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Don't wait, contact us immediately if you would ever like your land SOLD instead of JUST LISTED. We have a proven marketing programs for getting your property sold. 

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Land at Alor Setar & Gurun, Kedah Wanted

We are pleased to inform you that we have a ready buyer wish to own a piece of land in Alor Setar & Gurun, Kedah for development purposes, therefore if you have the intention to sell, kindly contact us now by clicking here.

For your kind information, the potential client is a serious and motivated buyer. Therefore, if you are serious in selling yours, you are welcome to contact us.

Behind every successful sale is a Professional Realtor!

We are pleasure to be of service!

Don't wait, contact us immediately if you would ever like your land SOLD instead of JUST LISTED. We have a proven marketing programs for getting your property sold. 

For the list of Property Wanted, please click here.

For the list of Land Wanted, please click here.

If you would like a FREE *Market Analysis on the property, please contact us by clicking here. 
There is no obligation.

We make it our business to know you better to serve you to your full satisfaction. Welcome abroad.

SP Setia plans more projects in Penang

DAVID TAN

davidtan@thestar.com.my

GEORGE TOWN: SP Setia Bhd plans to build more varieties of affordable houses over the next five years on Penang island that are within the income levels of Penangites.

Its general manager Khoo Teck Chong told StarBiz that over the last couple of years, the pricing of properties in Penang, on the island in particular, had grown out of proportion with the income levels of the population.

“Due to the stringent loan policies of banks, it has become even more difficult to sell high-end properties,” he said.

In the south-west district, Khoo said the group had about 63 acres which would be used for the development of properties priced within the RM600-RM700 per sq ft range.

“Next year we plan to develop the RM350mil Sky Vista, comprising 426 condominium units, priced at about RM600 per sq ft, which is the current pricing in the market for the properties in the south-west district.

“In 2016, we will introduce the RM350mil Sky 8 and RM150mil Sky Peak projects in Sungai Ara and Sungai Nibong respectively in the south-west district.

“Our feedback shows that properties priced between RM600 per sq ft and RM700 per sq ft are in demand as they are still affordable for Penangites,” he said.

Khoo said the last couple of years had seen the group launching high-end properties in prime locations that were priced from RM1mil onwards.

“Thus, there is a shift in our strategy moving ahead,” he added.

Khoo said the group was targeting to achieve about RM200mil in sales from Penang for the financial year 2014 ending Oct 31.

“We have so far roped in about RM150mil in sales, which is very close to the target.

“This target is down from the RM300mil achieved last financial year. We are lowering our expectation because of the softening property market which started late last year in the country,” he added.

Meanwhile, Eco World Development Bhd chief operating officer Datuk S. Rajoo said the group’s strategy was to focus on landed residential properties in the central, south and northern region.

“We are focusing on strata-titled super-linked properties with built-up of 3,600 sq ft, which were still in demand in the country.

“In Penang, we will launch the RM350mil Eco Terrraces project, comprising strata-titled linked villas with built-up area of 3,600 sq ft in Paya Terubong at the end of this year.

“This is a very unique project as conventional landed strata-titled projects comprised small size linked properties,” he added. - The Star

Developers close RM190mil in deals at property fair

GEORGE TOWN: The Star Property Fair 2014 concluded with 13 Penang and Kuala Lumpur-based developers closing deals worth RM190.9mil during the four-day event.

Those with the most sales included Nusmetro City Sdn Bhd (RM50mil), Ivory Properties Group Bhd (RM33mil), Ideal Property Group (RM25mil), Palmex Industries Sdn Bhd (RM12mil), UEM Sunrise Bhd (RM10mil), Tambun Indah Land Bhd (RM5.9mil) and Eco World Development (RM5mil).

Nusmetro City sales manager Seaan Yew said the properties sold were from its Arte S condominium in Jalan Bukit Gambier.

Ivory’s corporate communications manager Ann Tan said 70% of the sales came from their Tropicana Bay Residences at Penang World City.

“Despite the tighter bank loan conditions, sales were better than anticipated,” she said.

Ideal Property general manager (sales and marketing) Nancy Teo said the group sold about RM25mil worth of properties from the Imperial Residences project in Bayan Lepas.

