Inovatif

Category: Property

  • E&O GROUP UNVEILS THE LUME

    On 8 August 2024, E&O Group announced the launch of The Lume, its latest luxury development on Andaman Island, Penang. This new project, situated in the prestigious Shoreline district, sets a new benchmark for eco-conscious living, offering 261 exclusive residences designed to harmonise sophisticated architecture with the natural beauty of the island.

    “The Lume embodies the art of sophisticated living, with each exclusive residence crafted to ensure privacy whilst fostering a sense of community. This makes The Lume an ideal choice for those seeking a balanced work-life-play environment,” said Kok Tuck Cheong, Managing Director at E&O.

    A unique feature of The Lume’s is its pavilion-in-the-sky design where living and dining spaces that seamlessly extend outward, offering residents breathtaking 180-degree views of the island and filling the interiors with natural light and optimal airflow.

    Private spaces are thoughtfully positioned, with bedrooms within the main structure arrayed in a linear configuration, with strategically placed fins to maximise outward views while ensuring privacy.

    The Lume caters to a diverse market of empty nesters, young families, and professionals seeking a second home. Each floor features just six apartments, with prices starting at RM 2.2 million and sizes ranging from 1,722 sq ft to 2,874 sq ft.

    Kok added that The Lume is committed to integrating nature into everyday living, featuring lush tropical gardens and terraced landscaping framed against sweeping sea views.

    The Lume offers amenities such as landscaped pools, lounges, and BBQ spaces, fostering opportunities for social interaction. With dedicated areas for children, including playgrounds and a wading pool, the development caters to families while also accommodating pet-friendly spaces for furry companions.

    The Lume also has dedicated co-working spaces, meeting rooms, and function areas that facilitate the integration of professional and personal life. By aligning with the growing work-from-home trend, residents can now enjoy access to modern conveniences without sacrificing their well-being.

    “The landscape architecture of The Lume is meticulously conceived to offer a profound experience of tranquil serenity,” explained Kok.

    Andaman Island, awarded GreenRE Platinum certification, is a pioneering development in Malaysia, designed on four pillars—connectivity, sustainability, community, and quality of life. The first phase of this project comprises 253-acres, and is divided into three distinct segments: Shoreline, Gurney Green, and Canalside. Each district will offer a distinct place experience, guided by a masterplan that embraces the urbanism concept of a 15-minute city, supporting pedestrian-friendly neighbourhoods with easy access to essential amenities and green spaces.

    The Shoreline district encapsulates eco-conscious and sustainable living with The Lume conferred GreenRE Platinum certification to reflect how the development integrates environmentally responsible practices to minimise its carbon footprint while providing ample communal spaces for socialising and wellness activities.

    Benefiting from the island’s strategic location near rising economic zones, residents of Andaman Island will also enjoy direct access to two bridges linked to Penang Island.

    “This development establishes a new benchmark for future living spaces on Andaman Island, where innovation, well-being, and harmonious living are intertwined, reflecting our enduring commitment to meet and exceed the evolving aspirations of our residents”, he said.

    Kok added that with the launch of The Lume, the E&O Group continues its legacy of crafting elegant homes that anticipate the future needs and lifestyle aspirations of the growing Andaman Island community. The Lume’s launch follows the highly successful launches of E&O’s The Meg and Arica on Andaman Island.

    For those seeking to make The Lume their next home, bookings are now open. Learn more by reaching out to E&O at 0134088999 or by visiting their website at https://easternandoriental.com/thelume

  • From Skyscrapers to Serenity: Malaysia’s Housing Harmony

    In the bustling orchestra of Malaysian life, a fascinating melody is playing out – the shift from urban crescendos to suburban lullabies. Statistics, like nimble percussionists, highlight the rhythm of this change. As of 2021, over 77% of Malaysians resided in urban areas, their lives humming with the energy of Kuala Lumpur, Penang, and Johor Bahru. But the pandemic, a disruptive cymbal crash, disrupted the score. PropertyGuru’s 2023 study, like a knowing bassline, revealed a counterpoint – a 57% surge in searches for properties beyond the concrete canyons, driven by families yearning for leafy backyards and children chasing butterflies. This wasn’t just a solo act; Knight Frank Malaysia’s research chimed in, showing a 12% year-on-year increase in landed property demand, particularly in Klang Valley’s verdant pockets like Shah Alam, Cyberjaya, and Petaling Jaya.

    The suburbs, once relegated to the background chorus, emerged as the lead vocalist. Houses with sprawling gardens, like soaring violins, offered symphonies of rustling leaves and barbecues under starlit skies. A 2023 Department of Statistics Malaysia report echoed this melody, revealing that 54% of Malaysians now prioritize spacious living, a stark contrast to the 38% who craved central locations just a decade ago. Green certifications and sustainable living options, akin to harmonious woodwinds, painted these suburban havens with environmental consciousness.

    For those already ensconced in the suburbs, facing the daily traffic’s discordant chorus, technology became the conductor, orchestrating a change of tempo. Flexible work schedules, like gentle oboes, replaced the rigid 9-to-5, and local co-working spaces, buzzing with the energy of collaboration, offered escape from the daily commute. Carpools, a grassroots ensemble, filled the air with cheerful chatter and reduced the carbon footprint. And for those seeking community, the suburbs resonated with a vibrant choir. Farmers’ markets, bursting with the colours of vegetables and the chatter of neighbours, became social hubs, while book clubs and shared walks transformed into harmonious quartets.

    Klang Valley, a microcosm of this evolving symphony, offered several captivating movements. Seri Kembangan, a verdant serenade of parks and family-friendly neighbourhoods, sheltered over 130,000 residents, 72% of whom owned their homes, according to a 2022 census. Cyberjaya, a haven for tech-savvy souls, hummed with the energy of 110,000 inhabitants, 65% of whom were young professionals drawn to its modern infrastructure and co-working spaces. Damansara Utama, a blend of urban chic and suburban charm, provided a harmonious counterpoint with its 180,000 residents, 80% of whom enjoyed the convenience of upscale amenities amidst leafy serenity.

