Property Outlook 2012.

Back in July this year, I wrote a little post on The Residential Property Market and Sector – and I had mentioned of a fair outlook for 2012. In comparison to 2011’s figures, I believe that the developers would be seeing fair growth numbers as the property markets cool down a bit. But – as I said before, I still think that 2012 will be a good year, just without the super impressive growth rates. In general, I believe that the property market would be expected to be moderate in 2012. 

The Summary 

I would love to say that the Malaysian property markets are not affected by the global economy; but the truth is, we do have quite a number of international and foreign investors – and our market will be affected for sure. However, I also believe that the markets, although affected – it would not be as bad as in 2007/2008 during the US subprime crisis. A lot will depend on how the European debt crisis comes out, and how many countries actually go ‘down’. 

 Despite the global economic slowdown, the economic situation in Malaysia is still rather bullish – especially with the rumours of the next general election happening in 2012. With various Government mega projects and incentives coming out, the property and construction industry has experienced and will continue to experience a further increase in labour and building material costs. As the mega projects are being rolled out – building material speculators have resulted in profiteering – pushing up material prices in view of an increased future demand. 

Like I have said before, if you are able to find a property in Klang Valley – say 750 sq ft that sells at about RM 250,000, and assuming it is a genuine developer – go ahead and buy it. By the early 2013, I believe the prices of apartments and condominiums would have increased by at least 10% - which means the average medium cost homes would cost about RM 280,000 at least. 

A lot of investors are concerned of a potential property bubble. The truth is – I believe there will be no bubble in Malaysia. Our markets are able to sustain the developments around – the only worry would be an oversupply situation. But bear in mind this – the prospect of an oversupply situation is suppressing the prices of properties in Malaysia. If there was an under-supply situation – surely prices would have start shooting up now. 

In summary – I believe that 2012 will be a good year in general – and I would expect the market to be stable. There should not be a sudden increase or drop in prices – and property asset capital appreciation would be expected to be stable, rather than a windfall. Yields – should be the main driver of property investments; and in my opinion, property rental yields should come down to hover at about 2.5% - 3% to give a better indication of the current situation.

Even if 2012 turns out to be not so good for many industries, the property sector should still be good. Where there are risks, there will be opportunities. In a down market, investors would be going out to spot for the opportunistic deals – the ‘fire sale’, auctions, and basically below-market-prices. These would be the properties with high capital appreciation potential. 

Residential Sector Outlook 

If you ask me, I have always been bullish about the Malaysia Residential Property sector. As long as the speculators do not go overboard, the residential sector is always very encouraging. I was born in the early 1980s – which is part of the baby boomers generation which sparkled since late 1970s. Today, those born during the baby boomers era would be having their own families and going out to buy their own properties. I firmly believe that Malaysia has one of the fastest growing working population in this part of the world – as the general population is still very young. According to statistics, more than half of our country’s population is below the age of 30. 

Of course, the main question is… what is the 2012 prospects of the Residential Property sector? 

Firstly, you should read this post that I wrote previously about The Biggest Errors People Make When Investing in Properties. I had divided properties into 3 different categories. 

• The Chinese kopitiams that serves the regular chicken rice and char kuey teow - and generally RM6-8 per meal - is similar to properties in the range from RM300,000 downwards 
• The bak kut teh joints, with meals from RM20+ per person, relates to properties in the range from RM500,000-RM700,000 
• The restaurants like Oriental Pavilion or Ah Yat, meals ranging from RM40+, relates to properties from RM700,000 to just above RM1mil. =) 

I had mentioned that the bak kut teh type of properties are amongst the safest, as it caters to the mid range market, and becomes the bridge between the cheaper and the more expensive, ideal for upgraders as well as the downgraders. 

Just remember this – your Rental Returns (%) has to be of a realistic figure. I have said this before, and let me reiterate once again. I had mentioned 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 4-5%, which in my honest opinion, is very good. If you ask me now, any yields above 3% is a good deal. 

