Sheik Ali Omar & Co.

How easy doing business in the KLCC and Golden Triangle Area?

noreply@blogger.com (Admin) — Fri, 16 Mar 2012 13:50:46 PDT

Jalan P Ramlee

Jalan Pinang

KLCC area

Business location in the KLCC and Golden Triangle Area is becoming rather extremely more expensive than 2 years ago when rents in prime buildings are reaching RM12.50 psf and above.

Corporate back office operations need relocation a bit further down south for half of the amount.

The diversity of rent between the two locations is frightening REIT and other property owners. While relocation is costly for small businesses nevertheless it seems as the most appropriate cost saving option.

As all government's services have moved over to Putra Jaya, practically Kuala Lumpur is now a city for doing only business.

But then how good is doing business in this area now?

Get views on how cities survive all facets of change from the business-preferred location in the global market and find out why here.

Green Buildings - what and why?

noreply@blogger.com (Admin) — Tue, 06 Mar 2012 00:31:47 PST

WHAT IS A GREEN BUILDING?

A Green building focuses on increasing the efficiency of resource use – energy, water, and materials – while reducing building impact on human health and the environment during the building’s life-cycle, through better sitting, design, construction, operation, maintenance, and removal. Green Buildings should be designed and operated to reduce the overall impact of the built environment on its surroundings.

Read more here:

The KL Golden Triangle and KLCC office Market

noreply@blogger.com (Admin) — Sun, 04 Mar 2012 23:13:52 PST

http://menarabinjai.com

This is a small enclave of the Kuala Lumpur Central Business District. Comprising some 90 commercial office towers, it is one of the fastest developing office markets in the City of Kuala Lumpur.

Total supply of office market within this small but progressing commercial area is 22.6 million sq ft (2.13 million sq meters). The area represents some 1/4 of the total supply of office space in the whole Klang Valley of 80 million sq ft (7.4 million sq m). Singapore's CBD accounts some 26 million sq ft, (2.4 million sq meters) which is slightly bigger than similar brand office area in the KLCC enclave.

Current occupancy rate stands at 88.4%, whilst other decentralized areas register the rates to a tune between 79% and 82%.

The space that is still available within this area considering the vacancy factor is estimated to be at 2.6 million sq ft (240,000 sq meters).

Planned supply in 2010 that is already completed this year is Menara Prestij. While two others, Tower 3 Petronas Tower and Menara Binjai, will be coming into the market by year end, and that also will be adding up some 1.4 sq ft of office space to the existing stock.

Almost all buildings within this area are Grade A building, but the newer ones however are of better quality. Some of these buildings are also certified as green buildings.

KLCC Towers still attract quality tenants thus high rental rates. Almost all the buildings in the KLCC perimeters are leased at rental rate from RM12.50 psf. Others newer buildings adjacent are leased on yearly tenancy suggesting rental rates of RM8.00 psf.

While older buildings nearby still maintain a rate of between RM5.00 to RM5.50 psf.

Its seems unlikely that rent levels will grow significantly over the year, taking into account of the status of the current vacancy level as well as the incoming supply of newer office buildings that will be completed by year end.

Even though Singapore prime rental rate is also around S12.50 psf, the office market in the Kuala Lumpur CBD seems to be stagnant, unless the government proposal to bring in 100 multinational organizations into selected areas of the Kuala Lumpur Office market materializes over the year.

Emerging commercial property market - KL Metropolis

noreply@blogger.com (Admin) — Thu, 27 Oct 2011 08:10:02 PDT

Well known location for government offices in Jalan Duta will receive almost 32 new towers, two shopping centers one of which is a 2million square feet shopping mall, and 1million square feet exhibition center for MICE activities.

Named as KL Metropolis, NAZA Group hopes to complete the whole buildings by 2025 in 3 phases. Phase 1 will start soon and is expected to complete by 2015.

