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Announced under Budget 2019, first-time homebuyers should take advantage of the schemes that are being rolled out by the federal government.
By Khalil Adis
By Khalil Adis
A shophouse in Negri Sembilan with the Malaysian flag. First-time homebuyers can apply for various schemes under Budget 2019. Photo: Khalil Adis Consultancy.
In case you had missed the good news that was announced during Budget 2019, there will indeed be more help coming your way if you need help in buying your first home this year.
Here are the quick low-down on what the schemes are.
Here are the quick low-down on what the schemes are.
#1: P2P (peer-to-peer) Funding
Under this scheme, you will need to put down a 20 per cent deposit while the remaining 80 per cent will be financed by investors. Infographics: Khalil Adis Consultancy.
What:
This is a private sector-driven “Property Crowdfunding” platform to serve as an alternative source of financing for first-time house buyers.
It will be regulated by Securities Commission.
When:
The P2P exchange will go live in the first quarter of 2019.
How it works:
Interested applicants will need to put a 20 per cent downpayment while the remaining 80 per cent will be funded by investors.
Exactly when and how this will be done will be announced closer to the date by the Finance Ministry.
Who should apply:
Those who have the required 20 per cent downpayment. It is not clear if this is in cash and/or EPF.
#2: RM1 billion fund allocated for first-time homebuyers
This is a private sector-driven “Property Crowdfunding” platform to serve as an alternative source of financing for first-time house buyers.
It will be regulated by Securities Commission.
When:
The P2P exchange will go live in the first quarter of 2019.
How it works:
Interested applicants will need to put a 20 per cent downpayment while the remaining 80 per cent will be funded by investors.
Exactly when and how this will be done will be announced closer to the date by the Finance Ministry.
Who should apply:
Those who have the required 20 per cent downpayment. It is not clear if this is in cash and/or EPF.
#2: RM1 billion fund allocated for first-time homebuyers
Malaysians attending a talk at Havoc Hartanah Kuala Lumpur in September 2015. A special fund has been set up for those earning less than RM2,300 a month. Photo: Khalil Adis Consultancy.
What:
This is a special fund for those earning less than RM2,300 a month.
The fund can only be used to purchase properties priced up to RM150,000.
Bank Negara will be setting up the fund. More details here
When:
The fund is available for two years until the allocation is spent as of 1 January 2019.
You may apply for them at the following banks at a rate of 3.5 per cent:
This is a special fund for those earning less than RM2,300 a month.
The fund can only be used to purchase properties priced up to RM150,000.
Bank Negara will be setting up the fund. More details here
When:
The fund is available for two years until the allocation is spent as of 1 January 2019.
You may apply for them at the following banks at a rate of 3.5 per cent:
#3: RM25 million fund allocated for first-time home buyers
Johoreans attending Havoc Hartanah Iskandar Malaysia in November 2014. This fund is meant for those earning up to RM5,000. Photo: Khalil Adis Consultancy.
What:
This is a special fund meant for those with a household income of up to RM5,000
The fund provides a mortgage guarantee to enable borrowers to obtain higher financing, including deposit fees.
The fund can is for first-time house buyers who are purchasing properties worth up to RM500,000
The fund will also provide a grant stamp duty exemption of up to the first RM300,000 on transfer instruments and loan agreements for two years until Dec 2020.
The fund will be run by Cagamas.
When:
Unfortunately, details are scant. You may check Cagamas Bhd for updates.
This is a special fund meant for those with a household income of up to RM5,000
The fund provides a mortgage guarantee to enable borrowers to obtain higher financing, including deposit fees.
The fund can is for first-time house buyers who are purchasing properties worth up to RM500,000
The fund will also provide a grant stamp duty exemption of up to the first RM300,000 on transfer instruments and loan agreements for two years until Dec 2020.
The fund will be run by Cagamas.
When:
Unfortunately, details are scant. You may check Cagamas Bhd for updates.
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If you are unsure about the procedures on home renovation, fret not. Follow these six simple steps to a fabulous-looking home.
By Khalil Adis
By Khalil Adis
Embarking on your own home renovation project should be an enjoyable process. Graphics: Shutterstock.
The new year will probably see some homeowners moving to a new home and embarking on their home renovation.
While many will likely take up a home renovation package, some may opt to do them in stages.
In fact, this option is ideal for those who do not wish to take a loan and will allow you to have full control over the cost.
However, taking the first step in home renovation can indeed be a bewildering experience especially for the uninitiated.
I mean, where do you even start?
This was indeed the question I had asked when I first received the keys to my new home.
When embarking on my own home renovation project, I chose not to take a loan as I do not wish to burden myself with debt.
While my DIY renovation project is still a work-in-progress, here are some tips that I had learnt along the way.
Follow these steps so that your own home renovation will go off without a hitch.
#1: Work on your floor plan first
While many will likely take up a home renovation package, some may opt to do them in stages.
In fact, this option is ideal for those who do not wish to take a loan and will allow you to have full control over the cost.
However, taking the first step in home renovation can indeed be a bewildering experience especially for the uninitiated.
I mean, where do you even start?
This was indeed the question I had asked when I first received the keys to my new home.
When embarking on my own home renovation project, I chose not to take a loan as I do not wish to burden myself with debt.
While my DIY renovation project is still a work-in-progress, here are some tips that I had learnt along the way.
Follow these steps so that your own home renovation will go off without a hitch.
#1: Work on your floor plan first
You will need to make several revisions on your floor plan before finally nailing the perfect one. Do walk around your space to get the most efficient layout. Screen grab from Homestyler.
If you do not have any training in interior design, then you may wish to either engage an interior designer to do the proposed layout or using interior design software like Homestyler.
For detailed tips on some of the interior design basics, refer to my previous blog post here.
#2: Turn on your power and gas supply
For detailed tips on some of the interior design basics, refer to my previous blog post here.
#2: Turn on your power and gas supply
Screen grab of www.openelectricity.sg. From November 2018, consumers in Singapore have more options for their power supply.
This is a crucial second step as you need power and gas before embarking on your labour of love.
The latter is ideal if you want to have piped gas for your stove and water heater.
Otherwise, you can opt for LPG gas delivery from the various local supplier.
However, do note the gas cylinders do take up a significant portion of your kitchen cabinet and you may run out of gas while cooking.
#3: Decide where you want to place your air-conditioning units and then install them
The latter is ideal if you want to have piped gas for your stove and water heater.
Otherwise, you can opt for LPG gas delivery from the various local supplier.
However, do note the gas cylinders do take up a significant portion of your kitchen cabinet and you may run out of gas while cooking.
#3: Decide where you want to place your air-conditioning units and then install them
Try to place your air-conditioning units as close to each other so they have an efficient connection to the trunking. Units that are placed close to the bathroom are the best. Screen grab from Homestyler
You can make this decision by drawing the proposed location on your floor plan.
The number of air-conditioning units depends on the size of your home.
Go for inverter units as they are energy saving and come with energy saving modes.
You will need to install your air-con first before working on the next step.
#4: Work on the lighting points from the floor plan and then call in the ceiling contractor
The number of air-conditioning units depends on the size of your home.
Go for inverter units as they are energy saving and come with energy saving modes.
You will need to install your air-con first before working on the next step.
#4: Work on the lighting points from the floor plan and then call in the ceiling contractor
Sketch out what you have in mind the locations and lighting effects you want to achieve on your floor plan. Indicate also if you want a downlight in your cupboard. Screen grab from Homestyler.
An example of cove lighting.
An example of an L-box.
This is an important next step before calling the carpenter to install your cupboards and other fittings.
As you can see from the floor plan that I have uploaded here, it shows the location of the existing lighting points.
From the location of the cupboards and fittings, you can then plan where you want to install the lighting points.
Be sure to plan this to a T as you will be charged around S$65 for each lighting point.
Next, you need to order your own LED lights.
There are many brands in the market.
I opted for Xiaomi Phillips Zhirui downlight as they are value-for-money and come with an adjustable colour temperature that can be controlled from your phone.
Unfortunately, they are not available in Singapore so you will need to order online.
You then need to download the Mi Home app in order to control the lighting.
For ceiling works, you may wish to opt for a combination of an L-box and cove lighting (see above).