What type of residential properties to invest or to buy? Any underpriced property in a prime location with a good yield would be a good buy. Vague, isn’t it? A specific type of property would be to get a landed property – be it a linked, or a semi detached or a bungalow, landed properties usually cant go wrong. Choose from Damansara Jaya, Damansara Utama, Bandar Utama, TTDI, Bangsar, Damansara Heights, Setia Alam, Setia Eco Park, Damansara Indah, Ara Damansara etc etc… all these are established neighbourhoods with plenty of good landed properties to choose from. Oh, I also noticed plenty of areas with Damansara too… LOL. 

As for high rise properties – it is always a challenge to find the best deals. Do note that collectively in Klang Valley itself, there are over 25,000 units of high end condominium. I do not have the breakdown figures of units for lease and for own use – but I would say it is probably in a 50/50 balance. 

The Capers by YTL.

Based on what I see, a common trend in the residential sector is the emergence of smaller unit sizes. Developers are creating smaller, and hence, more affordable units to cater to the market. Looking at what S P Setia did for Setia Sky Residences, what YTL did for The Capers and the Empire Group’s developments in Damansara Perdana – I noticed a major increase in demands for smaller units. Setia Sky Residences Block C and D were originally of larger sized units – but were converted and changed to smaller units after they witness the demands for those types at Block A and B. The Capers at Sentul East, achieved 100% take up rates at about RM600 psf, setting a new benchmark in the area. 

Empire? Do I need to mention more?

Commercial Sector Outlook 

While the residential sector remains encouraging, the commercial sector may seem a little gloomy – but that means there are plenty of opportunities! If you look at the 2011 statistics so far for the office markets – rental and occupancy rates were stable, and were slowly trending downwards as well – due to many new completed office buildings. 

According to records, there are over 60 million sq ft of office spaces in Klang Valley itself. There are many newer commercial developments coming up, increasing the supply. But as far as many concerns of an oversupply situation, I think this would not be the case. Instead of worrying, we should be excited about what the owners of the older buildings do, how they refurbish and who else comes in as tenants next!

Avenue Crest, Shah Alam.

Like how I said before, the race now is for sustainable commercial developments. Newer projects are going for LEED, BCA Green Mark or GBI certifications to be a certified green building – on top of utilizing CONQUAS21 and QLASSIC to benchmark their quality. Some are even getting MSC Malaysia status to attract more tenants. Some of the newer and refurbished commercial buildings include 348 Sentral (LEED Gold), Intermark (MSC), Integra Tower (LEED Platinum), Bangunan Lestari EMKAY (LEED Gold), Menara Worldwide (GBI) as well as Menara Binjai (GBI and BCA Green Mark). 

The commercial property sector would require some time to digest some of the new proposed mega developments in the KL City Centre itself. Together with the mega projects such as the Bandar 1Malaysia, KLIFD, the Warisan Merdeka development, Naza KL Metropolis at MATRADE and so on, my interests also lies in 2 very interesting developments – one would be the Pudu Jail Redevelopment at the end of the Bukit Bintang Shopping District; and the other would be the Tradewinds Centre – the redevelopment of Crowne Plaza Mutiara and Kompleks Antarabangsa. If you add all the above up, together with the new MRT, and the RRIM land at Sg Buloh – the cumulative total of projects in the Greater Kuala Lumpur New Key Economic Area (NKEA) would amount to over RM 81 billion. 

Strata titled type of office projects were also well received. If you look at the office developments such as UOA Bangsar, Q Sentral at KL Sentral, KL Trillion at Jalan Tun Razak, the takeup rates for these ‘office suite’ type of projects are also looking good. In fact, this positive outlook was also one of the main reasons why I have decided to go ahead with my company’s Avenue Crest Office Suites project at Shah Alam. The target markets for these smaller office suites are similar to the medium cost residences – the upgraders and the newbies. During bad times, there are always those who lost their jobs and decided to start a new business instead – and they would be on the look out for small office suites to house their operations. The upgraders would be those who are currently in shop offices and shophouses, and want a more proper business address for their business. And of course… lets not forget the downgraders as well… 

Other Major Catalysts 

I believe that in the next 7-10 years, the Malaysian property industry is expected to remain robust. The Government continue to add sweeteners here and there to impress us further – and for those in the industry, they would love all these new additions to the sector. There are quite a number of major catalysts – I would like to sum it all into a few here. 

