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An affordable housing project by the Housing & Development Board (HDB) located in Toa Payoh. Photo: Khalil Adis Consultancy
By Khalil Adis
During the previous few budgets by the Barisan Nasional administration, there were a lot of motherhood statements on providing affordable homes under the PR1MA scheme.
However, if you were to ask any young Malaysians, many will tell you that the access to affordable housing remains a faraway dream. Back in 2016 when I was briefly staying in Kuala Lumpur, I would often have a small talk with the Uber and Grab drivers on my journey, asking them whether they had already bought a home.
Most often than not, all of them would reveal the same tragic tale. Yes, they applied for their PRIMA homes a few years ago, but the approval has yet to be announced. This sad reality remains until today.
Some of the major stumbling blocks that contribute to the lack of home ownership among Malaysians are the inability to get loans. This is possible due to bad credit, non-payment of PTPTN or having insufficient cash for the down payment.
Perhaps, more alarmingly, is the shortage of affordable homes in the market combined with the people having insufficient knowledge on how to go doing so.
While I noted that the Ministry of Urban Wellness and Housing under the newly minted Pakatan Harapan government has recently conducted an official visit to Singapore to study our public housing model under the Housing & Development Board (HDB), more needs to be done.
Here are my budget wishlists to solve the current housing crisis.
Education programme to help first-time homebuyers
During the previous few budgets by the Barisan Nasional administration, there were a lot of motherhood statements on providing affordable homes under the PR1MA scheme.
However, if you were to ask any young Malaysians, many will tell you that the access to affordable housing remains a faraway dream. Back in 2016 when I was briefly staying in Kuala Lumpur, I would often have a small talk with the Uber and Grab drivers on my journey, asking them whether they had already bought a home.
Most often than not, all of them would reveal the same tragic tale. Yes, they applied for their PRIMA homes a few years ago, but the approval has yet to be announced. This sad reality remains until today.
Some of the major stumbling blocks that contribute to the lack of home ownership among Malaysians are the inability to get loans. This is possible due to bad credit, non-payment of PTPTN or having insufficient cash for the down payment.
Perhaps, more alarmingly, is the shortage of affordable homes in the market combined with the people having insufficient knowledge on how to go doing so.
While I noted that the Ministry of Urban Wellness and Housing under the newly minted Pakatan Harapan government has recently conducted an official visit to Singapore to study our public housing model under the Housing & Development Board (HDB), more needs to be done.
Here are my budget wishlists to solve the current housing crisis.
Education programme to help first-time homebuyers
There is currently a lack of awareness and financial literacy on the steps toward housing ownership.
As a result, many young Malaysians are ill-equipped on the know-how on buying their first home. The school will be a great place to start educating them on the importance of financial literacy as this will improve their chances of buying their first home while empowering them on the basics of home ownership.
One housing body to gauge demand from the public
As a result, many young Malaysians are ill-equipped on the know-how on buying their first home. The school will be a great place to start educating them on the importance of financial literacy as this will improve their chances of buying their first home while empowering them on the basics of home ownership.
One housing body to gauge demand from the public
The Singapore government's housing agency's The HDB Hub is located at Toa Payoh. Photo: Khalil Adis Consultancy
There is currently a demand-supply mismatch in the country as there is no central governing body to estimate demand for homes.
This leads to issues whereby states like Johor and Kuala Lumpur are facing a massive glut in the medium to luxury end of the market. On the other hand, the strong pent-up demand for affordable housing is still unresolved.
Besides, the various affordable housing programmes rolled out by the state and federal governments confuse the public. As a suggestion, the Malaysian government can emulate the Singapore model whereby affordable homes are being implemented under one single government agency – the HDB.
This will allow the government to gauge demand accurately and to build housing accordingly based on the HDB’s Built-to-Order (BTO) scheme.
Different levels of housing affordability threshold for the various states
This leads to issues whereby states like Johor and Kuala Lumpur are facing a massive glut in the medium to luxury end of the market. On the other hand, the strong pent-up demand for affordable housing is still unresolved.
Besides, the various affordable housing programmes rolled out by the state and federal governments confuse the public. As a suggestion, the Malaysian government can emulate the Singapore model whereby affordable homes are being implemented under one single government agency – the HDB.
This will allow the government to gauge demand accurately and to build housing accordingly based on the HDB’s Built-to-Order (BTO) scheme.
Different levels of housing affordability threshold for the various states
Homes located in Iskandar Puteri in Johor. What is defined as affordable in Johor varies greatly from what is affordable in Kuala Lumpur. Photo: Khalil Adis Consultancy
Last but not least, there needs to be a different level of affordability in the different states in Malaysia rather than a one blanket definition of say, less than RM500,000, for affordable housing.
This is because the cost of living and the median income differs significantly from state to state. According to the Department of Statistics Malaysia, the median income in 2016 for fairly urbanised states like Kuala Lumpur, Putrajaya and Selangor are RM9,073, RM8,275 and RM7,225 respectively.
On the other end of the spectrum, the median income in less urbanised states like Kelantan, Kedah and Pahang are RM3,079, RM3,811 and RM3,979 respectively.
From here, the state government should work backwards to determine the price of affordable housing based on the gross income not exceeding 30% of one’s mortgage.
This will better address and target the needs of Malaysians in each state.
This article was first published by StarProperty.my
This is because the cost of living and the median income differs significantly from state to state. According to the Department of Statistics Malaysia, the median income in 2016 for fairly urbanised states like Kuala Lumpur, Putrajaya and Selangor are RM9,073, RM8,275 and RM7,225 respectively.
On the other end of the spectrum, the median income in less urbanised states like Kelantan, Kedah and Pahang are RM3,079, RM3,811 and RM3,979 respectively.
From here, the state government should work backwards to determine the price of affordable housing based on the gross income not exceeding 30% of one’s mortgage.
This will better address and target the needs of Malaysians in each state.
This article was first published by StarProperty.my
If you are completely clueless about buying your first home and need some pointers, this workshop is for you! The method of delivery will be very light-hearted but with the main points covered. Sign up here
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Housing affordability remains a serious issue as there are still many Malaysians who cannot afford to buy a home. To solve this, Malaysia can take a cue from Singapore's public housing scheme which houses 80 per cent of its population.
Pinnacle @Duxton is an HDB project that was mooted by the late Lee Kuan Yew. It is located in downtown Singapore. Photo: Khalil Adis Consultancy
By Khalil Adis
Ask any young Malaysians and chances are many are still unsure if they can buy their first home.
Their lack of knowledge, financial literacy, inability to get a loan and the lack of supply of such homes across Malaysia are further exacerbating the Malaysian housing issue.
From Johor to Kuala Lumpur, there is currently a demand-supply mismatch whereby most new launches in the market are priced above RM500,000.
This is far beyond what the average Malaysian can afford.
According to the first quarter of 2018 data from the National Property and Information Centre (NAPIC), Selangor has the highest number of existing stock of residential units followed by Johor and Kuala Lumpur at 1,516,960, 795,363 and 471,475 units respectively.
With Budget 2019 to be announced in November, perhaps the Malaysian government can take a cue from Singapore how the city-state is able to house 80 per cent of its population.
Step 1: Have a single affordable housing agency
Ask any young Malaysians and chances are many are still unsure if they can buy their first home.
Their lack of knowledge, financial literacy, inability to get a loan and the lack of supply of such homes across Malaysia are further exacerbating the Malaysian housing issue.
From Johor to Kuala Lumpur, there is currently a demand-supply mismatch whereby most new launches in the market are priced above RM500,000.
This is far beyond what the average Malaysian can afford.
According to the first quarter of 2018 data from the National Property and Information Centre (NAPIC), Selangor has the highest number of existing stock of residential units followed by Johor and Kuala Lumpur at 1,516,960, 795,363 and 471,475 units respectively.
With Budget 2019 to be announced in November, perhaps the Malaysian government can take a cue from Singapore how the city-state is able to house 80 per cent of its population.
Step 1: Have a single affordable housing agency
The Singapore government's housing agency's The HDB Hub is located at Toa Payoh. Photo: Khalil Adis Consultancy
In Singapore, there is only one government agency called the Housing & Development Board (HDB) which is tasked to provide affordable housing for every Singaporean.
In comparison, 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 government should consolidate the affordable housing segment under one single government agency much like the HDB model.
Recently, Zuraida Kamaruddin, the Minister of Housing and Local Government, was in Singapore to study the HDB model.
By having it under one government agency umbrella, this will enable the federal government to better gauge demand from the public.
This leads to the next point.
Step 2: Build demand-driven homes
In comparison, 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 government should consolidate the affordable housing segment under one single government agency much like the HDB model.
Recently, Zuraida Kamaruddin, the Minister of Housing and Local Government, was in Singapore to study the HDB model.
By having it under one government agency umbrella, this will enable the federal government to better gauge demand from the public.
This leads to the next point.
Step 2: Build demand-driven homes
Applicants who have successfully balloted for their flats are then invited to choose their units at the HDB Hub. Photo: Khalil Adis Consultancy
In Singapore, the HDB builds homes that are demand-driven called the Built-to-Order (BT0) scheme.
The public is then invited to apply for the various homes that are on offer in different parts of Singapore.
By doing so, this enables the HDB to gauge demand from the public and allocate homes using a balloting system.
The balloting system will then inform applicants of the status of their application.
If Malaysia were to follow such a system, this will help to solve the current demand-supply mismatch in the market and build homes according to demand.
Step 3: Introduce grants and subsidies
The public is then invited to apply for the various homes that are on offer in different parts of Singapore.
By doing so, this enables the HDB to gauge demand from the public and allocate homes using a balloting system.
The balloting system will then inform applicants of the status of their application.
If Malaysia were to follow such a system, this will help to solve the current demand-supply mismatch in the market and build homes according to demand.
Step 3: Introduce grants and subsidies
Singapore's Central Provident Fund (CPF) operates very much like Malaysia's EPF where there are various schemes for housing applicants to enjoy subsidies. Photo: Khalil Adis Consultancy
In Singapore, a first-time applicant can enjoy a housing grant called the Additional CPF Housing Grant (AHG) and Special CPF Housing Grant (SHG) of up to S$40,000 depending on one's household income.
