Property News

[winners]

Today, went to pass by Country Garden (@ Danga Bay). Was surprised that the buildup is so congested. The blocks are so near to each other. Just next to it is also the Greenland development with their cranes all installed and ready to start building. I anticipate a serious glut of condominiums there in the future

Next, drove to Puteri Harbor and Medini. Again several blocks are still under construction. Legoland, from the entrance, is almost deserted. Kota Iskandar is as usual with not much human activity, despite being a weekday.

Then went to TESCO Bukit Indah. Heard from 1 of the staff that it will be closing soon. However, I think it could just be rumors or probably just downsizing (just like they did to TESCO Plentong) because when I was leaving, I saw that they were repainting the TESCO logo on the building. Anyway, the TESCO supermarket itself looks quite run down and dilapidated. Quite a number of empty shelving with no goods on display, ditto for their freezer compartments. A good number of products don't even have their price tags indicated on the shelves. The flour shelving were littered with flour powder on the floor (possibly from broken packs) and no staff will even bother at all. TESCO Malaysia had recently announced that they will be having Voluntary Separation Scheme for their staff, which may have lead to the current low moral. Situation not looking bright though.

 

[FHBH12]

Today, went to pass by Country Garden (@ Danga Bay). Was surprised that the buildup is so congested. The blocks are so near to each other. Just next to it is also the Greenland development with their cranes all installed and ready to start building. I anticipate a serious glut of condominiums there in the future

Next, drove to Puteri Harbor and Medini. Again several blocks are still under construction. Legoland, from the entrance, is almost deserted. Kota Iskandar is as usual with not much human activity, despite being a weekday.

Then went to TESCO Bukit Indah. Heard from 1 of the staff that it will be closing soon. However, I think it could just be rumors or probably just downsizing (just like they did to TESCO Plentong) because when I was leaving, I saw that they were repainting the TESCO logo on the building. Anyway, the TESCO supermarket itself looks quite run down and dilapidated. Quite a number of empty shelving with no goods on display, ditto for their freezer compartments. A good number of products don't even have their price tags indicated on the shelves. The flour shelving were littered with flour powder on the floor (possibly from broken packs) and no staff will even bother at all. TESCO Malaysia had recently announced that they will be having Voluntary Separation Scheme for their staff, which may have lead to the current low moral. Situation not looking bright though.

Tesco offering VSS to HQ staff
BY LIDIANA ROSLI - 1 APRIL 2016 @ 11:17 AM

KUALA LUMPUR: Tesco Stores (Malaysia) Sdn Bhd is in the midst of offering a Voluntary Separation Scheme (VSS) to staff at its headoffice.

Internal documents obtained by Business Times noted that staff have been given time from March 24 until next Tuesday to decide on the offer.

“Going forward, our structures will be focused on having fewer and broader jobs. This means, there will be an overall reduction in the size of our head office team,” Tesco Malaysia’s recently-appointed chief executive officer Paul Ritchie said in the memo.

“This process is vital for our future success. We need the right skills in the right place to transform the business and lead in the changing world of retail,” he added.

Ritchie noted that all Tesco Malaysia’s head office managers and staff would have the opportunity to apply, but he did not indicate whether the offer would be extended to the rest of its staff at other offices or branches nationwide.

Ritchie, when contacted, said the VSS was just part of a bigger plan to transform the company’s business and withstand the ever-changing retail landscape.

“We have recently briefed our colleagues on a major transformation programme, which is designed to improve the performance of Tesco Malaysia,” he said in a written response to Business Times.

“The first step is the adoption of a leaner head office structure and colleagues have been briefed on what this means for them and their roles.

The transformation that we are undertaking is not only timely but necessary to ensure the sustainability and competitiveness of the business for the long term.”

He noted that the firm was unable to confirm the exact number of staff who would be affected as the process was still ongoing.

Tesco Malaysia is a joint venture founded in 2002 between the United Kingdom-based Tesco PLC and conglomerate Sime Darby Bhd.