Work on the Imperial Residences will start in September. It is scheduled for completion in 2017.

Palmex Industries Sdn Bhd, a subsidiary of IOI Properties, also recorded RM12mil sales for its Cypress Villa, a three-storey, semi-detached housing development in Sungai Ara.

Its assistant marketing and sales manager Vivien Kee said they had also received enquiries on D’zone Condominium in Teluk Kumbar.

Tambun Indah Land Bhd sales and marketing manager Khor Ghee Young said they chalked up RM5.9mil in sales.

UEM Sunrise Bhd deputy general manager (marketing and sales) Everlyn Khaw said their RM10mil sales exceeded expectations.

“We were worried that the crowd would be smaller due to the holidays. But the turnout was overwhelming,” she said.

Eco World Development, occupying the largest exhibition space measuring 190sq m, attracted thousands of visitors to view their properties in Penang, Kuala Lumpur and Johor.

Its assistant sales and marketing manager Eunice Lee Lay Wah said many had registered for its properties, which had an approximate gross development value of more than RM1bil.

Zeon chief executive officer Leon Lee said they sold about RM50mil worth of high-rise properties.

“These are projects from Penang-based developers such as Aroma Development Sdn Bhd, Bionic Development Sdn Bhd, Masmeyer Development, Reka Indah Development, Magna Putih, and Ganjaran Wawasan.” he said.

Asia Green Group sales and marketing supervisor Sandy Liew said their Clovers and Quay West condominium projects in Sungai Ara and in Bayan Mutiara had captured much interest during the fair. - The Star

EUPE remains bullish about Kedah

Beh: 'Land cost in Kedah is relatively low and there is a lot of potential for future development.'

EUPE Corp Bhd might not be at the tip of one’s tongue when it comes to listing down some of your well-known developers.

However, the low-profile, Kedah-based company, which has been developing projects there for nearly three decades, still believes that there are growth opportunities in the northern state.

“We have a big presence in Kedah but we’re still looking for land there to expand,” says group managing director and chief executive officer Datuk Beh Huck Lee.

The company has about seven projects with a combined gross development value (GDV) of over RM1bil in Kedah.

Beh believes that the Kedah property market is still far from being saturated.

“Malaysia has a relatively high natural population growth rate. In Kuala Muda, for instance, the growth is around 2.6% per annum. More than 70% of the population comprise bumiputras and have large families.”

Beh adds that many people in Kedah are also staying in rural areas and that the Government is trying to encourage urban migration.

“The Government is creating industrialisation and there are going to be plenty of job opportunities. The multiplier effect is going to be great and those are the areas where we’re not going to have sufficient houses.”

Beh says that there are some locations in Kedah where developers are not achieving the sales target that they had initially set.

“In Sungai Petani alone, there are seven or eight listed companies with projects. But we are already one of the bigger boys in Kedah. The growth by percentage (for Eupe) is, of course, going to be slightly limiting.

“But land cost in Kedah is relatively low and there is a lot of potential for future development. I believe that over the next few years, Kedah will benefit from the spillover development of Penang.”

According to property consultant CH Williams Talhar & Wong Sdn Bhd (WTW) in its 2014 property market report, Kedah yielded a fairly strong performance in 2013 with the landed residential, shop-office and industrial sectors registering uptrends while other sectors were relatively more stable.

Firm demand

“Overall demand across the board remained firm as evidenced by the increase in property prices largely due to the positive outlook of our current economy and favourable Government policies such as My First Home scheme, which support young buyers in buying their first homes,” it says.

According to WTW, there were four noteworthy residential launches in Alor Setar in 2013.

“Amansuri Residence was launched from RM350 per sq ft. The condominium units ranged from 1,249 to 3,492 sq ft in size. Taman Budiman 2, developed by Teguh Harian Sdn Bhd, mainly comprises 700-sq-ft terraced houses. They are selling from RM165,000.

“Taman Gunung Bongsu (Phase 5) is another development by Teguh Harian which consists of semi-detached and terraced houses. The 1,400-sq-ft terraced houses are priced at RM192,000 to RM280,000 while the semi-detached are priced at RM311,000 to RM369,000.”

