UMCity Medini Lakeside – The New Nexus in Medini, Iskandar Malaysia

Johor MB Officiates Groundbreaking at Award-Winning UMCity Medini Lakeside by UMLand and Samsung C&T Corporation

  • Groundbreaking ceremony for the RM1.2 billion GDV development was led by UMCity Medini Lakeside developer, UMLand and world-leading construction company, Samsung C&T Corporation
  • Located at the gateway into Medini Iskandar, the 5-acre UMCity Medini Lakeside is a waterfront mixed integrated development ideal for community living and work
  •  UMCity Medini Lakeside is poised to redefine metropolitan international brand collaborations in Iskandar Malaysia

Pix 1_Menteri Besar and VIPs officiating the Groundbreaking
Nusajaya, 20 May 2015 – United Malayan Land Bhd (UMLand) today held a groundbreaking celebration for UMCity Medini Lakeside, its premiere mixed integrated development in Medini Iskandar, with award-wining builder Samsung C&T.

The ceremony was officiated by Dato’ Mohamed Khaled Nordin, Chief Minister of Johor and marked the beginning of construction works at the 5-acre development which fronts a beautiful landscaped lake park. Also in attendance were His Excellency Carlos Domínguez Díaz, Ambassador of Spain to Malaysia, His Excellency Suh Chung-Ha, Ambassador of the Republic of Korea to Singapore, and Chi Hun Choi, the President and CEO of Samsung C&T Corporation

.Pix 5_Datuk Charlie Chia_Menteri Besar_Dennis Ng_Chi-Hun Choi

This is a significant milestone for UMLand in positioning itself to become the lifestyle developer of quality products in all their projects. UMCity is UMLand’s award-winning flagship mixed commercial development with a Gross Development Value (GDV) of RM1.2bil in Medini Iskandar. Its UMCity Office Tower was named the Best Office Development at the recent Asia Pacific Property Awards which was held in early May 2015.

In his officiating speech, Dato’ Mohamed Khaled Nordin said, ‘UMLand’s UMCity development reflects the highest level of confidence in the efforts to position Medini as the preferred destination for investment. This catalyst development will become the new nexus in Medini, bridging the lifestyle components to Medini’s fast growing business components.’

Pix 3_Datuk Charlie Chia_Dennis Ng_Menteri Besar_Chi-Hun Choi getting ready to launch the video

The groundbreaking celebration also witnessed the welcoming onboard of a new partner from Spain for UMCity – Roca, which is renowned for their complete bathroom solutions. UMCity also announced that AECOM, an internationally acclaimed multidisciplinary design company was responsible for the design of the Medini Lakeside public park. The presence of Roca and AECOM add to the already impressive list of UMCity international delivery partners who will be setting the benchmark in quality service in Medini Iskandar.

Earlier this year, UMLand cemented strategic alliances with established and international brands such as The Ascott Limited, ONYX Hospitality Group, Samsung S-1 Corporation, and Regus for the same development. With Samsung C&T headquartered in Korea as the main contractor for the UMCity project, the UMCity development is well en route to assured quality and timely delivery. Samsung C&T is a world-leading construction company responsible for many renowned buildings and skyscrapers such as the Burj Khalifa in Dubai and Tower 2 of the Malaysia Petronas Twin Towers. UMCity will be Samsung C&T’s first commercial project outside of Kuala Lumpur in Malaysia.

“We are honoured to be part of the UMCity Medini Lakeside project,” said Chi Hun Choi, the President and CEO of Samsung C&T. He added, “We look forward to continuing our support for Malaysia’s development, having participated in large scale projects including Petronas Twin Towers. We are certain that by working closely together with our trusted partners, the project will be successful.”

Upon completion in 2018, UMCity will be the home to the renowned brands of Citadines, Shama, OZO,and Regus, with Samsung as the comprehensive solutions provider. With these brands onboard, UMCity has one of the most comprehensive international collaborations in a mixed development in Iskandar Malaysia.

UMLand Group CEO, Datuk Charlie Chia said, “Positioned as the commercial hub in Medini, UMCity is a one of its kind waterfront mixed integrated development designed for a vibrant community living and work. UMLand is a long established developer, and we are continuously striving to push boundaries while creating quality lifestyles and communities. This is especially true for UMCity which is poised to become a world-class commercial hub in Iskandar.”

He added “This is where the concept of innovation meets sustainable development within the Medini business district of Iskandar Malaysia. Primed to be the nexus of Medini, this development by UMLand is set to deliver a conducive environment, be it for business, leisure or residence.”