It currently employs 8,000 staff and operates 55 stores nationwide through two formats, namely hypermarkets and Extra.

Its parent, Tesco PLC, is one of the world’s largest international retailers with operations in 12 countries and is currently employing over 480,000 staff worldwide.

British media had in February, however, reported that the group was considering cutting store staff by 39,000 over the next three years, as it attempted to reverse a slump in profits.

The potential job losses, according to the reports, would be the equivalent of Tesco PLC shedding one in six employees, either by cutting jobs or reducing hours.

These reports closely follow the group’s announcement of statutory loss before tax of £6.4 billion (RM35.97 billion) for the 2014 financial year ended February 28 last year.

The group’s Asian sales declined by 4.1 per cent mostly due to foreign exchange, while its trading performance in Malaysia has been impacted by protests against some Western-owned businesses and a challenging economic environment.

Read More : http://www.nst.com.my/news/2016/04/136555/tesco-offering-vss-hq-staff

 

[FHBH12]

Traditional retail is under threat from online shopping. Singapore's retail is not spared either. Many brands have pulled out of Singapore market and mall vacancy is rising.

 

[snowbird]

Today, went to pass by Country Garden (@ Danga Bay). Was surprised that the buildup is so congested. The blocks are so near to each other. Just next to it is also the Greenland development with their cranes all installed and ready to start building. I anticipate a serious glut of condominiums there in the future

The apartment block are so packed like those in Hongkong! HK I can understand because of land scare they need high plot ratio but in JB, its ridiculous.

Next, drove to Puteri Harbor and Medini. Again several blocks are still under construction. Legoland, from the entrance, is almost deserted. Kota Iskandar is as usual with not much human activity, despite being a weekday.

LEGOLAND in JB must be one of the quietest theme park in the region. Brought some friends from overseas there recently, the crowd was quite thin and many food outlet outside and the attractions inside were closed. As for the whole area to come alive, may have to wait at least few more years and hopefully by then you'll get to see more people moving around there.



Then went to TESCO Bukit Indah. Heard from 1 of the staff that it will be closing soon. However, I think it could just be rumors or probably just downsizing (just like they did to TESCO Plentong) because when I was leaving, I saw that they were repainting the TESCO logo on the building. Anyway, the TESCO supermarket itself looks quite run down and dilapidated. Quite a number of empty shelving with no goods on display, ditto for their freezer compartments. A good number of products don't even have their price tags indicated on the shelves. The flour shelving were littered with flour powder on the floor (possibly from broken packs) and no staff will even bother at all. TESCO Malaysia had recently announced that they will be having Voluntary Separation Scheme for their staff, which may have lead to the current low moral. Situation not looking bright though.

There are just too many supermarkets in Bukit Indah, all 3 - Aeon, Tesco and Giant, within short distances.
Only one drawing crowd is Aeon, partly because of a good shop mix and the TVG cinema, the other two without good shop mix are always very quiet, I always wonder how can they ever make money even if the rent is very cheap. One of them closing soon is not surprising.

 

[xebay11]

Over hyped and over built, investors happy now? Money going to be down the drain. Still want to argue with me. Singaporean, Singaporean, looks like people like me will be having the last laugh.

 

[potter]

I still have left with some stickers to xchange for Marvel toys in TESCO!. Here goes my investment!!

 

[winners]

Some of you may have recalled the Kemayan City Johor Bahru. Some 10 years ago, it was hyped to be the largest shopping mall in Southern Peninsula Malaysia, but eventually failed to take off. I heard that the site had been bought over and there could be a chance of it being revived again, despite being rumored to be haunted.
[video=youtube;6A9-_q5_n8o]https://www.youtube.com/watch?v=6A9-_q5_n8o&feature=youtu.be&t=5[/video].

