The Advantages & Disadvantages of the Industrialized Building Systems (IBS).

Yesterday, my colleague asked me something on IBS; IBS has obviously been one of my favourite topics, and in fact, I have always been a believer in certain forms of IBS systems. I was the one who had 'pushed' for the introduction of system formwork usage in my office - since then, we used a lot of steel forms, table forms, the aluminium formwork system such as MIVAN, and most recently, the DOKA system.

The DOKA system formwork used at Menara Binjai.

Anyways, IBS is much more than just system formwork. I would say system formwork can only get 0.5 or 0.6 multiplier in terms of IBS scoring, cos it is still casted in-situ. In fact, The IBS is a system, or rather method of construction where the various components are constructed, and then assembled on site - similar like LEGO. =)

Precast elements plays a significant role in IBS.

In Malaysia, there are about 5 main IBS groups.

• Pre-cast concrete frames, panels, columns etc
• Formwork systems - tunnel forms, permanent steel formworks
• Steel frame systems - portal frame, roof trusses
• Prefabricated timber frames - i.e. for roof trusses
• Block work systems - lightweight concrete blocks and so on...

My colleague got a little shock to see her newly purchased house - being built the un-conventional way - in the form of IBS. After explaining a bit to her on IBS systems, I have decided to come up with this post - to further explain on the advantages and... of course, disadvantages of IBS systems. Nothing is perfect in this world... so there are always pros and cons. =)

What would be the main advantages of the usage of Industrialized Building Systems?

The immediate advantage is... discounts on levy charges for contractors!!!!! Sorry - this is of course in the contractor's point of view - which would have plenty of advantages. But with due respect, it is the buyers/end users who need to worry about it - so here are some of the strong points.

Precast panels used in linked/terrace houses.

As most components are manufactured in the factory, the quality, or rather high quality can be consistent and maintained as the working environment in a factory is easier to control. The wall surfaces, the soffit surfaces and so on can be controlled right to the millimetres in dimensions, hence improved and consistent quality. Another good point for buyers is... IBS allows projects to be completed faster than conventional systems - due to the introduction of pre-fabricated components to replace on-site works. Assuming there is a massive amount of quantity - economies of scale-wise, IBS systems will result in cheaper total construction costs, and buyers can benefit if the savings are transferred to them.

We have the yin.. how about the yang?

In most cases, there is a high initial capital costs for the contractors - which might decide to transfer the costs to the buyers. Plus, with only a handful of IBS players in the country, there is quite a 'monopoly' system. Further to that, the standardization of building components and elements also results in a lack of aesthetics value - buildings tend to be very boxy and square-y, which may not look as impressive as the conventional curvy buildings. But this part here - IBS systems are being expanded to be more architecturally and eye-pleasing.

The Singapore's HDB flats - which uses a lot of IBS elements - looks pretty boxy to me.

Another major problem... is when the contractors have bad workmanship while using pre-fabricated panels. This can result in problems in the joints - resulting in water leakages. In a country like Malaysia where it rains practically everyday, the problem can be very severe. To counter this problem - one has to thoroughly check through the completed units during handover to make sure the developer sorts out these defects.

Owner tries to hack a precast wall - only to find steel reinforcements which he has a dilemma whether to cut or not to cut. Cutting it might result in affecting the structural integrity of the building.

Another disadvantage with pre-cast elements is that these components are considered to be inflexible, with respect to changes/renovations. Most people would want to drill holes for wall lamps and so on - which is okay. But for some, they want to hack to allow for additional conduit works and wiring works - which might be a hindrance. If one buys two adjoining units, they may have problems trying to hack down some walls to allow two units to breakthrough.

The Residential Property Market and Sector.

Okay - what I am going to write about next might make you jump off your chair - or rather shocked - or some of you may already sense it already. =) I have been conducting a very thorough research on properties in Malaysia, the property markets - and for those who want to invest in property counters, yes, the property sector as well.

In my opinion, Malaysia's current residential markets look very good, and I would say that the likelihood of a residential property bubble bursting is very low. However, I do think that the larger developers would be seeing fair growth numbers for 2012 as compared to 2011. The rebound from 2008 saw a jump in 2009, a hike in 2010 and a pretty impressive 2011. But as the markets tend to hover and cool down a bit - I believe 2012 will still be a good year, just without the super impressive growth rates.