Surrounding activities include commercial properties, residential high rise condominium and bungalows of Damansara Heights, Mont Kiara and Bangsar. A short distance away is UMNO Building and Putra World Trade Centre, which by the time KL Metropolis is completed, dwarfs into the scale of this large green initiated MICE centre.

Seventy five acres of land will be served by RM500 million infrastructure. Phase 1 will have high tech buildings, luxury condominium blocks, hotels, an art and health care center, several commercial blocks, retail and shopping malls, and a tower costing around RM628million and on a predicted GDV of RM6billion.

Phase 2 and 3 will see more commercial and luxury condominium blocks in which NAZA Group hopes to give to the group another GDVs of RM4 and RM5 billion respectively.

KL Metropolis themed from New York's Park Avenue and Paris's Champ Elysee will become another KLCC in Kuala Lumpur as its geared exploring opportunities MICE activities are offering in the region of the South East Asia.

NAZA Groups links for the project is here.

High residential property values in Klang Valley are softening

noreply@blogger.com (Admin) — Sat, 15 Oct 2011 05:35:42 PDT

New affordable homes as announced by the government are beginning to create an excess demand in the current housing market making a headway for developers starting building affordable homes in the Klang Valley.

House price index has shown that prices of houses in Klang Valley have increased over 60% since 2000. Newer two storey houses in selected residential areas are selling at RM600, 000 /-, an increased from RM250,000/ - as sold last 4 years. Homes over RM250,000 are difficult to be found within the city boundary as they were in the last four years.

The high price of houses is primarily due to easy housing loans, which lowers the entry cost in purchasing house by first time house buyers, and also due to speculators in the market place who are taking the advantage in the financial market.

The government's new budget has increased the RPGT rate from 5% to 10 % for gains over property sales within a period of 1 and 2 years, and 5% for the period of over 2 years up to 5 years.

This measure is to curb speculation in the market place. On the other hand, Selangor State government has imposed a development charges for change of land-use, density and floor space at a rate of 30% over the difference in the value. This measure is to curb development within Selangor region as producers or developers are now need to add extra cost for any development projects.

The market is expected to cool down from early next year.

Relentless living style

noreply@blogger.com (Admin) — Thu, 28 Jul 2011 03:52:09 PDT

While going up economy-wise, Malaysia’s residential developments are promptly giving the answer to silent prayers of almost all home-buyers. Better and quality homes.

However, they are for a cost. Last one decade or so homes were built almost basic. They were at owner’s hands to meddle around, adding up rooms, porches, grilles, extended kitchens, or perhaps another room to a new second floor. The quality homes were in fact the owner’s own creation; when they met owners they came solid in straight-line terraces. That was the yesterday.

Today’s homes are pretty in designs, well researched to fill in the need of a modern family. Space can be turned into anything a man’s needs, after all, concrete and cement are two materials that never been left out ever since construction business started in this country. They are easy to mold into any space that makes better usage of small area of terraces.

Better homes of that superiority come handy but at a price, which is 200% higher than it was before. A family of five needs to draw out money to pay for a square foot of living space at RM420 each, they would need only half of that amount for a similar space last two years. That amount doesn't pay for the cost of land the houses are built onto. Everything goes up, when population is booming.

Income wise, home-buyers, or family earners seldom see it as a rising star. Government servants earn an average pay rise of 10 to 15%. That’s in every three years. Thus leaving home-buyers from private sector in making up the whole people with ability to live in quality homes.

Government’s recent move to tackle building quality homes for the less affordable group, those with incomes below RM3, 500 per month is timely. Location is not a primary factor for this group and with the help from MRT and LRT; distance is no longer an issue as time to travel is much lesser even if the quality homes were built some 30 kilometers away from work place in the city.

Rent or buy?

noreply@blogger.com (Admin) — Wed, 27 Jul 2011 23:42:08 PDT

A simple question but sometimes tough to answer.

Prices of residential properties in the South East Asian countries, such as Singapore, Malaysia and Hong Kong, are moving upwards not because of slow construction but due to new supply of flexible funding, better home designs and population boom.

