend on the execution. It can turn out to be another KSL if it is successful . MB Builders had not track record of mall development and management.
ISKANDAR SPECIAL
4 March 2013
Mak Hoy Ken
[email protected] +603 2036 2294
Investment Highlights
Primed for infra supercycle
Rationale for report : Sector update
OVERWEIGHT
(Maintained)
• RM105bil investments secured to-date. In this report, we strive to identify new infrastructure opportunities within Iskandar Malaysia (IM) as it grows in stature. From its launch in 2006 until November 2012, IM has attracted RM105bil worth of investments (27% of its 20-year target of RM383bil). Encouragingly, the RM47bil haul under Phase 1 (2006-2010) comfortably surpassed the original target of RM47bil.
• 2012: The tipping point. Several catalytic initiatives came into fruition last year, with Medini and pockets of Nusajaya being the focal points. This can be seen from the successful roll-out of marquee projects such as Legoland, Educity and Puteri Harbour Indoor Theme Park. The opening of the Coastal Highway (April 2012) has significantly improved accessibility to the Medini/Nusajaya area.
• 2013: Start of a new infra super-cycle? We envisage a strong pipeline of tangible contract flows coming from IM post- elections, as a new wave of catalytic projects kick-in under phase 2 of its development programme. This is further augmented by a number of sizeable land deals in the pipeline, which coupled with the relatively high plot ratio of 4x-6x for select locations (e.g. Danga Bay, Tebrau area), provides plentiful high-rise/integrated building opportunities. Here, we examine upcoming key projects within IM and its surrounding areas, as well as its associated beneficiaries:-
(1) ‘Rail’ opportunities: The KL-Singapore High Speed Rail (HSR) – initially estimated to cost between RM20bil and RM30bil – is set to take off after both the Malaysian and Singaporean governments gave their consent last month. The target is to complete this rail link by 2020, implying that tenders could be out by year-end. Similarly, a Rapid Transit System (RTS) linking Singapore to JB is targeted to be ready by 2018.
While it may be too early to gauge the project proponents for the RTS job, the usual names of YTL Corp and Gamuda- MMC Corp have emerged along with a UEM Land-Hartasuma JV. We also see select contractors with either prior track record or requisite strengths to potentially benefit from the project. They include IJM Corp, WCT and MRCB, albeit on potentially sub-contracting roles.
(2) Gerbang Nusajaya (GDV of RM18bil over 25 years): UEM Land has moved quickly to secure three cornerstone investors for Gerbang Nusajaya which was launched late last year:- (I) Ascendas (JV to develop a RM3.8bil-GDV integrated tech park; (ii) Auto City (JV with Singapore Billionaire Peter Lim; GDV-RM3.5bil, including the construction of a new RM200mil-track); and (iii) China Mall. Notably, we foresee a decent amount of infra/construction works within the area, as Gerbang is a relatively green-field project.
(3) Healthy-boom: We expect a few healthcare-related projects to be rolled-out in Medini in the coming months. These would include the Afiniti Medini urban wellness project (Khazanah-Temasek 50:50 JV); (ii) Avira resort wellness project (E&O & Khazanah-Temasek 50:50 JV); and (iii) 300-bed Gleneagles Medini Hospital (~RM500mil). These projects are set to be launched by end-2Q13.
(4) Creative element @ Medini taking off as well. The RM2.5bil-GDV Media Village@Medini Iskandar (by Singapore’s Link group) is set complement the expected launch of the nearby Pinewood Iskandar Malaysia Studio in June 2013.
(5) EduCity Phase 2: Efforts are now in place to secure new tenants following the roaring success of Phase 1 (basic infra works completed in May 2011). When fully developed, the entire 305-acre development is poised to have a total student population of up to 16,000 by 2017.
(6) Balance of works at Kota Iskandar. We expect several building jobs under Phases 2 & 3 (mainly comprising federal administrative offices) to be up for grabs once negotiations with the Johor government are completed. Phase 1 was (mainly state administrative buildings) estimated to have cost ~RM1bil.