The Government - through the Economic Transformation Programme (ETP) has been releasing plenty of good news to the property markets. In a way, having new developments and so on are creating and increasing the supply numbers to cool down the high demands, on the other hand, the new developments also create an excitement amongst property players and investors.

I am a firm believer in properties in the Klang Valley region. I believe the Klang Valley properties will continue to be the main driver of the Malaysia property market - and I foresee the highest growth in terms of transaction values and capital appreciation for Klang Valley properties. As what I have seen in private developments and launches, I also noticed that in comparison to 2010 (in particularly 2nd half of 2010), housing launches have slightly slowed down. Assuming units are still being sold at the same rate, that would mean the numbers of unsold residential houses and units will continue to reduce, hence reducing the possibilities of the oversupply situation.

The MRT project under the ETP.

Some analysts and certain groups have said that the ETP projects - in particular with the Greater KL and the MRT will push the property sector further. In my opinion however, there are 2 schools of thought for this. The MRT is expected to be a RM35billion (or more) project, with multiple lines and stations. Yes - I would expect this to enhance/improve property values - however, in my opinion, implementation is always the key to success. In this case, a multi billion dollar project would take time to be implemented and constructed. The project will have its launch event next Friday - to be officiated by the PM himself.

On the Greater Kuala Lumpur part - I would say that there are plenty of good news to flow out from there. Smaller projects such as Damansara City, the redevelopment of Pudu Jail, the developments around Matrade and so on could be launched quite quickly, and actual physical works could hit the grounds as soon as early 2012. The larger projects such as the RRIM land in Sg Buloh, the Sg Besi RMAF land and the KLIFD project at Imbi side will take a much longer time for masterplan proposals, authority submissions and so on before any works can start - which I would look at about... earliest, 2nd half of 2012.

Nonetheless, I would think that the RM150k to RM500k properties are still seeing plenty of investors' attention - and would always remain within the radar. I have seen how properties in Desa ParkCity uptrend from the RM950k/unit to about RM1.2mil/unit - which is a good 26% upside. But I have also seen properties of the lower prices - go from the low RM350k to hit RM500k within the same period - which is an impressive 40+%! Hence, I believe that properties below RM500k are still very much in demand.

The Skim Rumah Pertamaku.

The Government introduced the 'Skim Rumah Pertamaku' - for 1st time home buyers to obtain 100% margin financing for homes below RM220,000. This clearly mean one thing - Affordable is the word, and very likely the word for 2012. To add on to this, the Government is also allowing those earning less than RM6k per month to obtain 90% loan margins with 10% guaranteed deposits for apartments between RM220k-RM300k. However, with the recent rise in building material prices and land costs, I would expect the developers to not focus so much on the RM220k and below units - and instead, on those above RM500k to have better margins.

Alam Idaman apartments, with units from RM240k-RM320k.

Conclusion

In general - while the residential markets look good overall, do be careful for the expensive properties. Properties at about RM200k will be a better bet, with plenty of potential upside. Those RM500k and above would always remain a fair/good bet, but easy disposal of the units will remain a question mark. Do note that the house affordability is very good, with very low interest rates and good options around the markets to scout. Banks are also experiencing better liquidity, and are giving out 30-40 year loan tenures to encourage property purchases.

Olive 108 @ Ampang.

Olive 108 Ampang is located within Ampang. A high class residential area mainly populated by foreign expatriates. Exclusive condominiums encircle this area with its lavish settings and surroundings. Situated just approximately 3.5km from the Petronas Twin Tower, Olive 108 Ampang is located along the busy Jalan Ampang road, one of the major roads heading into the city. Craving for some middle eastern food? Steak? Or if you fancy a mix of local and western delicacies, restaurants to satisfy your taste bud are just walking distance from the residence.

This is the Olive 108 Ampang - interesting, isnt it?

The Suasana Bukit Ceylon Service Residences, Kuala Lumpur.