Cities in SEA regions see urban city limit expanding faster than any other cities of the world. Kuala Lumpur for instance has its city limit or boundary grown encroaching new areas once before the outer city areas. Areas that were out of reach by city dwellers suddenly become relatively closer to the city centers, thanks to LRT and MRT built in the past decades moving commuters faster and nearer. Outer areas that weren't worthwhile for residential development are now reachable destinations and support new homes and a newer living style.

Back to the question: buy or rent?

We, the city dwellers or Malaysian, always believe, that owning is much better than by just renting.

Some Singaporeans, however, believe, renting is better for a number of good reasons.

Where too much new developments have taken place in any residential area of the city, it is better to rent and save whatever for future use, and when the whole development area is completed, its time to reconsider buying a suitable place.

Current yield from residential properties, top or bottom ranks, stays low at 3 percent and above. With higher building cost in maintenance and local authority fee, owners are likely looking to shoulder the differences in the outgoing for sometimes. Thus, making an investment something isn't worth a while.

Owner occupiers however are willing to live in and make the differences as long as the neighborhood can sustain their living style. Location is the most important reason for them, being it nears to the amenities that they like and so forth. Large proportion of income is spent on things that they couldn't account it in their logbook.

To answer this question bluntly: Buy when you can afford, don't buy when you can't afford the high cost of owning properties which varies from one person to another.

Good luck.

Kuala Lumpur Office Market May 2011

noreply@blogger.com (Admin) — Thu, 26 May 2011 11:33:58 PDT

Whilst many cities in the west are experiencing smaller take up rate, the Kuala Lumpur’s office market still maintain good occupancy rate above 80%.

Although it has sliding down from 95% in the last 4Q2010, the market is still active. Although prime rents in selected locations in the city proper have registered a drop from RM9.50 in early 2010, to an average of RM8.50 a square foot now, the drop in rental rates could have been the result from new completions of quality office space within similar area.

To date, two new completions have adding up to the existing supply of the office market. Hampshire Place and CapSquare Tower, although providing some 800,000 square feet office space the lettable space becomes attractive because the initial asking rents are far below the market rates.

There will be another two million square feet new lettable office space that is coming up soon within the same area, and about the same number in the city fringe.

With that amount of space that is coming on-stream, the initial rental rates for newly completed buildings will surely be swelling downward, not because of the effect from the global slowdown but mainly due to huge new supply that is coming up in the next quarters of 2011.

The government’s timing to lure in 100 multinationals to house their operation in this country is very timely. This will augur well, as rents are relatively cheap, they are much cheaper than rents of similar office buildings in other cities within the South East Asia region, and that of Singapore’s market.

Rents in other areas of the office market such in the city fringe are improving as decentralizing has occurred over the past two years. They are averaging from RM 4.30 to RM5.10 per square foot, compared to RM3.70 to RM 4.60 per square foot at the beginning of 2010.

EPF in talk to acquire Visa's 1 Sheldon Square HQ, Paddington.

noreply@blogger.com (Admin) — Fri, 12 Nov 2010 08:04:23 PST

Employees Provident Fund (EPF) began talk in acquiring a 193,000 sq ft commercial office building Visa's HQ in 1 Sheldon Square, Paddington,W2, London.The building is owned by Aviva Investors, Invista Real Estate Management, Henderson Global Investors and Liquid Realty Partners.

View Larger Map

The investment is expected to be at about Pound sterling 150 million (approximately RM745 million), reflecting a yield of around 5.75%. If the deal goes through it will be EPF's debut property deal in the UK.

The presence of long leases, prudent asset and property management ensures stable returns for the investments in the UK's commercial property sector.

Sale and leaseback for KL’s commercial office,

noreply@blogger.com (Admin) — Sun, 31 Oct 2010 12:57:59 PDT

Image by Stuck in Customs via Flickr

Point to note in a buy on sale and leaseback in KL's commercial district.