An L-box can dramatically alter the ambience of your room making it very welcoming while giving the illusion of height due to the indirect lighting.
This will costs around S$350 onwards.
You may also opt for a cove lighting to give a very clean and intimate feel to your living space.
However, do bear in mind it reduces your ceiling height due to the plastering and ceiling works.
The cost varies according to the size - typically it starts from around S$500 onwards.
You may also choose to opt for a centre ceiling flat panels.
This will cost around S$400.
The contractor will build the L-box and false ceiling around your already installed air-conditioning units.
Speaking of which, I would also urge you to install ceiling fans even if you have already installed an air-con system in your home.
This is because natural ventilation works best in our tropical weather and it can significantly cut down your electricity bill by up to 20 to 30 per cent.
Choose one that comes with LED lighting.
While there are many brands in the market, most are not aesthetically pleasing.
You might want to opt for a timeless design like the Haiku L-Series Fan.
Although slightly pricey, the fan is surprisingly quiet and comes with 16 levels of brightness.
I chose black as they fit with the monochromatic colour scheme of my home.
As for installation, you can opt for it to be installed for you (assuming the rest of the lighting works are already done).
Otherwise, the ceiling contractor will charge you S$60 for installation.
Remember, you will need to show this lighting plan to the ceiling contractor/electrician so they can execute it accordingly.
Try to get at least three quotations.
Word-of-mouth referrals, in my opinion, work best.
#5: Call in the carpenter
As you can see from the floor plan that I have uploaded here, it shows the location of the existing lighting points.
From the location of the cupboards and fittings, you can then plan where you want to install the lighting points.
Be sure to plan this to a T as you will be charged around S$65 for each lighting point.
Next, you need to order your own LED lights.
There are many brands in the market.
I opted for Xiaomi Phillips Zhirui downlight as they are value-for-money and come with an adjustable colour temperature that can be controlled from your phone.
Unfortunately, they are not available in Singapore so you will need to order online.
You then need to download the Mi Home app in order to control the lighting.
For ceiling works, you may wish to opt for a combination of an L-box and cove lighting (see above).
An L-box can dramatically alter the ambience of your room making it very welcoming while giving the illusion of height due to the indirect lighting.
This will costs around S$350 onwards.
You may also opt for a cove lighting to give a very clean and intimate feel to your living space.
However, do bear in mind it reduces your ceiling height due to the plastering and ceiling works.
The cost varies according to the size - typically it starts from around S$500 onwards.
You may also choose to opt for a centre ceiling flat panels.
This will cost around S$400.
The contractor will build the L-box and false ceiling around your already installed air-conditioning units.
Speaking of which, I would also urge you to install ceiling fans even if you have already installed an air-con system in your home.
This is because natural ventilation works best in our tropical weather and it can significantly cut down your electricity bill by up to 20 to 30 per cent.
Choose one that comes with LED lighting.
While there are many brands in the market, most are not aesthetically pleasing.
You might want to opt for a timeless design like the Haiku L-Series Fan.
Although slightly pricey, the fan is surprisingly quiet and comes with 16 levels of brightness.
I chose black as they fit with the monochromatic colour scheme of my home.
As for installation, you can opt for it to be installed for you (assuming the rest of the lighting works are already done).
Otherwise, the ceiling contractor will charge you S$60 for installation.
Remember, you will need to show this lighting plan to the ceiling contractor/electrician so they can execute it accordingly.
Try to get at least three quotations.
Word-of-mouth referrals, in my opinion, work best.
#5: Call in the carpenter
Indirect lighting can add a dramatic ambience to your kitchen. Photo: Khalil Adis Consultancy.
Now that you have installed your lightings and finished with your ceiling works, it is time to work on the rest of your fittings like kitchen cabinets and cupboards.
The carpenter will build your fittings up to the height of your false ceiling.
Generally, fittings will require a space of around 600mm.
However, if you do not have enough space, measurement of 300mm onwards works just fine especially if it is for display cabinet in the living room.
If you need flexible living space, go for slidable/foldable doors.
I particularly like those from Ewins as they come in a myriad of design and are customisable to your living space.
They are slightly pricey from the usual carpenter’s quote but worth considering especially if you live in a small apartment like mine.
The staff are also very helpful and can help you draft a design before proceeding to install the fittings.
#6: Blinds/curtains should be the last
The carpenter will build your fittings up to the height of your false ceiling.
Generally, fittings will require a space of around 600mm.
However, if you do not have enough space, measurement of 300mm onwards works just fine especially if it is for display cabinet in the living room.
If you need flexible living space, go for slidable/foldable doors.
I particularly like those from Ewins as they come in a myriad of design and are customisable to your living space.
They are slightly pricey from the usual carpenter’s quote but worth considering especially if you live in a small apartment like mine.
The staff are also very helpful and can help you draft a design before proceeding to install the fittings.
#6: Blinds/curtains should be the last
Modern roller blinds at Suasana Iskandar Malaysia. Choose something timeless and easy to maintain for that clean, sleek look. Photo: Khalil Adis Consultancy.
Now that you have everything in place, you can dress up your windows with either curtains or blinds.
Curtains will require regular washing so it may not be ideal if you do not have the time to do it.
If you want a clean, modern look, then blinds are the way to go.
They are many options to choose from in the market according to the interior design theme you have in mind.
A parting word
In closing, a DIY home renovation project will require your 110 per cent commitment and attention but the outcome is worth it.
Remember to not spend more than 10 per cent of the purchase price of your home and to use neutral colours as they are easy on the eyes.
Most importantly, enjoy the entire design process, do not rush it and unleash your creativity to make the living space uniquely yours.
Curtains will require regular washing so it may not be ideal if you do not have the time to do it.
If you want a clean, modern look, then blinds are the way to go.
They are many options to choose from in the market according to the interior design theme you have in mind.
A parting word
In closing, a DIY home renovation project will require your 110 per cent commitment and attention but the outcome is worth it.
Remember to not spend more than 10 per cent of the purchase price of your home and to use neutral colours as they are easy on the eyes.
Most importantly, enjoy the entire design process, do not rush it and unleash your creativity to make the living space uniquely yours.
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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
By Khalil Adis
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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JB is taking the word ‘hipster' up a few notches and giving Kampong Glam a serious run for its money.
By Khalil Adis
By Khalil Adis
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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.
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.
- Published on
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
By Khalil Adis
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
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
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
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
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
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
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
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
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
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
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.
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.
- Published on
Allianz Real Estate investment in Ocean Financial Centre is part of its strategy to allocate 5 per cent to 10 per cent of its real estate investments to the Asia-Pacific region.
By Khalil Adis
#1: Ocean Financial Centre is a 43-storey Grade A office tower
By Khalil Adis
#1: Ocean Financial Centre is a 43-storey Grade A office tower
Ocean Financial Centre is strategically located near to Raffles Place MRT station. Photo: Keppel Land
The Grade A office tower is located strategically at the intersection of the Raffles Place and Marina Bay financial precincts with retail component on its ground floor and basement level.
It is accessible via the Raffles Place MRT station.
#2: Singapore’s office market is experiencing strong rental growth
It is accessible via the Raffles Place MRT station.
#2: Singapore’s office market is experiencing strong rental growth
View of office towers in Singapore's downtown area. The Lion City's office market is doing well compared to the private residential and HDB markets. Photo: Khalil Adis Consultancy.
While Singapore’s private residential market has been muted by the recent property cooling measures, its office market is doing well.
"The Singapore office market is experiencing strong rental growth. From an occupational cost and efficiency perspective it continues to be favourable vis-a-vis other comparable markets like Hong Kong,” said Mr Rushabh Desai, CEO Asia Pacific at Allianz Real Estate,.
#3: The divestment is worth S$537.3 million
"The Singapore office market is experiencing strong rental growth. From an occupational cost and efficiency perspective it continues to be favourable vis-a-vis other comparable markets like Hong Kong,” said Mr Rushabh Desai, CEO Asia Pacific at Allianz Real Estate,.
#3: The divestment is worth S$537.3 million
Ocean Financial Centre is a Grade A office tower designed by world-renowned architectural firm, Pelli Clarke Pelli. Photo: Keppel Land
According to Keppel REIT Management Limited, the divestment is part of ongoing portfolio optimisation efforts and presents a unique opportunity to unlock value for its unitholders.