I received this in my mailbox today. =)

A stone’s throw away from the pulsating Bukit Bintang hotspot and flanked by commercial and business centres, Suasana Bukit Ceylon’s highly enviable location will make an ideal address for young professionals and smart investors, the upbeat home for the vivacious and savvy clique.

NOW LAUNCHING!

Date: 23rd - 26th June, 2011

Time: 9am - 5 pm

Suasana Bukit Ceylon Sales Gallery

G.21, Ground Floor, Kompleks Antarabangsa

Jalan Sultan Ismail

50250 Kuala Lumpur

The Biggest Errors People Make When Investing in Properties.

I read this article on The Star Property by Michael Tan - on the Three biggest errors people make when investing in properties. He spoke about whether the property was for keeping, or to sell... and then not understanding the mindset of the locals, as well as not getting to know the area well. I somewhat agree with what he said - and I would have some extra points to add on as well.

Condominiums in Penang.

If you ask me - understanding the locals would be amongst the toughest criteria to cover. It is tough to know what the local mindset is; but then again, sometimes the majority of the community can be quite predictable as most of us all are trend followers, arent we? LOL.

If you compare properties with food joints... the lower end properties are like your Chinese kopitiams, where you have your chicken rice, char kuey teow and so on for like RM6-8 and below. The higher end properties are like going to a proper restaurant like Oriental Pavilion or Ah Yat etc, and your meals are averagely RM40++ per person. The medium end... to me, are likened to bak kut teh joints, whereby your meals range from RM20+ per person.

Bak kut teh for lunch, anyone?

Say you're in the financial district of the city... i.e. KLCC area, or Jalan Raja Chulan for instance. On a bad day for the stock market, the high rollers go for a slightly cheaper meal at the bak kut teh joints, and the bak kut teh goers go to the kopitiams. On a good day, the kopitiam goers upgrade and end up at the bak kut teh shops, whereas the bak kut teh goers end up going for their abalones and shark fin's soup elsewhere. This is the same with properties. In my opinion, if you are going for the medium-end properties, which ranges from RM500k-RM700k, your investment is pretty safe, and there would be plenty of upgraders as well as downgraders - the in-between, the bridge...

SO... the next question is... to keep or to flip?

Like what Mr Michael said, properties for flipping are usually the ones with has the highest capital appreciation in the shortest amount of time. These are usually the landed properties. A simple formula to calculate capital returns would look like this...

The returns will be the total returns you would get. Assuming you achieved 30% returns in 3 years, the next thing you need to do is to divide that to determine your simple returns per year (as compared to compounded returns)

Properties for keeping are the ones that fetch rental returns higher than 6%. These are usually high-rise in nature. Here’s the formula for rental returns...

It is the main criteria to look into before you decide what strategy to adopt before deciding what type of property to invest into. Also, it’s crucial to estimate the returns of investment you desire and the timeline of which to exit. Having exit strategies prior to starting is critical to your success.

Once again, the question comes back to the same item. Rental Returns.

I had mentioned this before - and once again, my stand remains. It has come to my attention that a lot of properties in Klang Valley are not fetching yields of 8% like how they were previously. Here's my reply to that... YOU ARE RIGHT! If you could get a property that fetches you a 8% yield, by all means, dont ever sell it - at least not yet.

Based on the recent research and feedback from various agents, it seems like a lot of properties in Mont Kiara and KL area are fetching yields of 5-6%, which in my honest opinion, is very good.

TTDI Plaza.

Today, Malaysian banks are offering between 2.6% up to about 3% in interest rate returns for Fixed Deposits, a far difference from the 5-6% years ago - which had prompted property returns to about 8%. Today, at 3%, I believe that the proper adjusted property yields should hover at 4-5%. I believe that a lot of people may not agree with me - but I believe this is the scenario that we are facing now in Kuala Lumpur.

If you are hoping for capital gains, then expect your rental returns/yields to drop. =P

Centrestage, a new development in Section 13, PJ.

Who said the Property markets were sluggish?