Market outlook

On the outlook for the Kedah property market, WTW believes that the increase in petrol price and the shortage of labour may lead to higher construction costs and, as a result, property prices might increase further.

“However, the less than optimistic global economic situation, especially in the United States and Europe, and Bank Negara’s policies to tighten property financing might cool the market further.

“Overall, the impact of these factors will cause the property market to continue to grow but at a slower pace than 2013 and possibly stabilising towards the end of 2014.”

Founded in 1986, Eupe has constructed nearly 20,000 homes in Kedah. According to the company’s website, Eupe was formed in response to the Kedah state government’s call to the private sector to undertake the development of low-cost houses during the recession of the mid-1980s.

Its first project was the development of Taman Ria, with the construction of 3,376 homes, making it one of the largest mass housing projects in northern Malaysia at the time.

This was followed by the 6,249-unit Taman Ria Jaya in 1988, as well as the Cinta Sayang development in 1988 – which pioneered the concept of living within golf greens.

Beh believes that the Kedah property market is also more stable compared with Kuala Lumpur.

“In 1998, during the peak of the Asian financial crisis, we received cancellations of up to 15% but we very quickly recovered those lost sales. We managed to sell everything back within four months.

“The Kedah property market might not be as exciting as KL but it is more stable.”

KL-bound

Despite the opportunities he sees in Kedah, Beh says Eupe is eyeing projects in KL.

“Everyone is going to the bigger cities. The mobility of people is actually also getting higher. So we think that in the future, the imbalance of supply and demand of properties in KL is going to get more drastic.

“If you look at statistics from the Government department, the addition of supply of properties in KL is less compared with the natural growth in population itself,” says Beh.

According to him, the company expects to launch its maiden Kuala Lumpur projects with a combined GDV of RM720mil this year.

Beh says Eupe is planning residential projects in Cheras and Bangsar, with a tentative GDV of RM260mil and RM460mil, respectively, adding that the projects would start contributing to the company’s earnings in the financial year ending Feb 28, 2016.

He admits that there are “barriers” to entry into the KL market – especially for a developer from another state.

“The production resources, such as buying land and borrowing money, that is not where the challenge is.

“The barriers are things such as information about the market, your business linkage and networking. Those are the challenges and in that aspect, I do not expect a quick solution to it. It takes time, especially for a developer that is based out of KL,” he said. - The Star

Homebuyer due diligence

A COMMERCIAL transaction normally commences with due diligence being conducted prior to much consideration being put into the written agreement. This measure has two effects – it prevents the parties from sealing a detrimental deal and also time wastage over unfruitful discussions.

Essentially, this is an important process to ensure the parties get what they exactly bargained for. The same is applicable in the purchase of new residential properties from developers.

While there have been incidents of abandoned housing projects all over Malaysia that impacted the homebuyers who spent their hard-earned money but did not get their dream home in return, generally the housing authorities had been successful in protecting the interest of house buyers.

Many of these projects were abandoned by illegal developers who did not possess any valid licences to commence the development in the first place.

The Urban Wellbeing, Housing and Local Government Ministry’s website showed there were 82 developers without licence and 116 developers who have abandoned their projects as of June 30, 2014.

The question that remains is how could the homebuying public be so ignorant that they are incapable of doing the basic due diligence when making the biggest life-long investment of buying a dream home.

Under the Housing Development (Control and Licensing) Act 1966 (HDA), any developer who constructs and sells more than four units of housing accommodation comes under the purview of the HDA.

Section 18 of the HDA states that any housing developer who carries out housing development without having been duly licensed shall be guilty of an offence and shall, on conviction, be liable to a fine which shall not be less than RM250,000 but not exceeding RM500,000 or jailed not more than five years or both.

Thus, it is compulsory for a developer, prior to developing a housing project, to fulfill the following:

·Obtain the necessary approvals from the relevant authorities such as development order and building plan;

·Apply a developer licence from the Controller of Housing whereby the Controller has the discretion to grant with or without further conditions or to refuse granting the licence;

·Deposit a sum of not less than RM200,000 with the Controller for the grant of the licence which is refundable upon the completion and expiry of the defect liability period of the project (there is an amendment to adjust the deposit sum in line with the gross development cost in 2013 but it has yet to come into force); and

·Apply for a sales and advertisement permit to start selling the units of the development.

