AN INDEPENDENT PERSPective


 It's so important to be true to yourself            "
khaliladis.com
  • Home
  • About
  • Blog
  • Books
  • Services
  • Media
  • Events
  • Awards/Accolades
  • Clients
  • Portfolio
  • Contact
  • Corporate Responsibility

8 property trends to watch out for in 2019

12/25/2018

22 Comments

 
​Gear up for a bumpy ride next year in Malaysia’s property market as the number of unsold units continues to rise. Despite the challenges, there are some opportunities for investors and rent-seekers.

By Khalil Adis
Picture
Aerial view of KLCC. Expect a bumpy ride in 2019 for the Malaysian property market. Photo: Khalil Adis Consultancy.
According to the Valuation and Property Services Department’s (JPPH) latest figures, the number of unsold completed residential units rose from 20,304 units to 30,115 units year-on-year as at 30 September 2018.

This represents an increase of 48.35 per cent.

Meanwhile, the total value was RM19.54 billion, representing a 56.44 per cent rise from RM12.49 billion a year ago. 

However, if JPPH were to also include serviced apartments and small offices home offices (SoHos), this would bring their overhang value to 40,916 units valued at RM27.38 billion.

According to JPPH, Johor has the largest number of unsold completed serviced apartments and SoHo units at 7,714. 

JPPH notes that it rose a whopping 191 per cent from the 2,647 units recorded a year ago. 

The overhang in serviced apartments is valued at RM6.16 billion compared with its residential overhang of RM4.44 billion. 

This means the total overall value of its unsold serviced apartments is 1.5 times that of residential housing.

In summary, Johor has the highest number of completed unsold units in Malaysia at 6,053.

This is a 55 per cent increase from the 3.901 units a year ago.

With an overhang in supply spanning from Johor to Selangor, here are some of the likely property trends to emerge next year.

#1: Renter’s market
Picture
Johor's housing market will offer the best deals for rent-seekers as it has the highest number of completed units in Malaysia. Photo: Khalil Adis Consultancy.
The new supply of the completed units plus the those from existing units will lead to a downward pressure in the rental market causing rentals to fall.

This is because rent-seekers will be spoilt for choice while landlords will be fighting for tenants.

This will make it ideal for rent-seekers as landlords will most likely be open for price negotiations.

Meanwhile, it is bad news for landlords should they be able to find a tenant or not.

In the former, the rental will most likely not be able to cover the mortgage resulting in negative cash flow.

In the latter, landlords will have to cover the mortgage themselves.

Those who cannot will have no choice but the let go of their units.

#2: Buyer’s market
Picture
Melia Residences by UEM Sunrise. Buyers will be spoilt for choice in 2019. Photo: Khalil Adis Consultancy.
The property market will also favour buyers as sellers will be desperate to offload their properties, especially those who have multiple units.

Therefore, buyers will be in a more stronger position to bargain in a market flooded with so many units.

#4: Buy properties in the secondary market
Picture
Country Garden in Danga Bay. There are a lot of good deals in the secondary market right now in Iskandar Malaysia. Photo: Khalil Adis Consultancy.
If you urgently need a roof over your head, then the secondary market is the way to go as you are buying a completed property.

Sellers are also more willing to negotiate on the terms of payment and will likely cut a flexible payment deal via their agents if you do not have a sufficient deposit in hand.

In addition, the supply overhang also mean that properties in the secondary market are priced 20 to 30 per cent cheaper than new launches.

However, do bear in mind that you need to pay a 10 per cent deposit.
​
#5: Overhang in supply means good deals in the auction market
Picture
High-end condominiums in KLCC. There are plenty of below market values in the auction market right now. Photo: Khalil Adis Consultancy.
Unfortunately, there will also be distressed properties which will be auctioned off in court.

If you are looking for a below market value (BMV) property, then this will present a very good opportunity for you.

When buying a BMV, you will need to attend an auction in court and prepare a bank draft in advance to show of interest. 

This will cost you around 10 per cent of the reserve price. 

For example, if the property is being auctioned off at RM50,000, you will need to prepare RM5,000 in bank draft. 

If you have successfully bid for the property, you will need to settle the balance of the payment within 120 days. 