    Ultimately, the urban[1]suburban tango in Malaysia isn’t a competition, but a duet between personal aspirations and statistical trends. Whether you crave the city’s electrifying tempo or the suburbs’ gentle ballad, remember, your Malaysian dream can be painted in concrete castles or whispered amidst rustling leaves. Embrace the evolving melody, find your personal harmony, and dance to the beat of your own joyful heart.

    These statistics, like cymbals punctuating the story, add rhythm and depth, painting a more vivid picture of Malaysia’s evolving living landscape. As the story unfolds, remember, the numbers aren’t just cold facts, but whispers reflecting the hopes, dreams, and priorities of Malaysians as they navigate the symphony of urban and suburban life.

     

    Urban vs. Suburban Living in Malaysia: A Sidekick of Facts

    Urban Buzz:

    Density Delight: With 77% of Malaysians calling cities home, urban life is all about proximity. Bustling streets, vibrant nightlife, and diverse communities are just steps away.

    Career Crescendo: Cities are magnets for jobs, offering higher salaries and a wider range of industries. Aspiring professionals and career climbers often find their rhythm in the urban jungle.

    Cultural Conundrum: From art galleries and museums to street food stalls and ethnic enclaves, cities are melting pots of culture, stimulating the senses and offering endless exploration.

    Concrete Crunch: Housing costs, traffic congestion, and pollution can dampen the urban dream. Finding green spaces can be a challenge, and the constant hustle can be overwhelming.

    Suburban Serenade:

    Space Symphony: Spacious houses with backyards, private gardens, and a slower pace of life offer families and nature lovers a harmonious melody.

    Community Chorus: Strong bonds often develop in suburbs, where neighbours become friends and shared activities like farmers’ markets and book clubs foster a sense of belonging.

    Financial Forte: Housing costs tend to be lower in the suburbs, offering more bang for your buck. Additionally, lower crime rates and a slower pace can lead to cost savings on things like childcare and entertainment.

    Commute Cacophony: Getting to work from the suburbs can involve traffic jams and public transportation woes, disrupting the suburban lullaby. Access to amenities and entertainment might be limited compared to bustling city centres.

  • How Is The Malaysian Property Industry Doing Post-Covid?

    How Is The Malaysian Property Industry Doing Post-Covid?

    There are signs of recovery in the Malaysian property sector. And the fact that the Overnight Policy Rate (OPR) is set to increase again later this year to the same level as pre-Covid, we should see a sense of normalcy returning soon.

    Smart Investor got in touch with Joanna Ling, CEO of PE Holdings, to find out more about the property industry.

    Joanna Ling, CEO of PE Holdings
    Smart Investor: Post-Covid, what are the challenges being faced by property developers?

    Joanna Ling: Covid changed the industry significantly. Due to the low-interest rate environment and the work-from-home phenomenon, it created an unprecedented need for people to have their own property.

    Post-covid, we have seen enthusiasm dampen and return to normal pre-covid levels.  The rising inflation environment has affected spending power, and buyers are more price sensitive.

    SI: What are the different approaches to selling property as compared to previously?

    JL: Social media has become an indispensable tool in selling property since Covid when show units were rendered useless.  Therefore, technology that helps developers showcase their products online became valuable.  There are even developers selling property on Tik Tok!

    SI: How does the increase in OPR affect the property market?

    JL: Every time Bank Negara Malaysia announces an increase in interest rates, sales would temporarily halt for a while but inevitably increase again.  The truth is that interest rates are right back where they were before Covid, and Malaysia is very fortunate that interest rates have not increased at a crazy rate like some other countries.

    SI: What is the market outlook for property in the short-term (6 months), medium-term (1-3 years) and long-term (5-10 years)?

    JL: In the short term, property prices in Malaysia will likely remain the same but you will see more affordable products coming into the market such as smaller units and affordable housing schemes. In the medium term, should interest rates continue to rise, property prices would likely adjust slightly lower in areas of lower demand. 

    However, Malaysia is a place which has shown continuous growth thus over the long term capital appreciation should steadily increase.

    SI: What do you mean by sustainable development?

    JL: Sustainable developments in my definition means properties that minimises negative environmental impacts and enhances the way one lives.

    SI: What initiatives have you implemented or will be implemented in future projects?

    JL: All our developments are designed with sustainability in mind.  Our shopping mall Design Village Outlet Mall, is designed to embrace shopping within a park. Extensive landscaping has been utilised to lower ambient temperature, even the air-conditioning is a more environmentally friendly VRV system, and we are in the process of installing solar panels in the car park. 

    Our latest residential development Anggun in Batu Kawan Penang, is built to Green Building Index standards. We have installed a smart rubbish disposal system. This vacuum system transports the rubbish to a central depository that removes all water and compacts the rubbish into easily disposable blocks that will eliminate smells and wastewater and ultimately result in a cleaner, healthier, more pleasant living environment.

    SI: What are some of the benefits/impacts of sustainable development?

    JL: When done right, the benefits of a sustainable development should ripple and positively affect the developer, the buyer, the community, and the environment.  It is an investment into the right way to live while thinking of one’s surroundings and other stakeholders. 

    Ultimately the most immediate effect to the buyer is that the development will be a more comfortable environment to live in the long term.

    SI: Does embracing ESG will cause a hike in the price of the property?

    JL: It will in the short term because the elements that go into sustainable development are, for now, much more expensive than conventional construction methods. For example, the smart rubbish system costs millions more than conventional disposal methods. But it results in a way of living that is cleaner, healthier, and ultimately more cost-effective as it will be energy efficient. 

    Eventually when the markets come to expect to live better and nouveau construction elements such as double glazed glass and sustainable construction and materials, the price of these elements will come down or all developments will embrace these methods and prices will balance out.

    SI: Is the co-living concept accepted by Malaysians? What are the benefits?

    JL: Co-living has been around in rural Malaysia for a long time. In Sabah and Sarawak, the indigenous tribes live in long houses, a perfect example of successful co-living. Each family has their own private quarters, but all other activities, such as eating, cooking and socialises, are all done in communal areas within longhouses. 

