Malaysia | Penang Property Guru | Penang Property Talk | A freeholdplot of land in Jalan Ampang been sold for RM495mil, is it realistic?

Kuala Lumpur | Malaysia | It has been reported out in local newspapers yesterday that the trustees of Loke Wan Yat estate have sold a plot of land near Petronas Twin Towers(see picture below) as well as properties collectively known as the Asian Heritage Row.

A friend of mine sent me a whatsapp about it. Reason of him sent me the news is that (1) foreign buyer is coming into our country to purchase "triple-A rating property" and this time the price tag been transacted at RM3,325 per sq ft and (2) our piece of land for sale at Jalan Raja Chulan should be competitive in pricing. I took sometimes to digest it and trying to see for this basis of transaction what fundamental is instrument to this "high selling price." Total transacted value was reported at approximately RM495.34mil which covers 1.38ha freehold plot in Jalan Ampang, sandwiched between Wisma Central and a Chinese temple(see picture below) highlighted in green shading. It covers Nasi Kandar Pelita, Restaurant Chef Choi and four bungalows.

It was also reported Loke Wan Yat Realty Sdn Bhd confirmed the sale of both but declined to give further details other than that “they were done around the same time”.

As for the buyer of the plot, it is believed that they could be the parties involved in the development of Taipei 101, which until 2010 was considered the tallest building in the world. The Taipei 101 project was undertaken by a consortium comprising Kumagai Gumi, Taiwan Kumagai, RSEA and Ta-Yo-Wei.
According to industry observers, the transacted price of RM3,325 per sq ft would make the sale one of the highest in the capital to date.

Valuer Das Gupta of Stocker Roberts & Gupta Sdn Bhd pointed out that the property may well be the only plot available within close proximity to the Petronas Twin Towers, hence the “on the high side” transaction. To me this is "willing buyer willing seller" as no fundamental of transaction under JPPH that supported it. What makes the selling price feasible is also due to 1.38ha freehold plot. If the plot is much smaller I believe it won't command that high value.

Now let me bring back my earlier statement that we're selling a plot of land at Jalan Raja Chulan for only RM1,100 per sq ft. Take note that both lands of Loke Wan Yat Realty Sdn Bhd and ours are in "golden triangle." It's three times more in value. Ours is 15,054 sq ft. Any enquiry about it please call Vulcan Lau @ mobile: +6 016 451 1321.

Also been mentioned is the 40-year-old Wisma Central could also be redeveloped but the challenge would be to convince the owners of the apartment and retail units there to sell.
The sale of the Asian Heritage Row, sited in Jalan Doraisamy, meanwhile, comprises around a dozen properties with each measuring more than 1,000 sq ft.

A real estate consultant estimated the transacted price of each property at between RM1,000 and RM2,000 per sq ft. Henry Butcher chief operating officer Tang Chee Meng said a similar property in the neighbourhood sold for RM2.2mil recently.

The Asian Heritage Row properties were sold to William Ng, an entrepreneur and chief lessee of the properties. He turned the once derelict row of pre-war buildings there into one of Kuala Lumpur’s most visited nightspots by establishing a collection of food and beverage outlets as well as clubs.

Ng, a philosophy graduate from the National University of Singapore, worked for Arthur Andersen for three years before pursuing an MBA at the University of Chicago. He returned to Malaysia in 1997 after 20 years abroad.

Industry observers noted that the sale of both properties, especially the Jalan Ampang plot, has created a stir in the real estate fraternity as the property market has been “pretty quiet” of late. These transactions will be take into consideration when valuer making their valuation for vicinity properties.

Beside this sale, the other high-profile deal in recent times have been the putting up for sale on a tender basis of the German ambassador’s 0.73ha residence at 16, Jalan Kia Peng, at an indicative price of about RM2,500 per sq ft or RM200mil.

This article has been written by VULCAN INT'L Real Estate Research Institute http://www.vulcanresearch.blogspot.com for VULCAN INTERNATIONAL Real Estate Investors Club http://www.vulcaninternational.blogspot.com .

VulcanInternational could be contacted at +6 016 451 1321 .

You're welcome to write your constructive comment below.

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Penang Property Guru | Factory rental price seen flat?

PENANG: Average price of factories space at FIZ and Technoplex in Penang Island has been hovering at RM2 per sq ft. I've one customer that has been rented three years ago at FIZ Phase 1 at RM1.30 per sq ft and I advise them to continue with their tenancy as it expires soon even at 10% increment rate for next three years. 