To qualify for the AHG, applicants must apply for a 2-room flat or larger with an income ceiling of S$5,000 per month,
Applicants must also be employed at the time of application and be at least in employment for the past one year during the housing application.
On top of that applicants must not be an owner of any other properties in Singapore or overseas.
Applicants can also qualify for additional grants under the SHG here or if they live close to their parents.
By introducing such grants, it lowers the entry price to buy a home.
Likewise, if similar grants are introduced in Malaysia, it will mean more Malaysians can afford to buy their first home.
You can read more about the scheme here:
Think about it.
Step 4: Introduce housing loans direct from the housing ministry
To qualify for the AHG, applicants must apply for a 2-room flat or larger with an income ceiling of S$5,000 per month,
Applicants must also be employed at the time of application and be at least in employment for the past one year during the housing application.
On top of that applicants must not be an owner of any other properties in Singapore or overseas.
Applicants can also qualify for additional grants under the SHG here or if they live close to their parents.
By introducing such grants, it lowers the entry price to buy a home.
Likewise, if similar grants are introduced in Malaysia, it will mean more Malaysians can afford to buy their first home.
You can read more about the scheme here:
Think about it.
Step 4: Introduce housing loans direct from the housing ministry
Singaporeans viewing the masterplan for an upcoming HDB township called Tengah. In Singapore, its citizens can get a housing loan direct from the HDB. Photo: Khalil Adis Consultancy
In Singapore, most Singaporeans will opt to get a loan directly from the HDB which gives a concessionary interest rate at 2.6 per cent.
This means, regardless of the economy, the interest rate will remain the same unlike taking a bank loan.
In addition, the HDB is more compassionate if say, one is unable to service their loans.
The HDB will still require you to pay your monthly mortgage but will work out a plan that will ensure you will still have a roof over your head.
However, banks are less forgiving when you take a bank loan and will not hesitate to repossess your flat if you do not pay your mortgages on time.
In Malaysia, applicants must apply for a bank loan.
However, due to non-payment of PTPTN as well as bad credit, some applicants find their loans being rejected.
Perhaps, a way to get around it is to have a housing loan disbursed by the housing ministry with its own set of rules similar to the HDB.
Step 5: Introduce a rent-to-own scheme (for those who can't afford downpayment)
This means, regardless of the economy, the interest rate will remain the same unlike taking a bank loan.
In addition, the HDB is more compassionate if say, one is unable to service their loans.
The HDB will still require you to pay your monthly mortgage but will work out a plan that will ensure you will still have a roof over your head.
However, banks are less forgiving when you take a bank loan and will not hesitate to repossess your flat if you do not pay your mortgages on time.
In Malaysia, applicants must apply for a bank loan.
However, due to non-payment of PTPTN as well as bad credit, some applicants find their loans being rejected.
Perhaps, a way to get around it is to have a housing loan disbursed by the housing ministry with its own set of rules similar to the HDB.
Step 5: Introduce a rent-to-own scheme (for those who can't afford downpayment)
Ayer Holdings, formerly known as TAHPS Group, has introduced the ‘Stay & Own' scheme for their Epic Residence and Foreston projects to help first time home buyers. Photo: Khalil Adis Consultancy
While there is no rent-to-own scheme in Singapore, this mode of housing ownership is getting popular in Malaysia.
For example, Ayer Holding 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
You can read more about the scheme here:
For example, Ayer Holding 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
You can read more about the scheme here:
If you are completely clueless about buying your first home and need some pointers, this workshop is for you! The method of delivery will be very light-hearted but with the main points covered. Sign up here
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Since taking power in May 2018, the newly formed government has announced a slew of policy changes that will impact developments in Iskandar Malaysia. We analyse the impact of its policy changes in Iskandar Malaysia and how they may affect you as a consumer.
The rapidly changing city skyline of Johor Bahru overlooking Singapore. Photo: Khalil Adis Consultancy
By Khalil Adis
Take a drive around Iskandar Puteri, Danga Bay and Johor Bahru and one cannot help but notice the rapidly changing skyline at this Malaysian state bordering Singapore.
Once seen as a buyers’ beware market, Johor has since 2008 rebranded itself as an up and coming economic zone called Iskandar Malaysia which is meant to complement the Lion City.
For a while, Singaporeans were afraid of buying Johor properties due to the many horror stories reported in the local press.
However, interest surged in 2010 after Singapore and Malaysia agreed to a land swap deal which led to Temasek Holdings and CapitaLand investing in Danga Bay and Medini respectively.
The warming bilateral relations, coupled with HDB flats hitting the million dollar mark, saw properties in Iskandar Malaysia being snapped up like hotcakes.
However, in the subsequent years, the entry of Chinese property developers like Country Garden, R&F and Greenland raised alarms of a potential oversupply as they appear to be building townships by the thousands.
Perhaps, more pronounced, is the development of the controversial Forest City project.
The project sparked concerns of environmental damage and land encroachment leading to an official protest from Singapore.
As a result, interests in Iskandar Malaysia started to wane as Singaporeans steered clear from the property market.
Here are the five impacts post GE-14:
Impact 1: No more foreigner only enclave
Take a drive around Iskandar Puteri, Danga Bay and Johor Bahru and one cannot help but notice the rapidly changing skyline at this Malaysian state bordering Singapore.
Once seen as a buyers’ beware market, Johor has since 2008 rebranded itself as an up and coming economic zone called Iskandar Malaysia which is meant to complement the Lion City.
For a while, Singaporeans were afraid of buying Johor properties due to the many horror stories reported in the local press.
However, interest surged in 2010 after Singapore and Malaysia agreed to a land swap deal which led to Temasek Holdings and CapitaLand investing in Danga Bay and Medini respectively.
The warming bilateral relations, coupled with HDB flats hitting the million dollar mark, saw properties in Iskandar Malaysia being snapped up like hotcakes.
However, in the subsequent years, the entry of Chinese property developers like Country Garden, R&F and Greenland raised alarms of a potential oversupply as they appear to be building townships by the thousands.
Perhaps, more pronounced, is the development of the controversial Forest City project.
The project sparked concerns of environmental damage and land encroachment leading to an official protest from Singapore.
As a result, interests in Iskandar Malaysia started to wane as Singaporeans steered clear from the property market.
Here are the five impacts post GE-14:
Impact 1: No more foreigner only enclave
View of Port of Tanjung Pelepas which is near to Forest City. Local fishermen have complained of reduced fishing since the controversial project begun. Photo: Khalil Adis Consultancy
Forest City is currently one of the mega projects under review by the Pakatan Harapan government.
Although Forest City is a relatively new entry to the property market, it was granted a special economic zone status much like Medini.
This confused the public while many local developers were reportedly not very happy about it.
For example, it was not subjected to build a specified number of low-cost homes or to allocate a certain percentage of its development for bumiputras.
In addition, there are no caps on foreign ownership but with a minimum price threshold at RM500,000 per strata unit for foreigners.
It was also granted a duty-free zone where buyers will automatically be eligible for the Malaysian My Second Home (MM2H) programme.
This programme enables foreigners to enjoy a long-stay visa of up to 10 years.
However, as of September 2018, MM2H will no longer be granted automatically.
In addition, the federal government has said a foreigner-only township is no longer allowed.
As it stands, the current entry price for a condominium here averages RM1,400 per sq ft which is way beyond what the locals can afford.
For now, the developer is required to build affordable homes for locals.
Meanwhile, the minimum purchase price for a foreigner has been reverted to RM 1 million per strata unit.
The only thing that remains is its duty-free zone status.
Impact 2: Longer development period for Gerbang Nusajaya and Iskandar Puteri
Although Forest City is a relatively new entry to the property market, it was granted a special economic zone status much like Medini.
This confused the public while many local developers were reportedly not very happy about it.
For example, it was not subjected to build a specified number of low-cost homes or to allocate a certain percentage of its development for bumiputras.
In addition, there are no caps on foreign ownership but with a minimum price threshold at RM500,000 per strata unit for foreigners.
It was also granted a duty-free zone where buyers will automatically be eligible for the Malaysian My Second Home (MM2H) programme.
This programme enables foreigners to enjoy a long-stay visa of up to 10 years.
However, as of September 2018, MM2H will no longer be granted automatically.
In addition, the federal government has said a foreigner-only township is no longer allowed.
As it stands, the current entry price for a condominium here averages RM1,400 per sq ft which is way beyond what the locals can afford.
For now, the developer is required to build affordable homes for locals.
Meanwhile, the minimum purchase price for a foreigner has been reverted to RM 1 million per strata unit.
The only thing that remains is its duty-free zone status.
Impact 2: Longer development period for Gerbang Nusajaya and Iskandar Puteri
Aerial view of East Ledang in Iskandar Puteri. Photo: Khalil Adis Consultancy
This follows the review of another major project which is the High Speed Rail project linking Singapore to Kuala Lumpur.
The project was initially cancelled and then postponed.
Full service for the line will commence before 1 January 2031.
The Iskandar Puteri station will be located close to Motorsports City near East Ledang in Gerbang Nusajaya.
In April 2015, Nusajaya’s master developer UEM Sunrise Berhad revealed its comprehensive development plans for Gerbang Nusajaya which will have its own CBD similar to Jurong Lake District.
Spread across 4,551 acres of land, this second phase of Nusajaya’s development will be designed with catalytic industries similar to the various economic drivers in Nusajaya and Medini.
In anticipation for the High Speed Rail terminus in Gerbang Nusajaya, a number of catalytic developments have been planned.
They include Nusajaya Tech Park, a 519-acre integrated eco-friendly tech park and FASTrack Iskandar which is a 300-acre ‘motorsports city’.
Gerbang Nusajaya will have a gross development value of RM42 billion and with an estimated 220,000 population upon its completion
However, now that the project has been suspended, it will take a longer period for Gerbang Nusajaya, Iskandar Puteri and Medini to experience the expected spillover impact from the High Speed Rail project.
Impact 3: Opportunity costs to be passed on to consumers
The project was initially cancelled and then postponed.
Full service for the line will commence before 1 January 2031.
The Iskandar Puteri station will be located close to Motorsports City near East Ledang in Gerbang Nusajaya.