>>1. Look into the vacancy rate data of the district, in which the subject property is located for a period of 5 years,

>>2. Examine the tenant's mix of the building, its size, and location,

>>3. Examine the lease and the expiry period, rental level and building outgoings,

>>4. Have an estimated rent projection for the next five years,

>>5. Assess the quality of tenants,

>>6. Look into new completion of office around the area, within a radius of 1 mile,

>>7. Determine the high and low of rent for the building,

>>8. Look into the need for capital expenditure on improvements to maintain current rental rate,

Yield of commercial office in the high street of KL's inner CBD varies from 6.5% to 8%, in some buildings; the yield registers much lower rates. The capital values are hovering from RM500 per square foot on net building area in several districts, reaching to RM800 per square foot in modern enclaves.

Average gross building size is 230,000 square feet, the top size at a huge 700,000 sq ft, or more and the smallest at some 110,000 square feet. There are approximately 97 buildings altogether here and a few are up for sale.

Average building expenses or outgoing is RM1.20 per square foot and rent at RM4.00 per square foot. Longer leases are normally tied up at lower rental rates for larger space, and are registered leases for a period exceeding five years.

For other useful information on acquiring office commercial property by sale and leaseback in this area, please contact us.

Jalan Tuanku Abdul Rahman, KL

noreply@blogger.com (Admin) — Wed, 13 Apr 2011 21:14:57 PDT

The inner area CBD of Kuala Lumpur.

Most buildings are prewar shops and some new developments retain the front old prewar facade.

Famous for being the first commercial area of Kuala Lumpur, Jalan Tuanku Abdul Rahman still the shopping area for KL's folks during national festivals such as Hari Raya, Depavali, Christmas and Chinese New Year.

Easy homes

noreply@blogger.com (Admin) — Wed, 13 Apr 2011 21:15:51 PDT

Speculating business in home ownerships

noreply@blogger.com (Admin) — Sat, 30 Oct 2010 00:10:49 PDT

Image by Nik Aizu via Flickr

Bank Negara's governor Tan Sri Dr Zeti said that the central bank would issue its stand and recommendations on the way to curb the house price speculation to the government next week. Analysts believe that it will involve several changes in the current policy affecting the loan to value ratio, or reduces speculators' ability in obtaining the relevant funds freely from the banks for speculation purpose.

Speculating is somewhat acceptable business dealings for property pundits in this country. It can be a smart working relationship with the developers, or, among other speculators, to reap huge benefits from the capital values, when capital gain tax, or when there are lesser slashes of the gains by the government. It can place speculators way ahead from the ordinary investor's plights.

How bad is the speculating in property price in this country and what type of property speculators like to invest?

a) A new branded quality home, either bungalow or super link home,

b) Limited number of units in the pocket of housing areas,c) Profoundly advertised housing projects, the advertisements which touch all the senses of human being, such as secured housing schemes, living and pleasurable boat rides in a pond that doesn't bring you nowhere, modern and stylish material, and so on,

d) A less desirable location but due to the above (c ), and with strong marketing exposure,

e) Vacant lands near to a proposed government projects,

Super link terrace houses are those built on the extra land area dimension from the standard 22 by 80 feet to 26 by 80 feet, and surprisingly bungalows now get smaller and smaller land sizes now averaging to 5,000 sq ft, or a 50 by 100 feet dimension. Due to an extra land size of 320 sq ft, or 620 sq ft for double storey super link homes, these homes recoup extra capital value of RM300,000 or double the price of the ordinary standard homes of 22 by 80 feet in a similar housing area. This idea on the pricing of the super link homes are of course comes from the developers themselves. The consumers who have no idea of how super profits are made are at a cross hand finding suitable homes for their large family members.

Instead of cursing on the market forces and the ordinary home buyers by slapping a lower loan to value ratio, the government too should see through the mechanism in the developers' home price fixing modest operation, or simply point at them for the cause that they have created to overflowing speculation activities.

Well, we should see what the government has in the coming week. Till then, cheerio and see you people in the next post.