The divestment by Keppel REIT of a 20 per cent minority stake in its subsidiary, Ocean Properties LLP which holds Ocean Financial Centre, to Allianz Real Estate has an agreed property value S$537.3 million.
This is 16.8 per cent above Keppel REIT’s historical purchase price of S$460.2 million.
#4: Divestment has a target completion date by end December 2018
The divestment by Keppel REIT of a 20 per cent minority stake in its subsidiary, Ocean Properties LLP which holds Ocean Financial Centre, to Allianz Real Estate has an agreed property value S$537.3 million.
This is 16.8 per cent above Keppel REIT’s historical purchase price of S$460.2 million.
#4: Divestment has a target completion date by end December 2018
The Ocean Financial Centre Green Wall. Photo: Keppel Land.
According to Keppel REIT, it currently holds a 99.9 per cent interest in Ocean Financial Centre through Ocean Properties LLP.
Keppel REIT said the divestment is expected to be completed by end December 2018
With Allianz now holding a 20 per cent a minority stake in Keppel REIT’s subsidiary, Ocean Properties LLP, will continue to maintain a majority interest in Ocean Financial Centre through its 79.9 per cent interest in Ocean Properties LLP.
Additionally, Keppel REIT said it will continue to be the asset manager for Ocean Properties LLP in relation to Ocean Financial Centre.
#5: Unitholders of Keppel REIT set to benefit from the divestment
Keppel REIT said the divestment is expected to be completed by end December 2018
With Allianz now holding a 20 per cent a minority stake in Keppel REIT’s subsidiary, Ocean Properties LLP, will continue to maintain a majority interest in Ocean Financial Centre through its 79.9 per cent interest in Ocean Properties LLP.
Additionally, Keppel REIT said it will continue to be the asset manager for Ocean Properties LLP in relation to Ocean Financial Centre.
#5: Unitholders of Keppel REIT set to benefit from the divestment
The divestment will see Keppel REIT realising approximately S$77.1 million of capital gains. Graphics: Shutterstock.
According to Tan Swee Yiow, CEO of Keppel REIT Management Limited, the divestment is “in line with our commitment to deliver sustainable total return to unitholders”.
"The partial divestment of Ocean Financial Centre is a unique opportunity for unitholders to realise part of the capital gains from this premium Grade A office building, while maintaining exposure to the strengthening Singapore office market. Despite this being a divestment of a non-controlling stake, the agreed property value reflects the asset's quality and underlying value,” he said in a statement.
The divestment will see Keppel REIT realising approximately S$77.1 million of capital gains.
This translates to an attractive net asset-level return of 8.3 per cent per annum over the holding period.
"The partial divestment of Ocean Financial Centre is a unique opportunity for unitholders to realise part of the capital gains from this premium Grade A office building, while maintaining exposure to the strengthening Singapore office market. Despite this being a divestment of a non-controlling stake, the agreed property value reflects the asset's quality and underlying value,” he said in a statement.
The divestment will see Keppel REIT realising approximately S$77.1 million of capital gains.
This translates to an attractive net asset-level return of 8.3 per cent per annum over the holding period.
- Published on
Singapore's private property market experienced robust growth but was muted midway by property cooling measures. We list down the key highlights in our 2018 property market roundups and our outlook for 2019.
By Khalil Adis
By Khalil Adis
Condominiums located in Tanjong Pagar. The private property market has experienced a strong rebound for the past five quarters. Photo: Khalil Adis Consultancy.
Singapore's private property market saw a steep rebound from the fourth quarter of 2017 after many quarters of decline in its Property Price Index (PPI) since the fourth quarter of 2013.
Figures from the Urban Redevelopment Authority (URA) showed that the Lion City's PPI surged by 11.0 points from 138.7 in the fourth quarter of 2017 to 149.7 points in the third quarter of 2018.
However, the market softened from July onwards post the new property cooling measures.
Here are the top five property market roundups for 2018 and our top five outlooks for 2019.
Roundups:
#1: En-bloc fever
Figures from the Urban Redevelopment Authority (URA) showed that the Lion City's PPI surged by 11.0 points from 138.7 in the fourth quarter of 2017 to 149.7 points in the third quarter of 2018.
However, the market softened from July onwards post the new property cooling measures.
Here are the top five property market roundups for 2018 and our top five outlooks for 2019.
Roundups:
#1: En-bloc fever
Old estates in Singapore tend to go under en-bloc as part of the city's rejuvenation. Photo: Khalil Adis Consultancy.
Singapore's property market was off to a fiery start with several collective sales deal that was concluded during the first half of the year.
They included the iconic Pearl Bank Apartments which was sold for S$728 million sales to CapitaLand and Park West which was sold for S$840.89 million to SingHaiyi Gold Pte Ltd.
Data from Cushman & Wakefield Inc showed that the collective sales market recorded S$3.8 billion of en-bloc transactions in the second quarter.
#2: New property cooling measures introduced
They included the iconic Pearl Bank Apartments which was sold for S$728 million sales to CapitaLand and Park West which was sold for S$840.89 million to SingHaiyi Gold Pte Ltd.
Data from Cushman & Wakefield Inc showed that the collective sales market recorded S$3.8 billion of en-bloc transactions in the second quarter.
#2: New property cooling measures introduced
New ABSD rate. Courtesy of the Monetary Authority of Singapore
New LTV rate. Courtesy of the Monetary Authority of Singapore
To douse the red-hot residential property market, the government announced a slew of property cooling measures in July.
This included increasing the Additional Buyer's Stamp Duty (ABSD) rates and tightening loan-to-value (LTV) limits on residential property purchases.
The new ABSD rates and LTV limits are as above.
As a result, the collective sales market declined with S$353 million worth of transactions recorded in the third quarter, data from Cushman & Wakefield Inc showed.
#3: Industrial property market picks up steam
This included increasing the Additional Buyer's Stamp Duty (ABSD) rates and tightening loan-to-value (LTV) limits on residential property purchases.
The new ABSD rates and LTV limits are as above.
As a result, the collective sales market declined with S$353 million worth of transactions recorded in the third quarter, data from Cushman & Wakefield Inc showed.
#3: Industrial property market picks up steam
View of the Tanjong Pagar Container Terminal and the industrial properties surrounding it. The industrial property market has seen in increase in investment this year. Photo: Khalil Adis Consultancy.
While Singapore's residential property sector has taken quite a hit, its industrial and commercial property sectors are seeing an uptrend in investment sales.
According to data from Cushman & Wakefield Inc, industrial property deals soared 73 per cent to S$1.2 billion in the third quarter while office sales increased by 54 per cent to S$2.1 billion.
Meanwhile, Jones Lang Lasalle Singapore, citing data from JTC statistics said islandwide all-industrial rental correction stayed modest at 0.1 per cent quarter-on-quarter for three consecutive quarters since the fourth quarter of 2017, while the second quarter of 2018 all-industrial price index flat-lined for the first time since trending down in the third quarter of 2014.
#4: HDB resale values are declining
According to data from Cushman & Wakefield Inc, industrial property deals soared 73 per cent to S$1.2 billion in the third quarter while office sales increased by 54 per cent to S$2.1 billion.
Meanwhile, Jones Lang Lasalle Singapore, citing data from JTC statistics said islandwide all-industrial rental correction stayed modest at 0.1 per cent quarter-on-quarter for three consecutive quarters since the fourth quarter of 2017, while the second quarter of 2018 all-industrial price index flat-lined for the first time since trending down in the third quarter of 2014.
#4: HDB resale values are declining
Screen grab of the HDB Resale Price Index courtesy of the Housing & Development Board (HDB).
HDB is a hot bread and butter issue among Singaporeans as 80 per cent of the population lives in public housing flat.
Public interest in HDB dominated the headlines in 2018 as government officials warned that their values could decline, especially those that are more than 40 years with around 50 years left on their 99-year lease.
This marked a stark contrast during Lee Kuan Yew's era when he assured Singaporeans that HDB flats are an asset.
Property agents who specialise in HDB flats in mature estates such as Toa Payoh say they are already seeing prices of older resale flats declining as many buyers are staying clear from such properties following the ongoing debate.