Whoever said the Malaysian Property markets were being sluggish are obviously not updated with the property news and updates. Let me bring your attention to a recent property launch in Sungai Buloh area last month... of which, a very prominent developer sold out all its units during the launch. =)

MAH Sing Group Bhd registered sales of RM242.5mil during the launch of Phase 1 and 2 of Star Avenue@D’Sara in Sungai Buloh recently. The launch attracted more than 800 prospective buyers and all 92 units of the three-storey shop offices, priced at an average of RM2.6mil, were snapped up.

The Avenue Street Mall offers 370,000 sq ft of nett lettable area spread over four levels, and the Mah Sing Group intends to retain approximately 60% to ensure the right tenancy mix to maximise rental yields and increase capital appreciation. The proposed tenancy mix includes F&B outlets, a supermarket, IT and telecommunications centre, bowling alley and fashion and accessories stores. With an estimated catchment of 360,000 people within a 15-minute drive and more than 300,000 commuters passing by daily Star Avenue@D’Sara is poised to be a shopping hotspot. Ample parking space is available with more than 1,500 bays on the ground floor and basement level allocated to cater to the expected influx of shoppers.

The project is also only three minutes from the proposed MRT Station in Taman Industri Sg Buluh and strategically located at the busy traffic junction of Jalan Sungai Buloh (Guthrie Corridor), Persiaran Cakerawala and Jalan Lapangan Terbang Subang. Star Avenue@D’Sara will also be able to bank on the 13,000 students at the proposed new Help University Collegue-Subang 2 Campus, via Persiaran Cakerawala which is currently being upgraded into a six-lane road. This project is also adjacent to the much talked about 3,300-acre Rubber Research Institute of Malaysia (RRIM) privatisation project to be developed by EPF.

The SS Two Mall, Petaling Jaya.

Strategically located along SS2/72 and also accessible through Jalan Harapan and the Damansara-Puchong highway (LDP). SStwo mall aims to become a community enclave and a lifestyle neighbourhood shopping complex that will bring comfort and convenience to its shoppers.

Spread across five retail levels and measuring almost 700,000 square feet, the mall houses approximately 200 tenants including Dynasty Dragon Chinese Restaurant, Home-Fix, TBM, Pet Lovers Center, Times Bookstore and Secret Recipe, just to name a few. A hybrid concept that combines a retail mall with an outdoor alfresco dining area set in a lush sunken plaza, the mall will offer shoppers a variety of F&B choices, supermarket, IT & gadget, entertainment, beauty and other services.

One of the key attractions in SStwo Mall is ‘Haven@2’ - an outdoor alfresco dining area that is also a space for entertainment and social interaction among the shoppers and community. The open plaza at Haven@2 hosts performances, shows and a host of other activities where the audience will be encouraged to participate and create an unforgettable experience for their families and themselves.

True to its tagline “It’s Almost Home”, SStwo Mall will not only bring to the SS2 community a convenient stop for all their daily shopping and dining needs, but will also strive to become a “mall that cares“ about all aspects of social and community living to grow with the neighbourhood and all its neighbours in the long term.

Just continue scrolling down and see the rest of the pictures ok...

The retail markets will never be the same again. =)

The Grand Hyatt Hotel, Kuala Lumpur.

Awhile back, we almost secured this project - the *new* Grand Hyatt Hotel, Kuala Lumpur. Anyways, we lost the tender to IJM Construction - and today, the building is already up and almost completed already! =)

The next towering 5-star hotel in the city, coming soon.

One of the more notable design features of the project will be the hotel lobby. Instead of being on the ground level, it will be at the top of the building. When guests enter the building to check in, they will ride the express lifts to the lobby where impressive 360-degree views of downtown Kuala Lumpur will greet them.

I cant wait to see the completion of this towering new icon!

How much would you pay for a Home?

People today pay thousands for a Louis Vuitton or Gucci bag, and pay a few times that amount for something from Hermes. There are those who feel that the LVs and Guccis are not worth it as it is too expensive; some rather go for the Pradas and so on, and some go for the Le Sportsac and so on, or Coach for the matter, for the cheaper ranges.

Then there are people who would pay millions to buy a bungalow in a prime area; some pay millions to buy a luxury condominium in Mont Kiara or Hartamas and some complain about these high prices and go for the more affordable homes elsewhere.

SO... the question is... how much would you pay for a home of your choice?