Port expansion: (i) PTP (RM1.4bil expansion: two new berths, additional cranes); (ii) Johor Port a.k.a. Pasir Gudang Port (upgrading of infrastructure/equipment, construction of four new liquid berths – to be ready by 2017); and (iii)Tg.Langsat Port (deepening of channel/river basin and construction of two new liquid berths worth a combined RM267mil)
(8) Eastern Gate: Senai Airport has allocated a RM1bil capex under Phase 3 of its masterplan (2011-2031) to develop Senai Airport City – an integrated mixed development project with a free zone that is located adjacent to Senai Airport. Meanwhile, the second phase of the Johor Premium Outlet is due to be delivered by year-end.
(9) Desaru – the next frontier: Launched last November, Khazanah unit, Destination Resorts is teaming up with UEM Land under a 51:49 JV to develop Phase 1 of Desaru Coast – an ambitious project to transform Desaru into a premier travel destination for both luxury and recurrent holidaymakers. It covers 3,900 acres along a 17-km stretch of pristine beachfront located to the east of Johor.
Apart from residential components that are interwoven with two championship golf courses by Ernie Else (27- holes) and Vijay Singh (18-holes), Phase 1 would feature:- (i) four premium resorts (Sheraton Resorts & Hotels, The Datai, Aman Resorts and a Plantation Hotel); (ii) marine and water parks (Ocean Quest and Ocean Splash) to be developed by sister unit, Themes Attractions & Resorts (TAR); and (iii) a beach club.
• WCT our top pick for IM angle. A prime mover in the Iskandar region, WCT is fast shaping up as a solid proxy to the booming IM property and infrastructure scene. The maiden launch of the 1Medini high-rise development project was an instant success (average prices have increased to circa RM600 psf from RM450psf when it was first launched). WCT’s total outstanding landbank in Medini stands at ~43 acres within the Medini North and Medini Business District. Further down south, WCT is in the midst of developing another Paradigm Mall in the JB city centre. Combined, WCT’s Johor projects account for ~29% of its total GDV of RM14.7bil. On the construction front, WCT undertook the main infrastructure works at Medini (RM766mil) for IIB, and was involved in construction of the Pinewood Iskandar studio. This sets the tone from more contract bids – notably for the two mega rail proposals outlined above and Gleneagles Medini Hospital.
• Oil & gas kicker: We fancy WCT and Tebrau Teguh to be in the mix when PETRONAS rolls out the second phase of earthworks for the massive RM60bil RAPID project in Pengerang. The latter was also appointed as developer for the resettlement of villagers affected by this project at a total contract value of ~RM500mil. Similarly, we see Benalec Holdings as a key beneficiary of South Johor’s repositioning as a future oil hub, largely due to the 5,445 acres of prime seafront land that it holds in Pengerang and Tg.Piai. We expect the crystallisation of a maiden offtaker to narrow the deep discount of 52% that the stock is trading at vis-a-vis its NAV of RM2.48/share.
• Multi-year kicker for building material suppliers. Moving down, the slew of rail jobs could trigger a multi-year kick to the providers of building material products; i.e. Ann Joo Resources, Lion Industries, Lafarge Malayan Cement. IJM (via ICP) and KimLun Corp. All bar Ann Joo have the added logistical advantage of having a physical plant in Johore.
4 March 2013
Mak Hoy Ken
[email protected] +603 2036 2294
Investment Highlights
Primed for infra supercycle
Rationale for report : Sector update
OVERWEIGHT
(Maintained)
• RM105bil investments secured to-date. In this report, we strive to identify new infrastructure opportunities within Iskandar Malaysia (IM) as it grows in stature. From its launch in 2006 until November 2012, IM has attracted RM105bil worth of investments (27% of its 20-year target of RM383bil). Encouragingly, the RM47bil haul under Phase 1 (2006-2010) comfortably surpassed the original target of RM47bil.