In April 2015, Nusajaya’s master developer UEM Sunrise Berhad revealed its comprehensive development plans for Gerbang Nusajaya which will have its own CBD similar to Jurong Lake District.
Spread across 4,551 acres of land, this second phase of Nusajaya’s development will be designed with catalytic industries similar to the various economic drivers in Nusajaya and Medini.
In anticipation for the High Speed Rail terminus in Gerbang Nusajaya, a number of catalytic developments have been planned.
They include Nusajaya Tech Park, a 519-acre integrated eco-friendly tech park and FASTrack Iskandar which is a 300-acre ‘motorsports city’.
Gerbang Nusajaya will have a gross development value of RM42 billion and with an estimated 220,000 population upon its completion
However, now that the project has been suspended, it will take a longer period for Gerbang Nusajaya, Iskandar Puteri and Medini to experience the expected spillover impact from the High Speed Rail project.
Impact 3: Opportunity costs to be passed on to consumers
Construction of condominium towers in Medini. Photo: Khalil Adis Consultancy
With the delay of the High Speed Rail project, it may even result on the opportunity cost from developers to be passed on to consumers.
As such, new launches will likely be priced higher.
Developers who are banking on the project will be affected.
Impact 4: Correction of prices in the property market
As such, new launches will likely be priced higher.
Developers who are banking on the project will be affected.
Impact 4: Correction of prices in the property market
One unit at Tropez Danga Bay was auctioned off at RM395 per sq ft. Photo: Khalil Adis Consultancy
The postponement of the projects plus investors sentiments on the perceived oversupply situation have impacted the market.
In fact, there is currently a glut in the housing sector in Johor.
According to data from the National Housing and Information Centre (NAPIC), Johor has the second highest number of supply of homes in the first quarter of 2018 - 795,363 units.
In comparison, Kuala Lumpur trails third with 471,475 units.
With the High Speed Rail project as the only property booster at the moment, the property market in Iskandar Malaysia is expected to be muted, moving forward.
This will likely impact the prices for current homes
For example, the median condominium prices in Iskandar Puteri and Medini were RM900 per sq ft and RM700 per sg ft respectively in 2015 since we first started tracking data based on our on the ground survey.
However, the latest data from Brickz showed that the median prices have now corrected to RM515 per sq ft and RM542 per sq ft in Iskandar Puteri and Medini respectively.
Likewise, the median condominium prices in Johor Bahru and Danga Bay were RM1,000 per sq ft and RM1,200 per sq ft respectively in 2016.
However, the latest data from Brickz showed that the median prices have now corrected to RM662 per sq ft and RM863 per sq ft in Johor Bahru and Danga Bay respectively.
Impact 5: Iskandar Halal Park and Pengerang Rapid project still ongoing
In fact, there is currently a glut in the housing sector in Johor.
According to data from the National Housing and Information Centre (NAPIC), Johor has the second highest number of supply of homes in the first quarter of 2018 - 795,363 units.
In comparison, Kuala Lumpur trails third with 471,475 units.
With the High Speed Rail project as the only property booster at the moment, the property market in Iskandar Malaysia is expected to be muted, moving forward.
This will likely impact the prices for current homes
For example, the median condominium prices in Iskandar Puteri and Medini were RM900 per sq ft and RM700 per sg ft respectively in 2015 since we first started tracking data based on our on the ground survey.
However, the latest data from Brickz showed that the median prices have now corrected to RM515 per sq ft and RM542 per sq ft in Iskandar Puteri and Medini respectively.
Likewise, the median condominium prices in Johor Bahru and Danga Bay were RM1,000 per sq ft and RM1,200 per sq ft respectively in 2016.
However, the latest data from Brickz showed that the median prices have now corrected to RM662 per sq ft and RM863 per sq ft in Johor Bahru and Danga Bay respectively.
Impact 5: Iskandar Halal Park and Pengerang Rapid project still ongoing
Bukit Pelali by Astaka Padu is the latest new development that is located in Pengerang. Photo: Khalil Adis Consultancy
Iskandar Halal Park and the Pengerang Rapid project were spared from the policy changes.
Iskandar Halal Park is part of the state government’s effort to promote entrepreneurship in Johor.
Recently, Iskandar Halal Park scored a major coup among when US based-company, Chocolat Moderne from New York, picked Iskandar Halal Park as the manufacturing site to set up its first business in Asia.
Meanwhile, the Pengerang Rapid project, with a gross development value of RM70 billion, was affected by the slowdown in the oil and gass sectors.
While both projects were spared from major reviews, there has also been a price correction for residential homes located in the Eastern Gate which spans from Pasir Gudang to Pengerang.
For example, the median housing prices in Permas Jaya and Pasir Gudang were RM300 per sq ft and RM450 per sq ft respectively in 2016.
However, the latest data from Brickz showed that the median prices have now corrected to RM272 per sq ft and RM329 per sq ft in Permas Jaya and Pasir Gudang respectively.
Only Pengerang recorded a price increase from RM80 per sq ft in 2016 to RM236 per sq ft in 2018.
Iskandar Halal Park is part of the state government’s effort to promote entrepreneurship in Johor.
Recently, Iskandar Halal Park scored a major coup among when US based-company, Chocolat Moderne from New York, picked Iskandar Halal Park as the manufacturing site to set up its first business in Asia.
Meanwhile, the Pengerang Rapid project, with a gross development value of RM70 billion, was affected by the slowdown in the oil and gass sectors.
While both projects were spared from major reviews, there has also been a price correction for residential homes located in the Eastern Gate which spans from Pasir Gudang to Pengerang.
For example, the median housing prices in Permas Jaya and Pasir Gudang were RM300 per sq ft and RM450 per sq ft respectively in 2016.
However, the latest data from Brickz showed that the median prices have now corrected to RM272 per sq ft and RM329 per sq ft in Permas Jaya and Pasir Gudang respectively.
Only Pengerang recorded a price increase from RM80 per sq ft in 2016 to RM236 per sq ft in 2018.
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Located slightly away from the hustle and bustle of KLCC and Bukit Bintang but still within the Golden Triangle, Cochrane is a growth area just south of Kuala Lumpur.
By Khalil Adis
By Khalil Adis
One Cochrane is located in one of KL's fast developing areas boosted by infrastructure developments such as the Cochrane MRT station that runs along the Sungai Buloh-Kajang (SBK Line), IKEA Cheras and MyTOWN Shopping Centre. Photo: Mutiara Rini Sdn Bhd
Mention Cochrane and the first thing that comes to mind is IKEA Cheras and MyTOWN Shopping Centre.
Previously an area dedicated for government quarters comprising mainly landed terraces and semi-D types, Cochrane, upon redevelopment is now slowly buzzing with life since the opening of Cochrane MRT station last year.
For the longest time, this part of KL has been largely ignored as a property investment destination, save for the local attractions such as the Pudu Wet Market and Flea Market.
However, all that changed when the construction of Sungai Buloh-Kajang (SBK Line) was announced in September 2010 under Budget 2011.
Costing an estimated RM23 billion with 51km of train track and 31stations developments in this part of Cheras suddenly started gaining momentum when Cochrane MRT station was confirmed.
First was the opening IKEA Cheras by the Ikano Group in November 2015 followed by the opening of MyTOWN Shopping Centre by Boustead Ikano Sdn Bhd in the first quarter of 2017.
Quality condominium developments are a rare find here with recent launches in the area being One Cochrane.
Located just next to the upcoming dedicated financial district of Tun Razak Exchange (TRX) and the recently completed vibrant entertainment enclave of TREC, Cochrane is set to become one of KL’s hottest areas as it is just a stone throw’s away from the future Bandar Malaysia project which is currently being reviewed.
We list down eight things we love about living in Cochrane.
#1: Located just next to Cochrane MRT station
Previously an area dedicated for government quarters comprising mainly landed terraces and semi-D types, Cochrane, upon redevelopment is now slowly buzzing with life since the opening of Cochrane MRT station last year.
For the longest time, this part of KL has been largely ignored as a property investment destination, save for the local attractions such as the Pudu Wet Market and Flea Market.
However, all that changed when the construction of Sungai Buloh-Kajang (SBK Line) was announced in September 2010 under Budget 2011.
Costing an estimated RM23 billion with 51km of train track and 31stations developments in this part of Cheras suddenly started gaining momentum when Cochrane MRT station was confirmed.
First was the opening IKEA Cheras by the Ikano Group in November 2015 followed by the opening of MyTOWN Shopping Centre by Boustead Ikano Sdn Bhd in the first quarter of 2017.
Quality condominium developments are a rare find here with recent launches in the area being One Cochrane.
Located just next to the upcoming dedicated financial district of Tun Razak Exchange (TRX) and the recently completed vibrant entertainment enclave of TREC, Cochrane is set to become one of KL’s hottest areas as it is just a stone throw’s away from the future Bandar Malaysia project which is currently being reviewed.
We list down eight things we love about living in Cochrane.
#1: Located just next to Cochrane MRT station
Enjoy enhanced connectivity to the Klang Valley and Greater KL with Cochrane MRT station situated just 150 metres away from One Cochrane. Photo: Khalil Adis Consultancy
One Cochrane is located just next door to Cochrane MRT station at approximately 150 metres away. With a daily ridership of 400,000 that the SBK Line is expected to generate, this will not only mean easy access for homeowners but also a ready catchment pool among investors from the potential tenants commuting within KL and Greater KL.
#2: SBK Line as a property booster
#2: SBK Line as a property booster
Developments around Cochrane MRT station have gathered pace since the opening of the station. Photo: Khalil Adis Consultancy
MRT Corporation Sdn Bhd, the developer and asset owner of the Mass Rapid Transit project, envisages that the SBK Line is expected to raise the overall property values in the Klang Valley by around RM300 million per annum.
As One Cochrane is located just next to the MRT station, the impact will be felt even greater as it is surrounded by other property boosters such as IKEA Cheras and MyTOWN Shopping Centre. As such, we can expect the property prices in the near future to hover at around RM1,400 per sq ft and beyond, similar to Bukit Bintang’s average per sq ft price.