    The co-living concept in this day and age refers to urban dwelling to save space and cost in high density areas. The benefits are that it is more affordable and provides a social community that looks out for each other, much like the rural concept of ‘kampung’ community.

    SI: Who is the target audience for co-living? And why do they choose co-living?

    JL: In this modern format, the target audience for co-living is very much young millennials early in their careers who want to live near where they work in urban high-density areas. As young people starting out in anew city, co-living is a good way to meet new people and have a community while saving money on rent by sacrificing space.

    SI: Do you think the market for co-living concepts will increase in the near future? Why is that so?

    JL: Co-living will become more common as land becomes scarce and it gets more and more expensive in city centres. In high-density cities such as Hong Kong and Singapore, where rents for apartments have soared, more and more apartment blocks have been converted to co-living spaces. This satisfies the tenant by offering smaller space at a lower rent and generating a higher yield for the landlord. 

    In the UK, where rents are expensive, houses are converted into HMOs (houses of multiple occupancy), a version of co-living.  However, rents in Malaysia remain low and thus reasonably affordable, so it may be a while before the co-living concept catches on.  We will just see smaller studio or one-bedroom units in the immediate term.

  • SIBS Secures Multi-Billion Ringgit Modular Apartment Building Project To NEOM, Saudi Arabia

    SIBS Secures Multi-Billion Ringgit Modular Apartment Building Project To NEOM, Saudi Arabia

    SIBS, one of the world’s leading in modular construction technology, is proud to announce that it has successfully secured a multi-billion-ringgit contract to deliver 2174 apartments to Neom, one of the largest urbanization projects located in northwest Saudi Arabia. The project will be delivered in the form of turn-key buildings from a finalized bottom slab upwards. The entire project will be delivered and commissioned by Q3 2024. This significant achievement marks a breakthrough for the company’s continued growth and success in the industry.

    The project, known as NEOM will be a ground-breaking development in the heart of NEOM city intended for those working on the planning, engineering, and construction of the project. With 2174 apartments distributed among 35 buildings, the development offers luxurious living spaces and an array of amenities tailored to meet the needs of modern urban dwellers.

    The buildings consist of one- and two-bedroom apartments fully fitted with quality designed built in furniture’s, exclusive bathrooms, and balconies for each apartment. Sustainability has always been at the very sole of our design philosophy and together with our efficient building systems, we are able to achieve a high level of energy efficiency. Our flexible yet robust building design makes relocation of these buildings to other regions of Neom a breeze as this mega project progresses.

    Erik Thomaeus, CEO of SIBS Group

    “We are thrilled to have secured this monumental project. This development represents a major milestone for our company and reflects our commitment to creating exceptional living experiences for tenants. The fact that SIBS has been selected as a supplier to NEOM is a clear confirmation that we have the competence and delivery strength that few in the world can match. We look forward to contributing to the development of NEOM as an international hub for, among other things, innovation, business, and sustainable development. We are excited to contribute to the growth and development of NEOM while providing a vibrant and sustainable community.” says Erik Thomaeus, CEO of SIBS Group.

    When SIBS started in 2016, the team had only one mission in mind and that was to revolutionize how homes are built. Its substantial scalable capacity and ability to adapt to different requirements from all regions of the world is further validated with the securing of the NEOM project.

    Last year, the finest modular construction company invested in its new plant in mainland Penang, Malaysia. It has ever since boosted its productivity four folds, making SIBS one of the largest producers of apartment modules in the world. The state-of-the-art factory which spans across a 550,000 sq ft footprint on a 28-acre site is also almost entirely operated through solar energy to reduce its carbon footprint. The new plant is designed to meet the world’s growing needs for a more intelligent, efficient, and effective construction method.

    CEO of SIBS Malaysia, SP Ong, said “Securing this project enables our company to strengthen its position as an industry leader in modular construction. We have a product that is unique and in high demand and I am confident that with a team of professionals whom we have assembled we will continue to improve to strengthen our position in this industry as the leader in construction tech. Everything in our factory is custom designed and built, from its production system to the machines used for production – something that no other competitor has. Not forgetting that we are one of the first to be able to complete 90% of an apartment building off-site leaving only 10% on-site work. We are also proud to be a company that prioritizes on using local suppliers and local professional talents. To further increase efficiency, we have also strategically placed our main suppliers within close proximities of our plant to avoid disruptions to our production. Doing so reduces our dependence on distant sources which are susceptible to disruptions and volatility. This mitigates risks and enhances our ability to respond quickly to demands and changing circumstances.

    When we prioritize our borders, we directly boost our domestic economy. The ripple effects of this decision are profound, touching every corner of our society. Aside from delivering the best products, we have a serious commitment to contribute to local economic growth, job creations, and community development as an organization.” He concluded.

    The success of SIBS in securing this multi-billion-ringgit apartment building project can be attributed to its experienced team of professionals who bring the substance of expertise and a passion for innovation to every project they undertake. Their dedication and commitment to excellence have earned the reputation for reliability in delivering high-quality products and ultimately positioning the company as the preferred choice in the construction technology industry.

    SIBS is grateful for the support and trust of its partners, investors, suppliers, and the local

    community. The company remains committed to delivering this ambitious project on time, within budget, and to the highest quality standards.

    For more information about SIBS and its portfolio of projects, please visit www.sibs.com.my. Facebook link: https://www.facebook.com/SIBSMalaysia

    About Neom

    NEOM is an accelerator of human progress and a vision of what a New Future might look like. It is a region in northwest Saudi Arabia on the Red Sea being built from the ground up as a living laboratory – a place where entrepreneurship will chart the course for this New Future. It will be a destination and a home for people who dream big and want to be part of building a new model for exceptional livability, creating thriving businesses and reinventing environmental conservation.

    NEOM will include hyperconnected, cognitive cities, ports and enterprise zones, research centers, sports and entertainment venues and tourist destinations. As a hub for innovation, entrepreneurs, business leaders and companies will come to research, incubate and commercialize new technologies and enterprises in groundbreaking ways. Residents of NEOM will embody an international ethos and embrace a culture of exploration, risk-taking and diversity.