For example, according to the third quarter data from the HDB in 2018, a 3-bedroom flat in the estate was transacted for S$279, 000.
In contrast, the median price during the same period in 2016 was transacted for S$300,000.
Having said that, other factors do come into play such as the supply of new Built-to-Order (BTO) flats which has influenced the resale price.
However, until the government addresses the uncertainty surrounding older estates, we are likely to see the values declining as it is very much influenced by market sentiment.
#5: Widening price gap between a private property and an HDB flat
Public interest in HDB dominated the headlines in 2018 as government officials warned that their values could decline, especially those that are more than 40 years with around 50 years left on their 99-year lease.
This marked a stark contrast during Lee Kuan Yew's era when he assured Singaporeans that HDB flats are an asset.
Property agents who specialise in HDB flats in mature estates such as Toa Payoh say they are already seeing prices of older resale flats declining as many buyers are staying clear from such properties following the ongoing debate.
For example, according to the third quarter data from the HDB in 2018, a 3-bedroom flat in the estate was transacted for S$279, 000.
In contrast, the median price during the same period in 2016 was transacted for S$300,000.
Having said that, other factors do come into play such as the supply of new Built-to-Order (BTO) flats which has influenced the resale price.
However, until the government addresses the uncertainty surrounding older estates, we are likely to see the values declining as it is very much influenced by market sentiment.
#5: Widening price gap between a private property and an HDB flat
View of an HDB flat in downtown Singapore surrounded by towering condominiums and commercial buildings. Photo: Khalil Adis Consultancy.
While the private property market has seen the price index picking up by some 11.0 points, the HDB Resale Price Index (RPI) has been on a decline.
According to data from the HDB, the RPI has been on a decline since the second quarter of 2013 as it continues to launch BTO flats in the market.
This is the biggest price gap in over 10 years and will likely be a contentious issue when the general election is expected to be called in 2019.
Predictions:
#1: HDB to become a hot-button issue
According to data from the HDB, the RPI has been on a decline since the second quarter of 2013 as it continues to launch BTO flats in the market.
This is the biggest price gap in over 10 years and will likely be a contentious issue when the general election is expected to be called in 2019.
Predictions:
#1: HDB to become a hot-button issue
HDB flats located in the mature estate of Toa Payoh. Photo: Khalil Adis Consultancy.
2019 is expected to be an election year.
As such, HDB will be a hot-button issue as 80 per cent of the population lives in HDB flats.
As we have discussed above, HDB resale prices are already on the decline while the price gap between a private property and an HDB flat has widened considerably.
The government will need to address the ongoing debate on the value of older HDB flats moving forward.
#2: Fewer BTO flats to be launched
As such, HDB will be a hot-button issue as 80 per cent of the population lives in HDB flats.
As we have discussed above, HDB resale prices are already on the decline while the price gap between a private property and an HDB flat has widened considerably.
The government will need to address the ongoing debate on the value of older HDB flats moving forward.
#2: Fewer BTO flats to be launched
A Built-To-Order (BTO) flat being built in the Matilda district in Punggol. Photo: Khalil Adis Consultancy.
In November, the HDB said it launched 7,214 flats for sale under the Build-To-Order (BTO) and Sale of Balance Flats (SBF) exercise.
This comprises 3,802 BTO units and 3,412 SBF units across various towns estates such as Sembawang, Sengkang, Tengah, Yishun and Tampines.
However, there will be fewer units being offered in the next BTO launch exercise in February 2019.
The HDB said it will offer about 3,100 flats in Jurong West, Kallang Whampoa and Sengkang.
#3: A sellers' market
This comprises 3,802 BTO units and 3,412 SBF units across various towns estates such as Sembawang, Sengkang, Tengah, Yishun and Tampines.
However, there will be fewer units being offered in the next BTO launch exercise in February 2019.
The HDB said it will offer about 3,100 flats in Jurong West, Kallang Whampoa and Sengkang.
#3: A sellers' market
An HDB flat located in Taman Jurong. Fewer BTO flats in the market could push buyers to buy resale HDB flats instead. Photo: Khalil Adis Consultancy.
With fewer BTO flats on the offering, this could possibly divert some of the buyers to the resale market and prop up the resale prices which have been falling since the second quarter of 2013.
As such 2019 could likely be a sellers' market.
Sellers should watch the market closely while buyers should opt for a BTO quickly.
#4: Five growth areas
As such 2019 could likely be a sellers' market.
Sellers should watch the market closely while buyers should opt for a BTO quickly.
#4: Five growth areas
Scale model of the URA Draft Master Plan 2014 showing Woodlands Regional Centre at the URA Building. Photo: Khalil Adis Consultancy.
As outlined in the URA Master Plan 2014, the five growth areas are located at Woodlands Regional Centre, Jurong Lake District, City Centre, Paya Lebar Central and Punggol Digital District.
Woodlands Regional Centre will be a transportation hub which will connect the Thomson-East Coast Line (TEL) to the Johor-Singapore Rapid Transit System (RTS) via Woodlands North MRT station.
Meanwhile, Jurong Lake District will house the High Speed Rail station linking Singapore to Kuala Lumpur in 90 minutes flat.
The development of the project has been postponed to two years and will now commence construction in 2020 instead of 2018.
Meanwhile, the express service will only commence by 1 January 2031 instead of 31 December 2026, as originally planned.
You can read more about URA Master Plan 2014 here.
#5: Opening of TEL will provide a price booster for properties along the line
Woodlands Regional Centre will be a transportation hub which will connect the Thomson-East Coast Line (TEL) to the Johor-Singapore Rapid Transit System (RTS) via Woodlands North MRT station.
Meanwhile, Jurong Lake District will house the High Speed Rail station linking Singapore to Kuala Lumpur in 90 minutes flat.
The development of the project has been postponed to two years and will now commence construction in 2020 instead of 2018.
Meanwhile, the express service will only commence by 1 January 2031 instead of 31 December 2026, as originally planned.
You can read more about URA Master Plan 2014 here.
#5: Opening of TEL will provide a price booster for properties along the line
Construction of the Woodlands North MRT station next to Republic Polytechnic. Photo: Khalil Adis Consultancy.
The TEL is a 43km MRT Line that will add 31 new stations to the existing rail network, with 7 interchange stations.
It will link to the East-West Line, North-South Line, North-East Line, Circle Line and the Downtown Line.
Spanning from Woodlands North to Sungei Bedok, the line will be opened in stages next year.
Stage one will comprise stations from Woodlands North to Woodlands South.
As such, properties in the Woodland Regional Centre as highlighted above will be among the first to enjoy the price booster when the stations commence service next year.
This will definitely be much to cheer about in the north amid the muted HDB resale market.
It will link to the East-West Line, North-South Line, North-East Line, Circle Line and the Downtown Line.
Spanning from Woodlands North to Sungei Bedok, the line will be opened in stages next year.
Stage one will comprise stations from Woodlands North to Woodlands South.
As such, properties in the Woodland Regional Centre as highlighted above will be among the first to enjoy the price booster when the stations commence service next year.
This will definitely be much to cheer about in the north amid the muted HDB resale market.
- Published on
2018 is a watershed moment for Malaysia's politics and the subsequent impact on the property market. We list down the key highlights in our 2018 property market roundups and our outlook for 2019.
By Khalil Adis
By Khalil Adis
The Malaysian flag, also known as Jalur Gemilang ("Stripes of Glory") against the backdrop of the recently completed Sungai Buloh - Kajang Line (SBK Line) which is a project of national importance. Photo: Khalil Adis Consultancy
May 10 2018 was a watershed moment in Malaysia as it marked the first change of government in the country's history.
Since 1957, it had enjoyed an uninterrupted reign from the ruling Barisan Nasional (BN) coalition.
However, the high cost of living, falling Ringgit, the lack of affordable homes in the market, high unemployment among fresh graduates, the unfettered check on power and the 1MDB scandal proved to be the undoing for BN as Malaysians far and wide casted their protest vote in the ballot box
The message from Malaysians is clear - they have had enough and want a new, clean government to lead the way.
With the Pakatan Harapan government now in power, all eyes are on the newly elected old Prime Minister Tun Mahathir Mohamad and his team to solve the pressing bread and butter issues.