#3: Direct access to IKEA Cheras and MyTOWN Shopping Centre
As One Cochrane is located just next to the MRT station, the impact will be felt even greater as it is surrounded by other property boosters such as IKEA Cheras and MyTOWN Shopping Centre. As such, we can expect the property prices in the near future to hover at around RM1,400 per sq ft and beyond, similar to Bukit Bintang’s average per sq ft price.
#3: Direct access to IKEA Cheras and MyTOWN Shopping Centre
Shopping at IKEA Cheras and MyTOWN Shopping Centre is now a breeze as you can hop onto the MRT and then use the underpass link to access both malls. Photo: Khalil Adis Consultancy
Speaking of IKEA Cheras and MyTOWN Shopping Centre, did you know a new underground link has been opened since last year? During our recent site visit, we were pleased to see that IKEA Cheras and MyTOWN Shopping Centre are now directly connected to Cochrane MRT station making shopping and taking the MRT a breeze. Previously, commuters had to exit from the station and then jaywalk across Jalan Cochrane just to get to them.
IKEA Cheras boasts 56 showrooms, a 780-seat restaurant and over 1,700 parking bays in two underground carparks while MyTOWN Shopping Centre is a 1.1 million sq ft lifestyle shopping haven with five floors of retail space. Some of MyTOWN Shopping Centre’s anchor tenants include Uniqlo and Parkson, ensuring there is something for everyone to enjoy.
#4: Located within the growth area in Southern KL
IKEA Cheras boasts 56 showrooms, a 780-seat restaurant and over 1,700 parking bays in two underground carparks while MyTOWN Shopping Centre is a 1.1 million sq ft lifestyle shopping haven with five floors of retail space. Some of MyTOWN Shopping Centre’s anchor tenants include Uniqlo and Parkson, ensuring there is something for everyone to enjoy.
#4: Located within the growth area in Southern KL
There are many economic drivers and infrastructure projects being planned near to One Cochrane. Image: Khalil Adis Consultancy
That’s not all. Cochrane is surrounded by various iconic projects that will further boost property prices in the area. With Tun Razak Exchange (TRX) and TREC just one stop away via the Tun Razak Exchange MRT station and Bandar Malaysia just four stops away via the upcoming Sungai Buloh-Serdang-Putrajaya (SSP Line), Cochrane is set to enjoy the spillover impact from the two MRT lines as well as the iconic TREC and Bandar Malaysia projects.
#5: Party away at TREC
#5: Party away at TREC
Letting your hair down is now a breeze as Cochrane is located next door to TREC. TREC which stands for “Taste, Relish, Experience, Celebrate” feature a variety of different styles, atmospheres and moods in five separate zones offering casual and fine dining, quirky and independent cafes, wine bars, pubs, lounges and clubs, including Zouk KL, Velvet Underground and Phuture. Costing RM323.6 million to develop, TREC is expected to create over 1,500 jobs and estimated to add RM143 million to the local economy annually.
#6: Next door to the financial district of Tun Razak Exchange (TRX)
#6: Next door to the financial district of Tun Razak Exchange (TRX)
The Tun Razak Exchange MRT station is located just next to the upcoming Tun Razak Exchange (TRX), Malaysia's first dedicated financial district. Photo: Khalil Adis Consultancy
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.
When fully completed by 2027, TRX is expected to raise the country’s Gross National Income per capita to USD15,000 and investments of US$444 billion by 2020. Some 500,000 jobs will be created directly and indirectly once TRX is completed. In addition, Tun Razak Exchange MRT station will serve some 3.3 million workers providing further potential quality tenants for investors.
#7: Hop on to the High Speed Rail nearby
When fully completed by 2027, TRX is expected to raise the country’s Gross National Income per capita to USD15,000 and investments of US$444 billion by 2020. Some 500,000 jobs will be created directly and indirectly once TRX is completed. In addition, Tun Razak Exchange MRT station will serve some 3.3 million workers providing further potential quality tenants for investors.
#7: Hop on to the High Speed Rail nearby
One Cochrane is located a few MRT stops away to the Bandar Malaysia North and Bandar Malaysia South MRT stations. Image: MRT Corp Sdn Bhd
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.
#8: Next door to the Digital Free Trade Zone (DFTZ)
#8: Next door to the Digital Free Trade Zone (DFTZ)
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.
Last but not least: Two stops away to the shopping belt of Bukit Bintang
Last but not least: Two stops away to the shopping belt of Bukit Bintang
Forget the dreaded traffic jams along Jalan Bukit Bintang as the SBK Line has made travelling to the shopping district an enjoyable experience now. Image: MRT Corp Sdn Bhd
With the completion of the SBK Line, you no longer have to endure the traffic congestions along Jalan Bukit Bintang. All you have to do is hop onto the MRT where you can enjoy some of the best things that life has to offer at Pavilion KL, Lot 10, Fahrenheit and Starhill Gallery just two stops away at Bukit Bintang MRT station. From shopping for luxury timepieces to enjoying street food at Jalan Alor, those dreaded traffic jams are now over. So #jomnaikMRT!
Investment talk by Khalil Adis
Details below:
Date: 29 September 2018
Time: 11 am
Venue: One Cochrane Sales Gallery, Jalan Cochrane, Lot 1246, 55100 Kuala Lumpur, Malaysia
RSVP here
*First 10 to RSVP will receive a copy of Khalil Adis's best-selling book 'Property Buying for Gen Y
Date: 29 September 2018
Time: 11 am
Venue: One Cochrane Sales Gallery, Jalan Cochrane, Lot 1246, 55100 Kuala Lumpur, Malaysia
RSVP here
*First 10 to RSVP will receive a copy of Khalil Adis's best-selling book 'Property Buying for Gen Y
- Published on
As humans and technology evolve, so has the workplace. Expect more intuitive technology being employed in the near future.
By Khalil Adis
By Khalil Adis
GSK Asia House headquarters for Asia located at 23 Rochester Park, Singapore. Photo: GSK Asia
Mention GlaxoSmithKline (GSK) and the first thing that comes to mind is innovation. In fact, the word innovation is synonymous with this pharmaceutical giant which is renowned for consumer products such as Sensodyne and Aquafresh toothpaste.
“At GSK, we often ask ourselves, “do we have the right properties?” In Asia, it is all about growth. Asia is a huge piece of our future,” said Simon French, GSK’s Workplace and Design Director, Worldwide Real Estate and Facilities, United Kingdom.
French was speaking at the CoreNet Global Summit 2018 held in Singapore in March.
Titled Beyond the Horizon – The 2030 Workplace, GSK’s Asia headquarter office at Singapore’s research & development hub at one-north features intuitive workspaces that promote human interaction and collaboration while being culturally sensitive.
For example, its food offerrings at the premises are halal, keeping in mind the city-state’s multi-racial and multi-religious society. “Bacon & eggs won’t work in Singapore,” quips French.
The design process behind its GSK Asia House at Rochester Park in one-north involves looking at commercial drivers, behaviours & culture and design thinking
What results is an open office space spanning four floors of 14,330 sq m with plenty of natural light and ventilation.
In addition, it also has four layers of invisible security barriers before you get to see the actual work space.
Indeed, the ground floor is open to the public while the entire building is designed to bring in natural light.
“In Singapore, outdoor areas are under- utilised. We, therefore, have used the outdoor space in the western part of the building as
it affects employees’ behaviour - happy staff equals a more engaged people,” says French.
Commerce and value creators
“At GSK, we often ask ourselves, “do we have the right properties?” In Asia, it is all about growth. Asia is a huge piece of our future,” said Simon French, GSK’s Workplace and Design Director, Worldwide Real Estate and Facilities, United Kingdom.
French was speaking at the CoreNet Global Summit 2018 held in Singapore in March.
Titled Beyond the Horizon – The 2030 Workplace, GSK’s Asia headquarter office at Singapore’s research & development hub at one-north features intuitive workspaces that promote human interaction and collaboration while being culturally sensitive.
For example, its food offerrings at the premises are halal, keeping in mind the city-state’s multi-racial and multi-religious society. “Bacon & eggs won’t work in Singapore,” quips French.
The design process behind its GSK Asia House at Rochester Park in one-north involves looking at commercial drivers, behaviours & culture and design thinking
What results is an open office space spanning four floors of 14,330 sq m with plenty of natural light and ventilation.
In addition, it also has four layers of invisible security barriers before you get to see the actual work space.
Indeed, the ground floor is open to the public while the entire building is designed to bring in natural light.
“In Singapore, outdoor areas are under- utilised. We, therefore, have used the outdoor space in the western part of the building as
it affects employees’ behaviour - happy staff equals a more engaged people,” says French.
Commerce and value creators
GSK Asia House has been designed with plenty of light and natural ventilation. Photo: GSK Asia
While open design appears to be the order of the day, the design process is very much rooted in commerce.
GSK estimates that the Asia Pacific region will become its largest regional market by 2020. As such, greater emphasis has been placed on those who bring value or are generating revenue.
“We call this smart working where no leaders and directors have an office. It is about transparency, being able to see leaders and seeing them working. Constant sharing of ideas is relevant to the scientific industry,” explains French.
To make the workspace conducive to allowing open communication, seeing different perspectives and the exchanging of ideas, GSK Asia has created ‘neighbourhoods’ where there are no specific desks for anyone.
“There are no specific desks for anyone with fluid sitting areas and workspaces. This means you can work anywhere while promoting the exchange of ideas,” notes French.
Even the ground floor, which is not considered GSK’s working space, has created revenue.
“By having a concierge, we realised ownership of open space increases quickly. As such, Google is using the space and leasing from us,” reveals French.
GSK estimates that the Asia Pacific region will become its largest regional market by 2020. As such, greater emphasis has been placed on those who bring value or are generating revenue.
“We call this smart working where no leaders and directors have an office. It is about transparency, being able to see leaders and seeing them working. Constant sharing of ideas is relevant to the scientific industry,” explains French.
To make the workspace conducive to allowing open communication, seeing different perspectives and the exchanging of ideas, GSK Asia has created ‘neighbourhoods’ where there are no specific desks for anyone.
“There are no specific desks for anyone with fluid sitting areas and workspaces. This means you can work anywhere while promoting the exchange of ideas,” notes French.
Even the ground floor, which is not considered GSK’s working space, has created revenue.
“By having a concierge, we realised ownership of open space increases quickly. As such, Google is using the space and leasing from us,” reveals French.
