MALAYSIAREAL ESTATE OUTLOOK: MALAYSIA REAL ESTATE OUTLOOK 05 October 2007 by Kumar Tharmalingam Regional President, Asia Pacific, The International Real Estate Federation


Slide2: Why is retirement outside your present abode attractive? Why is the lure of Asian tropics attractive? What would want someone to move for retirement?


The quality of life is determined by proper infrastructure: The quality of life is determined by proper infrastructure Kuala Lumpur International Airport HIGHWAYS / EXPRESSWAYS


Medical Facilities: Medical Facilities National Heart Institute


Education: Education TAYLOR’S COLLEGE


Affordable Housing: Built-Up area from 3,185 sq ft above GBP98,000)onwards Affordable Housing


Entertainment – Dining, shopping, leisure: Entertainment – Dining, shopping, leisure The Pavillion KL Eating Out


Holidays: Langkawi, Malaysia if you want an island Cherating, Malaysia if you want mainland beaches Holidays


Slide9: The quality of life in the western world is being affected by inflation, expensive labour transport and material cost. Increasingly, insurance costs, also affected by inflation, are beginning to buy less facilities unless premiums are raised.


Slide10: South East Asia, in particular Malaysia provides all the lifestyle choices shown above in an environment that provides a harmonious eminently affordable retirement or investment option.


Slide11: CURRENT REALITIES IN THE WORLD INCREASED CONCENTRATION OF WEALTH WORLDWIDE 2. INCREASED AND UNPRECEDENTED WORLDWIDE GROWTH INCREASED DISPARITIES OF INCOME DUE TO CURRENCY STRENGTHS IN THE WEST A TIME TO HAVE YOUR CAKE AND EAT IT! INCREASED FACILITIES IN THE EAST TO CATER FOR RETIRED PERSONS THAT ARE COMPARABLE WITH THE WEST


Slide13: Malaysia represents an opportunity to live the remainder of your days in relative comfort and with all facilities inclusive of budget travel within the region


Slide14: South East Asia’s unique heritage…. 246m 1.1b 65m 1.4b 85m


Slide15: Taj Mahal, India Angkor Wat, Cambodia Great Wall Of China Borobudur, Indonesia


The World’s Most Visited Countries: The World’s Most Visited Countries Foreign Tourist numbers in 2006 (in millions) France 79.1 Spain 58.5 U.S 51.1 China 49.6 Italy 41.1 Britain 30.1 Germany 23.6 Mexico 21.4 Austria 20.3 Russia 20.2 Turkey 18.9 Canada 18.2 Malaysia 17.5 Source: UNWTO


Malaysian Property USPs: Malaysian Property USPs Malaysia is a Commonwealth country with a stable British legal and political system and widely spoken English Foreigners can BUY AND OWN the LAND – Singapore, Thailand and Indonesia are all leasehold-only for foreigners Highly developed infrastructure facilities First Asian country to attract REITS, with further incentives for REITS announced in September 2007 Multiple restrictions on foreign investments were lifted in 2006 and 2007 Significantly greater political stability than neighbours currently in the news Environmentally rich country: the green factor makes for a greater quality of life Excellent medium term ROI prospects for those who are not quick flippers Attractive lifestyle option in resort and beach, sun and sea, highlands and country-style terms Value for money: KL property is a quarter of cost of Singapore Affordable lifestyle in terms of purchasing power parity


Supply of Residential Units in selected locations in Malaysia: Supply of Residential Units in selected locations in Malaysia Existing Stock 2nd Quarter 2007 Planned Supply 2nd Quarter 2007


BUILT-UP AREA FOR THE SELECTED PROJECTS: BUILT-UP AREA FOR THE SELECTED PROJECTS Source: Henry Butcher


Comparison of Highest Transacted Residential Rates: Comparison of Highest Transacted Residential Rates


FAQs Real Estate: FAQs Real Estate Is there any restriction in the acquisition of property by a non-citizen or a foreign company? Foreigners are allowed to buy any number of residential properties costing Sterling 36,000 and above without the approval of the Foreign Investment Committee.