In addition to buy new factory besides purchase price tenant might be facing with incoming power as typically they need about 600 mA besides floor loading to withstand machine weight for certain use, example stamping machine and also ceiling height.

PETALING JAYA: The rental price for factories space is expected to remain flat this year despite stable demand for industrial buildings, say experts.

There was steady demand for factory space within the Klang Valley.

“Demand is still there, but mostly for rental space rather than for purchase. Prices are considered high and many people are maintaining a wait-and-see approach,"

Buying into industrial buildings meant high renovation costs would have to be incurred by the purchaser.

“There is a lot of renovation cost to be incurred when the property is for their own use, and it usually takes a while to recover (that cost). So, many prefer to just rent.”

The average price of factory space at Westports (Klang) was RM1 per sq ft and RM1.30 per sq ft for old and new buildings, respectively.

“In Shah Alam, it’s RM1.20 per sq ft (old buildings) and RM1.80 (new buildings). We believe that rental prices of factory space would remain flat this year.”

One industry observer concurred, saying: “With tighter credit control from banks, many choose to rent rather than buy.”

According to CH Williams Talhar & Wong’s 2013 Property Market Report, the asking monthly rentals for detached factories in the Klang Valley ranged between RM1.20 and RM2.50 per sq ft, while industrial land prices ranged from RM55 to RM85 per sq ft.

It said rentals had remained stable for properties in prime locations in the Klang Valley in 2012, with the bulk of the demand leaning towards warehousing as well as logistics facilities.

“In the future, the industrial property market, especially on semi-detached factories, is expected to further bustle due to the continuous active transactions.

“Semi-detached factories are moving towards more modern and contemporary designs which include modern façade elements, bold and distinct image presence as well as a smart and intelligent interior layout.”

It noted that industrial properties located within prime locations such as Subang Jaya, Shah Alam, Kota Damansara and Puchong were expected to continue enjoying high demand in the second half of 2012, made even more attractive by government incentives.

No let-up: Demand for factory space is still there, but most operators will prefer to rent rather than purchase the property. Last year, rentals had remained stable for properties in prime locations in the Klang Valley.

This article has been written by VULCAN INT'L Real Estate Research Institute http://www.vulcanresearch.blogspot.com for VULCAN INTERNATIONAL Real Estate Investors Club http://www.vulcaninternational.blogspot.com .

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Penang Property Guru | WTF Property | NEW! Pre-launch PrestigiousShoplot And Condo For Sale

A Most Prestigious Business Address

An introduction to a new commercial shop lots, Signature Avenue is located within walking distance from The Signature Condominium.

As classy as the name sounds, Signature Avenue, having only 9 shops, will have some interesting mix of branded retail shops, mini-market and a couple of eateries, just to mention a few. This will give residences living in the area the convenience of shopping without the hassle of driving out just to have a meal or to get their daily necessities.

This article has been written by VULCAN INT'L Real Estate Research Institute http://www.vulcanresearch.blogspot.com for VULCAN INTERNATIONAL Real Estate Investors Club http://www.vulcaninternational.blogspot.com .

Interested please contact Vulcan Lau, mobile: +6 016 451 1321.

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Penang Property Forum | Star Property Fair 2013 | StarProperty.My |Stylish Living Property Fair 2013

StarProperty.My | Stylish Living Property Fair 2013

18-21 July 2013 (Thursday-Sunday) at Gurney Plaza and G Hotel

Updates: It was reported that the just concluded Stylish Living Property Fair 2013 managed to locking in some RM227.6 millions from sales of residential and commercial properties showcased in G Hotel and Gurney Plaza.

Masmeyer Holdings Sdn Bhd generated RM50 millions in sales from some 50 units of it's Marinox condominium in Tanjung Tokong.

Singapore-based UOA Group and Magna Putih respectively sold about RM25 millions and RM20 millions worth of property in Kuala Lumpur and Penang.

UOA sold about 25 units of its Scenaria@North Kiara Hills condominium project in Mont Kiara while Magna Putih sold 20 units of its Mansion One serviced suites in Jalan Sultan Ahmad Shah, Penang.

Mayland Universal Sdn Bhd (RM15mil), Mammoth Empire Holdings Sdn Bhd (RM10mil), Malaysian Resources Corp Bhd (RM15mil), and Venn Properties Sdn Bhd (RM6mil) registered RM46mil in sales.