GSK Asia features flexible, open spaces to encourage collaboration and the exchange of ideas. Photo: GSK Asia
Moving forward, French expects the future workplace to look at intuitive technology.
“We are in the process of developing this whereby your laptop is recognised, and your presentation will automatically come out. In short, the building knows who you are,” he declares.
A record 740 corporate real estate professionals attended the CoreNet Global Summit 2018 which features more than 40 thought leaders shedding light on the critical relationship between an organisation’s productivity, bottom line, and effective CRE management.
The two-day summit revolved around nascent and current developments such as geopolitical shifts and technological disruption, which have complicated decision-making in many organisations across the Asia Pacific.
This story was first published by Asian Property Review in its July-August 2018 issue
“We are in the process of developing this whereby your laptop is recognised, and your presentation will automatically come out. In short, the building knows who you are,” he declares.
A record 740 corporate real estate professionals attended the CoreNet Global Summit 2018 which features more than 40 thought leaders shedding light on the critical relationship between an organisation’s productivity, bottom line, and effective CRE management.
The two-day summit revolved around nascent and current developments such as geopolitical shifts and technological disruption, which have complicated decision-making in many organisations across the Asia Pacific.
This story was first published by Asian Property Review in its July-August 2018 issue
- Published on
If you are thinking of upgrading while still keeping your first property to earn some rental income, this article is for you. Property author, Khalil Adis, shares how he prepped his old Singaporean home to be tenant-worthy.
First time landlords are sure to have this mantra on repeat – I have to secure a tenant ASAP as each untenanted month is a loss of income, which leads to the three most dreaded words: Negative Cash Flow. Imagine not receiving any rental income to mitigate the cash payments towards servicing your new unit’s mortgage, monthly maintenance fees and renovations costs – oh, the horror!
Our first apartment unit was nearing the two-decade mark (it was purchased in 2000), so when my mom and I decided to put our former home up for rent, a lot of hard work, sweat and tears were involved in getting it ‘red-carpet’ ready.
"My 18-year old, 1,033 sq ft apartment unit with 3 bedrooms was listed on 22 May. We received an offer on 10 June, and exactly 2 weeks later on 24 June we handed the keys over to the new tenant!"
Let’s be real here, most upgraders and first-time landlords have little choice but to do D.I.Y renovations on their rental units due to financial constraint. I especially understand how tight one’s budget can be with a recently-purchased second property. Hence, that’s how I ended up as my own contractor-cum-handyman-cum-painter.
While I had applied the strategies found in my book, Property Buying for Gen Y, there were some new learnings which I gleaned along the way; after all, the learning is in the doing, eh? Here are the eight pointers which resulted in my unit’s successful and speedy closing:
#1 Set a goal and a budget
Our first apartment unit was nearing the two-decade mark (it was purchased in 2000), so when my mom and I decided to put our former home up for rent, a lot of hard work, sweat and tears were involved in getting it ‘red-carpet’ ready.
"My 18-year old, 1,033 sq ft apartment unit with 3 bedrooms was listed on 22 May. We received an offer on 10 June, and exactly 2 weeks later on 24 June we handed the keys over to the new tenant!"
Let’s be real here, most upgraders and first-time landlords have little choice but to do D.I.Y renovations on their rental units due to financial constraint. I especially understand how tight one’s budget can be with a recently-purchased second property. Hence, that’s how I ended up as my own contractor-cum-handyman-cum-painter.
While I had applied the strategies found in my book, Property Buying for Gen Y, there were some new learnings which I gleaned along the way; after all, the learning is in the doing, eh? Here are the eight pointers which resulted in my unit’s successful and speedy closing:
#1 Set a goal and a budget
Source: Getty Images
Before anything else, my mom and I sat down to discuss and make a decision on whether we should sell off or rent the place out. It might seem redundant but this step is vital as it helps you determine the next course of action.
My mom chose to rent out her property – the reason being that although the apartment is 18 years old, it is located within Jurong Lake District, which is touted to be Singapore’s future second CBD. Hence the capital appreciation potential is pretty robust. Also, since my mum is not working, the rental income will help to cover her mortgage cost and supplement her daily expenses.
With this in mind, we agreed upon a specific date and put forward an action plan to get everything done: to move out by 15 April and get the place ready for tenant viewing by mid-May. Initially, we had set a budget of S$4,000 (roughly Rm12,000), but we soon realised that we were too prudent and forgot to include the costs for professional cleaning, labour and other out-of-pocket expenses such as plumbing and electrical works.
We ended up spending S$7,000 (roughly RM20,880) – the lesson here is to remember to factor in additional repair costs for older homes. You will have to spend a little more than average to spruce up your (ageing) home. The investment will be worth it as nothing assures a tenant more than a homely and well-maintained unit.
#2 Get a good real estate agent
My mom chose to rent out her property – the reason being that although the apartment is 18 years old, it is located within Jurong Lake District, which is touted to be Singapore’s future second CBD. Hence the capital appreciation potential is pretty robust. Also, since my mum is not working, the rental income will help to cover her mortgage cost and supplement her daily expenses.
With this in mind, we agreed upon a specific date and put forward an action plan to get everything done: to move out by 15 April and get the place ready for tenant viewing by mid-May. Initially, we had set a budget of S$4,000 (roughly Rm12,000), but we soon realised that we were too prudent and forgot to include the costs for professional cleaning, labour and other out-of-pocket expenses such as plumbing and electrical works.
We ended up spending S$7,000 (roughly RM20,880) – the lesson here is to remember to factor in additional repair costs for older homes. You will have to spend a little more than average to spruce up your (ageing) home. The investment will be worth it as nothing assures a tenant more than a homely and well-maintained unit.
#2 Get a good real estate agent
Not everything needs to be handled on your own, secure some help by hiring a reliable agent. Getting a neutral party involved is important as they do not have any emotional connection to your property and hence, can offer unbiased advice.
"Our agent’s tips went a long way in ensuring that our unit got rented out quickly at a fair market price – he was the one who pointed out that we should replace our toilet doors and get new starters for our fluorescent lights."
We were truly blessed, our agent even went above the call of duty by helping us change the faulty master bedroom door and light bulb before the handover. In addition, a quality agent will help you to screen prospective tenants, saving you from dead-end leads.
#3 Do an inventory check & change faulty items
Bolstered by our agent’s sharp eye, my mum and I decided to remove our rose-tinted glasses and view our unit with fresh eyes. Having lived in your first home for many years, you tend to accept your property’s flaws as a normality over time.
For instance, we did not initially notice the dim lighting, the spotty toilet flush in the guest bathroom or the perpetually damp spot near our washing machine which caused an ugly stain over time (pictured below).
"Our agent’s tips went a long way in ensuring that our unit got rented out quickly at a fair market price – he was the one who pointed out that we should replace our toilet doors and get new starters for our fluorescent lights."
We were truly blessed, our agent even went above the call of duty by helping us change the faulty master bedroom door and light bulb before the handover. In addition, a quality agent will help you to screen prospective tenants, saving you from dead-end leads.
#3 Do an inventory check & change faulty items
Bolstered by our agent’s sharp eye, my mum and I decided to remove our rose-tinted glasses and view our unit with fresh eyes. Having lived in your first home for many years, you tend to accept your property’s flaws as a normality over time.
For instance, we did not initially notice the dim lighting, the spotty toilet flush in the guest bathroom or the perpetually damp spot near our washing machine which caused an ugly stain over time (pictured below).
Only after doing a thorough inventory check did we realise that there were at least a dozen things which would require replacing. Take note that faulty lighting and sub-par plumbing systems are more often than not the two main culprits in older homes.
When changing the faulty toilet doors, my mom and I opted for an acrylic opaque slide and swing door which is more durable and resistant to wear-and-tear than the original plastic model that came with the property.
As a landlord, the safety of your tenant is of utmost priority as you do not want to be held liable for any injuries they may sustain in your property. One of our window grilles near the kitchen sink was almost coming off the wall so we decided to replace it too.
#4 Refurbish the kitchen cabinets
Protest if you must, but the majority will agree that the kitchen is where the heart of the home is. This is also the first place which most couples (read, the wife) will check out when scouting out a rental home.
A great way to give your tired, old kitchen an upheaval without breaking the bank is by refurbishing the cabinets! We decided to go for a clean, minimalist and modern look with a white colour palette as this design is timeless and easy to clean.
#4 Refurbish the kitchen cabinets
Protest if you must, but the majority will agree that the kitchen is where the heart of the home is. This is also the first place which most couples (read, the wife) will check out when scouting out a rental home.
A great way to give your tired, old kitchen an upheaval without breaking the bank is by refurbishing the cabinets! We decided to go for a clean, minimalist and modern look with a white colour palette as this design is timeless and easy to clean.
We also got a brand new cooker hob and hood; your new tenants would not want to cook off the back of someone else’s grease.
#5 Consider chemical cleaning
Forget your typical sweep and mop routine, we are talking about the big leagues here, like chemical cleaning. A thorough cleaning is necessary for older apartments to get rid of stubborn stains and dirt which had accumulated over the years. We engaged a cleaning contractor who cleansed the entire apartment for only S$300 (roughly RM900). It was money well spent as gone were the accumulated dust in hard to reach places (top of windows), tough stains in the kitchen and bathrooms as well as watermarks on our walls.
Do not underestimate the power of a gleaming, sparkling clean property to boost the energy of an old apartment. After all, we Asians are all about ‘chi’ or energy, so a property giving off good vibes will help rein in even the pickiest of tenants.
#6 Give the entire house a fresh coat of paint
The key here is to stick with very light colours. This is because it is easier to capture the attention of a prospective tenant with a neutral colour scheme and repainting will not take up too much of your time (hire someone to do it otherwise).
My biggest regret was opting for a dark green colour scheme in the living room previously as it meant we had to apply five coats of white paint to cover it! It was so much work that it took three days to do cover the dark colour and even everything out. Check out the before and after images yourself:
#5 Consider chemical cleaning
Forget your typical sweep and mop routine, we are talking about the big leagues here, like chemical cleaning. A thorough cleaning is necessary for older apartments to get rid of stubborn stains and dirt which had accumulated over the years. We engaged a cleaning contractor who cleansed the entire apartment for only S$300 (roughly RM900). It was money well spent as gone were the accumulated dust in hard to reach places (top of windows), tough stains in the kitchen and bathrooms as well as watermarks on our walls.