Objections hide political motives; KL’s CBD should regain its glory

noreply@blogger.com (Admin) — Wed, 27 Oct 2010 09:47:22 PDT

Image via Wikipedia

Jalan Ampang, Kuala Lumpur

A few leaders from the opposition parties (DAP) had opposed to the Government's plan to go ahead with the construction of 100 storey commercial building in the southern part of the city within the inner city commercial area (CBD).

As informed, the construction of the building would be by the private sector's initiatives on the blessing by the government.

We agree to the government's proposal because of several reasons. The inner city area remains an active commercial area of the city, albeit it has a very low vacancy rate as compared to other areas in the city.

The Golden Triangle's commercials have been overvalued due to a limited supply of land and the stiff competitions among many developers are making it worst. KL's commercials need investors to regain popularity among other centers in the Asian countries as the international hubs. By providing a competition among areas in the city the price will relatively be better to reflect their true market value.

Mega projects of this nature eventually will increase the commercial value of land in the surrounding area; creating demand for building material, expertise, professionals, and will improve the infrastructure in where the building will be constructed.

Objections to the proposed developments, especially from the opposition leaders either viewed as a political motive.All big and mega projects by the government in the past had been objected by similar opposition leaders that include North South Highway, Putra Jaya, Penang Bridge, KLIA, KLCC, Proton and more. All the previous mega projects have been fruitful and beneficial to all people despite heavy objections by these leaders.

What is your opinion? Why are they so fussy with this one anyway? Let us hear from you. Cheerio mate, see you again in the next post.

Vietnam's tallest tower too.

Wawasan Merdeka Tower to view northward

noreply@blogger.com (Admin) — Tue, 26 Oct 2010 10:37:37 PDT

Image by Christopher Chan via Flickr

The proposed 100-storey Wawasan Merdeka (the Burj of KL) will transform the whole district in the south of Kuala Lumpur into the next Golden Triangle.

That's the main purpose in shifting the urban growth, i.e., creating balance in demand for space.

Unfortunately, the district is less competitive now; there is a large chunk of Chinese graveyard here. Anyone can view the graveyard from the tower. What a view.

KL's inner city area remains alive

noreply@blogger.com (Admin) — Sun, 17 Oct 2010 01:02:02 PDT

Image via Wikipedia
Jalan Ampang

Commercial office market in inner city area CBD remains attractive in terms of choice for office building. KL begins its life 153 years ago, a young city among the cities in the South East Asian countries. Then KL was a tin mining hotbed started to attract traders and retailers all from over the country and the region.

Now the same area of the tin mining hotbed has about 97 purposed built office buildings with an occupancy rate of almost 85.3%, slightly better than the KL's average occupancy rate of 81.2%.

In the early days after independence although the commercial plots were small and irregular in shape majority rent controlled premises and pre-war shops had been gradually redeveloped into modern commercial offices and what remain today are those listed buildings which have been classified as the national heritage.

Although much newer commercial office buildings built within Golden Triangle and become very competitive KL CBD offices, remain attractive due to the history and presence of government's tenants and occupiers. Large government offices, banks and other retailers energize this area as a workplace indirectly pull would be tenants to locate here.

Number one reason is that rental value is very competitive. In some buildings, the rates are 30% to 40% lower than in class A office buildings of the Golden Triangle. Some areas of KL CBD are registering almost full occupancy due to attractive rents. Among the areas Jalan Raja Laut (4, 519,025 sq ft at 3.8% vacancy rate), Jalan Ampang (1,170,403 sq ft at 5.1% vacancy rate) and Jalan Tuanku Abdul Rahman ( 1, 635, 759 sq ft at 20.9% vacancy rate) are top choice for office location in KL CBD. The losers are those in Jalan Pudu (24,811 sq ft at vacancy rate of 43.2%) and Jalan Dang Wangi (198, 325 sq ft at 30% vacancy rates).

KL CBD offers 13.5 million sq ft of office space out the total for KL commercial office market of 74.3 million sq ft. Government's new budget announced yesterday recognized the history of KL CBD. The budget for improvements in the transportation and the construction of a-100 storey Merdeka Tower within KL CBD will definitely transform the area to its greater height.