The MRT alignment.

THE MASS RAPID TRANSIT (MRT) 

The MRT system, has been announced by the Government – with an estimated cost of about RM 50 billion. The system is expected to address the poor public transport system in Klang Valley – and would be completed by 2020. It is forecasted to increase utilization of public transportation by at least 40%. 

The MRT would link all the new and major development areas in Klang Valley together. If you look at the alignment – I like the idea that the MRT is able to bring the human traffic from Kota Damansara and Bandar Utama (where there are a huge population), into the city centre and onwards towards Kajang etc. It also passes through a major shopping centre – One Utama – indirectly able to reduce the congestion on LDP. 

Further to that, I believe the MRT can only bring positive impact to the property sector. Property prices will move up for sure. In my opinion, the impact would be even greater when seen at existing properties and the secondary market. This is because the MRT is passing through already established and well-populated areas. 

THE MEGA PROJECTS 

The 3,000 acre RRIM Sungai Buloh project may be a huge RM 10 billion project – but I think the impact that it has will not be in 2012, but perhaps starting 2014 onwards and throughout til 2025 or so. Developments of this scale takes at least 10-15 years to mature – hence, the impact it has on the market would be rather speculative. The Sungai Besi airport redevelopment, or codenamed Bandar 1Malaysia – would probably take at least 3-5 years before it has any immediate impact on the market. 

One should be more interested in the KL International Financial District instead – due to its proximity to the city centre. The KLIFD is developed by 1MDB – and is expected to have a GDV of at least RM 26 billion. Filling up spaces at KLIFD has been made easier – especially when the Government is offering special incentive packages to attract investors to the KLIFD. KLIFD is expected to have about 8 blocks of 35-50 storey serviced apartments, at least 3 blocks of hotels, at least 12 office towers (of which one would be 80 storeys), and a massive shopping mall on its podium.

The Proposed RM 6 billion Pudu Jail Redevelopment.

Elsewhere, the RM 5 billion Warisan Merdeka development, developed by PNB is expected to have Malaysia’s tallest building. Looking at it, this development, together with the RM 6 billion Pudu Jail Redevelopment, codenamed the Bukit Bintang City Centre (BBCC), are likely to have some major announcements by end of 2012 – and this would have quite an effect on the KL Property markets. 

Hotspots for 2012 and beyond 

Back to everyone’s favourite question – where is the NEXT HOTSPOT for 2012? 

KL’s hottest property hotspot still belongs in the KLCC vicinity. Most of these places are filled with high rise and high end developments, including Jalan Ampang, Jalan Binjai, Jalan Stonor, Jalan Yap Kwan Seng, Jalan Sultan Ismail, Jalan Pinang, Jalan Perak, Jalan Kia Peng… and of course, Jalan Bukit Bintang – amongst my favourites! 

Looking beyond the KLCC region, my personal favourite is still Bangsar. I personally think that Damansara Perdana and Mutiara Damansara has plenty of potential – but it is starting to look overcongested and oversaturated over here.

The KLCC City Centre.

Mont Kiara – everyone’s favourite hotspot, had slowly drifted out of the investors’ radar due to the lack of expatriate based tenants offering exorbitant rental prices. However, I believe now is the time to jump back into Mont Kiara – when the markets there are slowing down, now is the right time to jump back in. 

Cyberjaya remains my long term hotspot. I believe it has plenty of potential for your investments to grow, while still being rather cheap. It is on the uptrend though, so you might want to snap up some properties there before it gets too expensive. With the MEX highway, Cyberjaya is only a good 15 minutes (or to some slower driver, about 25 minutes or so) away from KLCC, perhaps reaching there faster than if you are coming from Petaling Jaya. 