Residence 8 @ Old Klang Road by Ong Chong Realty.

Launched in late 2010, the units are going from about RM 385k upwards - which translates to about RM320psf for the 1,229 sf units. For RM320psf, what do you get? The trendy infinity swimming pool, multipurpose halls, gymnasium, children's playground etc comes pretty standard today - and the Developer has even added a Tai Chi Deck & Yoga Lawn and a 3 tier security system too. In all - this price seems like a very ideal price for a development at Old Klang Road. The land prices at Old Klang Road, although it has rose a bit recently, it has not hit sky high prices yet - hence the Developer is able to sell it out to you at a competitive price of RM 320psf.

Next, lets look at The Oval at KLCC. =)

Units are going for about RM4.5million for its 3,750 sf units - making it just below RM1,200 psf. Sounds expensive? I think rather not. The units are completed already - so pay this amount and move in immediately - minimal interest costs. What do you get for RM 1,200 psf? You'll get a clear view of KLCC, a super large unit (which makes it more for families and super high net worth individuals) in a low density freehold property. It also features a private lift lobby, a floor-to-ceiling wraparound glass walls, column free interiors and a state-of-the-art security system.

Quality aside, the price of RM1,200psf would sound like a total bargain if you were to compare it to its neighbouring developments, such as Troika and The Binjai... but it is entirely your choice. You get your KLCC views... but how many of you KLCC condo owners stare out of the window and look at KLCC so often?

Next, we look at Verve Suites at Mont Kiara.

The price per square feet... goes from also just below RM 1,200psf. You might think... WHAT? RM1,200 in Mont Kiara? Siaooo.... How many people can afford these units? You'll be surprised that many many different young up and rising individuals who earns about 8-10k or with a household income of about RM12-15k can afford this easily. Why? Because of the quantum.

Although it is priced at RM1,200psf, units are going for RM550,000 upwards - why? Because units are sized at 462 sf upwards. An expensive unit... yes. But affordability.... also YES. Simple reason because the units are really small, ideal for a new family start-ups... or the city dwellers with a small family. But you may ask again... whats so special about Verve Suites that makes it sell for RM1,200 psf?

Check out its facilities... almost like a mini club already with its pool table, foosball area, a chillout area and bar, a jacuzzi, sauna, sky gym... not to mention the sky beach and sky lounge, a jet pool, sunken seater, grill terrace, a wet and dry reflexology path, and a cinema paradiso!!!

So... would this RM1,200psf be worth it? I would say... yes, but it is not for everyone. There are plenty of other choices going for almost half its price within the vicinity... so the Verve Suites is really for the niche. =)

_________________________

We have seen the cheaper ones and the expensive ones. If you were looking for a property, where would you put your money? And what would be the ones you'll pick? How much would you pay for a house you'll call a home?

With the constant rise in construction costs and escalation of land prices, I believe very soon we'll be looking at RM3,000psf condominium units in the heart of KLCC. A lot of properties at the fringe of KL, i.e. places like Bangsar, Bukit Damansara and Hartamas/Mont Kiara are testing the RM1,000psf threshold - which I believe would be broken easily very soon.

That being said, with condominiums priced at RM1,500psf upwards and selling for RM2-3million.... some may ask... why not buy a landed property? Landed... or high rise... the risks and luxuries are pretty different. The prices... ultimately could end up similar.

SO... the choice is really yours. How much would you pay for a Home?

The Property Market - and BIG Factor.

A few days ago, I blogged about Residential Property Prices - How Will It Go? - and of course, the only answer to that question is... UP. There can only be one direction for residential properties here in Klang Valley and that is UP. =) However, I also mentioned one thing... a BIG Factor. Something that all investors need to take note. Something really big to think about...

What is this? It is the YIELD. =P

It has come to my attention that a lot of properties in Klang Valley are not fetching yields of 8% like how they were previously. Here's my reply to that... YOU ARE RIGHT! With the constant rise in property prices and the slower rise in salaries and income, the population today would be struggling to keep up with the rental increases, which has resulted in more stagnant rental movements.

If you could get a property that fetches you a 8% yield, by all means, dont ever sell it - at least not yet. Based on the recent research and feedback from various agents, it seems like a lot of properties in Mont Kiara and KL area are fetching yields of 5-6%, which in my honest opinion, is very good.