KL's suburb - Damansara new shop-office

noreply@blogger.com (Admin) — Fri, 15 Oct 2010 01:11:43 PDT

End lot

A newly completed commercial office development in Damansara is slowly gaining popularity in this suburb commercial office market.

The number one reason is its close proximity to IKEA, Red Box, Mutiara Damansara, Royale Bintang, Ikano Power, Tesco, and the Curve.

Surrounded by middle and high-income groups’ housing estates 10 Boulevard is a perfect choice for businesses relocation among the residents away from the demanding of KL’s CBD.

Among the early relocation into the units at 10 Boulevard are banks, retailers, designers, mamak-store (Indian Muslim cafe), and professionals.

This area generally is less hassle than Mutiara Damansara however its main road is busy as it is the main thoroughfare leading to the North South Highway nearby.

Early morning as well as the evening rush hour is when road were normally congested. Otherwise, this commercial area is a relaxing workplace.

10 Boulevard is marked blue in the Google map below.

View 10 Boulevard, Kayu Ara, Damansara. in a larger map

For more information that is useful please refer to our Facebook or from this site.

The unit is for sale at USD2,000,000 or RM6,200,000.

Property goes down by the hammer from USD 1, 742.

noreply@blogger.com (Admin) — Thu, 14 Oct 2010 04:22:00 PDT

Auction Property

A wide range of property will be auctioned off at several auction houses this weekend starting from USD1,742.(1USD=RM3.10)
Fore more read here and here.

Pulau Perhentian Besar

noreply@blogger.com (Admin) — Thu, 21 Oct 2010 08:39:33 PDT

Photos

View Pulau Perhentian Land in a larger map
Pulau Perhentian is a favorite place for holidaymakers located 21 km off the northeast Trengganu, Malaysia.
It is famous for scuba diving and other sea faring activity. The soft sandy beach of the island is famous among the nature's lover.
It is about a 40-minute boat ride from Besut, Trengganu. The parcel of land together with thirty-three rooms’ motels is an opportunity for a resort operator in expanding business to this favorite island.
Details on the offer for sale and the photos of the site are available here.

Industrial Land for sale, Near KLIA, Sepang, Selangor

noreply@blogger.com (Admin) — Thu, 21 Oct 2010 09:12:01 PDT

Image via Wikipedia

ERL Salak Tinggi, Sepang, Selangor

View PT Nos. 8237, 8238 and 3239, Sepang, Selangor in a larger map

Three plots adjoining leasehold industrial lands are available for sale.

PT No. 8237 - 317,670 square meters (3, 419,371 sq ft)
PT No. 8238 - 199,510 square meters (2,147,508 sq ft)
PT No. 8239 - 88, 844 square meters (956, 309 sq ft)

Total area is 149.751 acres, and a part of PT No. 8237, i.e at about 16 acres, is acquired for ERL Station. The remaining net area is 133.751 acres (5, 826,193.56 square feet).

These properties are located adjoining Taman Warisan, Sepang, sited along Putra Jaya - Bandar Baru Salak Tinggi / KLIA link road. They are suitable and ready for immediate property development.

Price is negotiable. Photos are available here.

For more information, please email us your contact number.

Sunway South Quay bayrock bungalows are well beyond the impossible

noreply@blogger.com (Admin) — Wed, 13 Oct 2010 20:40:52 PDT

Image via Wikipedia

Sunway City

The concept of living within the so-called Sunway South Quay is something of an extraordinary that achieved from the impossible.

Once a disused mining pool Sunway has tactically transformed the whole area that squeezed by Petaling Jaya and Subang Jaya into a dream city. The success of this dream maker in making location as an advantage from the abandoned mining pool relates to its understanding in the nature and the environment’s need.