The other locations??? 

Like I mentioned, Old Klang Road / Kuchai Lama and OUG areas are existing matured neighbourhoods that I would put my money on, KL South area would need more time though. As for Setapak / Wangsa Maju area - the potential is there, but nothing great about it. Rental yields there are good because of the TAR College students though. I see a lot of potential in Kelana Jaya as it still has certain small tracts of undeveloped land. 

As for Subang Jaya and USJ... I think lets not look in this direction yet. Subang Jaya, USJ, and its new fringe townships Putra Heights as well as USJ Heights represent a massive area to be developed - and I'm just hoping it wont become a situation of oversupply here. As for Seri Kembangan area - plus Balakong as well - there is some potential here as well. This place should also enjoy a good 20-25% appreciation over the next 1-2 years. Sentul has been a location that I havent touched on - but it has plenty of potential too.

Green Buildings.

The Kuala Lumpur skyline.

This morning I had an interesting chat with the Devil - she asked me about green buildings and how am I involved in it and so on. We didnt elaborate too much on that, but it sort of gave me an idea what to blog about today - yes, Green Buildings.

Green Buildings. Source.

To be honest, when green building proposals were being introduced, I was rather skeptical. I had the opinion that it could work in places such as Singapore, Hong Kong, and most Western cities due to its selling prices, and not so much in Kuala Lumpur. This was back when condominiums were just touching RM1,000psf - yes, years ago.

Today, my opinions have changed tremendously. In fact, I think that Green Buildings is the way forward in Kuala Lumpur. If you look at the world environmental and disaster statistics - you'll realize that the world is somehow suffering. Somewhere at some part of the world is having massive floods, massive tornadoes, earthquakes, forest fires, and all kinds of natural disasters that were previously only heard or seen once in 50 years. Today, it seems to be happening quite frequently. I am not going to talk much on disasters - instead, I believe what the world, and in particular, Malaysia and Kuala Lumpur needs now are sustainable developments, and sustainable buildings.

The property sector accounts and consumes at least a-third of the world's energy - or perhaps even more. Having a green building that is energy and environmental friendly is able to reduce this energy consumption. There has been so much researches and studies on green buildings that there are so many different sectors and areas that can cover, and also make a building green. For example, a building that channels rainwater, back onto your landscape and planter boxes, as well as the toilets for flushing efficiently is able to save so much water in the long term. From the economists' point of view, there are so much savings from water bills and so on. Environmentalists would encourage that a lot too. But, developers and building owners will see the initial costs as a deterrent.

Having certain types of mechanical systems for your air-conditioning also makes your building energy efficient. When these elements are integrated together, the green buildings are designed and constructed to save much more energy - ultimately a reduction in your electricity bills. Energy efficiency would cover many different aspects in a building right from the air-conditioning, lighting, firefighting systems, lifts, escalators and much more. A building with environmental-friendly facades allows for lesser energy loss, while still maintaining the temperatures in the building. Further to that, the indoor environmental quality levels and standards are also being monitored.

The Menara Binjai.

There are many architects and designers today who are very familiar with green buildings. Having a north-south orientation of a building reduces the amount of sunlight on the building, keeping energy loss to a minimum. These are part and parcel of sustainable site planning and management. There are just too many items to cover in one article here; you could do some basic research by just googling 'Green Building'. Green Buildings do not just cover the completed buildings. For instance, while we are constructing the Menara Binjai, we have committed to use recyclable materials and formwork for the structures. Our plywood and various formwork materials are derived from imported pinewood, a source that is rather recyclable as compared to using local timber, which takes decades to grow.

Many studies have indicated that green buildings would provide better cost savings in the long term. Furthermore, the Government is now also providing tax incentives for green buildings - making it another plus point for the green building initiative. In my opinion, these buildings are able to improve staff productivity, driven by the improvements in indoor air quality, better lighting, thermal comfort and an improved innovation in the work environment.