However, there are a lot of hidden costs, for example, legal, quit rent (cukai pintu), unpaid utilities and maintenance fees, assessments and so on. 

Perhaps, the biggest risk is this - while the property is legally yours, you may find it hard to evict the tenants or owners. 

You may have to apply for a court order, through a lawyer, to evict the occupants. 

This process can take you up to four weeks and costs you between RM1,500 to RM2,000. Even so, there are no guarantees they can be evicted as Malaysian laws favour occupiers. 

When buying a BMV property, it is best to find out if the property is occupied by tenants or owners. 

#6: It also means good deals from the primary market
Picture
Aerial view of One Cochrane Residences. The primary market will also be a good area to focus on for investors. Photo: Khalil Adis Consultancy.
Developers have to move their unsold inventory as each unit means added cost for them.

As such, developers will be coming up with creative schemes like zero downpayment and such to lure buyers.

Speak to a good developer and check if they have a good master plan to ensure your property values are protected.

Remember the 5Cs I always talk about?

Check against them before you commit to buying a property,
​
#7: More restrictions on Airbnb accommodations
Picture
Amansari by UMLand located in Johor Bahru. This property type falls under commercial title. Photo: Khalil Adis Consultancy.
Making money from your short stay travellers may prove to be even harder even if the government legalises Airbnb.

This is because we are seeing trends of management committees barring Airbnb-type of accommodation due to security and safety issues.

So before you decide to list your untenanted unit on Airbnb, it is best to check with your management committee if this is allowed.

However, if you happen to own a serviced apartment, this will not be an issue as it falls under a commercial title.

#8: Transit-oriented developments (TODs) along SSP Line
Picture
Sungai Besi Highway. Sungai Besi is a growth area in Southern KL. Photo: Khalil Adis Consultancy.
​The Sungai Buloh-Serdang-Putrajaya Line (SSP Line) is one of the few major infrastructure projects that will be continued under the newly elected government.

In fact, the project is currently under construction and is fast taking shape.

Some developers have already acquired land banks along this line to build TODs.

Areas to watch out for include Kwasa Damansara, Kwasa Sentral, Sungai Besi, Bandar Malaysia and Cyberjaya City Centre
22 Comments

Goodbye Kampong Glam, Hello JB!

12/17/2018

0 Comments

 
JB is taking the word ‘hipster' up a few notches and giving Kampong Glam a serious run for its money.

By Khalil Adis
Picture
JB offers a myriad of entertainment options and value-for-money deals. Photo: Khalil Adis Consultancy
When the Singapore authorities announced in October that Blu Jaz Cafe's entertainment licence is cancelled, it marked another dent for the entertainment industry in the hip Kampong Glam enclave.

Home to Zam Zam Restaurant, the historic Sultan mosque, bars and restaurants, Kampong Glam is a popular hangout destination among locals and tourists alike.

However, since the banning of shisha in July 2016, the area has lost its lustre as many businesses were affected.

One in particular, called Cafe Le Caire, was a popular watering hole but is now no longer in operation.

What still remains are the textile and carpet shops.

With one less entertainment outlet in Singapore, JB's heritage area is fast coming up as a viable alternative.

Once associated with sleaze, Jalan Dhoby is now home to a number of hip establishments which are popular among the young and the young-at-heart.

In addition, the shophouses are decorated with funky street art almost reminiscent of Georgetown's.

With two weeks shy of 2019, here are our top picks to explore within JB's heritage area.

#1: Restoran Hua Mui
​No.131, Jalan Trus, Johor Bahru, 80000 Johor Bahru​, Malaysia
Picture
Restoran Hua Mui is located within the heritage area and is very popular among Johoreans. Photo: Khalil Adis Consultancy.
Restoran Hua Mui serves a good mix of Western and local dishes and is popular among Johoreans and Singaporeans.

Unfortunately, it gets especially busy during lunchtime and that is when service standards drop.

I would recommend coming here to have your breakfast instead before exploring the rest of the heritage area.

The chicken and eggs sandwiches come highly recommended with a dollop of Lingham's Chilli Sauce. 