FAQs Home Loan: FAQs Home Loan How much can I borrow? This will depend on the value of your property, your income and your repayment capability. Margin of financing can go as high as 80% (inclusive of MRTA). The higher the margin, the higher you will have to pay per installment. Also, at a given rate, a shorter tenure will require you to pay higher installment How long does it take to process a loan? It usually takes about one to two weeks for your loan application to be approved from the time you supply full documentation. You should ask the financial institution for the checklist of documents required for the application to avoid any delay. Why do I need a valuation? A valuation is required if you are buying a completed property. The financial institution requires a valuation to ascertain whether the property provides sufficient security for the loan given. It also provides an indication that the property is worth what you are paying for.


FAQs Home Loan: FAQs Home Loan Do I need to appoint a lawyer? Can I choose my own lawyer? Yes. You need to appoint a lawyer to draw up your loan documentation. Normally, the financial institution will provide a panel of lawyers who are familiar with their documentation requirements for you to choose from. If you prefer to engage your own lawyer, you should discuss this with your financial institution. Who pays for the legal fees? Generally, legal fees are borne by the buyer. However, certain developers and financial institutions may offer to pay the legal fees on the legal documentation as part of their marketing package. In addition, some financial institutions also extend financing for the loan documentation fees. What if I run into financial difficulties and cannot meet my loan repayments? If this happens, you should contact your financial institution to discuss a reasonable repayment program, which could include extending the tenure of the loan.


FAQs Home Loan: FAQs Home Loan What happens in the event of death of a borrower who has not bought insurance? The deceased's survivor/next of kin can claim through the court the rights of the deceased's property. The person will have an option to either proceed to service the loan or redeem it. However, most financial institutions make it compulsory to insure (MRTA) against such an event. Malaysia land registry is based on the Australian Torrens system of titles. If your name is on it, you own it.


PROPERTY DEVELOPMENTS IN MALYSIA: PROPERTY DEVELOPMENTS IN MALYSIA


Langkawi Pandangan Villas: Langkawi Pandangan Villas


Slide33: Singapore ISKANDAR DEVELOPEMENT REGION, MALAYSIA


Slide35: NORTHERN CORRIDOR ECONOMIC REGION, MALAYSIA


TOP 10 DEVELOPERSIN MALAYSIA: TOP 10 DEVELOPERS IN MALAYSIA


S P Setia Bhd www.spsetia.com.my : S P Setia Bhd www.spsetia.com.my Since its founding in 1974, the S P Setia Bhd Group has today grown to become one of the leading property developers in Malaysia. The Group has carved a solid reputation as an innovative, quality conscious developer with strong landscaping capabilities. It has made its mark by delivering highly sought-after quality products in conducive living environments showcased through each and every one of its township developments in the Klang Valley and Johor Bahru. The Group core business activity of property development is supported by its construction and infrastructure and wood-based manufacturing divisions to deliver product and service quality of the highest standards to its customers.


Island & Peninsular Bhd www.islpn.com.my : Island & Peninsular Bhd www.islpn.com.my Island & Peninsular Berhad has the reputation of being one of the most established 'Home Builders' in Malaysia. Being in the industry for more than 40 years, the company has successfully developed numerous property projects throughout the nation. Through the recent merger between Island & Peninsular Berhad (I&P) and Golden Hope Plantations Berhad, I&P Seriemas Sdn Bhd (formerly known as Golden Hope Development Sdn Bhd), I&P Alam Impian Sdn Bhd (formerly known as Golden Hope Properties Sdn Bhd) and Syarikat Perumahan Pegawai Kerajaan Sdn Bhd (SPPK) are now subsidiary companies of I&P Berhad. Alam Damai in Cheras, Alam Sutera in Bukit Jalil and Kota Seriemas in Sepang are some of our subsidiary projects. Island & Peninsular is now a pure property conglomerate and has emerged as "The Largest Property Developer in Malaysia" in terms of land bank. The company also has sizeable land banks in Penang, Klang Valley and Negeri Sembilan for its future projects. Apart from this, the company also supply building materials for property development projects.