Here are the top five property market roundups for 2018 and our top five outlooks for 2019.
Roundups
#1: Demand-supply mismatch has resulted in an increasing number of unsold homes
Since 1957, it had enjoyed an uninterrupted reign from the ruling Barisan Nasional (BN) coalition.
However, the high cost of living, falling Ringgit, the lack of affordable homes in the market, high unemployment among fresh graduates, the unfettered check on power and the 1MDB scandal proved to be the undoing for BN as Malaysians far and wide casted their protest vote in the ballot box
The message from Malaysians is clear - they have had enough and want a new, clean government to lead the way.
With the Pakatan Harapan government now in power, all eyes are on the newly elected old Prime Minister Tun Mahathir Mohamad and his team to solve the pressing bread and butter issues.
Here are the top five property market roundups for 2018 and our top five outlooks for 2019.
Roundups
#1: Demand-supply mismatch has resulted in an increasing number of unsold homes
Luxury condominium developments surrounding the iconic Petronas Twin Towers. Malaysia is facing a housing glut in the medium to the high-end segment and a severe undersupply of affordable homes. Photo: Khalil Adis Consultancy.
According to Bank Negara, 80 per cent of homes or 146,196 units priced above RM250,000 remained unsold as of end March 2018.
In comparison, 130,690 units were unsold during the same period last year.
"Imbalances observed in the property market continue to persist," Bank Negara had said in a statement.
#2: Rent-to-own scheme being rolled out
In comparison, 130,690 units were unsold during the same period last year.
"Imbalances observed in the property market continue to persist," Bank Negara had said in a statement.
#2: Rent-to-own scheme being rolled out
Bukit Puchong Sales Gallery by Ayer Holdings. The developer is among one of the few offering a rent-to-own scheme for their Foreston and Epic Residence projects. Photo: Khalil Adis Consultancy
To help ease the entry for the first time property buyers, the private sector has come up with a few initiatives.
Some private developers like Ayer Holdings have introduced a ‘Stay & Own' scheme for their Epic Residence and Foreston projects whereby part of the rent will be converted to the downpayment.
This not only provides a temporary solution for those who urgently need a home but also a form of security.
Meanwhile, Maybank has rolled a similar initiative called HouzKEY which they have called as "a rent-to-own solution that helps you to own your dream home."
The scheme involves zero per cent downpayment with the monthly rental forming part of the home financing.
#3: Ministry of Housing and Local Government studying Singapore's HDB model
Some private developers like Ayer Holdings have introduced a ‘Stay & Own' scheme for their Epic Residence and Foreston projects whereby part of the rent will be converted to the downpayment.
This not only provides a temporary solution for those who urgently need a home but also a form of security.
Meanwhile, Maybank has rolled a similar initiative called HouzKEY which they have called as "a rent-to-own solution that helps you to own your dream home."
The scheme involves zero per cent downpayment with the monthly rental forming part of the home financing.
#3: Ministry of Housing and Local Government studying Singapore's HDB model
A Built-to-Order (BTO) project in Punggol, Singapore by the Housing & Development Board (HDB). Photo: Khalil Adis Consultancy.
In July, Zuraida Kamaruddin, the Minister of Housing and Local Government paid an official visit to Singapore to study the HDB model.
Singapore has succeeded to build demand driven homes under its Built-to-Order (BTO) scheme to house 80 per cent of the Singapore population.
This is especially useful in Malaysia where there is currently a demand-supply mismatch as in point number one.
#4: Malaysia looking into having a single housing government agency
Singapore has succeeded to build demand driven homes under its Built-to-Order (BTO) scheme to house 80 per cent of the Singapore population.
This is especially useful in Malaysia where there is currently a demand-supply mismatch as in point number one.
#4: Malaysia looking into having a single housing government agency
The HDB Hub located in Toa Payoh. The HDB is a government housing agency that aims to provide affordable homes for all Singaporeans. Photo: Khalil Adis Consultancy
In Malaysia, there are so many affordable housing programmes being rolled out by the state and federal governments such as Rumah Milik Mampu, Rumah Selangorku, PR1MA, My First Home, Program Perumaha Rakyat and the list goes on.
This confuses the public.
The Malaysian government is currently looking into having a single housing agency to streamline the whole process much like the HDB model.
If implemented, this could solve the current Malaysian housing woe.
#5: More help for the B40, M40 and first-time homebuyers under Budget 2019
This confuses the public.
The Malaysian government is currently looking into having a single housing agency to streamline the whole process much like the HDB model.
If implemented, this could solve the current Malaysian housing woe.
#5: More help for the B40, M40 and first-time homebuyers under Budget 2019
Malaysians shopping for fresh produce at Pudu Wet Market in Kuala Lumpur. Budget 2019 will provide financial assistance to the targetted groups. Photo: Khalil Adis Consultancy.
More help is on the way for these group of property buyers as announced under Budget 2019.
The measures included the Real Estate and Housing Developers' Association (Rehda) agreement to cut prices by 10 per cent for new launches, the exemption of the Real Property Gains Tax (RPGT) for properties that are priced below RM200,000 and the stamp duty exemption for properties priced in the first RM300,000 up to RM500,000 as well as those priced from RM300,000 to RM1 million.
Outlook for 2019
#1: Affordable homes to continue driving the market
The measures included the Real Estate and Housing Developers' Association (Rehda) agreement to cut prices by 10 per cent for new launches, the exemption of the Real Property Gains Tax (RPGT) for properties that are priced below RM200,000 and the stamp duty exemption for properties priced in the first RM300,000 up to RM500,000 as well as those priced from RM300,000 to RM1 million.
Outlook for 2019
#1: Affordable homes to continue driving the market
Low cost housing near to Cochrane MRT station. There continues to be strong pent-up demand for affordable homes in Malaysia. Photo: Khalil Adis Consultancy.
There is currently a strong pent-up demand for affordable homes but where the supply is lacking.
As such, the affordable home segment will continue to be in strong demand for 2019.
However, there needs to be concerted efforts from both the government and private developers.
Under Budget 2019, the federal government has pledged to spend RM1.5 billion on such homes via the 1Malaysia People's Housing (PR1MA) and Syarikat Perumahan Negara Bhd (SPNB).
Meanwhile, Rehda has agreed to cut prices as stated above.
#2: South KL to be the growth area
As such, the affordable home segment will continue to be in strong demand for 2019.
However, there needs to be concerted efforts from both the government and private developers.
Under Budget 2019, the federal government has pledged to spend RM1.5 billion on such homes via the 1Malaysia People's Housing (PR1MA) and Syarikat Perumahan Negara Bhd (SPNB).
Meanwhile, Rehda has agreed to cut prices as stated above.
#2: South KL to be the growth area
The Leafz condominium located next to the Sungai Besi Highway. Southern KL is the next growth area in Kuala Lumpur. Photo: Khalil Adis Consultancy.
There are many infrastructure projects and economic drivers that are in the pipeline that will further boost property prices in Southern KL.
One such project is Bandar Malaysia will serve as the terminus station for the Kuala Lumpur-Singapore High Speed Rail (KL-Singapore HSR) project linking both cities in 90 minutes flat.
The development for the project has been postponed to two years and will now commence construction in 2020 instead of 2018.
Meanwhile, the express service will only commence by 1 January 2031 instead of 31 December 2026, as originally planned.
Bandar Malaysia has been designated as a site for the Digital Free Trade Zone (DFTZ) initiative by Jack Ma. Home to the Satellite Services Hub, DFTZ is expected to create some 60,000 direct and indirect jobs. It will also possibly serve as the interchange to the MRT Line 3, which has now been postponed.
Another economic driver in the vicinity is Tun Razak Exchange (TRX).
TRX will be a mixed-use development comprising a Grade A office space as well as residential and commercial precincts.
To be developed in several phases over a period of 15 years, the first phase will comprise four investment grade A office towers, a lifestyle retail mall, two 5-star hotels and up to six luxurious residential towers with a target completion date by 2019.
In addition, Bandar Malaysia will house two MRT stations - Bandar Malaysia North and Bandar Malaysia South which will form part of the alignment for the Sungai Buloh - Serdang - Putrajaya Line (SSP Line).