#2: Explore the pre-war shophouses at Jalan Trus ​
Picture
Street murals that adorn the pre-war shophouses. Photo: Khalil Adis Consultancy.
Located at the intersection of Jalan Dhoby and Jalan Trus, the shophouses were built during the 1800s but has now been given a new lease of life thanks to the creative facade treatment.

There is also a shop here that sells vintage clothing and apparels.

Whichever you decide to check out, the shophouses here will certainly appeal to photography buffs and those looking to update your #ootd Instagram shots.

Who knows? You might just find an outfit at the boutique here!

#3: Hiap Joo Bakery
13, Jalan Tan Hiok Nee, Johor Bahru, 80000 Johor Bahru​, Malaysia
Picture
Come early to stock up on your coconut buns as they tend to run out very fast. Photo: Khalil Adis Consultancy.
Hiap Joo Bakery is one of JB's best-kept secrets that it reportedly counts the Sultan of Johor as one of its fans.

Renowned for their coconut buns and freshly made banana cakes, many locals make a beeline for them in the morning.

In fact, their coconut and kaya buns are so popular that they usually run out by noon.

What makes Hiap Joo Bakery authentic is its old-school method of cake-baking which it inherited from its former British owner.

All the cakes and buns are baked in a classic wooden kiln which leaves them with a unique charcoal aftertaste.

If you still can't get enough of its freshly made cakes and buns, fret not!

You can buy its very own kaya spread to savour it from the comfort of your home.

#4: IT Roo Cafe
17, Jalan Dhoby, Johor Bahru, 80000 Johor Bahru, Johor, Malaysia
Picture
Get ready to whet your appetite with the delicious chicken chop servings. Photo: Khalil Adis Consultancy.
For lunch, just head to IT Roo Cafe located just around the corner.

Touting itself as having "the best chicken chop in town", you can choose to have it either grilled or fried with a choice of mushroom or black pepper sauce.

The dish comes complete with a serving of coleslaw and fries.

Aside from its signature dish, IT Roo Cafe also serves up popular local dishes like fried rice and noodles.

Be sure to arrive early as it can be difficult to get a seat during the lunch hour.

#5: Chaiwala & Co. Container Cafe 
Lot 2180 Jalan Tan Hiok Nee, Johor Bahru, 80000 Johor Bahru Johor, Malaysia
Picture
Embark on a tea and coffee adventure at Chaiwalla & Co. Photo: http://chaiwallaandco.blogspot.com
Owned by a former sailor, Chaiwala gets its namesake from a disused shipping container which has become its signature look.

In fact, it has spawned a number of copycats within its immediate vicinity making it a draw among photographers and hipsters alike.

Some of its signature drinks include Thai milk tea and Vietnamese coffee served hot or chilled.

You can even customise your drinks with a base comprising either tea, milk tea, coffee, fresh milk or smoothie with a range of flavours.

The only drawback is there is no wifi here so it is best to stick to taking your Instagram shots.

#6: Cafe Al-Fayeed
Off Jalan Pahang, Johor Bahru, 80000 Johor Bahru, Johor, Malaysia
Picture
A waiter attending to customers at Cafe Al-Fayeed. Photo: Khalil Adis Consultancy.
Fancy a serving of shisha?

Well, look no further than Cafe Al-Fayeed which is also located within walking distance.

Prepared by tattoed servers with technicoloured dyed hair, there are many flavours to choose from with an option to have it served with ice at just RM11!

Cafe Al-Fayeed also serves up popular side dishes such as fries to go along with your shisha.

For those who prefer a heartier portion, the cafe also offers a wide selection of Western and local dishes at very reasonable prices. 

Music can get a tad bit loud with popular hip-hop tunes and EDM club bangers blaring from the speakers.

#7: Santai2
Picture
Santai2 will make you feel immediately at ease with their congenial staff. Photo: Khalil Adis Consultancy.
Ok, we don't really have a specific address here but it will be hard to give this wellness establishment a miss as it is housed within a red-hot container along Jalan Dhoby.

Offering foot massage and traditional Malay urut, Santai2 is a welcome respite after all those walking.

Foot massage starts from around RM45 while a full body traditional Malay urut is priced from RM65.