Do not underestimate the power of a gleaming, sparkling clean property to boost the energy of an old apartment. After all, we Asians are all about ‘chi’ or energy, so a property giving off good vibes will help rein in even the pickiest of tenants.
#6 Give the entire house a fresh coat of paint
The key here is to stick with very light colours. This is because it is easier to capture the attention of a prospective tenant with a neutral colour scheme and repainting will not take up too much of your time (hire someone to do it otherwise).
My biggest regret was opting for a dark green colour scheme in the living room previously as it meant we had to apply five coats of white paint to cover it! It was so much work that it took three days to do cover the dark colour and even everything out. Check out the before and after images yourself:
A plus point of repainting is that the smell of fresh paint inspires confidence among the potential tenants; not only it’s a sign that you are a considerate landlord but tenants will appreciate the extra work you had put in to ensure their comfort and well-being.
#7 Service the air-conditioning system
This is a must to ensure that your air-conditioning units will be in tip-top condition. Moreover, servicing does not cost much, at most it is S$40 (roughly RM120) per unit. Be sure to highlight your good deed to prospective tenants and to casually drop the advantages of having clean air-cond filters – replacing dirty and clogged filters can lower your air conditioner’s energy consumption by 5%-15%, translating to lower electricity bills.
"Here is an extra tip: Throw in a freebie for your tenant by scheduling annual air-cond maintenance works by a professional. These inexpensive tune-ups will ward off the need for a costly air conditioner replacement and help keep your tenants longer. A happy camper will have no reason to move out."
#8 Study your property type before furnishing it
You will need to consider your property type and tenant demographic when deciding on the extent of furnishing – should you go with a partially or fully-furnished unit? My mom and I went for the latter, given that our apartment build is catered for family living. We felt that most of our potential tenants; couples looking to start a family or a young family who is upgrading, will already have purchased some furniture themselves or are planning to do so.
#7 Service the air-conditioning system
This is a must to ensure that your air-conditioning units will be in tip-top condition. Moreover, servicing does not cost much, at most it is S$40 (roughly RM120) per unit. Be sure to highlight your good deed to prospective tenants and to casually drop the advantages of having clean air-cond filters – replacing dirty and clogged filters can lower your air conditioner’s energy consumption by 5%-15%, translating to lower electricity bills.
"Here is an extra tip: Throw in a freebie for your tenant by scheduling annual air-cond maintenance works by a professional. These inexpensive tune-ups will ward off the need for a costly air conditioner replacement and help keep your tenants longer. A happy camper will have no reason to move out."
#8 Study your property type before furnishing it
You will need to consider your property type and tenant demographic when deciding on the extent of furnishing – should you go with a partially or fully-furnished unit? My mom and I went for the latter, given that our apartment build is catered for family living. We felt that most of our potential tenants; couples looking to start a family or a young family who is upgrading, will already have purchased some furniture themselves or are planning to do so.
Determine your target tenant market and furnish accordingly – we went with partial furnishing.
Therefore we will only provide some of the basics such as the dining table set, kitchen cabinet, side tables, a master bed and mattress while other essentials such as sofa, curtains, TV and clothes storage were not included. This strikes a good balance, I get to cater to a wider market (design preference can vary greatly) and my tenants are still able to have some fun in completing the furnishing and decorating of the place themselves.
My parting words of advice: When it comes to closing a deal, it is always best for landlords to take a back seat and let the agent handle the backend work. Trust your agent and leverage on his/her experience in managing tenants’ expectations; this will save you loads of time and energy in going back and forth with potential renters.
To all the eager landlords out there, may these strategic tips assist you in securing a tenant match, as quickly as it did for me.
This article was first published by iProperty.com..my
My parting words of advice: When it comes to closing a deal, it is always best for landlords to take a back seat and let the agent handle the backend work. Trust your agent and leverage on his/her experience in managing tenants’ expectations; this will save you loads of time and energy in going back and forth with potential renters.
To all the eager landlords out there, may these strategic tips assist you in securing a tenant match, as quickly as it did for me.
This article was first published by iProperty.com..my
- Published on
With the dust from the 14th Malaysian general election now settled, the newly minted Pakatan Harapan government has renewed investors’ confidence and sparked hope in the otherwise lull property market. We list down six reasons why KLCC is now attractive to foreign investors.
By Khalil Adis
By Khalil Adis
The new Pakatan Harapan government has renewed confidence in the property market among foreign investors with properties in KLCC now ripe for pickings. Photo: Khalil Adis Consultancy
Walk around Kuala Lumpur and you cannot help but feel a renewed sense of hope in the air among Malaysians post the 14th Malaysian general election. In fact, Malaysians appear to be smiling more than usual that even the notorious KL traffic has failed to put a dampener on their faces.
Call it a new Malaysia, if you will. However, this is indeed a watershed moment which saw a newly minted Pakatan Harapan government taking power and effectively putting an end to 61 years of uninterrupted rule under UMNO. With the promise to weed out corruption, the return of the rule of law by the Mahathir administration has ignited business confidence and renewed interest in the property market.
One area which has always been a perennial favourite among foreign investors is KLCC. Home to the iconic Petronas Twin Towers, it was Prime Minister Tun Mahathir Mohamad who had the foresight to build it that has led to Kuala Lumpur being known all over the world. As if signalling a new dawn for Malaysia, KLCC’s skyline is set to welcome a new iconic landmark come 2023. Here are our findings why properties in KLCC are now ripe for picking.
#1: A new iconic landmark
Call it a new Malaysia, if you will. However, this is indeed a watershed moment which saw a newly minted Pakatan Harapan government taking power and effectively putting an end to 61 years of uninterrupted rule under UMNO. With the promise to weed out corruption, the return of the rule of law by the Mahathir administration has ignited business confidence and renewed interest in the property market.
One area which has always been a perennial favourite among foreign investors is KLCC. Home to the iconic Petronas Twin Towers, it was Prime Minister Tun Mahathir Mohamad who had the foresight to build it that has led to Kuala Lumpur being known all over the world. As if signalling a new dawn for Malaysia, KLCC’s skyline is set to welcome a new iconic landmark come 2023. Here are our findings why properties in KLCC are now ripe for picking.
#1: A new iconic landmark
Oxley Towers Kuala Lumpur City Centre will feature the first branded residences of its kind in the world called SO/ Sofitel Kuala Lumpur. Image: Oxley Holdings Limited
Oxley Towers Kuala Lumpur City Centre is a freehold mixed-use development that is located within walking distance to the the Petronas Twin Tower and Kuala Lumpur Convention Centre. Comprising an office tower, Kuala Lumpur Hotel with residences, SO/ Sofitel Kuala Lumpur Hotel with residences, and a retail podium, Oxley Towers Kuala Lumpur City Centre is set to be the next iconic skyline in KLCC with its sleek, ultra-modern architecture. At our recent site visit, construction work has already started and is making good progress with an expected completion date in 2023.
#2: Reputable Singaporean developer with a strong track record
#2: Reputable Singaporean developer with a strong track record
Eric Low, Oxley Holdings deputy CEO and Ching Chiat Kwong, Oxley Holdings executive chairman and CEO. Photo: The Edge Singapore
When buying a property in Malaysia, the track record of a developer is of utmost importance. Oxley Towers Kuala Lumpur City Centre is being built by Oxley Holdings Limited. This home-grown Singaporean property developer has a wide and diverse property portfolio comprising development and investment projects in Singapore, the United Kingdom, Ireland, Cyprus, Cambodia, Malaysia, Indonesia, China, Myanmar, Australia, Japan and Vietnam. Some of its notable developments in Singapore include Oxley Tower, Oxley Bizhub and Oxley Edge.
The EdgeProp cites Oxley Holdings as having S$2 billion worth of land last year including en bloc site. This makes it one of the biggest landbanks held by a property developer in Singapore. Despite the recent cooling measures, Oxley Holdings is going ahead to launch at breakneck speed this year with a total of 3,000 units already launched during the first six months of the year. And another 900 units underway.
Not only is Oxley Holdings rich in landbanks, it is also financially strong. For 2018, so far, Oxley Holdings has sold a total of 948 units and delivered $1 billion in residential sales in Singapore.
#3: First SO/ Sofitel residence in the world
The EdgeProp cites Oxley Holdings as having S$2 billion worth of land last year including en bloc site. This makes it one of the biggest landbanks held by a property developer in Singapore. Despite the recent cooling measures, Oxley Holdings is going ahead to launch at breakneck speed this year with a total of 3,000 units already launched during the first six months of the year. And another 900 units underway.
Not only is Oxley Holdings rich in landbanks, it is also financially strong. For 2018, so far, Oxley Holdings has sold a total of 948 units and delivered $1 billion in residential sales in Singapore.
#3: First SO/ Sofitel residence in the world
Enjoy some of the best things that Kuala Lumpur has to offer at the very first SO/ Sofitel residences in the world. Photo: Oxley Holdings Limited
If you like fashion and enjoy the buzz of city life, then you are in for a real treat. The SO/ Sofitel hotel and brand is a playful mix of sophistication and the dynamic style of each locale. Highly creative and fashion-led, the SO/ Sofitel residences in KL will reflect the rich, multi-cultural tapestry that Kuala Lumpur is known for. The SO/ Sofitel tower is set to offer 210 hotel rooms and 590 residences. Designed for those who break the rules and are ahead of the curve, this is the place to see and be seen. To ensure your ultimate privacy, the hotel and residences lobbies will be separated. Did we also mention that SO/ Sofitel Kuala Lumpur Residences will feature the highest residential swimming pool in Malaysia overlooking KLCC?
#4: Get more bang on your bucks in a branded residence
#4: Get more bang on your bucks in a branded residence
Get ready to live life at the top with a plethora of luxury services at your beck and call, including invitation to some of the hottest parties in town. Photo: Oxley Holdings Limited
The difference between staying in a branded versus a non-branded residence is as different as day and night. In keeping with its lifestyle luxury and playful theme, investors can expect only the best while living life at the top. Staying at SO/ Sofitel Kuala Lumpur Residences will mean access to a plethora of luxury services and some of the most happening parties the city has to offer.