#3: Properties along Sungai Buloh - Serdang - Putrajaya Line (SSP Line) will be sought after
One such project is Bandar Malaysia will serve as the terminus station for the Kuala Lumpur-Singapore High Speed Rail (KL-Singapore HSR) project linking both cities in 90 minutes flat.
The development for the project has been postponed to two years and will now commence construction in 2020 instead of 2018.
Meanwhile, the express service will only commence by 1 January 2031 instead of 31 December 2026, as originally planned.
Bandar Malaysia has been designated as a site for the Digital Free Trade Zone (DFTZ) initiative by Jack Ma. Home to the Satellite Services Hub, DFTZ is expected to create some 60,000 direct and indirect jobs. It will also possibly serve as the interchange to the MRT Line 3, which has now been postponed.
Another economic driver in the vicinity is Tun Razak Exchange (TRX).
TRX will be a mixed-use development comprising a Grade A office space as well as residential and commercial precincts.
To be developed in several phases over a period of 15 years, the first phase will comprise four investment grade A office towers, a lifestyle retail mall, two 5-star hotels and up to six luxurious residential towers with a target completion date by 2019.
In addition, Bandar Malaysia will house two MRT stations - Bandar Malaysia North and Bandar Malaysia South which will form part of the alignment for the Sungai Buloh - Serdang - Putrajaya Line (SSP Line).
#3: Properties along Sungai Buloh - Serdang - Putrajaya Line (SSP Line) will be sought after
The alignment of the station along the SSP Line. Map: MRT Corp.
Speaking of the SSP Line, properties along the alignment, particularly those situated in the growth areas of Sungai Besi, Bandar Malaysia and Cyberjaya City Centre are worth looking into.
Bandar Malaysia will house two MRT stations as stated above and located a few stops away from Tun Razak Exchange MRT station.
Meanwhile, Sungai Besi MRT station is an interchange station to the Sungai Besi LRT station.
It will serve as an interchange to the upcoming High Speed Rail station located in Bandar Malaysia, also in Sungai Besi.
Last but not least, Cyberjaya City Centre MRT station is a transit-oriented development (TOD) project to be developed by Malaysian Resources Corp Bhd (MRCB).
With its experience in building the transport hub in KL Sentral, MRCB will be developing a new city that will be integrated with the MRT station.
Phase one is expected to generate a gross development value (GDV) of RM5.35 billion.
It will feature a 200,000 sq ft convention centre, a 300- to 400-room business hotel, low and high-rise office buildings and a retail podium. Cyberjaya City Centre will have a development plan spanning 20 years.
The MRT station is located just opposite Lim Kok Wing University of Creative Technology.
#4: Penang to get a boost from Phase 1 of Penang Transport Master Plan (PTMP)
Bandar Malaysia will house two MRT stations as stated above and located a few stops away from Tun Razak Exchange MRT station.
Meanwhile, Sungai Besi MRT station is an interchange station to the Sungai Besi LRT station.
It will serve as an interchange to the upcoming High Speed Rail station located in Bandar Malaysia, also in Sungai Besi.
Last but not least, Cyberjaya City Centre MRT station is a transit-oriented development (TOD) project to be developed by Malaysian Resources Corp Bhd (MRCB).
With its experience in building the transport hub in KL Sentral, MRCB will be developing a new city that will be integrated with the MRT station.
Phase one is expected to generate a gross development value (GDV) of RM5.35 billion.
It will feature a 200,000 sq ft convention centre, a 300- to 400-room business hotel, low and high-rise office buildings and a retail podium. Cyberjaya City Centre will have a development plan spanning 20 years.
The MRT station is located just opposite Lim Kok Wing University of Creative Technology.
#4: Penang to get a boost from Phase 1 of Penang Transport Master Plan (PTMP)
Ferry service from Georgetown to Butterworth. Soon, there will be more transportation options on the island. Photo: Khalil Adis Consultancy.
With Lim Guan Eng as Malaysia's Finance Minister, Penang's property market will get a further boost.
Just this month, Phase 1 of PTMP was approved.
It will comprise the Bayan Lepas Light Rail Transit (LRT) project, Pan Island Link 1 (PIL1) project and several main highways.
The proposed Bayan Lepas LRT line will be about 30 km in length with 27 stations running from KOMTAR to the future reclaimed islands in the south.
There will be three interchange stations - KOMTAR, Sky Cab Station linking it to the Sky Cab line across the Malacca Straits and The Light Station linking it to the George Town-Butterworth LRT line.
The LRT Line will also be integrated with the Sungai Nibong Express Bus Terminal at the Sungai Nibong Station.
Meanwhile, PIL 1 is a new 20km highway that will be aligned along the mountainous terrain of the island and will take around 15 minutes from between Gurney Drive to the Second Bridge.
There will be six interchanges in all - Dr Lim Chong Eu Expressway (LCE), Awang, Relau, Paya Terubong, Utama and Gurney.
#5: Johor Bahru to get a boost from the Rapid Transit System (RTS) Link
Just this month, Phase 1 of PTMP was approved.
It will comprise the Bayan Lepas Light Rail Transit (LRT) project, Pan Island Link 1 (PIL1) project and several main highways.
The proposed Bayan Lepas LRT line will be about 30 km in length with 27 stations running from KOMTAR to the future reclaimed islands in the south.
There will be three interchange stations - KOMTAR, Sky Cab Station linking it to the Sky Cab line across the Malacca Straits and The Light Station linking it to the George Town-Butterworth LRT line.
The LRT Line will also be integrated with the Sungai Nibong Express Bus Terminal at the Sungai Nibong Station.
Meanwhile, PIL 1 is a new 20km highway that will be aligned along the mountainous terrain of the island and will take around 15 minutes from between Gurney Drive to the Second Bridge.
There will be six interchanges in all - Dr Lim Chong Eu Expressway (LCE), Awang, Relau, Paya Terubong, Utama and Gurney.
#5: Johor Bahru to get a boost from the Rapid Transit System (RTS) Link
View of the Woodlands Checkpoint from the KTM service playing the Johor Bahru - Woodlands route. Soon, commuters can take the MRT from Bukit Chagar to Woodlands North MRT station instead. Photo: Khalil Adis Consultancy.
Meanwhile, over in the southern state of Johor, Iskandar Malaysia's muted property market will get a boost as the RTS Link will commence construction next year.
The RTS Link will link Bukit Chagar station in Johor Bahru to Woodlands North MRT station in Singapore when completed in 2024.
There are also plans for a Bus Rapid Transit (BRT) system within Bukit Chagar station to link it to the different areas of Iskandar Malaysia.
The BRT will feature a dedicated bus lane with three lines - BRT Line 1 will span from Bukit Chagar to Tebrau, BRT Line 2 from Bukit Chagar to Senai and finally, BRT Line 3 from Bukit Chagar to Iskandar Puteri.
However, based on market talk in the ground, there is a possibility that the BRT system will be upgraded to an LRT system instead.
The RTS Link will link Bukit Chagar station in Johor Bahru to Woodlands North MRT station in Singapore when completed in 2024.
There are also plans for a Bus Rapid Transit (BRT) system within Bukit Chagar station to link it to the different areas of Iskandar Malaysia.
The BRT will feature a dedicated bus lane with three lines - BRT Line 1 will span from Bukit Chagar to Tebrau, BRT Line 2 from Bukit Chagar to Senai and finally, BRT Line 3 from Bukit Chagar to Iskandar Puteri.
However, based on market talk in the ground, there is a possibility that the BRT system will be upgraded to an LRT system instead.
- Published on
You can soon hop onto the train from Penang International Airport to KOMTAR or take the highway to Gurney Drive in 15 minutes flat.
By Khalil Adis
By Khalil Adis
Rapid Penang bus service which runs from Penang International Airport to KOMTAR. Soon, you can hop onto the train instead to Georgetown. Photo: Khalil Adis Consultancy
With the Phase 1 of Penang Transport Master Plan (PTMP) now approved, the Pearl of the Orient is set to scale to greater heights.
Prior to the Malaysian general election, it looked as though the project will never see the light of day as Penang falls under the opposition state of the Democratic Action Party (DAP) while the federal government was run by Barisan Nasional (BN).
However, now that its former Chief Minister Lim Guan Eng is the current Finance Minister under the Pakatan Harapan government, the project is finally gaining traction.
