New 153,000 hectare township near KL planned for next 30 years

There are big plans for a big project spanning 153,000 hectares in Negeri Sembilan, just beside the administrative capital of Putrajaya. At twice the size of Singapore, the township will launch its first phase which at 11,000 hectares is 22 times the size of Sentosa, in Q3 this year. 

MVV ipropertyMYThe Malaysia Vision Valley (MVV) is a major township development which encompasses the Seremban and Port Dickson districts near the Kuala Lumpur International Airport (KLIA) and just an hour’s drive away from downtown Kuala Lumpur. The masterplan is managed by 2 government-linked entities – Sime Darby Properties and Kumpulan Wang Persaraan – and  is reflective of the Iskandar Malaysia development in Johor. The MVV will consist of 5 main clusters, namely: a Central Business District (CBD), residential estates, a nature city, an education and technology hub and a tourism and wellness precinct.

SenadaResidencesSimeDarbyPhoto credit: Sime Darby Properties

The residential offerings in this new township is expected to be at lower costs in comparison with the higher property prices in KL city. There seems to be future plans for an eventual merging of KL and Seremban within the next 2 decades and the current impetus is for the development to accrue RM290 million (S$93.9 billion) in investments and to become the hotbed of potentially 1.38 million job opportunities. The federal government has also put aside RM560 million to develop transportation infrastructure that will serve the MVV district.

 

Glass tower condominium project in KL

eatonresidencesgshThe glass ceiling may not be such a bad thing in the case of this 52-storey private residential project in Kuala Lumpur. The massive development will feature an all-glass facade and an infinity sky pool – the highest in KL.

Developed by Singapore’s GSH Corporation, it is the developer’s first condominium launch in KL though they already have a slice of the real estate pie with their involvement in the Sutera Harbour Resort in Kota Kinabalu and also the Coral Bay@Sutera residential development just next to The Magellan Sutera Resort .

eatonresidences2Photo credit: GSH Corporation

Overlooking the Petronas Twin Towers and Royal Selangor Gold Course, the 52-storey Eaton Residences will have views that may be well worth the RM1.14 million (S$375,000) to RM4.92 million (S$1.62 million) price tags. The 99-year development is slated for a completion date of 2020 and will consist of 632 units, each with a unique view of either the Petronas Twin Towers or the golf course due to the specially-designed tilt of the building. It will have a good range of 635 sq ft one-bedders to 2,874 sq ft four-bedders as well as penthouses sized between 2,200 to 3,000 sq ft priced at RM$4.19 (S$1.38 million).

GSH has released 200 units in its initial launch where 150 units have already been booked through private previews.

How likely is the China property bubble?

Buying properties in China could be risky business though the authorities are beginning to plug loopholes in the system such as property agencies acting as intermediaries in housing transactions. When your property agent or agency in China offers you a loan for your down payment, know that it is illegal.

beijing-tongzhouPhoto credit: Beijing Tongzhou integrated development by Perennial Real Estate.

As the population shift from countryside to cities, first- and second-tier cities are becoming more crowded and home prices are sky-rocketing. Money stimulus policies which began in November 2014 may have contributed to the boom, especially in cities such as Beijing, Shanghai and Shenzhen. Home prices in Shenzhen for example, have climbed 52 per cent in a year. The Chinese government has however been implementing cooling measures to curb or at the very least slow down the sharp rise and are positive that a property bubble similar to that in Japan in the 1980s will not happen.

While the top-tier cities are enjoying the benefits of the nationwide population shift and influx of foreign investment monies, smaller third- and fourth-tier cities are suffering from a pressurising load of unsold inventory. Reports of ‘ghost towns’ were not uncommon from more than a year ago and stock has only increased since then. In fact, 70 per cent of the 739 million sq meters of China’s home inventory comes from these smaller cities. The lack of consumer interest in these cities could mean a downward spiral for the property markets in these lower-tier cities as the potential for value appreciation becomes narrower. Despite the government’s projected minimum annual growth of 6.5 per cent from now till 2020, market regulations may have to be tweaked to boost specific sectors in order to shine the spotlight on more than just the top-tier cities.

Private resale home prices stabilising

With minimal fall in prices over the previous couple of quarters, could this be a sign that resale private property prices are stabilising? Could buyers be getting used to the current home prices and are coming back to pick up deals before a possible rise? Will the predictions of a 4 to 8 per cent drop in property prices this year continue on its track or will buyers buck the trend?

Botanique@BartleyThe NUS Singapore Residential Price Index (SRPI) has indicated a 2.2 per cent fall in resale condominium prices over the last 12 months. But since the first quarter of 2015, the fall has been more gradual and marginal, considering the expected 5 per cent year-on-year fall in prices per month in the last quarter of 2014. The next couple of months could be the watershed for the property market. A slow and small drop in prices could indicate a possible bottoming out of the market.

Part of the reason for last month’s 0.1 per cent fall in April could also be due to the high transaction volume. The recent new property launches of Botanique at Bartley and Northpark Residences may also have had a trickle-down effect on the resale market, in particular properties in the proximity of these 2 launches. Another promising bit of news is the 0.4 per cent rise in the prices of small apartment units up to 506 sq ft. A much untested market, particularly in the suburbs, as more commercial businesses move out of the central region and into the heartlands, the demand for these units may change in the next few years.