Today, Malaysian banks are offering between 2.6% up to about 3% in interest rate returns for Fixed Deposits, a far difference from the 5-6% years ago - which had prompted property returns to about 8%. Today, at 3%, I believe that the proper adjusted property yields should hover at 4-5%. I believe that a lot of people may not agree with me - but I believe this is the scenario that we are facing now in Kuala Lumpur. In order for something to go up, something else need to come down... and in this case, in order for property prices to keep going up, the yields are to come down.

In comparison, the property yields at our neighbouring Singapore are all pretty much all time lows. Smaller apartments and units are fetching yields averaging at 3+ %, and the larger sized ones are much lower, just above 2%. That is not all - this yield does not include the costs of repairs, refurbishments or maintenance charges etc - this is the Gross Yield only.

Further comparisons show that our other South East Asia neighbours Indonesia and Philippines both fetch very good yields of 11% and 7+ % respectively. Malaysia stands at 3rd highest - and that is pretty much about all for this region. Take Hong Kong and China (3+ %) as well as Taiwan (1.7%) for instance - these countries have yields of 3+ % and below - which is probably what we would be looking at for our markets.

Maybe not that low.. but it will still go lower and hover at 4-5% to be the new benchmark yield for Malaysia. (On a brighter note - dont worry, we will never go as low as the yields of 1.2% as seen in Monaco. LOL)

Residential property prices... How will it go?

According to an article in The Edge, Swhengtee International Sdn Bhd founder and president Gavin Tee said that residential property prices would see corrections this year; property prices may soften for certain products in certain locations, having escalated too fast last year.

Some people asked me for my opinion and in my view, I would quite agree with Mr Gavin Tee. However, I dont see the corrections as a major issue when you are making investments in property - especially residential properties. In terms of property appreciations and prices, there is no straight line upwards; it is always a staggard growth - and it just depends on how steep the line is. =)

...and so... the graph/line would look like this. Staggard upward movement. =)

In my view, I believe that the line is correct, but there will be some changes to the line. Let us zoom in a bit and I'll show you the difference... I believe that there will be a minor correction, which would somewhat be forgotten within a short period of time. After the correction is what matters... In the coming 24-30 months, I believe that the property prices would still go upwards, but slow down a bit (not so steep part of the line...).

How the market will behave after the slight correction.

It will still go up, but not as rapidly as before. In my opinion, property prices, in particular to residential ones are expected to go up at least 10% within this year itself, and steadily grow in the months after that. Being in the construction industry, I have additional 'insider information' of this potential rise; for a start, prices of building materials ranging from steel, cement, concrete, timber and so on have all gone up quite a bit. Apart from this, land costs and values have also gone up tremendously. It has come to the time that developers are unable to keep to the previous market prices, hence a natural increase of prices.

Prices of land, especially in matured neighbourhoods such as Petaling Jaya, the KLCC vicinity as well as various areas in Cheras, Kepong and Kota Damansara have been competitively and aggressively snapped up by developers. This sudden competition have resulted in higher land prices, pushing it way beyond the previous 20-25% (of the Gross Development Value) figures. Today, land costs accounts for almost 30%, and in some cases as high as even 40% of GDV values, resulting in a more expensive end product.

The Icon City PJ by Mah Sing

However, despite this, various developers are still developing properties around, and not giving up. I like the recently launched Icon City PJ by Mah Sing - it has quite an innovative design and layout, a futuristic look and importantly, the quantum of the property prices are not extravagantly priced.

As we go forward from here, I believe that the investors and future owners of properties would be looking at new innovations and ideas from the developers; and the developers have to work and think double hard in order to capture the investors' hearts. =)

The Glomac Damansara, by Glomac.

Another project that has caught my eye is the Glomac Damansara. It is a mixed development, with over 1.6 million sq ft of space, comprising shops offices, office blocks, apartments, as well as a Grade A office tower too. I believe this project would sell very well - do bear in mind that the *new* MRT would run near here, and there is a station nearby too.