 

[mpan12]

Today, went to pass by Country Garden (@ Danga Bay). Was surprised that the buildup is so congested. The blocks are so near to each other. Just next to it is also the Greenland development with their cranes all installed and ready to start building. I anticipate a serious glut of condominiums there in the future

Next, drove to Puteri Harbor and Medini. Again several blocks are still under construction. Legoland, from the entrance, is almost deserted. Kota Iskandar is as usual with not much human activity, despite being a weekday.

Did you spend some time in Medini? It's also very deserted and quiet. Schools, Gleneagles hospital, Mall of Medini, shops, government offices etc are already set up there but they are not drawing in the demand.

Dunno how these establishments can survive. For eg, I would expect a hospital needs a lot of money to run. I wonder how soon they can turn the place into the planned CBD.

There are lots of new condos under construction though.

 

[winners]

Did you spend some time in Medini?

No and it's because seeing their carparks being less than ¼ full, I doubt the indoors could be any much better.

 

[winners]

Did you spend some time in Medini? It's also very deserted and quiet. Schools, Gleneagles hospital, Mall of Medini, shops, government offices etc are already set up there but they are not drawing in the demand.

Dunno how these establishments can survive. For eg, I would expect a hospital needs a lot of money to run. I wonder how soon they can turn the place into the planned CBD.

There are lots of new condos under construction though.

It will take several more years for this place to become established, especially when the HSR will materialize. Firstly, it is quite remote and the current local residential population there is almost non existent. Hopefully, when more condos are ready, those working in the vicinity will move in. In every residential area, there must be jobs available for them before there will be occupants.

 

[mpan12]

It will take several more years for this place to become established. Firstly, it is quite remote and the current local residential population there is almost non existent. Hopefully, when more condos are ready, those working in the vicinity will move in. In every residential area, there must be jobs available for them before there will be occupants.

For those who are working in the hospital, Pinewood Studios, nearby universities and offices that are already ready, I wonder where they are staying. From my chat with an agent, the take up rate of the few completed condos is very slow. Maybe they prefer the old JB and drive to their workplace?

 

[Davis]

So any other news regarding to the so call Master Plan? Price go down, still must pay 3 times more taxes :P

Default Re: Johor Strait Development Corridor Master Plan 2025



Johor coastal development good for locals, not for foreigners
FMT Reporters | August 14, 2015
Leasehold restriction on foreign property owners may see them looking elsewhere, says property consultant.

JOHOR BAHRU: Certain aspects of the Johor Strait Development Corridor Master Plan may not be attractive to foreign investors and they could sink their money in other development projects in the state.

The master plan is the development framework for coastal areas along the Johor Straits which stretches 98km from the Tanjung Piai in the west to Sungai Johor in the east.

Property consultant Samuel Tan said the 99-year lease imposed on foreign property owners for instance, could drive investors to areas like Medini, a 9.2 sq km township in the southern economic zone of Iskandar Malaysia.

Foreign property owners would also have to pay three times more for quit rent and assessment compared to Malaysians in the growth region.

Medini, which includes a premium waterfront urban development facing Singapore, has no restrictions on foreign ownership, no minimum price threshold for foreign property buyers and investors are exempted from real property gains tax until Dec 31, 2025.

The master plan was unveiled last week and is open for public viewing at six venues in Johor until Wednesday.

The master plan covers housing, green technology, sustainability, reclamation and setting up of international zones for foreign property owners.

Johor Housing and Local Government Committee chairman Datuk Abdul Latif Bandi said they would look into all environmental aspects, including preserving the Ramsar wetlands sites, in the development area.

Tan, who is the executive director of KGV International Property Consultants, said it was understandable that the state government protects both the environment and the interest of Malaysian property owners.

“The price threshold of RM2 million for landed properties and RM1 million for strata-title on foreign property owners could spur developers to push up prices of properties built for Malaysians in Iskandar Malaysia,” said Tan in a report carried by the New Straits Times.

http://www.freemalaysiatoday.com/cat...or-foreigners/

 

[winners]

Singapore's retail is not spared either. Many brands have pulled out of Singapore market and mall vacancy is rising.