    Read more at www.neom.com.

    About SIBS

    SIBS Group was founded in 2016 and is today one of the world’s leading modular home manufacturers. With a scalable capacity of around 6,000 homes per year, we deliver sustainable, high-quality homes adapted to local conditions. SIBS has the entire integrated value chain for industrial construction within the group – from design and configuration in its building system, industrial production in its own factories and on-site assembly/finalization. With the help of digitalization and technology, we set a new standard in the construction industry.

  • Official Launch Of KL Wellness City

    Official Launch Of KL Wellness City

    KL Wellness City (KLWC), the first purpose-built township project in Southeast Asia to cultivate a lifestyle fully integrated with healthcare and wellness, marked its official launch today at the KL Wellness City Gallery in Bukit Jalil. The ceremony welcomed the Minister of Health, YB Dr Zaliha Mustafa as its Guest of Honour to officiate the momentous occasion.

    With a gross development value (GDV) of RM11 billion and spanning over 26.49 acres, the development is a world-class medical and wellness living at its core. The project features a well-rounded ecosystem primed for wellbeing and health – The Nobel Healthcare Park, the KL International Hospital (KLIH), innovation laboratories, clinical R&D facilities, healthcare company office towers, a retirement resort, a Healthcare Hub, wellness-centric serviced apartments, a fitness-based Central Park, and more.

    For the past few years, during the pandemic, Malaysia has been fighting hurdles in keeping up infrastructure development with patient load, retaining our medical talents, maintaining continuance of care in preparation for an ageing nation and a continuous war against Non-Communicable Diseases (NCD).

    Positioning Malaysia As A Hub For Medical Tourism

    From Left: Pn Norhaslina Othman, Malaysia Healthcare Travel Council Vice President (Facilitation), Dato’ Sri Vincent Tiew, Executive Director (Branding, Sales, And Marketing), YB Dr. Zaliha Mustafa, Minister of Health, Dato’ Dr. Colin Lee, KL Wellness City Managing Director, Wan Zamri Wan Hassan, Director (Project Development), Ms. Lim Bee Vian, Malaysian Investment Development Authority (MIDA), Deputy Chief Executive Officer, Datuk Seri Garry Chua, Non-Executive Director (Retail, Consumerism & Construction)

    “In full support of Malaysia’s national plan to be recognised as one of the best places for medical tourism, KL Wellness City is designed to provide and prioritise health and wellbeing as the heart of its development, through its vision of a 360-degree wellness hub centred around its township which encompasses all aspects of medical care, health, wellness, fitness, and business, complete with residential, retail, and commercial offerings,” said KL Wellness City Managing Director, Dato’ Dr Colin Lee.

    In line with the national vision of solidifying Malaysia’s position and track record as the top destination for medical tourism in mind, KL Wellness City will serve as the ultimate one-stop oasis for the body and mind for both domestic and international travellers.

    Preparing For An Ageing Nation

    YB Dr. Zaliha Mustafa, Minister of Health, adds her signature to the plaque following the successful official launch ceremony of KL Wellness City

    Other than being a cornerstone for healthcare travel, according to Dato’ Dr Colin, the KLWC project is also an initiative that is built with an ageing nation in mind. Malaysia, having attained its status as an ageing nation, has an ageing population growing at a faster-than-expected rate where more than 15% of its
    population will be above the age of 65 by 2050.

    In response to this shift in population demographics, Malaysia is currently in pursuit of WHO’s Universal Health Coverage and Sustainable Development Goals, that is to provide equitable healthcare and wellness for all. “The KL Wellness City master plan incorporates thousands of facilities and residences. This township is a significant step towards embracing an ageing nation, with facilities for comprehensive healthcare dedicated to wellbeing through elderly care, retirement resorts, as well as independent and assisted living.” Dato’ Dr Lee added.

    Retaining And Cultivating Local Medical Talents

    Dato’ Dr. Colin Lee, Managing Director of KL Wellness City, expresses gratitude by presenting a token of appreciation to YB Dr. Zaliha Mustafa, Minister of Health

    The flagship KL International Hospital (KLIH), approved as a tertiary hospital with 624 beds and scalable to 1,000-bed capacity, will be on the same ranks as renowned institutions like Thailand’s Bumrungrad International Hospital, as well as Mount Elizabeth Novena, Singapore.

    Some of the of medical equipment and facilities to be equipped in the KL International Hospital will be amongst the first in the Southeast Asia region, offering a fully comprehensive and integrated ecosystem of healthcare services including wellness and fitness facilities across diverse areas, including cardiology, spine health, neuro health, sports medicine, cosmetic surgery, and fertility, with R&D laboratories and facilities for clinical studies.

    With the support of the Malaysian Investment Development Authority (MIDA) towards the KLIH, the new private hospital will be built within the mixed development of KL Wellness City in Kuala Lumpur with proposed investment of RM860 million. The project, set to be in operation in the first half of 2026, will create over 3,000 job opportunities for medical professionals, including medical specialists, doctors, nurses, pharmacists, technicians, and others.

    “The commitment of KLWC to raising the bar for healthy living and wellbeing resonates with the Ministry of Health’s whole-of-system approach. It aligns perfectly with our national vision and the direction set forth in the 12th Malaysia Plan.

    Undoubtedly, I have faith that KLIH will attract multidisciplinary leading specialists to practice in a single hospital location, shortening turnaround time for both local and foreign patients, optimising patient care and experience.

    We foresee KLIH filling in that gap for Malaysians, and we stand in support of KLWC resonating with their purpose. The Ministry applauds the efforts of the tertiary hospital to maintain our leading position in this region and globally. We will continue to endorse KL International Hospital’s commitment,” said YB Dr Zaliha Mustafa, Minister of Health Malaysia.

    Dato’ Dr Colin also expressed his gratitude for the support of the Malaysian Government for the groundbreaking project. “We are honoured by the presence of the esteemed Minister of Health, YB Dr Zaliha Mustafa, which further exemplifies our shared commitment to make Malaysia stand among the best in the SEA region.”