So, in all, I would like to summarize that... yes, there will be a minor correction of the property prices in the months to come. But dont worry - I believe that the market will pick itself up and stabilize after that.

Just one thing that you need to think about though for investors.... for that, come back to my blog next week and you'll see it. =)

10 Developments To Look Out For.

I have been having some chats with various bankers, developers and investors out there. In fact, some of them actually reads my blog here LOL and they requested me to come out with a post - with some developments to look out for or on-the-watch. I thought about it - took some drives here and there... and then I thought, yup - I would do this post. The below are 10 developments to look out for in Klang Valley right now. Some are still in proposal stage, some are already under construction.

Note: This is not a recommendation/suggestion to go purchase a unit at these development.

Empire Damansara, Damansara Perdana

• Developed by perhaps, the most aggressive developer at the moment, the Mammoth Empire Group (who also owns Empire Subang, doing another Empire City development and will also develop the Armada Hotel carpark land)
• Comprises a 40 storey STUDIO tower, and couple of other blocks (27, 25, 23 and 14 storey) of Hotel, residences and SOHO suites

Kumpulan Hartanah Selangor's development in Petaling Jaya.

• The Development is about 3 minute's drive from 3 Two Square
• It would open up a new access point into Section 14/Paramount area from the small road that currently ends at Menara LYL

IOI Resort City, Putrajaya

• IOI's latest offering includes a massive shopping centre, to be constructed this year to add on to its super nice golf course and resort already there
• It is apparently a RM2billion mixed development
• The mall would have about 1.3million sqft of retail space, to be completed in 2013

Point 92, Damansara Perdana

• Developed by Tujuan Gemilang Sdn Bhd, a company related to MKLand's owner, Tan Sri Mustapha Kamal
• Grade A Corporate Office Tower, location Just off the main entrance to Damansara Perdana, Petaling Jaya (close to Mutiara Damansara, Bandar Utama and TTDI)
• Land Size : 0.92 acre (40,075 sq ft.)
• No of Storey : Office: 11 levels, Lobby: 1 level, Carparks: 7 levels; Total: 19 levels

Olive 108, Ampang

• Olive 108 development - a wellness and medical hub along Jalan Ampang in Kuala Lumpur
• Developed by the Al-Hidayah Group of Companies
• Olive 108 comprises a serviced apartment block (210 units), three condominium blocks (258 units) and a 20-storey office tower. The apartment unit will have built-ups between 673 sq ft and 1,528 sq ft, to be tagged at RM595,400 to RM1.7 million after 5% discount for early birds. The developer is looking to sell the office tower en-bloc.

PJ Sentral

• The development will be carried out in four phases comprising six blocks, and will take six to nine years to complete
• Sub phase 1 has a 34-storey office tower and infrastructure
• Sub phase 2 has a 44-storey tower including office, retail and food and beverage lots and infrastructure
• Sub phase 3 has a 29-storey business hotel, 34-storey office and retail lots, and sub phase 4 has a 29-storey service apartments, a 29-storey office and retail lots, central park and infrastructure.

PJ Icon City, by Mah Sing

• This is located at SS8 in Petaling Jaya, borders the LDP and the Federal Highway
• There will be a retail mall, SOHO suites, residential suites, office suites all in one

The Centrestage, Section 13, Petaling Jaya

• A RM500 million mixed commercial development in Section 13, Petaling Jaya from developer Cherish Springs Sdn Bhd
• Site is about 3.66-acre leasehold and is scheduled for completion by mid-2014
• Centrestage comprises 352 units of serviced suites, two office towers of 11-storeys and 14-storeys each and five levels of shops
• The project is aiming for a Green Building Index (GBI) certification. The serviced suites will be serviced by the Inspiration Group
• The indicative pricing for the office and retail units are RM700 psf and RM1,100 psf respectively. The company has not decided on prices for the serviced suites yet, said the spokesman.

The MATRADE Convention and Exhibition Centre, Jalan Duta

• A massive development by NAZA TTDI, whereby they will construct the MATRADE Convention Centre in exchange for the land surrounding

The Kelana Sports City

• To consist of 2 blocks of serviced apartments, SOHO and office towers, sports complex, shopping mall and a performing arts centre
• GDV about RM1.07 billion
• A joint venture between Melati Ehsan and PKNS

There you go... some of the recent developments that deserves a good mention. Based on these, I think Petaling Jaya would be extra vibrant and developed in the times to come. I heard the entire Section 13 will be regazetted as a commercial zone. Do check them out!