Both male and female therapists are available.

#8: Pasar Karat
Jalan Segget, Bandar Johor Bahru, 80000 Johor Bahru, Johor, Malaysia
Picture
Get ready to have your mane perfectly coiffed with a wide range of pomades at your disposal. Photo: Khalil Adis Consultancy.
​Stock up on those pomades in various fragrances or shop for handphone covers at this night market located just a stone throw's away from the heritage area.

Pasar Karat, which means rusty market, comes alive from 7 pm onwards and attracts a strong Johorean crowd.

Selling just about anything from exotic pets to Malay kuehs, the night market gets especially busy during Ramadan as many would throng the market as they gear up for Hari Raya Aidilfitri.
0 Comments

5 possible impacts arising from Singapore-Malaysia border dispute on the property market

12/12/2018

0 Comments

 
​As the air and sea territorial dispute enters a second week, it could negatively impact investor sentiment in the already lukewarm property market in Iskandar Malaysia. 

By Khalil Adis
Picture
View of the Tuas Second Link to Johor. Singapore and Malaysia are currently embroiled in a maritime dispute in the Straits of Johor. Photo: Khalil Adis Consultancy.
The simmering tension brewing in the Straits of Johor between Singapore and Malaysia has now entered its second week.

In fact, it is like watching history repeating itself.

Growing up during the Lee Kuan Yew era, I recall how both countries would often trade barbs over water to territorial issues.

The relationship between both countries is best described as testy then.

However, much like brothers and sisters, we would soon kiss and make up.

Post the Lee Kuan Yew-Mahathir era, bilateral ties between both countries warmed up significantly under the leadership of Lee Hsien Loong and Mahathir's successors, Abdullah Badawi and Najib Razak.

While the later remains highly unpopular among Malaysians, several win-win deals were concluded between both countries which arose from the land swap deal.

They included the joint development of DUO in Bugis and Marina One by M + S Pte Ltd (Malaysia and Singapore, in case you don't know)

Over in Iskandar Malaysia, Singapore agreed to develop two wellness centre called Afiniti Medini and Avira. 

Subsequently, CapitaLand invested in A2 Danga Island.

Until today, the project has yet to be launched.

With bilateral relations going from cold to warm and back again to cold, we analyse how this will impact the property market across the causeway.

#1: Investors will likely adopt a ‘wait-and-see' approach to Iskandar Malaysia 
Picture
Horizon Hills in Iskandar Puteri. Photo: Khalil Adis Consultancy.
This is almost similar to the pre-Iskandar Malaysia era under Abdullah Badawi's leadership when the special economic zone was first announced.

I recall covering a few stories on Iskandar Malaysia then where I had interviewed several Singaporeans.

During that time, many had expressed scepticism on Iskandar Malaysia and avoided buying a property at Horizon Hills.

Back then, it was then launched within the minimum investment threshold of RM250,000.

However, that changed once the land swap deal was concluded in 2010.

As our bilateral ties improved, so did investors' confidence.

As a result, properties in Iskandar Puteri and Medini began selling like hot cakes.

Meanwhile, units at Horizon Hills was transacted at almost three times the launch price as developments at Legoland Theme Park, EduCity and Puter Harbour were gathering pace.

With both countries now embroiled in a maritime dispute, investors are most likely to adopt a similar approach until the issue is resolved

#2: Market sentiment in Iskandar Malaysia  the most affected
Picture
Aerial view of Leisure Farm Resort in Iskandar Puteri. Photo: Khalil Adis Consultancy.
July's property cooling measures have made it even more difficult for Singaporeans to buy a private property in the Lion City as the loan-to-value (LTV) limit has been reduced from 80 per cent to 75 per cent if the loan tenure does not exceed 30 years for the first property.

Logically, this makes Iskandar Malaysia much more attractive due to its close proximity to Singapore as we share many similar customs, culture and speak similar languages.

However, the property market is very much sentiment driven as described above.

With Iskandar Malaysia being the closest to Singapore, this will be the property market that will be the most affected.

#3: Developers will face an uphill task in marketing their units
Picture
A unit for sale at a condominium in Danga Bay. Photo: Khalil Adis Consultancy.
The property market in Iskandar Malaysia is already facing a challenging time due to the oversupply in the residential sector.