    VIPs pose for the photo album to commemorate the successful official launch ceremony of KL Wellness City

    About KL Wellness City

    KL Wellness City Sdn Bhd is the master township developer. At the forefront of wellness and healthcare, KL Wellness City is the first in Southeast Asia to cultivate a lifestyle fully integrated with healthcare. Pioneering a comprehensive ecosystem embodying healthcare and wellness living, KL Wellness City’s concept is uniquely modelled by its declaration to redefining, strengthening, and broadening our experience of health and quality of life. Sharing in this vision of building a 360-degree wellness hub, the KL Wellness City community boasts The International Tertiary Hospital, Medical Suites, innovation laboratories, clinical R&D facilities, healthcare company office towers, a retirement resort, a Healthcare Hub, wellness-centric serviced apartments, a fitness-based Central Park, and more.

    Serving as a healthcare nexus, these pivotal elements collectively render KL Wellness City the ultimate one-stop oasis for the body and the mind. Each component of this township is carefully conceptualised to excel both independently and collectively as a part of the community’s integrated ecosystem encompassing medical care, healthcare, wellness and fitness.

    For more information, kindly visit: http://klwellnesscity.com/

  • Pavilion REIT Concludes Acquisition Of Pavilion Bukit Jalil, Reinforcing Retail Portfolio

    Pavilion REIT Concludes Acquisition Of Pavilion Bukit Jalil, Reinforcing Retail Portfolio

    Pavilion Real Estate Investment Trust (“Pavilion REIT”) has announced the successful conclusion of the acquisition of Pavilion Bukit Jalil, strengthening its position in the retail sector and marking an important milestone in its portfolio expansion and income diversification strategy.

    Following the fulfilment of all conditions precedent as set out in the earlier Sale and Purchase Agreement (SPA) and an oversubscription of its first private placement, Pavilion REIT now owns Pavilion Bukit Jalil, inheriting its balance sheet and revenues.

    Dato’ Philip Ho, CEO Pavilion REIT Management Sdn Bhd

    “The successful acquisition of Pavilion Bukit Jalil signals a strategic expansion in Pavilion REIT’s portfolio, bringing total asset under management to RM8.3 billion and the start of another new chapter for Pavilion REIT,” stated Dato’ Philip Ho, the Chief Executive Officer of Pavilion REIT Management Sdn Bhd.

    Dato’ Philip added that Pavilion Bukit Jalil’s robust tenant strategy, combined with its role as the host of numerous local and international events, has successfully driven the mall’s occupancy rate to over 82% in a relatively short span, and that this positive momentum is expected to continue.

    The mall’s diverse tenant mix has recently secured new brands particularly in the F&B space including BONCAFE @ HOME, Mixbowlicious, Noodleface Express, MOVON, CrunchCraze, 117 Coffee Bar by Psycoth, Superhero, and Xi Yu (喜鱼). Further adding to the unique experience, the mall also will welcome new concept outlets such as Iron House Cafe (铁皮屋) and JP & Co.

    Dato’ Philip Ho highlighted that Pavilion Bukit Jalil’s energetic atmosphere, catering to diverse interests, is poised to solidify Pavilion Bukit Jalil’s positioning as a premier retail destination. By incorporating novel retail brands and concept stores, while hosting renowned exhibitions and events, the mall’s strategic vision supports a wider visitor and shopper base, making it an increasingly attractive proposition.

    L’Occitane Hotel pop up

    Pavilion Bukit Jalil has established itself as a preferred event destination, hosting various international and local pop-up exhibitions. The mall is currently hosting the world’s first L’Occitane Hotel pop up and ‘The World of Tim Burton Pop-Up Museum’, the first in South East Asia. Recently concluded events include the internationally acclaimed Van Gogh immersive experience and Demon Slayer: Kimetsu no Yaiba Total Concentration exhibition from Japan.

    Pavilion Bukit Jalil will also soon play host to the Japan Expo Malaysia 2023, the biggest all-Japan event from August 18 to 20. The event is expected to draw enthusiasts for all things Japanese and will incorporate a number of zones including music, food, travel, arts, education, health and wellness, anime and cosplayers.

    About Pavilion REIT

    Listed on 7 December 2011, with the largest exposure to the retail sector by any listed Malaysian REIT, Pavilion REIT owns a RM6.0 billion portfolio based on appraised value, to which its most prominent asset is the Pavilion Kuala Lumpur Mall that is located in Bukit Bintang, Kuala Lumpur, Malaysia.  Pavilion REIT is established with the principal investment policy of investing, directly and indirectly, in a diversified portfolio of income producing real estate used solely or predominantly for retail purposes (including mixed – use developments with a retail component) in Malaysia and other countries within the Asia-Pacific region. For more details, please visit www.pavilion-reit.com

    About Pavilion REIT Management Sdn Bhd

    Pavilion REIT Management Sdn Bhd is the manager of Pavilion REIT. Incorporated in Malaysia on 7 April 2011 with an issued and paid-up capital of RM5 million, it is 51% owned by Urusharta Cemerlang Development Sdn Bhd and 49% owned by Urusharta Cemerlang Project Corporation Sdn Bhd. The principal activity of the Manager is to manage and administer Pavilion REIT.

  • PropertyGuru: Malaysian Residential Property Market Continues To Face Challenges As Supply And Demand Declines

    PropertyGuru: Malaysian Residential Property Market Continues To Face Challenges As Supply And Demand Declines

    PropertyGuru Malaysia released its PropertyGuru Malaysia Property Market Report (MPMR) Q2 2023, which revealed that property demand and supply eased at the beginning of the year with an overcast economic outlook.

    Based on the insights from DataSense, PropertyGuru’s market data and analytics platform, the report captured downward trends in the Sale Demand Index, with property enquiries decreasing by 5.6% QoQ. While inflation is projected to moderate in the coming months, global economic uncertainties have affected the appetite of Malaysian buyers for big-ticket purchases. Similarly, the Sale Supply Index saw a slight decrease of 0.6% as property owners continued the wait-and-see approach towards their investments.