This is the place where bungalows are not cheap. Surrounded by ongoing commercial and leisure developments, Sunway South Quay bungalows (Aquara (6,662 sf), Bayna (6,757 sf), Current (6,659 sf) and Dalluria (6,469 sf)) are certainly top-priced units of residential property in the Petaling District, Selangor.

Today’s offer for sale of a unit, Delluria, at RM6.6million shows a double fold increase in price since launch, a highly speculative nature. This is an improved land value (ILV) of RM588 a square foot, or RM1, 020 a square on the built up, far exceeding the model for this district. It's far beyond the price for a commercial office in Kuala Lumpur District.

Let us go on to another today’s offer. It has an ILV of RM649 well above the average RM539 between top class bungalows in Bukit Damansara. This is exceeding RM7.3million for a price, it is for a two and half storey building, a four-bedroom, a four-bath, and it's extraordinarily high price.

Each bed and bath costs you RM1million each. By the way, how much a public toilet costs here, well a mere RM7, 000 a unit as a comparison. Furthermore, you are buying a leasehold four beds and four baths home. To live in this community, I would assume one should have the asset equivalents to RM30million. You cannot live here and relying on public transport, you probably need a Ferrari California and drive in blending a home you own.

The area’s concept masterpiece written for the suburb provides some ideas how a person lives in this community. Surrounded by Sunway Lagoon Resort, Sunway Pyramid Tower & Resort Suites, Sunway Lagoon Themed Park, Medical Centre, Shopping Mall, University, International School, it enjoys a full hub of activities; from education, health, leisure, and hotel. If these are not important for you, perhaps other aspects of life such as the grouping of the riches, the seclusion from ordinary citizen, or anything that you may want in this world may be found in this community.

These are not all. All areas are of a gated and guarded community; providing all new modern sophisticated gadgets, such as visitor management system, home automation system, property management center and Home SMATV, (a satellite antenna television system, Home security system), Home CCTV surveillance, and audio intercom system. Wow, they have them all.

You will have to sacrifice your money to buy all these modern chicks in South Quay’s bay rock homes. One thing many wills never remember, the return for your investment is well below the cost of purchasing it. Below 3%.

Our opinion on the offer is simply overpriced or overvalued. Cheerio, mate sees you again in next post.

KL commercial properties for sale?

noreply@blogger.com (Admin) — Thu, 14 Oct 2010 04:18:08 PDT

Image via Wikipedia

Suria KLCC Office & Retail

If you go through I-Properties’ list of commercial properties for sale in KL’s inner city commercial area you’d be surprised to observe a substantial numbers of offers for sale ranging from RM40 million to RM500 million.

Some offers are for already completed buildings whilst the other offers targeted for new completions. We are not sure as to whether these offers are still available in the market now. Not surprisingly, the offers range from RM800 to RM1, 200 per square foot, as done price a square foot on commercial space over the last quarter was in the region of RM814 a square foot.

There are about 74.37 million sq ft office space in KL’s inner city area. Out of that, 60.52 million sq ft occupied with occupancy rate achieving 81.24% over the last quarter 2010. This supply includes new completions (2.4 million sq ft) in nine buildings that was with a very little absorption rate of 65, 724 sq ft.

With that amount of absorption and occupancy rates, there exists in the market some 13.860 million square feet of unoccupied space. With this huge supply and at as little as 1% absorption rate, the demand for office space in the city centre is dropping fast enough than the amount the space that is coming into the market.

There are another 17 more new constructions coming on-stream in 1^st Quarter 2010 that will enter the market with some 8.1 million sq ft new office space, and in the second quarter 18 buildings that will add a further 8.5 million square feet new supply to existing stock.

Rents as anticipated have fallen from RM9 p.s.f to RM7 p.s.f in grade A buildings, and from RM7 to RM6.20 in other grades. Although capital value forced up by means of shrewd media announcements this upscale data couldn't remain as a strong base of comparisons for sale of commercial property in the city.

There is the likelihood that sale will be concluded at a lower price range than done price in the last quarter. This drop in sale value is also will affect the price of other grades buildings in less favorable areas of the city such as the Inner CBD and CBD proper as compared to the Golden Triangle.