Thus, a licensed developer would pass the first stage, with checks by the relevant authorities. A unlicensed development would mean these authorities are out of the picture and that development had not been discovered for breach yet.

As such, the next level of due diligence will be significant: the homebuyer himself.

With the advancement in wireless technology today, we “google” for everything for which we need clarification and information. The same applies for home purchasing. You will be amazed over the amount of information available online: ranging from the developer’s own website, property reviews to forums started by other homebuyers on the same development.

While it is not advisable to believe everything from the world wide web, it serves as a good starting point to know better the product you are buying before signing the sales and purchase agreement.

A minor website checklist is as follow:

·Google

·Developer’s website

·News websites

·Ministry of Urban Wellbeing, Housing and Local Government

·Real Estate and Housing Developers’ Association (Rehda) and

·National House Buyers Association.

In addition to that, you may personally pay a visit to the development itself and make your own observation. If possible, asking around for details would also build up the confidence in buying the right home.

Normally, at the entrance, there will be a white signboard feeding you details of the construction such as the details of the development, landowner, developer, contractor and completion date.

Your lawyer or banker also serve as another filter of due diligence. Before you sign any agreement, it is advisable to ask them on any doubt that you are suspicious about and to be comfortable with what you sign.

Even if you have questions on the credibility of the lawyers, the Bar Council has a website for you to do the checks or even its friendly help desk in its office.

The above due diligence process does not guarantee a 100% smooth property transaction but it minimises the risk of buying a project which could be abandoned. Besides conducting a detailed research, the purchase of a house from reputable developers may diminish your homebuying risk further.

And for any of you who think you might be a victim of unlicensed developer, it is time to call your lawyer and banker for clarification. Owning a house is a lifetime commitment; its protection starts with you. - The Star

Striking array of property choices at fair

GEORGE TOWN: The Star Property Fair 2014 kicked off here with a total of 39 exhibitors offering a striking display of choices, ranging from landed homes to commercial high rises.

The fair, which will run until Sunday, was launched by Chief Minister Lim Guan Eng.

In his speech, Lim said business sentiment remained positive in Penang, with many workers in the manufacturing industry forced to do overtime.

“This positive sentiment is also reflected in soaring business at our Ramadan bazaars, which have attracted customers from outside of Penang,” he said.

On display: Visitors looking at one of the projects at the property fair at G Hotel in Gurney Drive, Penang.

He also called on Bank Negara to bring back the developer interest-bearing scheme for first-time buyers purchasing property priced below RM400,000 to compensate the effects of the recent increase in interest rate by 0.25% to 3.25%.

Also present at the launch were Star Publications (M) Bhd executive director Tan Sri Kamal Hashim and senior regional manager (operations) David Yeoh.

Kamal said the event offered developers the perfect platform to showcase their latest projects.

Organised by Star Publications with Zeon Properties as the event partner, the fair is held at G Hotel and the adjoining Gurney Plaza. - The Star

Moody's: Malaysia housing market may be peaking

KUALA LUMPUR: Moody's Investors Service expects an uptick in non-performing loans (NPLs), particularly in the household segment, in the South-East Asian banking system.

Moody's assistant vice president and analyst Simon Chen said on Thursday that in Asean, the Malaysian and Thai banking systems were the most exposed to increased asset-quality pressure in the household segment when rates rise.

"This is primarily because the ability of households in these countries to service their debt in a rising interest-rate environment will be negatively affected by consumers' high leverage at a time when the housing market in Malaysia may be peaking and Thailand faces elevated political risk," he said in reference to Moody's just-released report "Rising household leverage poses risks to Asean banks as the economic cycle shifts".

Moody's said the long positive credit cycle that has benefited banks in Asean might be on the verge of peaking. These would pose challenges for the lenders as pockets of asset-quality risk emerge due to tighter global monetary conditions.

"Our central scenario is that banking systems in Asean will be broadly resilient to the financial impact of a shift in interest rates, but we expect an uptick in NPLs, particularly in the household segment," said Chen.

Moody's report showed household debt has risen significantly in Asean in the past several years, with growth in bank loans to households outpacing loan growth to other borrowers.