    Sheldon Fernandez, Country Manager, Malaysia (PropertyGuru.com.my and iProperty.com.my), shared, “With Bank Negara Malaysia’s decision to raise the Overnight Policy Rate by 25 basis points to 3%, it will be difficult to see an uptick in property demand. Potential homebuyers are likely to delay their purchasing plans because of the higher borrowing costs and rising cost of living. Currently, it is still too early to gauge how much impact this will have on the market.”

    Sheldon Fernandez, Country Manager, Malaysia (PropertyGuru.com.my and iProperty.com.my)

    Asking Price Continues to Rise

    The MPMR Q2 2023’s Sale Price Index tracked the asking prices of properties listed on propertyguru.com.my, which increased by 1.6% QoQ in Q1 2023. Sellers are likely not keen to lower prices against the backdrop of an uncertain economic climate. The global increase in construction costs paired with recent labour shortages have also pressured developers to hike their prices to cover the increased costs.

    While Malaysia is projected to see a moderately lower economic growth this year, we may see a more attractive property market as economic activities accelerate towards the second half of the year. Following the boost in investments from companies like Tesla and AWS, as well as China’s RM 170 Billion Investment Commitment, this is likely to spur job creation and push infrastructure development in Malaysia in the near future.

    However, buyers are also aware of the external pressures caused by global inflation and remain cautious with their purchasing decisions, especially with the current higher borrowing costs. If property prices continue to peak with demand lagging, a global recession or economic shock could lead to a price correction. If it happens, property prices adjust accordingly to reflect the slower demand.

    Trends in the Rental Market

    From the report, the indexes in the rental market mirrored the trends in the property sale market, tracking a decrease in the Rental Demand Index by 6.3%. This is likely due to the substantial increase in rental prices, with the Rental Price Index rising by 4.7% QoQ. The rise in rental prices did not go unnoticed, and the Selangor state government has announced plans to look into the feasibility of expanding its Smart Rental Scheme to low-cost housing.

    “The decrease in rental demand, as highlighted in our report, could reflect that Malaysians are becoming even more cautious, perhaps opting to stay with family members and commute to the city to work instead of renting their own place. Again, the wait-and-see approach continues but it may be further exacerbated by the uncertainties ahead,” states Sheldon.

    As rental prices continue to rise, we are seeing increased pressure on the demand for affordable housing near job centres. More individuals are migrating towards these urban areas for convenience, but the rising prices may force them to forgo ideal living conditions. This presents a unique opportunity for developers and landlords to consider repurposing their unsold properties into co-living spaces, which offers more affordable living space by sharing costs and common areas with other residents without completely forgoing privacy.

    “We are seeing cumulative issues of housing affordability, higher cost of investment, mismatch of demand and supply, and “sick” housing projects. These issues have been persistent in the local market, and unfortunately remain unsolved today. While we do see the government taking the first steps to address these issues, developers must also play their part in assessing what homebuyers need – because that’s changed overtime”, he adds.

    Johor in the spotlight

    To kick-start 2023, Johor takes the crown for the most-viewed residential properties in Q1 2023. The state boasts the top four most viewed condominium projects in Malaysia and had four other projects front-running in the landed properties category, with Leisure Farm maintaining its top position as the most viewed residential landed project. In the rental market, R&F Princess Cove became a popular project for those looking to rent, given its strategic location near the Johor Causeway.

    Johor’s development surge is anticipated to persist, fueled by last year’s RM51.1 billion investment in data centres. As a burgeoning digital hub, Johor is attracting attention to its real estate market. The prospect of new job opportunities may entice more Malaysians to relocate to the peninsula’s southern region.

    “Overall in Malaysia, the rising prices driven by global uncertainties will continue to contribute to the current housing affordability issue. As property ownership costs are expected to increase with the OPR hikes, we foresee property buyers and sellers alike will continue to navigate a challenging and unpredictable property market. However,      we are cautiously optimistic that the economy will show improvement in the second half of 2023, and we will continue to look out for more positive signs of growth in the residential property market,” he concluded.

    About PropertyGuru Malaysia

    PropertyGuru.com.my is Malaysia’s leading property marketplace and has been guiding Malaysians in navigating their home-ownership journey since 2011. The company provides easy-to-use, property market data and actionable insights such as Property Guides, Property Market Reports and Home Loan Calculator, which enable property seekers to make confident property decisions wherever they are in their property journey. PropertyGuru Malaysia offers end-to-end solutions for Malaysian property agents (AgentNet) and developers to help achieve their business goals. These include, a high-quality developer sales enablement platform, FastKey; and a host of other property offerings including Awards, events and publications across Asia. The company is part of PropertyGuru Group (NYSE: PGRU), Southeast Asia’s leading property technology company.  

  • MRTT VS MRTA, What’s The Difference?

    MRTT VS MRTA, What’s The Difference?

    A mortgage is one of a person’s largest debts or loans. Therefore, it is unsurprising that several types of takaful can help settle the loan if something undesirable happens to the borrower.

    For example, the borrower’s death or permanent disability prevents them from working or generating further income to settle the remaining loan balance. Thus, takaful or insurance is the best protection for protecting you and your loved ones. How can it protect you and your loved ones?

    Before we start comparing MRTT vs MRTA, you should know that there are 4 types of protection for your mortgage:

    a. MRTT: Mortgage Reducing Term Takaful

    b. MRTA: Mortgage Reducing Term Assurance

    c. MLTT: Mortgage Level Term Takaful Assurance

    d. MLTA: Mortgage Level Term

    In this article, we will explore more on MRTT vs MRTA. To simplify understanding, MRTT and MRTA are a package that seems the same. The only difference is that MRTA is a form of conventional insurance while MRTT is takaful or Islamic.

    The key phrase for MRTT and MRTA is R – Reducing. If your housing loan amount decreases, the protection MRTT and MRTA provide will also decrease.

    Read: 7 Tips For First-Time Home Buyers

    MRTT VS MRTA

    MRTT VS MRTA: What Is MRTT?

    MRTT, or Mortgage Reducing Term Takaful, is insurance based on Islamic finance principles. MRTT is a takaful (Islamic insurance) product that provides coverage for mortgage payments in the event of death or TPD of the policyholder.