Here are six interesting facts on Phase 1 of PTMP
#1: PTMP exempted from major review
Prior to the Malaysian general election, it looked as though the project will never see the light of day as Penang falls under the opposition state of the Democratic Action Party (DAP) while the federal government was run by Barisan Nasional (BN).
However, now that its former Chief Minister Lim Guan Eng is the current Finance Minister under the Pakatan Harapan government, the project is finally gaining traction.
Here are six interesting facts on Phase 1 of PTMP
#1: PTMP exempted from major review
The Penang Transport Master Plan. Graphics: Khalil Adis Consultancy & World Class Sustainable Summit 2009.
It is interesting to note that while other mega-projects such as the East Coast Railway Line (ECRL), High Speed Rail (HSR), Forest City, MRT Circle Line and Light Rail Transit Line 3 (LRT3) were under review, PTMP is the only one that managed to escape unscathed.
This is definitely good news for Penangites and for the property market as such infrastructure project will further boost property prices on the main island and on the Seberang Perai and Batu Kawan areas.
#2: Phase 1 to comprise an LRT line and several main highways
This is definitely good news for Penangites and for the property market as such infrastructure project will further boost property prices on the main island and on the Seberang Perai and Batu Kawan areas.
#2: Phase 1 to comprise an LRT line and several main highways
Phase 1 will comprise the Bayan Lepas LRT line from Penang International Airport to KOMTAR and several highways on the island. Graphics: Khalil Adis Consultancy
The PTMP estimated cost is around RM46 billion and comprises two LRT Lines - Bayan Lepas Line and Georgetown- Butterworth Line, three Monorail Lines - Ayer Hitam Line, Tanjung Tokong Line and Raja Uda Bukit Mertajam Line and one BRT Line - Permatang Tinggi - Batu Kawan Line.
Phase 1 of PTMP will comprise the Bayan Lepas Light Rail Transit (LRT) project, Pan Island Link 1 (PIL1) project and several main highways.
#3: Bayan Lepas LRT line to have 27 stations (including three interchange stations)
Phase 1 of PTMP will comprise the Bayan Lepas Light Rail Transit (LRT) project, Pan Island Link 1 (PIL1) project and several main highways.
#3: Bayan Lepas LRT line to have 27 stations (including three interchange stations)
Screen grab of the Bayan Lepas LRT line. Source: http://pgmasterplan.penang.gov.my
The proposed Bayan Lepas LRT line will be about 30 km in length with 27 stations running from KOMTAR to the future reclaimed islands in the south.
The line will pass through important landmarks such as KOMTAR, Bayan Lepas Free Industrial Zone (FIZ) and the Penang International Airport as well as several established and planned residential townships and employment hubs in Jelutong, The Light, Gelugor, Batu Uban, SPICE in Bayan Baru, Sg Tiram and Batu Maung.
There will be three interchange stations - KOMTAR, Sky Cab Station linking it to the Sky Cab line across the Malacca Straits and The Light Station linking it to the George Town-Butterworth LRT line.
The LRT Line will also be integrated with the Sungai Nibong Express Bus Terminal at the Sungai Nibong Station.
#4: Pan Island Line 1 to have six interchanges
The line will pass through important landmarks such as KOMTAR, Bayan Lepas Free Industrial Zone (FIZ) and the Penang International Airport as well as several established and planned residential townships and employment hubs in Jelutong, The Light, Gelugor, Batu Uban, SPICE in Bayan Baru, Sg Tiram and Batu Maung.
There will be three interchange stations - KOMTAR, Sky Cab Station linking it to the Sky Cab line across the Malacca Straits and The Light Station linking it to the George Town-Butterworth LRT line.
The LRT Line will also be integrated with the Sungai Nibong Express Bus Terminal at the Sungai Nibong Station.
#4: Pan Island Line 1 to have six interchanges
Screen grab of the Pan Island Link 1 showing the interchanges. Graphics: http://pgmasterplan.penang.gov.my
Meanwhile, the PIL 1 is a new 20km highway to alleviate the heavy traffic load on the Tun Dr Lim Chong Eu Expressway (LCE) and adjacent arterials such as Pengkalan Weld, Jalan Masjid Negeri, Jalan Jelutong and Jalan Sultan Azlan Shah.
According to the Penang state government's website, "it is designed with six interchanges to link highly-populated areas and transport hubs on the island from the Second Bridge and the Penang International Airport all the way towards George Town, Paya Terubong, Bayan Baru, and Relau."
The six interchanges include LCE interchange, Awang interchange, Relau interchange, Paya Terubong Interchange, Utama Interchange and Gurney Interchange.
#5: A travel time of 15 minutes
According to the Penang state government's website, "it is designed with six interchanges to link highly-populated areas and transport hubs on the island from the Second Bridge and the Penang International Airport all the way towards George Town, Paya Terubong, Bayan Baru, and Relau."
The six interchanges include LCE interchange, Awang interchange, Relau interchange, Paya Terubong Interchange, Utama Interchange and Gurney Interchange.
#5: A travel time of 15 minutes
Aerial view of Penang island. The Pan Island Link will cut through the mountainous terrain of the island. Photo: Khalil Adis Consultancy
Upon completion, PIL 1 will be aligned along the mountainous terrain of the island and will take around 15 minutes from between Gurney Drive and the airport, compared with the current 45 minutes under normal traffic conditions on the Tun Dr Lim Chong Eu Expressway (LCE).
#6: Toll-free
#6: Toll-free
Aerial view of the Second Bridge. Unlike this bridge, the Pan Island Link 1 will be toll-free. Photo: Khalil Adis Consultancy
Good news for drivers as the the 20km highway will be toll-free with limited points of access.
This it to ensure certainty in speed and travel time over the entire length of the highway.
The alignment along the mountainous terrain also avoids the possibility of congestions caused by future developments.
Funding will be from the sale of reclaimed land owned by the Penang state government
This it to ensure certainty in speed and travel time over the entire length of the highway.
The alignment along the mountainous terrain also avoids the possibility of congestions caused by future developments.
Funding will be from the sale of reclaimed land owned by the Penang state government
- Published on
A cautionary property tale of joint tenancy, abuse and escaping to a safe haven.
By Khalil Adis
By Khalil Adis
Our former home in Taman Jurong where my mom and I used to live. Photo: Khalil Adis Consultancy
As I watched Incident in a Ghostland last night from the comfort and safety of my home, I cannot help but notice some parallels between the characters and myself.
This psychological horror drama thriller film tells a story of how a mom and her two daughters were ambushed in their home by murderous intruders.
One of her daughters, Beth, conjured up a dream while being physically abused by her sadistic captors in a bid to escape her trauma.
Still being held captive by the intruders, she would go on to write a bestselling book of the same title in the imaginary world that she had created.
For me, however, the abuse that my mom and I had encountered was not a work of fiction.
As a way to deal with it, I wrote a book called Property Buying for Gen Y which would then go on to become a bestseller and was a turning point in my career.
While my story is nothing like Incident in a Ghostland, the physical, psychological and emotional scars still remain until today.
History of abuse
This psychological horror drama thriller film tells a story of how a mom and her two daughters were ambushed in their home by murderous intruders.
One of her daughters, Beth, conjured up a dream while being physically abused by her sadistic captors in a bid to escape her trauma.
Still being held captive by the intruders, she would go on to write a bestselling book of the same title in the imaginary world that she had created.
For me, however, the abuse that my mom and I had encountered was not a work of fiction.
As a way to deal with it, I wrote a book called Property Buying for Gen Y which would then go on to become a bestseller and was a turning point in my career.
While my story is nothing like Incident in a Ghostland, the physical, psychological and emotional scars still remain until today.
History of abuse
A police patrol car in Taman Jurong. The abuse was so bad we had to lodge a police report. Photo: Khalil Adis Consultancy
It is hard to believe a family member that I initially grew up with can turn out to be so abusive.
My parents had divorced and as a result, we were living with our guardians.
My mom and I lived with an uncle while the other family member, was sent to live with another uncle, owing to her very difficult behaviour.
We then got a flat together in Taman Jurong where I was living my mom and this other family member when I was around 18-years-old.