• 2012: The tipping point. Several catalytic initiatives came into fruition last year, with Medini and pockets of Nusajaya being the focal points. This can be seen from the successful roll-out of marquee projects such as Legoland, Educity and Puteri Harbour Indoor Theme Park. The opening of the Coastal Highway (April 2012) has significantly improved accessibility to the Medini/Nusajaya area.
• 2013: Start of a new infra super-cycle? We envisage a strong pipeline of tangible contract flows coming from IM post- elections, as a new wave of catalytic projects kick-in under phase 2 of its development programme. This is further augmented by a number of sizeable land deals in the pipeline, which coupled with the relatively high plot ratio of 4x-6x for select locations (e.g. Danga Bay, Tebrau area), provides plentiful high-rise/integrated building opportunities. Here, we examine upcoming key projects within IM and its surrounding areas, as well as its associated beneficiaries:-
(1) ‘Rail’ opportunities: The KL-Singapore High Speed Rail (HSR) – initially estimated to cost between RM20bil and RM30bil – is set to take off after both the Malaysian and Singaporean governments gave their consent last month. The target is to complete this rail link by 2020, implying that tenders could be out by year-end. Similarly, a Rapid Transit System (RTS) linking Singapore to JB is targeted to be ready by 2018.
While it may be too early to gauge the project proponents for the RTS job, the usual names of YTL Corp and Gamuda- MMC Corp have emerged along with a UEM Land-Hartasuma JV. We also see select contractors with either prior track record or requisite strengths to potentially benefit from the project. They include IJM Corp, WCT and MRCB, albeit on potentially sub-contracting roles.
(2) Gerbang Nusajaya (GDV of RM18bil over 25 years): UEM Land has moved quickly to secure three cornerstone investors for Gerbang Nusajaya which was launched late last year:- (I) Ascendas (JV to develop a RM3.8bil-GDV integrated tech park; (ii) Auto City (JV with Singapore Billionaire Peter Lim; GDV-RM3.5bil, including the construction of a new RM200mil-track); and (iii) China Mall. Notably, we foresee a decent amount of infra/construction works within the area, as Gerbang is a relatively green-field project.
(3) Healthy-boom: We expect a few healthcare-related projects to be rolled-out in Medini in the coming months. These would include the Afiniti Medini urban wellness project (Khazanah-Temasek 50:50 JV); (ii) Avira resort wellness project (E&O & Khazanah-Temasek 50:50 JV); and (iii) 300-bed Gleneagles Medini Hospital (~RM500mil). These projects are set to be launched by end-2Q13.
(4) Creative element @ Medini taking off as well. The RM2.5bil-GDV Media Village@Medini Iskandar (by Singapore’s Link group) is set complement the expected launch of the nearby Pinewood Iskandar Malaysia Studio in June 2013.
(5) EduCity Phase 2: Efforts are now in place to secure new tenants following the roaring success of Phase 1 (basic infra works completed in May 2011). When fully developed, the entire 305-acre development is poised to have a total student population of up to 16,000 by 2017.
(6) Balance of works at Kota Iskandar. We expect several building jobs under Phases 2 & 3 (mainly comprising federal administrative offices) to be up for grabs once negotiations with the Johor government are completed. Phase 1 was (mainly state administrative buildings) estimated to have cost ~RM1bil.
Port expansion: (i) PTP (RM1.4bil expansion: two new berths, additional cranes); (ii) Johor Port a.k.a. Pasir Gudang Port (upgrading of infrastructure/equipment, construction of four new liquid berths – to be ready by 2017); and (iii)Tg.Langsat Port (deepening of channel/river basin and construction of two new liquid berths worth a combined RM267mil)
(8) Eastern Gate: Senai Airport has allocated a RM1bil capex under Phase 3 of its masterplan (2011-2031) to develop Senai Airport City – an integrated mixed development project with a free zone that is located adjacent to Senai Airport. Meanwhile, the second phase of the Johor Premium Outlet is due to be delivered by year-end.