For starters, residents will enjoy 24-hour residence concierge, bell/valet services and the Mixo Resident’s Lounge. This is where you can let your hair down with its resident DJ or take those #OOTD Instagram-worthy shots with complimentary Wifi access overlooking the famed twin towers as you sip a cocktail or two from its Resident Mixologist. It’s not all about partying though. SO/ Sofitel Kuala Lumpur Residences will also offer fitness enthusiast access to its SoFIT residence fitness centre, including personal attendant, towel service and water. To ensure you stay ahead of the curve, residents also get a press reader subscription with digital access to 2,000 plus daily newspapers and magazines. AccorHotels offers an Industry Leading Ownership Benefits Program, including top-tier status in Le Club AccorHotels Loyalty program.
#5: Good tenant pool
For starters, residents will enjoy 24-hour residence concierge, bell/valet services and the Mixo Resident’s Lounge. This is where you can let your hair down with its resident DJ or take those #OOTD Instagram-worthy shots with complimentary Wifi access overlooking the famed twin towers as you sip a cocktail or two from its Resident Mixologist. It’s not all about partying though. SO/ Sofitel Kuala Lumpur Residences will also offer fitness enthusiast access to its SoFIT residence fitness centre, including personal attendant, towel service and water. To ensure you stay ahead of the curve, residents also get a press reader subscription with digital access to 2,000 plus daily newspapers and magazines. AccorHotels offers an Industry Leading Ownership Benefits Program, including top-tier status in Le Club AccorHotels Loyalty program.
#5: Good tenant pool
KLCC is home to numerous industries such as petrochemical, oil & gas, finance, tourism and Meetings, incentives, conferences and exhibitions (MICE). Photo: Khalil Adis Consultancy
Buying a unit at SO/ Sofitel Kuala Lumpur is not just about all play. This is the address for those who have arrived that is within walking distance to Pavilion Bukit Bintang, Suria KLCC, KLCC Park and The Petronas Twin Towers, just to name a few. Shopping, entertainment and dining options are also aplenty ranging from the award-winning Nobu’s to your local mamak coffeeshops. For investors, this is where you can have access to some of the most sophisticated tenants at your feet. There are a high number of industries here ranging from government offices and embassies at the nearby Embassy Row to the petrochemical and MICE industries within KLCC. Take your pick.
#6: Enhanced connectivity via KLCC East MRT station
#6: Enhanced connectivity via KLCC East MRT station
KLCC East MRT station will be ready in 2022. Photo: MRT Corp
Located approximately just 200 metres away, KLCC East MRT station is part of the RM32.5 billion Sungei Buloh-Serdang-Putrajaya (SSP Line) MRT project that was announced under Budget 2015. Measuring some 52.2km spanning from Sungai Buloh to Putrajaya MRT station, the SSP Line comprises 24 elevated and 11 underground stations (including KLCC East) When completed in 2022, the SSP Line is expected to generate a daily ridership of 529,000 while enhancing property values within its immediate vicinity.
Investment talk by Khalil Adis
Join Khalil Adis this weekend to find out what is in store in the Malaysian property market post GE-14.
Details below:
Date: 18 & 19 August 2018
Time: 3pm
Venue: Oxley Gallery, 30 Stevens Road #02-01
RSVP here
*First 10 to RSVP on each day (10 copies on Saturday, 10 copies on Sunday) will each receive a copy of Khalil Adis's best-selling book 'Property Buying for Gen Y
Details below:
Date: 18 & 19 August 2018
Time: 3pm
Venue: Oxley Gallery, 30 Stevens Road #02-01
RSVP here
*First 10 to RSVP on each day (10 copies on Saturday, 10 copies on Sunday) will each receive a copy of Khalil Adis's best-selling book 'Property Buying for Gen Y
- Published on
Is it on of off? We study each station and list down the good and the bad from the possible impact of its postponement in their surrounding areas.
With recent news of the High Speed cancellation, much remains to be seen if Bandar Malaysia will succeed or not. However, Bandar Malaysia North MRT station’s alignment has already been confirmed. Initially, Bandar Malaysia has been planned with a gross development value (GDV) of RM150 billion with a dedicated commercial district to support new start-ups as well as small and medium-sized enterprises (SMEs). In addition, Kuala Lumpur City Hall (DBKL) has said 30, 000 units of homes will be delivered housing some 120, 000 residents within Bandar Malaysia. Whether or not this will go ahead, remains unclear. The only glimmer of hope here is the Digital Free Trade Zone by Jack Ma which so far has not been canned by the new government.
#1: Impact:
#1: Impact:
Infographic: Khalil Adis Consultancy
The Bangi-Putrajaya HSR station is located in the south of Klang Valley and within the state of Selangor at Kampung Abu Bakar Bagindar. Putrajaya is the Federal Administrative hub of Malaysia. Major townships include Putrajaya, Cyberjaya and Bangi. There is a proposed connection to the Putrajaya Monorail that will connect this station to Putrajaya Sentral which will serve as an interchange station to the MRT station and the Putrajaya Sentral Express Rail Linl (ERL). The latter links you to KLIA and KLIA2.
#2: Impact:
#2: Impact:
The Seremban HSR station is located within the Malaysia Vision Valley area within the state of Negeri Sembilan. Sited within the Labu and Kirby estates, major townships in the vicinity include Bandar Enstek, Bandar Ainsdale Property and S2 Height. Seremban will be an interchange station to the Seremban Komuter Line and KTM Electric Train Service .
#3: Impact
#3: Impact
The Melaka HSR station is located in Ayer Keroh within the state of Melaka. Melaka is a hub for tourism and medical tourism. Major townships in the vicinity include Taman Tasik Utama, Kampung Baru Ayer Keroh and Taman Melaka Perdana. Many Indonesians and Singaporeans flock to hospitals such as Mahkota Medical Centre for medical treatment.
#4: Impact
#4: Impact
The Muar HSR station is located within the state of Johor at Bandar University Pagoh. Muar is a coastal town by the Straits of Melaka that is a hub for furniture manufacturing. Major townships in the vicinity Pagoh, Parit Jawa and Sungai Balang. The main economic drivers here are those in the education, trading, furniture manufacturing, historical tourism and agrotourism industries.
#5: Impact
#5: Impact
The Batu Pahat HSR station is located within the state of Johor at Pura Kencana, Seri Gading. Batu Pahat is a hub for garment and textile factories. Major townships in the vicinity include include Rengit, Yong Peng and Semerah. The main economic drivers here are those in the the furniture manufacturing, food processing and agrotourism. However, isnce 20011, there has been a notable growth in small and medium industries such as textiles, garments and electronics.
#6: Impact
#6: Impact
The Iskandar Puteri HSR station is located within Gerbang Nusajaya in the state of Johor It is the gateway to Iskandar Malaysia and covers an area of 1,841-hectare. Gerbang Nusajaya features a number of catalytic developments including Nusajaya Tech Park and FASTrack Iskandar. Major townships in the vicinity include Gerbang Nusajaya, Iskandar Puteri and Medini. This will be the final leg of the Malaysian station before it enters Singapore, terminating at Jurong East. While the station in Nusajaya has not yet been announced, government officials have indicated that it will be located close to Motorsports City near East Ledang.
#7: Impact
#7: Impact
The Jurong East HSR station is located within the Jurong Lake District in Singapore. It is the gateway to Singapore and covers an area of 67-hectare. Jurong Lake District is the hub for commerce, retail, healthcare and tourism industries. Major townships in the vicinity include Jurong East, Teban Gardens, Lakeside and Taman Jurong. Jurong East will be an interchange station to the North South MRT Line, East West MRT Line and the proposed Jurong Region MRT Line.
#8: Impact
#8: Impact
Also known as MRT Line 3, this is the final line that will comprise of a “wheel and spoke” system to connect to MRT Line 1 and SSP. Line 3 is expected to be completed in 2025. Collectively, all three lines will be integrated with the current trains systems forming the Klang Valley Integrated Train System. However, this project has been postponed by the new federal government when it took power in May 2018 owing to budget cuts.
#9: Impact
The impact for this postponement will be marginal as this MRT Line will still need to be constructed to connect the SBK Line and SSP Line.
We will most likely see speculators staying away from the market.
This presents good opportunity for genuine homebuyers to start looking in and around the station.
Homes in the secondary market will be the most ideal as they are priced cheaper than new launches.
#9: Impact
The impact for this postponement will be marginal as this MRT Line will still need to be constructed to connect the SBK Line and SSP Line.
We will most likely see speculators staying away from the market.
This presents good opportunity for genuine homebuyers to start looking in and around the station.
Homes in the secondary market will be the most ideal as they are priced cheaper than new launches.
- Published on
DUO, a joint-venture project between the Singapore and Malaysian government located in the Outside Central Region (OCR). Photo: Khalil Adis Consultancy
Yay for first-time home buyers but nay for multiple Singaporean property investors, Singapore Permanent Residents and foreigners
By Khalil Adis
The Urban Redevelopment Authority’s (URA) flash estimate of the price index for private residential property for the second quarter of 2018 showed that Singapore’s private property index has increased 4.9 points from 144.1 points in the first quarter 2018 to 149.0 points in the second quarter.
This represents an increase of 3.4 per cent, compared to the 3.9 per cent increase in the previous quarter.
URA’a data showed that private properties in the Rest of Central Region (RCR) increased the most in Singapore - by 5.7 per cent, after registering an increase of 1.2 per cent in the previous quarter.
Meanwhile, those in the Core Central Region (CCR) increased by 1.4 per cent compared to the 5.5 per cent increase while those in the Outside Central Region (OCR) increased by 2.9 per cent after registering a 5.6 per cent increase in the previous quarter respectively.
The Monetary Authority of Singapore (MAS) in a statement said the adjustments to the Additional Buyer’s Stamp Duty (ABSD) rates and Loan-to-Value (LTV) limits on residential property purchases were needed “to cool the property market and keep price increases in line with economic fundamentals.”
Additional, MAS said private residential prices have increased sharply by 9.1 per cent over the past year after declining gradually for close to four years.