    This type of insurance operates on the principle of shared risk, where policyholders collectively pool their resources to protect one another. In the event of a claim, the takaful fund covers the mortgage payments of the policyholder’s family.

    MRTT VS MRTA: What Is MRTA?

    Conversely, MRTA is a type of insurance that operates on the principle of individual risk. MRTA provides coverage for mortgage payments in the event of the death or TPD of the policyholder.

    Unlike MRTT, MRTA is not based on the principles of Islamic finance and operates as a traditional insurance product. In the event of a claim, the insurance company pays the mortgage payments to the policyholder’s family.

    Read: High-Rise Properties Near Lush Greenery Achieve High Capital Growth in H1 2022

    MRTT VS MRTA: The Differences

    Categories/Coverage TypeMRTTMRTA
    Pool of fundsOperates on shared risk principle, coverage from takaful fundOperates on the principle risk, coverage from the insurance company fund
    Cost of coverageCheapMore expensive
    Amount of coverageLowHigh

    One of the key differences between MRTT and MRTA is how they are structured. MRTT operates on the principles of shared risk, while MRTA operates on the principle of individual risk.

    This means that the cost of coverage is determined differently in each case. In MRTT, the cost of coverage is determined based on the collective pool of resources provided by policyholders.

    In MRTA, the cost of coverage is determined based on the individual risk of the policyholder.

    Another key difference between MRTT and MRTA is the way claims are handled. In MRTT, claims are handled by the takaful operator and are paid from the takaful fund. In MRTA, claims are handled by the insurance company and are paid from the insurance company’s funds.

    It all looks the same, but structurally, MRTT is shariah-compliant.

    Pros And Cons Of MRTT

    One of the main benefits of MRTT is that it operates on the principles of shared risk, which helps to reduce the cost of coverage. Because policyholders collectively pool their resources, the coverage cost is lower than MRTA.

    Additionally, MRTT is a takaful product, which means that it is based on the principles of Islamic finance and is therefore considered a more ethical and socially responsible option than MRTA.

    However, one of the potential drawbacks of MRTT is that it may not provide as much coverage as MRTA. MRTT operates on the principles of shared risk, which means that the cost of coverage is lower. However, this also means that the coverage is typically lower than MRTA.

    Pros And Cons of MRTA

    One of the main benefits of MRTA is that it provides more coverage than MRTT. Because MRTA operates on the principle of individual risk, the coverage provided is typically higher than MRTT. Additionally, MRTA is a traditional insurance product that provides higher financial protection than MRTT.

    However, one of the potential drawbacks of MRTA is that it is generally more expensive than MRTT. Because MRTA operates on the principle of individual risk, the cost of coverage is determined based on the individual risk of the policyholder, which can result in higher costs compared to MRTT.

    Additionally, MRTA is not based on the principles of Islamic finance and may not be considered a socially responsible option for some Muslim consumers.

    In conclusion, MRTT and MRTA are two popular insurance products in Malaysia that provide financial coverage for mortgage payments in the event of death or TPD of the policyholder.

    Both MRTT and MRTA have their pros and cons. Consumers must consider their needs and circumstances before choosing between these two options.

    Hope that you now have a better understanding of MRTT vs MRTA. You should also consider the level of coverage they require, the cost, and the level of financial protection they need before deciding.

    Read: How To Save 50% Of Your Housing Loan Interest In Half The Time, And Get Your Dream Car For Free

  • 6 Online Courses to Learn about ESG And ESG Investing

    6 Online Courses to Learn about ESG And ESG Investing

    As ESG (Environmental, Social, and Governance) investing or ‘sustainable investing’ continues to gain traction among beginner and seasoned investors alike, it is important to stay in the know as a responsible investor.

    Why ESG Investing?

    ESG investing drives sustainability to the forefront of major financial decisions and can directly impact investors’ long-term considerations. By prioritising ESG, companies must consider the impact of their current and future development activities on the environment, society and governance and strive to make sustainable decisions for the livelihood of the next generation. With that, ESG is becoming an increasingly essential investment factor in many financial portfolio management strategies.

    Whether you’re looking to understand the basics or dive deeper into ESG investing, consider enrolling into one of these top online courses to enhance your knowledge today.

    It’s time to embed ESG into your investment portfolio. | Credit: nattanan23 via Pixabay

    1. Introduction to Sustainability by Bursa Malaysia (FREE)

    Suitable for all levels, Bursa Malaysia’s ‘Introduction to Sustainability’ e-learning course delves into practical topics such as why sustainability is of growing importance to businesses, and practical steps on how businesses can manage their key (ESG) issues.

    This concise 1.5-hour course covers the following topics:

    • Introduction to Sustainability
    • Stakeholder Engagement
    • Materiality: Identifying the Issues that Matter
    • Managing Sustainability
    • Communicating the Results

    How much does it cost?

    2. Transforming Our World: Achieving the SDGs by SDG Academy (FREE)

    If you’re new to the concept of Sustainable Development Goals (SDGs), interested to understand the big ‘why’ behind this shared responsibility and looking to apply these practices in your capacity as a business, investor or individual, this course is for you.

    This 2- to 4-hour course covers:

    • What are the Sustainable Development Goals and Plans?
    • How modern advancements, technology and innovation can help us achieve the goals
    • Good Governance and the SDGs
    • Why you should care about the Sustainable Development Goals – as a corporation, as a university, as an individual

    How much does it cost?

    • SDG Academy offers this self-paced online course for free!
    • Enroll now at SDG Academy.

      3. Introduction to ESG by Corporate Finance Institute

      This course provides an overview of an ESG framework and how it supports risk management, impacts both company and investor perspectives, as well as examines how corporate pressures and stakeholder expectations can affect business decisions. It is perfect for those who wish to understand how a company manages ESG as a competitive edge in today’s shifting market and non-market conditions.

      This 1.5-hour course covers:

      • What is ESG
      • ESG Factors
      • Corporate Pressures & Stakeholder Expectations
      • Key Considerations for Companies & Investors

      How much does it cost?