That is why Singapore needs 6.9m population. It's not a prerequisite but an adamant. Look at every cosmopolitan cities (eg: Tokyo, Shanghai, Taipei, London, New York) and you'll understand why. Without the population, the city cannot prosper.

 

[winners]

Maybe they prefer the old JB and drive to their workplace?

No need to stay in Medini because presently the amenities are very much limited. Most of those working in Medini/Puteri Harbor could be better off living or renting in the Bukit Indah and Nusa Bestari areas, where everything (food, entertainment and amenities) is much more convenient and available, yet not that far as well.

 

[ECboy]

That is why Singapore needs 6.9m population. It's not a prerequisite but an adamant. Look at every cosmopolitan cities (eg: Tokyo, Shanghai, Taipei, London, New York) and you'll understand why. Without the population, the city cannot prosper.

SG office rents are taking a huge hit as well, mostly are losing money unless you get lucky like my company landlord got 200k/month.

There's new businesses like Wework that will continue to put pressure on fixed term leases.

 

[mpan12]

“The price threshold of RM2 million for landed properties and RM1 million for strata-title on foreign property owners could spur developers to push up prices of properties built for Malaysians in Iskandar Malaysia,” said Tan in a report carried by the New Straits Times.

Ｉ really think this is a bad idea. Foreign buyers and investors may soon be very cautious about buying properties there. Those that have bought less than RM1mil were caught unexpectedly and may be stuck with their properties.

This will also give developers the motivation to overprice their properties for foreigners like what they are doing now. Foreigners are buying only because they are comparing to SG property prices and think the JB properties are cheap. Actually, it's not so to the locals. The great disparity in pricing is already there and locals will avoid all this "niche" market meant for foreigners.

 

[winners]

SG office rents are taking a huge hit as well, mostly are losing money unless you get lucky like my company landlord got 200k/month.

There's new businesses like Wework that will continue to put pressure on fixed term leases.

At this time, there is indeed excess supply than demand in both residential and office spaces in Singapore. It doesn't help especially when China and oil prices are still doomed. Give it another 2 or 3 years and hopefully things will start to get better, but no promise though. This is the general economic cycle, which is also getting shorter and more rapid in recent years.

 

[mpan12]

No need to stay in Medini because presently the amenities are very much limited. Most of those working in Medini/Puteri Harbor could be better off living or renting in the Bukit Indah and Nusa Bestari areas, where everything (food, entertainment and amenities) is much more convenient and available, yet not that far as well.

Ya, that's true. I suppose they should all have cars.

But there's Mall of Medini, Medini Hub and for Puteri Harbour, there are eating places around. But what they lack are big retail malls, banks, etc.

 

[winners]

Ｉ really think this is a bad idea. Foreign buyers and investors may soon be very cautious about buying properties there. Those that have bought less than RM1mil were caught unexpectedly and may be stuck with their properties.

This will also give developers the motivation to overprice their properties for foreigners like what they are doing now. Foreigners are buying only because they are comparing to SG property prices and think the JB properties are cheap. Actually, it's not so to the locals. The great disparity in pricing is already there and locals will avoid all this "niche" market meant for foreigners.

My greatest fear is the manipulation by Chinese speculators. It has already happened in KL. Those bloody corrupted rich Chinese will come and speculate in the property market. They are so damned rich with their ill-gotten gains that they can even buy the whole floor of apartments and cause speculation to set in so that the prices will artificially be inflated. Once they deem it is the right time to let go, those suckers who will buy from them will eventually regret.

 

[winners]

But there's Mall of Medini, Medini Hub and for Puteri Harbour, there are eating places around. But what they lack are big retail malls, banks, etc.

Still cannot compare to what is available in Bukit Indah, Perling and Nusa Bestari have to offer.