See table below for the summary:
By Khalil Adis
The Urban Redevelopment Authority’s (URA) flash estimate of the price index for private residential property for the second quarter of 2018 showed that Singapore’s private property index has increased 4.9 points from 144.1 points in the first quarter 2018 to 149.0 points in the second quarter.
This represents an increase of 3.4 per cent, compared to the 3.9 per cent increase in the previous quarter.
URA’a data showed that private properties in the Rest of Central Region (RCR) increased the most in Singapore - by 5.7 per cent, after registering an increase of 1.2 per cent in the previous quarter.
Meanwhile, those in the Core Central Region (CCR) increased by 1.4 per cent compared to the 5.5 per cent increase while those in the Outside Central Region (OCR) increased by 2.9 per cent after registering a 5.6 per cent increase in the previous quarter respectively.
The Monetary Authority of Singapore (MAS) in a statement said the adjustments to the Additional Buyer’s Stamp Duty (ABSD) rates and Loan-to-Value (LTV) limits on residential property purchases were needed “to cool the property market and keep price increases in line with economic fundamentals.”
Additional, MAS said private residential prices have increased sharply by 9.1 per cent over the past year after declining gradually for close to four years.
See table below for the summary:
Source: Monetary Authority of Singapore
Source: Monetary Authority of Singapore
Here are five ways the new ABSD rate will impact you
#1: First time Singaporean private home buyers can heave a sigh of relief
The ABSD measures are aimed at second and multiple property owners to ensure they do not engage in excessive speculation which may bring property prices to unsustainable levels.
Therefore, first time private home buyers will not be penalised as they are deemed as genuine homeowners.
#2: However, bank loan margins for first-timers has been decreased
Be prepared to cough up more cash upfront.
The loan-to-value limit has been decreased from 80 per cent or 60 per cent if the loan tenure is more than 30 years or extends to more than age 65 to 75 per cent or 55 per cent if the loan tenure is more than 30 years or extends to more than age 65.
This means you will need to pay 5 per cent in cash upfront if your loan tenure is 30 years or 10 per cent if it extends to more than age 65. While the remaining will need to be paid in cash and/or CPF.
#3: Be prepared to pay an additional 5 per cent ABSD for second and/or subsequent properties for Singaporeans
ABSD rate for second property has been increased from 7 to 12 per cent.
Meanwhile, the ABSD rate for third and subsequent properties has been increased from 10 to 15 per cent.
#4: Lower LTV ratio for a second property
The loan-to-value limit has been decreased from 50 per cent or 30 per cent if the loan tenure is more than 30 years or extends to more than age 65 to 45 per cent or 25 per cent if the loan tenure is more than 30 years or extends to more than age 65.
The minimum cash downpayment is now 25 per cent.
#5: More cash upfront makes buying in Iskandar Malaysia more attractive
You get more bang for your bucks investing in Iskandar Malaysia than in Singapore with the new ABSD rates.
Assuming you are buying a second property for your own occupation, that 25 per cent cash downpayment for an S$1 million condominium translates to S$250,000 which could easily buy you a freehold landed or condominium development across the causeway.
With a minimum purchase price of RM1 million and a 70 per cent loan margin, you might as well convert it to your RM300,000 downpayment, not including stamp duty, state levy, legal fees and so on.
The downside is you will have to make to with the daily commute and traffic congestions until the Johor-Singapore Rapid Transit System (RTS) is ready in 2024.
#1: First time Singaporean private home buyers can heave a sigh of relief
The ABSD measures are aimed at second and multiple property owners to ensure they do not engage in excessive speculation which may bring property prices to unsustainable levels.
Therefore, first time private home buyers will not be penalised as they are deemed as genuine homeowners.
#2: However, bank loan margins for first-timers has been decreased
Be prepared to cough up more cash upfront.
The loan-to-value limit has been decreased from 80 per cent or 60 per cent if the loan tenure is more than 30 years or extends to more than age 65 to 75 per cent or 55 per cent if the loan tenure is more than 30 years or extends to more than age 65.
This means you will need to pay 5 per cent in cash upfront if your loan tenure is 30 years or 10 per cent if it extends to more than age 65. While the remaining will need to be paid in cash and/or CPF.
#3: Be prepared to pay an additional 5 per cent ABSD for second and/or subsequent properties for Singaporeans
ABSD rate for second property has been increased from 7 to 12 per cent.
Meanwhile, the ABSD rate for third and subsequent properties has been increased from 10 to 15 per cent.
#4: Lower LTV ratio for a second property
The loan-to-value limit has been decreased from 50 per cent or 30 per cent if the loan tenure is more than 30 years or extends to more than age 65 to 45 per cent or 25 per cent if the loan tenure is more than 30 years or extends to more than age 65.
The minimum cash downpayment is now 25 per cent.
#5: More cash upfront makes buying in Iskandar Malaysia more attractive
You get more bang for your bucks investing in Iskandar Malaysia than in Singapore with the new ABSD rates.
Assuming you are buying a second property for your own occupation, that 25 per cent cash downpayment for an S$1 million condominium translates to S$250,000 which could easily buy you a freehold landed or condominium development across the causeway.
With a minimum purchase price of RM1 million and a 70 per cent loan margin, you might as well convert it to your RM300,000 downpayment, not including stamp duty, state levy, legal fees and so on.
The downside is you will have to make to with the daily commute and traffic congestions until the Johor-Singapore Rapid Transit System (RTS) is ready in 2024.
- Published on
Picture art of two family members arguing. Photo: Khalil Adis Consultancy
While blood is thicker than water, it is best to establish clear boundaries with a toxic family member when it comes to property matters
By Khalil Adis
Everyone has that one family member.
You know, that elephant in the room that nobody really wants to talk about.
That one who constantly argues and causes problems in the family. Yup, that one.
What complicates matter is when other family members try to intervene in the name of religion.
Most often than not, religion can blind everyone to the bullying and toxic behaviour this family member is doing.
Unfortunately, I have that one family member.
It all started rather harmlessly from that name-calling for getting good grades to pinching you till you are left bruised.
From emotional blackmail, gas-lighting to downright rude behaviour, all this was done as this family member was finding means and ways to wriggle her way out of paying the home mortgage when she is clearly the legal owner.
Their message is often typical - everyone else is the problem, except them.
Psychologist call this kind of behaviour projection where they will unconsciously project their innermost thoughts in their communication.
In my case, this family member was saying that I had planned to move overseas for good and abandon my responsibilities.
Well, guess what? That family member is the one who ended up uprooting herself overseas and is now no longer contactable.
The question is, should you as a family member, bail this person out from their mortgage responsibilities?
The answer is no. Here are three reasons why
#1: Recognise the problem is them, not you
Most often this comes up during arguments where they will project all their unconscious thoughts to you.
This person is only interested in their own point of view to make you feel guilty and bully you into admission so you will bail them out.
They are often emotionally manipulative to convince you that you are the problem.
When dealing with a toxic family member, it is best to walk out of the conversation as no amount of reasoning will make them see things your way.
#2: Legally speaking, you have no recourse
Unless you have a very good lawyer and documents to back up that you have been bailing this person out, your chances of getting your money back are close to zero.
Also, legally speaking, the one that will end up in trouble with the banks and income tax department is them, not you.
So save yourself the heartache.
You are better off saving that money for your own home.
#3: The family member needs to take responsibility
The reason this family member took out a home mortgage is precisely that - they made a commitment to buy a home.
If there are any changes in plans along the way, that family member needs to communicate that out in a healthy family discussion and not via threatening emails miles away in a foreign country.
Bailing this person out is not only unhealthy but enabling such bad behaviour.
Establish clear boundaries with such person that you will not tolerate their toxic behaviour and will only communicate with them when they treat everyone with respect.
If all else fail, cut off ties.
While this may seem taboo in a religious family setting, you will need to especially if the other person's behaviour is erratic and demands legal or police action.
Do it for the sake of your sanity and well-being.
You deserve so much better.
By Khalil Adis
Everyone has that one family member.
You know, that elephant in the room that nobody really wants to talk about.
That one who constantly argues and causes problems in the family. Yup, that one.
What complicates matter is when other family members try to intervene in the name of religion.
Most often than not, religion can blind everyone to the bullying and toxic behaviour this family member is doing.
Unfortunately, I have that one family member.
It all started rather harmlessly from that name-calling for getting good grades to pinching you till you are left bruised.
From emotional blackmail, gas-lighting to downright rude behaviour, all this was done as this family member was finding means and ways to wriggle her way out of paying the home mortgage when she is clearly the legal owner.
Their message is often typical - everyone else is the problem, except them.
Psychologist call this kind of behaviour projection where they will unconsciously project their innermost thoughts in their communication.
In my case, this family member was saying that I had planned to move overseas for good and abandon my responsibilities.
Well, guess what? That family member is the one who ended up uprooting herself overseas and is now no longer contactable.
The question is, should you as a family member, bail this person out from their mortgage responsibilities?
The answer is no. Here are three reasons why
#1: Recognise the problem is them, not you
Most often this comes up during arguments where they will project all their unconscious thoughts to you.
This person is only interested in their own point of view to make you feel guilty and bully you into admission so you will bail them out.
They are often emotionally manipulative to convince you that you are the problem.
When dealing with a toxic family member, it is best to walk out of the conversation as no amount of reasoning will make them see things your way.
#2: Legally speaking, you have no recourse
Unless you have a very good lawyer and documents to back up that you have been bailing this person out, your chances of getting your money back are close to zero.
Also, legally speaking, the one that will end up in trouble with the banks and income tax department is them, not you.
So save yourself the heartache.
You are better off saving that money for your own home.
#3: The family member needs to take responsibility
The reason this family member took out a home mortgage is precisely that - they made a commitment to buy a home.
If there are any changes in plans along the way, that family member needs to communicate that out in a healthy family discussion and not via threatening emails miles away in a foreign country.
Bailing this person out is not only unhealthy but enabling such bad behaviour.
Establish clear boundaries with such person that you will not tolerate their toxic behaviour and will only communicate with them when they treat everyone with respect.
If all else fail, cut off ties.
While this may seem taboo in a religious family setting, you will need to especially if the other person's behaviour is erratic and demands legal or police action.
Do it for the sake of your sanity and well-being.
You deserve so much better.