Bandar Raya Developments Bhd www.brdb.com.my : Bandar Raya Developments Bhd www.brdb.com.my BRDB (Bandar Raya Developments Berhad) is one of Malaysia’s first public listed property companies and celebrated its 40th anniversary in 2004. It operates 2 key businesses- property development and manufacturing. BRDB is renowned for creating some of Malaysia’s most sought- after addresses and for crafting thriving communities such as Bangsar in Kuala Lumpur and Permas Jaya in Johor. BRDB’s manufacturing entity, Mieco Chipboard Berhad, is involved in the manufacturing and trading of chipboards and related products in 20 markets around the world.


IOI Properties Bhdwww.myioi.com: IOI Properties Bhd www.myioi.com IOI Group is a leading integrated palm oil player and one of the largest property development investment groups in Malaysia. IOI Corporation Bhd, the parent company, is the largest plantation company listed on Bursa Malaysia Securities Berhad. The core business of IOI Group is integrated oil palm plantation business with activities comprising of upstream cultivation of oil palm and downstream resource based manufacturing, which includes refinery, manufacturing of oleochemicals and specialty oils and fats. Today, in addition to its original plantations core business activities, IOI is also a major player in the property and leisure industries. While the core businesses are located in Malaysia, the Group also has the manufacturing facilities in the Netherlands, USA, Malaysia and Egypt and sales offices in eight other countries including China. IOI Group has established its leadership position in the various businesses it involved in and is reputed as the one of the most efficient and profitable plantation and properties companies in Malaysia. It has been consistently ranked amongst the leading companies in Malaysia as well as Asia in various management award categories in surveys conducted by Asia Finance, Asiamoney, Euromoney and Far Eastern economic Review, just to name a few.


Sunway City Bhd www.sunway.com.my : Sunway City Bhd www.sunway.com.my The Sunway Group stands as one of Malaysia's foremost, well-diversified conglomerates in leading position in several industries. Since its foundation in 1974 as a tin mining company, The Sunway Group has continuously aimed at excellence in every field of its operations as it diversifies and grows in tandem with national progress. This, the Group has made possible through strategic alliances with the government and private sector both on the home front and internationally. The Group's core activities comprise construction; property development and investment; building materials; quarrying; trading and manufacturing; toll concession; higher education; healthcare; leisure, entertainment and hospitality and information technology. Be it transforming wasteland into thriving townships; pioneering innovative construction methods, creating Education Trust Fund that gives back to the community, or realising the aspirations of a fast developing Malaysia and its connection with the rest of the world: The Sunway Group is all about Turning Vision Into Reality.


Sime UEP Properties Bhd www.simedarbyproperty.com : Sime UEP Properties Bhd www.simedarbyproperty.com Sime Darby Property is an integrated property entity of the Sime Darby Group with core businesses in property development, asset management, hospitality and investment. It has an asset base of over RM1 billion and over 40 property related companies operating in eight countries – Malaysia, Singapore, Indonesia, the Philippines, Vietnam, China, Australia and the UK.


IGB Corporation Bhd www.igbcorp.com: IGB Corporation Bhd www.igbcorp.com Tan & Tan Developments Berhad is a wholly owned subsidiary of IGB Corporation Berhad which is listed on the main board of the Bursa Malaysia Berhad. IGB is a diversified business conglomerate and a major player in the property industry in Malaysia and abroad. IGB builds townships, hotels, resorts, condominiums, commercial buildings, hospitals and retail complexes. These include the award winning Mid Valley Megamall, Malaysia's largest shopping mall. Tan & Tan Developments, one of Malaysia's most versatile property developers, has a reputation for creating innovative lifestyle concepts in the country. Established in 1971, Tan & Tan introduced the condominium lifestyle with the Desa Kudalari Condominiums in 1979 and created the first hotel apartments in Malaysia with its highly successful MiCasa Hotel Apartments.


Boustead Properties Bhd www.boustead.com.my : Boustead Properties Bhd www.boustead.com.my Boustead Holdings Berhad (Boustead), one of Malaysia’s oldest diversified conglomerates, was founded in 1828 and over the last 178 years, it has grown to comprise more than 80 listed and non-listed subsidiaries and associate companies. Today, the Group, with Lembaga Tabung Angkatan Tentera (LTAT) as its major shareholder, has total assets in excess of RM4 billion and more than 11,000 employees. 