I remember thinking - “Finally! We have a place to call our own.”
However, little did I know this family member would turn out to become a monster.
The first instance of abuse occurred when I was kicked out of home at 21-years-old.
I recall having my bag thrown out of the house and living temporarily at the police station where I was posted at for my national service.
Back then, I did not know any property laws and did not know any better.
I then rented a place for a while near to Admiralty MRT station.
To pay for my rent, I would give tuition.
The subsequent abuse happened in 2014 when the family member came back with her family after having lived overseas.
My mom and I were on the constant receiving end of abuse, bullying and threats to kick us out of our family home.
Mind you, I was paying for the mortgage and taking care of my mom.
Things got so bad that my mom and I had to lodge a police report and sought help from my MP Tharman Shanmugaratnam.
Thankfully, I now have my own home and a safe place for my mom and I away from the abuser.
I subsequently dedicated Property Buying for Gen Y to my MP.
Complications of joint tenancy
My parents had divorced and as a result, we were living with our guardians.
My mom and I lived with an uncle while the other family member, was sent to live with another uncle, owing to her very difficult behaviour.
We then got a flat together in Taman Jurong where I was living my mom and this other family member when I was around 18-years-old.
I remember thinking - “Finally! We have a place to call our own.”
However, little did I know this family member would turn out to become a monster.
The first instance of abuse occurred when I was kicked out of home at 21-years-old.
I recall having my bag thrown out of the house and living temporarily at the police station where I was posted at for my national service.
Back then, I did not know any property laws and did not know any better.
I then rented a place for a while near to Admiralty MRT station.
To pay for my rent, I would give tuition.
The subsequent abuse happened in 2014 when the family member came back with her family after having lived overseas.
My mom and I were on the constant receiving end of abuse, bullying and threats to kick us out of our family home.
Mind you, I was paying for the mortgage and taking care of my mom.
Things got so bad that my mom and I had to lodge a police report and sought help from my MP Tharman Shanmugaratnam.
Thankfully, I now have my own home and a safe place for my mom and I away from the abuser.
I subsequently dedicated Property Buying for Gen Y to my MP.
Complications of joint tenancy
A joint tenancy agreement can lead to a sink or swim situation for property owners. Photo: Shutterstock
While you can walk away from a relationship, it is not so straightforward when it comes to property matters with a family member.
This is especially so if the property is held jointly as in the case of my mom and this family member.
Under a joint tenancy agreement, two individuals agree to jointly hold a property.
While this is the most common method of ownership as it is less costly, a joint tenancy exposes one family member to the financial risks, liabilities and other problems created by the other family member.
In my case, since moving to another country, this family member has not been paying for her mortgage since 2011.
My uncle had intervened with the agreement that I pay for the mortgage until I got my own home.
However, once I received the keys to my home, the other family member became uncontactable.
The HDB subsequently contacted us and told us this family member cannot pay for the house and wants my mom to take over the mortgage.
As a result, my mom now bears the burden.
We then decided to put up the home for rental as my mom is not working and is ill.
The rental income is now helping to cover the mortgage as well as for my mom’s savings.
We also paid the other family member her portion less expenses.
However, the constant threats from the abuser still remain.
If you are among the unlucky few who happen to own a property jointly with a toxic family member, this is what you should do.
#1: Have proper documentation
This is especially so if the property is held jointly as in the case of my mom and this family member.
Under a joint tenancy agreement, two individuals agree to jointly hold a property.
While this is the most common method of ownership as it is less costly, a joint tenancy exposes one family member to the financial risks, liabilities and other problems created by the other family member.
In my case, since moving to another country, this family member has not been paying for her mortgage since 2011.
My uncle had intervened with the agreement that I pay for the mortgage until I got my own home.
However, once I received the keys to my home, the other family member became uncontactable.
The HDB subsequently contacted us and told us this family member cannot pay for the house and wants my mom to take over the mortgage.
As a result, my mom now bears the burden.
We then decided to put up the home for rental as my mom is not working and is ill.
The rental income is now helping to cover the mortgage as well as for my mom’s savings.
We also paid the other family member her portion less expenses.
However, the constant threats from the abuser still remain.
If you are among the unlucky few who happen to own a property jointly with a toxic family member, this is what you should do.
#1: Have proper documentation
Ensure you have all your documents in black and white so it can be tendered as evidence in court. Photo: Shutterstock
Having a problematic joint tenant will likely end up in a legal battle.
Therefore, you need to have proper documentation in case it does end up in court.
This includes whatever payments that you have been paying for the upkeep of the home, property tax and so on.
Other useful documents including emails detailing a pattern of abuse, police reports and other documents to show that the other party has not been paying their home mortgage.
Having all these documents will help bolster your case should it end up in court.
#2: Speak to a lawyer
Therefore, you need to have proper documentation in case it does end up in court.
This includes whatever payments that you have been paying for the upkeep of the home, property tax and so on.
Other useful documents including emails detailing a pattern of abuse, police reports and other documents to show that the other party has not been paying their home mortgage.
Having all these documents will help bolster your case should it end up in court.
#2: Speak to a lawyer
When it comes to a joint tenancy agreement, the right of survivorship means that the other family member takes control of the whole property when the other party passes away,
This can be very problematic when you are dealing with a family member who has not been paying and is abusive.
Speak to a lawyer on what your options are so that you are fully prepared should a death occur in your family.
#3: Do not react
This can be very problematic when you are dealing with a family member who has not been paying and is abusive.
Speak to a lawyer on what your options are so that you are fully prepared should a death occur in your family.
#3: Do not react
Instead of reacting, choose how to respond to the situation in a tactful manner. Image: www.keepcalm-o-matic.co.uk
An abusive person needs to be in control and instigating a fight is one such way of doing so.
While it can be very difficult to not react when the other person is shouting and accusing, you need to realise that the other person is not acting rationally
By not reacting, you have taken away their power to push your buttons.
Stay cool and take the high road all the way.
#4: Minimise contact
While it can be very difficult to not react when the other person is shouting and accusing, you need to realise that the other person is not acting rationally
By not reacting, you have taken away their power to push your buttons.
Stay cool and take the high road all the way.
#4: Minimise contact
By minimising contact with the abuser, you are ensuring your own safety and that things do not escalate out of control.
Focus only on the points concerning the house and steer clear from any arguments.
Do not get sucked into the drama.
#5: Learn to forgive
Focus only on the points concerning the house and steer clear from any arguments.
Do not get sucked into the drama.
#5: Learn to forgive
The lotus flower symbolises love, courage and the practice compassion. Photo: Khalil Adis Consultancy
No matter what has happened, each person deserves to be happy.
When I speak about forgiveness, it is not for the other person but more for yourself.
By learning to forgive, the other person no longer holds any power on you.
I remember how empowering it was when I moved to my own home as the other family member now can no longer bully my mom and I.
You have the right to be treated with respect, to be safe and to have a wonderful life away from the abuser.
Seek help
When I speak about forgiveness, it is not for the other person but more for yourself.
By learning to forgive, the other person no longer holds any power on you.
I remember how empowering it was when I moved to my own home as the other family member now can no longer bully my mom and I.
You have the right to be treated with respect, to be safe and to have a wonderful life away from the abuser.
Seek help
The Ministry of Social and Family Development have various branches in Singapore. Photo: Khalil Adis Consultancy.
The Ministry of Social and Family Development defines violence as physical injury, direct or indirect threats, sexual assault, emotional and psychological torment, damage to property, social isolation or any behaviour which causes a person to live in fear.
My mom and I have experienced some of those forms of abuse described.
While it is hard to believe that your own flesh and blood can turn their back against you, family violence is very real.
In closing, it is my hope by sharing this cautionary tale that others in a similar situation will be spared the agony of what my mom and I have had to endure.
If you have a family member who is abusive or know a family who is being abused, do not hesitate to call the authorities. You can find out more at Break The Silence.
My mom and I have experienced some of those forms of abuse described.
While it is hard to believe that your own flesh and blood can turn their back against you, family violence is very real.
In closing, it is my hope by sharing this cautionary tale that others in a similar situation will be spared the agony of what my mom and I have had to endure.
If you have a family member who is abusive or know a family who is being abused, do not hesitate to call the authorities. You can find out more at Break The Silence.