UMLand is assured that the development plans of UMCity will be in sync with the Medini Business District, making it the leading business environment in South East Asia

For more information, please visit www.umland.com.my

Private resale non-landed home prices rising

With more new non-landed homes reaching completion this year and entering the market with more vigour, resale properties will have quite a bit more competition to deal with.

65cc3e41521f45a9bee9cd4c20bcbf8cBut for the moment, good news prevails as prices of resale non-landed homes have risen albeit slightly. In March, prices rose 0.2 per cent with the number of sales maintaining at around 300 in February and March. Although there is no significant rise in the number of sales transactions or prices, at the very least prices do not seem to be dropping. This could indicate a stabilising market and where it goes thereafter is very much dependent on governmental policies and market forces.

Suburban resale homes were leading the price rise, with a 0.3 per cent monthly gain. Central region homes in districts 1 to 4 and 9 to 11 also saw a 0.1 per cent rise. It were the smaller apartments which saw a drop in prices of 0.4 per cent by the month. These shoebox apartments, with floor areas of 506 sq ft and less, were one of the hottest ticket items the last couple of years, why the depression in prices now?

Property analysts are putting it up to the increasing number of shoebox units in suburban condominium developments. Demand for these smaller units outside of the Central region may not be as high as developers had thought, and as the number of unsold or untenanted units rise, so does the competition. Buyers have more choices and will be more likely to bargain or wait for lower prices.

Sticking to previous estimates, property prices are expected to dip 3 to 6 per cent this year. Previous estimates were around 4 to 8 per cent.

 

Slowing down of property market slowdown

The first quarter of 2015 has proved to be a slow one for the property industry. But the slowdown has lost some speed. Compared to the previous quarters, the decline for both private and public housing was at around 1 per cent for the past three months.

Property prices and sales have been slowing down since mid-2013. In the resale HDB flat market, prices have fallen for 7 consecutive quarters and private property prices have fallen 6 quarters in a row. What will the rest of the year hold for these market segments?

Northpark Residences1For the private property sector, property analysts are predicting:

  1.  A further dip in prices as the number of unsold units are on the rise.
  2. Continued fall in rental prices as more completed new homes enter the fold. The decline in the first quarter of the year was 1.7 per cent; rental prices fell 1 per cent in the last quarter of 2014.
  3. As interest rates rise, home owners and developers may be pushed to lower prices further to secure deals. The competition between resale and new properties may also heat up.
  4.  A 5 to 8 per cent fall in private home prices for the year as buyers delay their market entry, possibly waiting for prices to fall further before making a buy.

In the HDB resale flat market, the prospects seem slightly more positive:

  1. HDB resale prices are expected to fall at a slower pace of 4 to 7 per cent and perhaps even stabilise.
  2. But as more new BTO (build-to-order) flats and ECs (executive condominiums) are completed this year,  flat owners may feel the imminent pressure to sell their existing flats at lower prices in order to move into their new units.

A fall in home prices seem inevitable this year, but the good news may come in the form of increasing sales and reaching a balance between sellers and buyers in terms of home prices.

Dual key apartments rising in popularity

The latest property type on the block has been gathering an increasing crowd of fans. Not surprisingly, since they offer the space and the privacy for larger, multi-generational families, giving them the option of having their family members close, but not too close for comfort.

The concept began with the Housing Development Board and their “Granny flats” in 1986 and the first private properties to pick up on that were the Caspian and 8@Woodleigh. And now, new properties actively set aside a number of units as dual key apartments.

Boathouse ResidencesSome of the latest market offerings to include these units include Seventy Saint Patrick’s, Northpark Residences, Riverbank@Fernvale and Botanique @ Bartley. Older properties with these options include Coco Palms, and The Santorini at Tampines. At the latter, there are 144 dual key units. Most of the dual key units include a two- or three-room unit attached to a studio apartment, with two separate entrances.

In addition to providing privacy, these units also provide a cheaper alternative to buyers who are running an office out of their home. It gives them a separate entrance to their business and a physical separation from their living quarters while saving on transport costs and time.

Plus, it is easier to rent out these smaller units. For longterm investment considerations, these units could also be sold as it is or as a normal unit with the separating structures reconfigured.

Coming up later this year, the Boathouse Residences, developed by Frasers Centrepoint Limited, will also feature dual key apartments.