E & O Property Development Bhd www.eoprop.com : E & O Property Development Bhd www.eoprop.com The year is 1885. Georgetown is a thriving British Straits Settlement port on the island of Penang. The luxury Eastern & Oriental Hotel opens its doors, a landmark for society's elite to gather. Established by the Sarkies brothers, who later replicated its distinctive architectural style at Raffles Singapore, the E&O became known as the "finest hotel east of the Suez". Today, in keeping with our tradition for unique style and grace, the E&O Group takes its namesake from our iconic heritage hotel. From origins in hospitality, we have now embraced property development, property investment and construction to become a complete real estate group. As befitting the E&O legacy, E&O Property Development Berhad's commitment to defining style and building distinction is conveyed throughout our portfolio of projects, partnering international award-winning architects and consultants in our premier developments in prime locations.


Sunrise Bhd www.sunrisebhd.com : Sunrise Bhd www.sunrisebhd.com Sunrise Berhad is an award-winning property development company, ranked No.1 in Quality Attributes for five consecutive years (2003 - 2007) in The Edge Malaysia’s Top Ten Property Developers Awards. It is also thrice winner of the FIABCI Malaysia Property Award in 2005, 2001 & 1997 for Best Residential Development, and is listed as one of Forbes Asia’s “Best Under US$1billion” turnover public listed companies in 2005. Listed on the Main Board of Bursa Malaysia Securities Berhad in 1996, Sunrise Berhad’s current market capitalisation is over RM1 billion. It has property interests in Australia, South Africa and UK via joint ventures with overseas partners. Sunrise Berhad’s properties have historically enjoyed capital appreciation of up to 60% and rental yield of between 8% and 12%.  With an existing land bank of 1,000 acres in Malaysia, the group’s businesses include : Property Development Facilities Management Investment Holdings Sunrise has in-house departments and subsidiaries that offer a range of property related services including Property Maintenance, Construction Management, Rental and Resale services.


Winners of FIABCI Property Awards: Winners of FIABCI Property Awards


CONDO OR HOUSE?: CONDO OR HOUSE? CONDO Ease of entry/ exit Maintenance Safety / security Communal living HOUSE Landed property Better cap values Private gardens Expansion of space


HOUSING PICKS: HOUSING PICKS LANDED - Damansara Heights, TTDI KL, Mutiara Damansara, Bandar Utama, Damansara Perdana, Cyberjaya LANDED - Malacca, Port Dickson, Iskandar Nusajaya Johore CONDO - Mont’ Kiara, KLCC, Northam Road Penang


Damansara Heights: Damansara Heights


Damansara, Kenny Hills: Damansara, Kenny Hills 3 storey Detached, 5000 sq ft @ GBP570,000 Detached, 9000 sq ft @ GBP714,000


Malacca: Malacca


Penang: Penang Mayfair Condo In the heart of the city. 4,964 sq ft @ GBP320,000 The Palazzo Vintage charm Of Italian Architecture @ GBP214,000 Infinity. Your paradise waterfront condo. All units come With 33 feet wide balcony and view of the sea @ GBP214,000


SUGGESTIONS FOR HAPPY LIVING: SUGGESTIONS FOR HAPPY LIVING Malaysia is tropical, but sweaters are necessary for air conditioned places, especially cinemas. If you are ENGLISH, shorts , t-shirts & flip-flops will be greeted warmly in any establishment anywhere in the country.


SUGGESTIONS FOR HAPPY LIVING: SUGGESTIONS FOR HAPPY LIVING When enjoying a beer in an open air restaurant, if a little old lady or a pseudo blind person seeks to sell you some crumpled tissue paper or fake dvd’s, you are entitled to ignore them by speaking loudly to your friends or calling the waiter for another beer.


REMEMBER: REMEMBER Most Malaysians are happy to see visitors and will usually provide help if you are lost! The further you are away from the city, the better the reception!


Future bus stops in Malaysia: Future bus stops in Malaysia


THANK YOU: THANK YOU