With the completion of 35 new buildings that are already in construction, that is providing some 17.5 million sq ft to existing supply, and at a similar absorption rate there will be 20 to 25 million sq ft unoccupied space in 2012/ 2013. Unless, the absorption rate is improving the KL's commercial property market is going for a hard time.

Top selected two storey bungalows - KL's suburbs.

noreply@blogger.com (Admin) — Wed, 13 Oct 2010 12:07:15 PDT

Land values are indicative figures for a bid for the use of a landed property. The higher land value of a site is the indication that it is highly sought after.

To have a higher bid price a place or an area should have ample facilities, well developed with infrastructures, roads and other amenities. The presence of shopping complexes, medical centers, religious centers, sport complexes, schools and colleges, and community centers in a particular area is the determinant for its achieving a high bid price or the improved land value (ILV).

Kuala Lumpur's top 2 storey bungalows

It is evidence that Bukit Bandaraya and Damansara Heights are two well sought after locations for exclusive bungalows in Kuala Lumpur’s suburbs, as they command high bid prices as shown in the table above.

From the list, the top rated ILVs for choices of exclusive bungalows are in the order as follows:-

"Bukit Bandaraya, Damansara Heights, Mutiara Damansara, Bukit Jelutung, Putra Heights, Kota Kemuning, and Country Heights"

Bungalow’s price is on the move. It was well below RM1.9 million 5 years ago to above RM4.9 million in today's market. Those who are seeking a bungalow to live in are now having a selection of exclusive areas in several locations outside Kuala Lumpur. These new locations are now easily accessible due to improvements in roads and the public transport system, which have been upgraded due to the city’s expansion.

If you are looking for suitable place to purchase a bungalow, you could locate one by surveying the above areas. In these areas, there are also other types of bungalows built and priced at above the average price. For a bungalow with a lake view for example, you could get one at a high price that is higher than the average of RM528 a square foot. This is located within Putra Heights, Subang Jaya, Sunway region.

Whatever your choice ensures the price is reflected for the facilities that are available within the vicinity. The higher you pay (ILV) for a site therefore should reflect better facilities affordable within close distant.

Tour of Petronas Twin Towers

noreply@blogger.com (Admin) — Sun, 10 Oct 2010 07:46:51 PDT

Image via WikipediaImage via Wikipedia

The Petronas Twin Towers will be offering new visit packages from Oct 1 to give the public an enhanced and more exciting experience when they tour Malaysia's popular tourist spot.

In a statement Monday, Petronas said the packages to be introduced, in addition to the existing Skybridge tour on Level 41, will include a visit to an observation deck on a top floor of Tower 2 and a meal at the Malaysian Petroleum Club (MPC) within Tower 2.

Fees for the packages will start from as low as RM3 per person for the basic Skybridge tour to RM350 per person for the premium package, it said, adding that the premium package will also include a fine dining experience at the exclusive, members-only MPC, almost half-way up the world's tallest twin towers.

The packages were introduced in support of the government's aspiration to realise the tourism potential of the Petronas Twin Towers and the attractions within their vicinity, such as the Suria KLCC Shopping Complex, the KLCC Park, Petrosains, Gallery Petronas, Aquaria and the Malaysian Philharmonic Petronas, the statement said.

These attractions would help position the towers as a premier tourism attraction enjoyed by other iconic buildings around the world, it added.

Petronas has plans to enhance the tour experiences of the buildings in the near future, including extending the visit operation hours, providing a more spacious viewing deck, and enhancing the Visitors Centre, ticketing facilities and other related visitor amenities.

Source: Bernama

Global Commercial Property Survey - 2010

noreply@blogger.com (Admin) — Sat, 25 Sep 2010 05:06:09 PDT

Image via WikipediaThe Royal Institution of Chartered Surevyors has conducted a Global Commercial Property Survey and the result of the survey can be downloaded at the following links:-

a) Q2-2010
b) Additional Comments
c) Europe
d) America

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