      • US$28.99 per month on a self-study basis, of which the fee includes unlimited access to CFI’s accredited certification programmes.
      • Enroll now at CFI.

        4. Introduction to Corporate Sustainability, Social Innovation and Ethics by Imperial College Business School (FREE)

        Learn about the application of sustainability in different industries, the challenges and risks faced by modern organisations at a country and company level, the role played by business in sustainability, the importance of ethical implications, the potential of social innovation, and how to put principles into practice via a case study in this course.

        This 6-week course at 2-3 hours per week cov

        • Drivers of the Sustainability Debate
        • The role played by business: CSR, sustainability and shared values
        • Sustainability today
        • Practising sustainability thinking and decision making: The Mercato Metropolitano case study
        • Introduction to Business Ethics
        • Introduction to Social Innovation

        How much does it cost?

        5. CFA Institute: ESG & Sustainability Investing 101

        Ideal for financial advisors, portfolio managers, investors, business students and those passionate about sustainability, CFA Institute’s introductory course on Sustainable Investing and ESG Factors will allow you to build a solid foundation by understanding the current state of the market, get familiar with basic terms and concepts as well address seven main ESG Investing strategies and how it can be integrated into financial valuation models.

        This 2.5-hour course covers:

        • ESG and Sustainable Investing
        • Responsible Investing
        • ESG Investing Strategies
        • ESG Financial Performance
        • Environmental, Social and Governance Factors
        • SASB Framework
        • Climate Change
        • Investment Risk Analysis
        • Careers in ESG Investing

        How much does it cost?

        • RM149.90 with a certificate upon completion
        • Enroll now at Udemy.

        6. University of Pennsylvania: The Materiality of ESG Factors Specialization

        This in-depth course enables you to identify how the ESG approach should be an essential strategy. You will also learn about the fundamentals of ESG investing and the five pathways of materiality, as well as the concepts of positive and negative screening. At the end of the course, you will be well-versed in the best practices for creating a risk management plan, be able to analyse indexing and measurement techniques and explain how ESG affects the corporate world.

        This 4-month-long at 2-hours a week course covers:

        • ESG Risks and Opportunities
        • ESG Impact: Investor Perspective
        • ESG and Climate Change
        • ESG and Social Activism

        How much does it cost?

        • It starts with a 7-day free trial, then subsequently will cost at US$79 per month
        • Enroll now at Coursera.

        As the financial industry continues to evolve rapidly, the demand for the integration of ESG into financial analysis and strategy has proven to be inevitable. So, equip yourself with key concepts and knowledge about ESG to form a better analysis and informed investment decision.

        By Mabel Yan

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      • 7 Tips For First-Time Home Buyers

        7 Tips For First-Time Home Buyers

        Purchasing property in Malaysia can be complicated and perplexing, particularly for first-time buyers. Yet, if you are prepared and knowledgeable, you may go through the process easily and assuredly.

        Here are some tips for first-time home buyers in Malaysia.

        1. Property Ownership

        settle my loan early credit card loan house loan opportunity cost car loan

        One of the important tips for first-time home buyers is to know the many forms of property ownership. Malaysia has three: leasehold, freehold, and Bumiputera quota. Properties with a leasehold duration of up to 99 years are often less expensive than those with freeholds.

        Freehold homes cost more and have an unrestricted tenure. For ethnic Malays and other indigenous communities, quota-Bumiputera properties are set aside.

        Read: Housing Loan In Malaysia: What Is Debt Service Ratio (DSR) And How To Calculate DSR?

        2. Know Your Property Market

        Get knowledgeable about the property market. It is crucial to comprehend the market’s circumstances before making a purchase. Find out the costs of nearby properties similar to yours and the level of interest in those properties.

        To better grasp the market, you can also speak with property agents, registered real estate negotiators or property developers.

        Read: Property Investment: Make Money via Capital Gain & Rental Yield

        3. Loan Pre-Approval

        Next on tips for first-time home buyers is to obtain a loan pre-approval: If you intend to use a loan to pay for your property purchase (which most people are), it’s a good idea to get pre-approved a loan before beginning your search.

        This can help you decide how much you can pay on a property and provide you leverage when dealing with vendors.

        Read: 3 Important Steps For Your Mortgage Application

        4. Understand the Legal Process

        One should know and understand the legal process before buying a property. The legal procedure for purchasing property in Malaysia might be complicated, so it’s important to understand all the processes.

        This includes the ownership transfer, stamp duty and additional legal costs. Having a lawyer at your side will be very helpful throughout the procedure.

        Read: Investing In Property With A Holistic Perspective Using This 3-Step Process

        5. Property Inspection

        Number five on the tips for first-time home buyers, we need to inspect a property, particularly if it’s a sub-sale property. Make sure you conduct a property inspection before making an offer. It’s better to have a professional inspect the house before making an offer.

        This will ensure there aren’t any flaws or problems that aren’t obvious now but could later cause complications in terms of safety or money in your pocket!

        Read: 5 Reasons Why You Shouldn’t Pay Off House Loan Early

        6. Ready To Spend More Money!

        You should be ready! There are additional charges to consider in addition to the property’s purchase price, such as legal fees, stamp duty, and other ancillary costs. Make sure to budget for these fees in advance.

        If you are buying a sub-sale or auction property, be aware that repairing or renovating may take a lot of money.

        Read: How To Save 50% Of Your Housing Loan Interest In Half The Time, And Get Your Dream Car For Free

        7. Be Patient!

        One of the final tips for first-time home buyers is to be patient. Take your time, research, and consider all your possibilities before deciding.

        Remember! Property loan is one of the largest loans with the longest tenure one has in life!

        Buying property in Malaysia can be difficult and complex, but with a little information and planning, you can go through it confidently and smoothly.

        Understanding the various types of property ownership, being familiar with the real estate market, obtaining a loan pre-approval, being aware of the legal process, obtaining a property inspection, being ready for additional fees, and exercising patience are all key.

        Once you know these tips for first-time home buyers, you’ll have no trouble choosing your ideal property in Malaysia if you keep these suggestions in mind.

        Read: Is Malaysia Property Still Worth To Invest In?