(9) Desaru – the next frontier: Launched last November, Khazanah unit, Destination Resorts is teaming up with UEM Land under a 51:49 JV to develop Phase 1 of Desaru Coast – an ambitious project to transform Desaru into a premier travel destination for both luxury and recurrent holidaymakers. It covers 3,900 acres along a 17-km stretch of pristine beachfront located to the east of Johor.
Apart from residential components that are interwoven with two championship golf courses by Ernie Else (27- holes) and Vijay Singh (18-holes), Phase 1 would feature:- (i) four premium resorts (Sheraton Resorts & Hotels, The Datai, Aman Resorts and a Plantation Hotel); (ii) marine and water parks (Ocean Quest and Ocean Splash) to be developed by sister unit, Themes Attractions & Resorts (TAR); and (iii) a beach club.
• WCT our top pick for IM angle. A prime mover in the Iskandar region, WCT is fast shaping up as a solid proxy to the booming IM property and infrastructure scene. The maiden launch of the 1Medini high-rise development project was an instant success (average prices have increased to circa RM600 psf from RM450psf when it was first launched). WCT’s total outstanding landbank in Medini stands at ~43 acres within the Medini North and Medini Business District. Further down south, WCT is in the midst of developing another Paradigm Mall in the JB city centre. Combined, WCT’s Johor projects account for ~29% of its total GDV of RM14.7bil. On the construction front, WCT undertook the main infrastructure works at Medini (RM766mil) for IIB, and was involved in construction of the Pinewood Iskandar studio. This sets the tone from more contract bids – notably for the two mega rail proposals outlined above and Gleneagles Medini Hospital.
• Oil & gas kicker: We fancy WCT and Tebrau Teguh to be in the mix when PETRONAS rolls out the second phase of earthworks for the massive RM60bil RAPID project in Pengerang. The latter was also appointed as developer for the resettlement of villagers affected by this project at a total contract value of ~RM500mil. Similarly, we see Benalec Holdings as a key beneficiary of South Johor’s repositioning as a future oil hub, largely due to the 5,445 acres of prime seafront land that it holds in Pengerang and Tg.Piai. We expect the crystallisation of a maiden offtaker to narrow the deep discount of 52% that the stock is trading at vis-a-vis its NAV of RM2.48/share.
• Multi-year kicker for building material suppliers. Moving down, the slew of rail jobs could trigger a multi-year kick to the providers of building material products; i.e. Ann Joo Resources, Lion Industries, Lafarge Malayan Cement. IJM (via ICP) and KimLun Corp. All bar Ann Joo have the added logistical advantage of having a physical plant in Johore.
Re: Sky Suite / Skysuite VS V Summerplace VS paragon at CIQ
Hi ....
Sky 88 super expensive and the Suasana "matex" have launched yet and actually I am visiting NS Global Properties Pte Ltd, the price for one room is scary about RM 700K plus. So I am thinking to change my plan to Sky suite or V summerplace or paragon at CIQ. I need your advice ...
Hi ....
Sky 88 super expensive and the Suasana "matex" have launched yet and actually I am visiting NS Global Properties Pte Ltd, the price for one room is scary about RM 700K plus. So I am thinking to change my plan to Sky suite or V summerplace or paragon at CIQ. I need your advice ...
Re: Sky Suite / Skysuite VS V Summerplace VS paragon at CIQ
The 1 bedroom of Matex is already above RM1k since NSG sold off over 7 to 20.
Only 13 floor (21-33 fl) left; unless Norman Sia took up some more units himself.
The 1 bedroom of Matex is already above RM1k since NSG sold off over 7 to 20.
Only 13 floor (21-33 fl) left; unless Norman Sia took up some more units himself.
Last edited:
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