Condominium prices wavering

It may be a year of fluctuations for the private non-landed property market. Condominium sales have been slow, though it picked up slightly in February.

Both new and resale private condominiums were affected by the market slowdown, much of it attributed to the TDSR (Total debt servicing ratio) framework set by the Monetary Authority of Singapore (MAS). But some property analysts are also connecting the dots between the lowered Cash-Over-Valuation (COV) prices of resale HDB flats. When COVs were high, potential HDB upgraders were able to leverage on these to leap into the private property market by using the COVs as part of the cash down payment for their new private homes. With the lack of this financial impetus, more are finding themselves in between an rock and a hard place when it comes to scaling up.

Sims Urban OasisWeaker buyers may find themselves having to hold back for now while those with the financial abilities will still be able to well afford what the market currently offers, and perhaps even more so as prices have been coming down for sometime now.

There has however, been a shift of interest from newer units to resale ones, in favour of larger floor area. HDB buyers have been purchasing units with an average of 926 sq ft in size, while private buyers leaned towards units averaging 1,119 sq ft in size. The sweet spot of affordability is now between $1.28 million to $1.46 million for private buyers and $950,000 to $1,09 million for HDB upgraders.

More foreign private home buyers

The number of Singaporean buyers of private properties have fallen last year. Possibly overshadowed by the increase in number of foreign buyers since rules have changed for Permanent Residents (PRs) buying HDB flats. New PRs must now wait 3 years before they are able to purchase from the public housing market. The rules have been in place since August 2013.

Marina ONe iprop watermarkThe percentage of PRs purchasing private properties in Singapore have risen from 15 to 18 per cent in 2014. But the number of Singaporean buyers have dipped almost by half. In 2013, 16, 789 homes were sold to Singaporeans while in 2014, Singaporeans only purchased 8,707 private homes.

Most of the foreign buyers were made up of Chinese nationals, Malaysians, Indonesians and Indians. 229 units were sold to Chinese nationals in the last quarter of 2014, up from 214 units in the third quarter. With the launch of the Marina One Residences, which is a joint venture between Malaysia and Singapore governments, Malaysian buyers were also active in the private property scene here. Over the course of last year, some 119 units were purchased by US citizens and 58 by Britons.

The number of PR and foreign buyers have remained steady for the past couple of years. Should this be a promising sign for the road ahead? And how can local private property buyers leverage on this?

Fall in resale private property prices

Buyers and property investors are becoming increasingly wary of the influx of new properties into the market, rising interest rates, the unchanged Additional Buyers’ Stamp Duty (ABSD) and the Total Debt Ratio Framework (TDSR). Resale private non-landed home sales figures indicated a 1.6 per cent drop in January.

Although buyers are still buying properties, demand and selling prices may not be as high as before. Smaller units seem to be more popular as the total quantum prices of these compact apartments are usually more palatable.

According to the SRPI (Singapore Residential Price Index) compiled by the National University of Singapore Sims Urban Oasis1(NUS), prices of non-landed private homes in the central area were hit the hardest with a 1.9 per cent decline. However, this could mean that the price gap between homes in the central and suburban areas are closing, the rate of decline for the former may be less steep.

Despite the popularity of smaller units with buyers of late, shoebox apartment sales fell 0.6 per cent in February. Developers are also aware of buyers’ preferences for a new unit over a resale one especially with buyers who are intending to purchase a private property for own-occupation purposes.

Moving ahead, property analysts are expecting resale non-landed private property prices to drop by 5 to 7 per cent this year.

Private suburban properties faring better

 

For the resale private property market, condominiums in the suburbs seem to be faring better than those in the city fringe and city centre. While prices of city fringe and city centre apartments fell 1.2 and 1.1 per cent respectively last month, suburban resale properties rose 0.5 per cent. The sales volume also remained the same as November despite the expected lull due to the festive season.
Tre ResidencesBuyers are sharpening their skills at spotting good deals, and are going for units which will benefit them the most in terms of location and future value appreciation. Some buyers have even managed to secure purchases at $10,000 less than the market value of earlier transactions in the same development.

What are buyers looking for now? With the property cooling measures in place, the final selling price tag, including taxes and duties, makes or breaks the deal. Buyers are looking for lower price quantums, good locations and potential for future development in the district. Most HDB upgraders are also most likely to search for these suburban homes to stay close to their previous homes.

As 2015 moves along, and more homes become ready for occupation, will the interest for resale properties in the suburbs continue to burn brightly? Or will the spark wane and the market focus shift to other sectors?