The PTM GEO Building.

With the rise in the demands of the owners, buyers and investors, the standards and quality of buildings today have improved tremendously. The values of properties have also went up. Today, we are in the generation of which property prices have went up so much, and allows for so much more enhancement of the building and property - so, there should be no reason why green buildings cannot be implemented. It has taken quite some time for the initiative to hit it off; I believe that in the next 5 years, four out of every 5 developments would be a Green-certified development. =)

Enjoy your weekend! =)

The Intermark, Jalan Tun Razak - The Car Parks.

Just a random post on some car park pictures of The Intermark that I took recently.

Upgraded from the darker, more run-down condition. All in, pretty nice now, but the ramps are still pretty tight for larger cars. =)

Living It Up at Damansara Perdana.

I recently did an interview with iProperty. Read all about it here.

Talk of Damansara Perdana, and most people would associate it with its proximity to IKEA, the Curve and Tesco, shopping malls that many urbanites can’t do without. It’s also famous for its duplex condominiums, Armanee Terrace built by MK Land Holdings Berhad, the main developer and owner of most of the land in the area.

No overview of Damansara Perdana is complete without mentioning MK Land and EMKAY’s founder, Tan Sri Datuk Hj Mustapha Kamal bin Hj Abu Bakar who is the driving force and the man responsible for the company’s success. Menara Mustapha Kamal, named after him is the headquarters for the group and is the landmark of Damansara Perdana.

Damansara Perdana is essentially a 750-acre integrated township launched in 1996 as a premier centre for business and living in Petaling Jaya. It is part of the Golden Triangle of Petaling Jaya, and is considered one of the most exclusive suburbs in Petaling Jaya. In its vicinity are other upscale neighbourhoods such as Mutiara Damansara, Taman Tun Dr Ismail, Bandar Utama, Damansara Utama and Damansara Jaya. It is also a short drive away from up-and-coming Kota Damansara.

The hilly and undulating terrain is served by the Damansara-Puchong Expressway (LDP), the North Klang Valley Expressway (NKVE), and the Sprint Expressway.

Due to its many obvious attractions, it is becoming a magnet for home owners and businesses looking for a convenient but upmarket location. A number of developers are also beating a path there, one of them being Crest Builder Holdings Bhd.

We spoke to its youthful executive director, Eric Yong Shang Ming to find out his views on the popular area.

iProperty.com: What new projects are you planning for Damansara Perdana this year?

Eric Yong: We have a sizeable plot of commercial land in the area, of which we have plans for a RM300 mil GDV mixed development project. In the proposed development, we intend to have a mini retail complex, acting as a neighbourhood mall whereby it can serve the local population there who do not want to go too far (i.e. The Curve / TESCO etc). On top of this complex would be the podium car parks as well as the serviced apartments of various sizes.

iP: What new transportation links eg. MRT, new highways are expected to pass by Damansara Perdana?

EY: Based on the latest MRT (Blue Line)’s alignment, the line is expected to cut across Persiaran Surian, not too far away from Damansara Perdana. There will be feeder buses that will serve the area. However, this would take at least the next 4-5 years before seeing its completion and operations. Based on my observations, there is not much that can be done for road transportation as the highway structure (LDP – Penchala Link) is already very advanced. Internally, I would expect the routing and roads to be upgraded to allow for higher traffic. The current system – including the internal roads within Damansara Perdana, the U-turns and so on are quite congested already – and a re-routing needs to be done.

iP: With the Rubber Research Institute (RRI) land in Sungai Buloh to be developed soon, how would this impact the Damansara Perdana area?