According to the first quarter of 2018 data from the National Property and Information Centre (NAPIC), Johor has the second highest number of existing stock of residential units at 795,363 in Malaysia.

The current political climate will no doubt be a double whammy for developers who are already struggling to move unsold units in their inventory.

With the High Speed Rail project now postponed, only the brand name of the developer will be able to win investors' confidence.

As such, developers who have a good reputation among Singaporeans and local buyers will stand to win.

Word-of-mouth marketing will be the way forward.

#4: Possible spillover impact in tourism and retail sectors
Picture
Johor Bahru City Square is a popular mall among Malaysians and Singaporeans. Photo: Khalil Adis Consultancy.
The allure of Malaysia is the affordable holiday destination, the many scenic nature and food trails it offers, its close proximity to Singapore and the strength of the Singapore dollar.

Thus, December is typically a busy month at the checkpoints as many Singaporeans go for a short break to Johor and beyond.

As the tension escalates, Singaporeans are likely to stay away this holiday season unless absolutely necessary.

In such a scenario, the tourism and retail sectors in popular malls in Johor Bahru like City Square and KSL will be affected.

In addition, many reservist units and national servicemen are being recalled for mobilisation exercises. 

Many will have no choice but to stay in Singapore.

#5: Malaysians will also be affected
Picture
Motorist heading to the Woodlands Checkpoint. Photo: Khalil Adis Consultancy.
​The current situation affects not just Singaporeans but also Malaysians living in Johor.

In fact, many brave the causeway in the wee hours every morning just to feed their family back home.

As we speak, Johoreans have expressed their concerns that their livelihood in Singapore may be impacted and hope the issue can be resolved amicably.
0 Comments

    Khalil Adis

    An independent analysis from yours truly

    Archives

    December 2024
    February 2024
    January 2024
    July 2023
    June 2023
    May 2023
    April 2023
    January 2023
    December 2022
    November 2022
    August 2022
    July 2022
    April 2022
    March 2022
    January 2022
    November 2021
    October 2021
    September 2021
    June 2021
    April 2021
    March 2021
    January 2021
    December 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    March 2018
    February 2018
    January 2018
    December 2017
    September 2017
    July 2017
    June 2017
    December 2016