UEM Sunrise Berhad, SP Setia Bhd, Bukit Kiara Properties Sdn Bhd, TPPT Sdn Bhd, and Lone Pine Group achieved RM68.6mil in sales during the event which ended yesterday.

SP Setia sales and marketing manager Susie Loh said they secured RM18.6mil in sales despite many people not being able to make up their mind on the spot.

UEM sales and marketing senior manager Shamsul Bahari Aini said they managed to hit RM20mil.

“We sold about 15 units and this is one of our best results in The Star Property Fair.

“In fact, I believe we can even surpass our target as there are at least five buyers who looked really interested in our projects,” he said.

BHL Waterfront Sdn Bhd and Bandar Utama Development Sdn Bhd secured RM20mil and RM3mil in sales respectively.

The Star advertising sales and business development manager (north) Simone Liong said about 40,000 people visited the fair.

Projects to be introduced include:
(1) Setia Sky Vista condominium being developed by SP Setia Bhd,
(2) Marinox Sky Villas by Masmeyer Development
(3) Sandilands by BHL Waterfront
(4) Sentinelle Ville by DNP Land
(5) Summer VOS by UEM Sunrise
(6) The Sentral Residences by MRCB
(7) Quill, Pine Sanctuary and 1Tanjong by the Lone Pine Group
(8) Foresta by Land & General
(9) Verve Suites KL South by Bukit Kiara Properties
(10) G Residences by HCK Capital Group
(11) Regalia by Mayland
(12) Platinum III by TPPT
(13) City Mall by BM City
(14) 9 Bukit Utama and The Effingham by Bandar Utama Development
as well as properties in Melbourne.

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Penang Property Malaysia | Penang Properties | Penang Apartment |Property For Sale | German envoy's bungalow for sale - at RM200mil

Property Prices in Jalan Kia Peng transactions | British High Commission RM295mil(134,075 sq ft) | 14 Persiaran Stonor RM72mil(43,082 sq ft)

VulcanInternational: We've a piece of this kind of prime land at Jalan Raja Chulan, Kuala Lumpur with asking price of RM1,200 per sq ft. Interested please contact Vulcan Lau, mobile: +6 016 451 1321
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KUALA LUMPUR: It has long been an iconic landmark in the prestigious Jalan Kia Peng area. However, the sprawling residence of the German ambassador, well known for its huge receptions and cocktails, will soon be no more.

The 80,000 sq ft plot on which the residence stands is being put up for sale.

Interested bidders will need deep pockets – the asking price is a whopping RM200mil.

There will be no shortage of bidders, though, going by the interest generated by the sale of the British chancery located a stone’s throw away in Jalan Ampang. It was was sold for RM294.97mil last year.

The German Embassy’s head of the cultural and press department Kathrin Heidl confirmed that the German Foreign Ministry had decided to give up the landed property.

She said the embassy would process the sale with the assistance of an agent.

The residence is now empty following the departure of Ambassador Dr Guenter Gruber on June 30.

Heidl said Gruber’s successor, Holger Wilfried Michael, would move into a rented property at Jalan Langgak Golf when he arrives on Aug 9.

The bungalow, resembling a clubhouse with a pitched roof, was built in such a way that the various portions of the house are seamlessly connected to each other, with huge rooms and entertainment areas.

Guests were able to move from one area of the house to another while the private quarters remained out of bounds.

The sale signals the changing sign of times for the local diplomatic corps.

Many of the larger missions prefer to sell off their landed properties and move into high-rise buildings.

Besides raking in a huge profit, there is also the advantage of added security available at the high-rise buildings and huge savings in terms of maintenance cost.

The British High Commission will be relocated to the nearby high-rise Menara Binjai.

A property agent said the Germans may be selling the grounds for the same reason as the British. “They want to monetise the land,’’ he added.

Land prices in the Kuala Lumpur City Centre (KLCC) area have stabilised and continue to generate interest from foreign parties from Singapore, Japan, South Korea and Taiwan.

Several land deals in the KLCC area last year were clinched within RM1,600 to RM1,700 per sq ft.

Pic below: Bungalow belonging to the German Embassy in Kuala Lumpur at Jalan Kia Peng put up for sale with asking price of RM200 mil or RM2,500 per sq ft.

This article has been written by VULCAN INT'L Real Estate Research Institute http://www.vulcanresearch.blogspot.com for VULCAN INTERNATIONAL Real Estate Investors Club http://www.vulcaninternational.blogspot.com .

Back to Main Page: www.VulcanPenangProperty.blogspot.com | International Page:www.VulcanInternational.blogspot.com