The RM12.2b Klang Valley MRT (Blue Line).

The recent display of the MRT Blue Line (Sungai Buloh - Kajang) is a clear sign of confidence and commitment that Syarikat Prasarana Negara as well as Land Public Transport Commission (SPAD) have in the execution of the construction and completion of this MRT.

The MRT Blue Line - which goes from Sungai Buloh all the way to Kajang, spans about 51km, reduced slightly from before. According to the information shown, 9.5km out of this 51 km will be underground, whereas the balance will be elevated (or ground level I guess). The estimated costs of the Blue Line... if benchmarked at a cost/km of RM240million - would cost about RM 12.24 billion. =) As for the tunnel portion of 9.5km, if benchmarked at RM325million per every km, that portion would be worth about RM3.1billion.

According to press reports, the Government is expected to acquire about 473 plots of land along the MRT route - totalling about 97 hectares of land for the Blue Line. The breakdown of these acquisition is about 103 lots will be acquired between the Sg Buloh and Semantan (Damansara Heights) stretch, 163 lots over the underground section running from Semantan towards the city and 207 lots along Maluri to Kajang town. Existing land usage along the proposed alignment includes residential, commercial, industrial, institutional and recreational uses. Significant stretches, especially segments passing through secondary business hubs and the central business district, are mainly commercial in nature.

My immediate concern here is the timely approval by the local authorities with regards to the stations and alignments. Do note that the MRT Blue Line would go through Majlis Perbandaran Selayang (MPS), a little bit of Majlis Bandar Shah Alam (MBSA), a major part of Majlis Bandar Petaling Jaya (MBPJ), Dewan Bandaraya Kuala Lumpur (DBKL), a little bit of Majlis Perbandaran Ampang Jaya (MPAJ) and of course, Majlis Perbandaran Kajang (MPKj).

Rail designation : Blue Line

Distance : 51km

Total tunneling length : 9.5km

Total elevated length : 41.5km

No. of stations : 35

End-to-end time: 90mins

Train specifications : Driverless 4-car trains

Train capacity : 1,200 people (300x4)

No. of train sets : 58

Service headway : 109 seconds

Maximum speed : 100 km/hr

Some of the information as obtained from online.

The 35 stations along the Blue Line will be positioned near these plots of land. One of the stations will be built near the Warisan Merdeka Development, a project that includes a mammoth controversial 100-storey skyscraper. At least 20 listed property players have parcels of developed and undeveloped land along the Blue Line - some of these to benefit potentially includes MRCB, Berjaya, Sunway City, Guocoland, Malton, YTL, Selangor Properties just to mention a few.

Like what I said before recently, this MRT Blue Line is expected to increase the capital appreciation of its surrounding properties tremendously. Prices of properties are already on the upside due to higher building material prices and so on - and having this MRT just makes it sweeter for the land owners/developers.

By the looks of things and news reports, the tenders for this MRT is to be called - earliest also April 2011. The Government has targetted to commence work in July 2011 - hence I believe the earliest also would be April 2011 to call tender, and awarded by June/July. However, this rush also mean that perhaps only the general earthworks and site preparation works can be started - rather than the major civil works as those would require a more in-depth study on all logistics, traffic diversion as well as land acquisition matters.

With the Blue Line targetted to be completed in 2016 to operate a daily ridership of over 400,000, I trust that the public transport usage would be increased substantially, but I dont have the percentages with me though. 2011-2016 - that is about a 5 year contract period - making the Blue Line a fast-track project. There will be two other MRT lines that will be announced within the next 3 months - being the Circle Line as well as the Green/Red Line.

Some of the key locations within the MRT alignment.

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I guess this post needs a little disclaimer. Note: This post represents the personal opinion of Eric Yong only (Yes, it is all my personal opinion/thoughts) - and does not represent a recommendation to buy the stocks of the abovementioned public listed companies. Thank you.