    Categories

    All
    121 Residences
    ABSD
    Affordable Homes
    Airbnb
    Allianz Real Estate
    Ang Mo Kio
    Astaka
    Astaka Holdings Limited
    Avenue South Residence
    Aviation Park
    Bandar Malaysia
    Bank Negara Malaysia
    Bayan Lepas LRT Line
    Bedok
    Below Market Value Property
    Branded Residences
    Bright Hill
    BTO Flats
    Budget 2019
    Budget 2020
    Bukit Chagar
    Bukit Panjang
    Cagamas Berhad
    Cairnhill 16
    Causeway Point
    Cheonggyecheon
    Chinatown Kuala Lumpur
    Circle Line
    City Plaza
    Cochrane MRT Station
    COVID19
    CPF
    Cross Island Line
    Defu
    En-bloc
    Energy Saving Tips
    Estate Planning
    Excelsior International School
    Family Violence
    First Home
    Foon Yew High School
    Forest City
    Geylang Serai
    Geylang Serai Bazaar
    GlaxoSmithKline
    Glomac Berhad
    Government Land Sales (GLS) Programme
    Greater Southern Waterfront
    HDB
    Health City Novena
    Heng Swee Keat
    High Speed Rail
    Home Mortgage
    Home Ownership Campaign 2019
    Home Renovation
    Home Rental
    Hougang
    Ibrahim International District
    IKEA Cheras
    Imperial Jade Residenz
    Interior Design
    Iskandar Halal Park
    Iskandar Malaysia
    Iskandar Regional Development Authority
    JB Food Trail
    JB-Woodlands RTS Link
    Johor Bahru
    Johor Bahru City Council
    Johor Bahru City Square
    Johor Property
    Johor Real Estate
    Joint Tenancy
    Joo Chiat Complex
    JPPH
    Jurong Lake District
    Jurong Regional Line
    Jurong West
    Keppel REIT
    Khaw Boon Wan
    KLCC
    KOMTAR JBCC
    KTM Terminal Skypark
    Kuala Lumpur Property
    Kuala Lumpur Real Estate
    Land Transport Authority
    LED Lighting
    Lim Guan Eng
    London Property Market
    London Real Estate
    Loyang
    LRT Bandar Utama-Klang Line (Klang Valley LRT Line 3)
    Malaysia Property
    Malaysia Real Estate
    Masterskill University College Of Health Sciences
    Media Interview
    Melaka Property
    Melaka Real Estate
    Menara Maybank
    Merdeka Generation Package
    Ministry Of Finance Malaysia
    Ministry Of Social And Family Development
    MM2H
    Mutiara Rini Sdn Bhd
    MyTOWN Shopping Centre
    National Day Rally 2019
    Negeri Sembilan Property
    Negeri Sembilan Real Estate
    Novena
    Ocean Financial Centre
    One Bukit Senyum
    One Cochrane
    Overleveraging
    Oxley Towers Kuala Lumpur City Centre
    P2P Funding
    Pan Island Link
    Park Nova
    Park Place Residences At PLQ
    Pasar Karat
    Pasar Seni MRT Station
    Pasir Gudang
    Pasir Gudang Hospital
    Pasir Ris
    Pasir Ris East
    Paya Lebar Central
    Paya Lebar Quarter
    Paya Lebar Square
    Penang Property
    Penang Real Estate
    Penang Transport Master Plan
    Pengerang Rapid Project
    Persada-johor
    Petaling-street
    Plaza-rakyat-lrt-station
    Plp-architecture
    Plq-mall
    Pr1ma
    Ptptn
    Public-relations
    Punggol
    Punggol-digital-district
    Rapid-transit-system-rts-link
    Renovation
    Selangor Property
    Selangor Real Estate
    Sengkang
    Serangoon-north
    Seri-alam-properties-sdn-bhd
    Singapore-budget-2019
    Singapore-budget-2020
    Singapore-economy
    Singapore-general-election
    Singapore Luxury Property Market
    Singapore Office Market
    Singapore Property
    Singapore Property Market
    Singapore Real Estate
    Singapore Retrenchments
    SME Co-Investment Fund III
    Sri Geylang Serai
    Suasana Iskandar Malaysia
    Sungai Buloh Kajang Line
    Sungai Buloh - Kajang Line (SBK Line)
    Sungai Buloh Serdang Putrajaya Line
    Tampines
    Tampines North
    Tanjong Katong Complex
    Tavistock
    Teck Ghee
    The Workers' Party
    Thomson East Coast Line
    Thomson-East Coast Line
    Thomson-East Coast MRT Line
    Tokyo Property Market
    Tokyo Real Estate
    Transit Oriented Development
    TREC
    TriTower Residence
    Tun Razak Exchange
    UM Land
    Universiti Kuala Lumpur
    Universiti Teknologi Mara
    URA Draft Master Plan 2014
    URA Draft Master Plan 2019
    Urban Redevelopment Authority
    US-China Trade War
    Vivian Balakrishnan
    Waterway Point
    Wisma Geylang Serai
    Woodland Regional Centre
    Woodlands Central
    Woodlands North Coast
    Woodlands North MRT Station
    Woodlands Regional Centre
    Yishun
    Y Waterway@Punggol

    RSS Feed

Picture

100 Peck Seah Street
#08-14
PS 100
Singapore (0793333)
Email: [email protected]
Phone: +65 8201 9254

What the market is saying

"Hi thank you so much. Keep updating." - Sharveena

"I bought your new book through Popular Bookfest in KLCC yesterday. I just finished my reading. I like it so much as it saved my time to search those information that I have been looking for it. Thank you for writing this book. I believed you have spent a lot of time to prepare it". - PY Chan

Want more bite-sized news?

    Subscribe Today!

Submit
  • Home
  • About
  • Blog
  • Books
  • Services
  • Media
  • Events
  • Awards/Accolades
  • Clients
  • Portfolio
  • Contact
  • Corporate Responsibility