EY: The RRI land is quite a distance from Damansara Perdana. I believe that the RRI development would directly affect the Kota Damansara and its immediate surroundings in a positive way in terms of capital appreciations and values. As for Damansara Perdana, it is unlikely that the RRI land would have any major effect as a new development would usually take time to mature and fetch ‘current prices’. The hot spot would still be at Damansara Perdana / Mutiara Damansara area due to its connectivity via the LDP.

iP: What are your comments on complaints that Damansara Perdana is getting too crowded and congested with traffic jams? What steps could be taken to alleviate this?

EY: As mentioned above, various steps need to be taken. Another major thing to do here is the enforcement by MBPJ (Majlis Bandaraya Petaling Jaya). I notice that the parking is quite a horrendous problem here whereby car owners park all over the place. MBPJ and the local police need to take sterner action against these owners.

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About the same time of the interview - we at Crest Builder - has sold the land. It was indeed - an offer that we could not refuse. =)

10 Developments To Look Out For.

This post was previously posted on my other blog here.

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).

This post was previously posted here.

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.

The Northshore Gardens, Desa ParkCity.

The Northshore Gardens - is a 40-storey high-end condominium project in Desa ParkCity, one of the most prestigious newly established gated neighbourhoods in KL. The Northshore Gardens boasts of a scenic natural landscape overlooking a park and a lake, and has a commanding view of the city skyline.

The Northshore Gardens, Desa ParkCity.

A super awesome view of the entire Desa ParkCity - including the famous lake. =)

The Developer

Incorporated solely for property development in 1990, Perdana ParkCity has since successfully completed One Ampang Avenue, a 640-unit high-rise condominium project in Jalan Ampang. Currently, through a subsidiary company, Sarawak Land (Kemena Park) Sdn Bhd, it is developing the master- planned Bintulu ParkCity in Bintulu, Sarawak. This 180-acre project is an extension of the existing Bintulu Town, and is projected to be the new business focus and residential enclave of the community.

Strategic location.

Perdana ParkCity Sdn Bhd, the developer of Desa ParkCity, is a Samling-controlled company. Samling Strategic Corporation, the principal shareholder, is a Malaysian conglomerate with diverse local and international businesses that include forest management, wood products, plantations, and property development. In addition, it is also the controlling shareholder of two public companies listed in the KLSE, namely, Lingui Developments Berhad and Glenealy Plantations (Malaya) Berhad.

The view from the Northshore Gardens. =)

Most of its surrounding is low rise, so your views are uninterrupted. =)

A breathtaking view from the Penthouse floor.

The swimming pool.

Who said that you cant get greens in a condo project?

The beautiful full-glass gym, facing the swimming pool.

The podium floor.

The podium floor houses some nice deckchairs for a good view of the park.

This is what relaxation is all about.

The Zen garden.

All the best environment and setting for your beloved condominium.

A towering 40 storeys, with only 274 units.

The grasscrete driveway.

Vertical landscaping at its best.

Another view of the supertall tower.

I bring you - the Northshore Gardens, Desa ParkCity.

The Northshore Gardens – a showcase of ingenious architecture and planning with lavishness and grace – marking the loftiness of the owner’s living standard. This is a modern 40-storey condominium tower overlooking the Central Park lake garden and the Waterfront commercial cum retailed outlets. It is strategically located at the most prime area of Desa Parkcity. There are 8 basic floor layout plans offering from 904sf to 2,476sf, from the smallest 1+1 rooms (studio unit) to the biggest 4+1 rooms (family unit), catering the needs of different groups of residents.

Other than the stylish modern chic design, what else can we expect from this condo?
High level of security /
Beautiful lawn and pavilion /
Water features /
Adult and Kid’s Pool /
Thematic pool and pool decks /
Saunas and jacuzzi /
Barbeque area /
Multi-purpose hall /
Garden party lawn /
Landscaped garden and cabanas /
Recreational deck / Outdoor fitness area /
Floating Gym

AND also:
Designer’s kitchen cabinet with hob and hood
Split units of air-conditioners for living, dining and all rooms
Water heating system
FREE membership of the exclusive Parkcity Club
Enrollment privilege to SJK(C) Kepong 3, Parkcity