Household leverage as a percentage of GDP was at historically high levels in Malaysia (A3 positive) (87% at end-2013) and Thailand (Baa1 stable) (82% at end-2013), and close to its five-year high in Singapore (Aaa stable) (75% at end-2013).

Although household debt has also risen significantly in Indonesia (Baa3 stable) and the Philippines (Baa3 positive), the growth in these countries was from a low base.

However, the report pointed out Asean bank asset-quality risk from residential property price corrections was mitigated by legal frameworks that support bank creditors.

Unlike in the US, banks in Asean have legal recourse to the borrowers on their debt obligations, beyond the underlying property assets mortgaged to the banks.

This feature provides greater creditor protection to banks, removes the incentive for borrowers to default on their mortgage obligations, and alleviates risks that housing NPLs will spike when property prices fall significantly.

Additionally, Moody's report notes that Asean banks have responded to regulatory measures aimed at curbing further increases in excessive household leverage.

Banks in Thailand, Malaysia, and Singapore had tightened their underwriting standards on household loans, which was positive for banks' asset quality over the longer term.

The banks also have strong buffers to withstand asset-quality shocks in the household segment, Moody’s said. - The Star

Plenitude buys Gurney Resort Hotel & Residences in Penang

PETALING JAYA: Plenitude Bhd’s wholly-owned subsidiary Plenitude International Sdn Bhd has entered into a sale and purchase agreement with the Employees Provident Fund (EPF) for the proposed acquisition of a 259-suite hotel, known as the Gurney Resort Hotel & Residences in Penang, for RM160mil.

In a filing with Bursa, Plenitude said Gurney Resort Hotel formed part of Menara Gurney, which is a 37-storey building with one basement level, a hotel along with retail and office components.

The retail units are located on the ground to second floor of the retail podium. The hotel has retail units and 551 car park bays.

The hotel is located approximately 4km to the north-west of the Penang ferry terminal and 3km from the state administrative centre in Kompleks Tun Abdul Razak.

Plenitude said that the price tag of RM160mil was arrived at after taking into consideration the strategic location of the property and the market value of the hotels in the surrounding vicinity.

“The proposed acquisition represents an opportunity for the company to expand its hotel business and operations, where the group currently owns Four Points by Sheraton Penang. It is expected to contribute positively to our future earnings,” said Plenitude.

Plenitude added that the acquisition would be financed by a mix of internally generated funds and bank borrowings

Plenitude was down four sen to RM3 on volume of 510,200 shares.

The company is in a financially strong position with no debt. Its cash and cash equivalents amounted to RM386.9mil as at March 31, 2014. For the third quarter to March 31, 2014, Plenitude’s net profit was up 89.3% to RM23.14mil on the back of a 80.58% increase in revenue to RM72.7mil. - The Star

Rehda concerned over impact of tax on housing affordability

KUALA LUMPUR: The Real Estate and Housing Developers’ Association (Rehda) is concerned over the impact that the implementation of the goods and services tax (GST) will have on the affordability of housing here. 

Hence, it has submitted a list of proposals to the finance ministry on possible ways to minimise the impact of the GST so as not to put “property developers and ultimately housebuyers at a major disadvantage”, said its immediate past president and patron, Datuk Ng Seing Liong.

He revealed this during a session titled “Impact of GST on Property-related Industries” at the National GST Conference 2014, yesterday.

While Rehda remains supportive of the government’s initiative, he said there are a number of issues that the industry is facing, especially on keeping affordable housing “affordably priced”.

Affordable housing refers to residential properties with a selling price of not more than RM400,000. 

Some of the proposals Rehda has submitted are: the provision of a fixed allocation for residential input tax credits for mixed developments, a GST zero-rating to major cost components, the rationalisation of stamp duty on the transfer of real properties, and a GST relief order for affordable housing. 

Ng said if the relief order was applied, developers can then claim full tax input credits. Presently, it is not allowed as residential property is considered tax-exempt. 

“This will mitigate the increased cost for affordable housing and provide status quo opportunities to target groups to buy properties which are comparable [to those] in the pre-GST regime.

“It is better to make it zero-rated so that we, developers, don’t have to pass back the cost burden to consumers,” he added. 

Currently, 55% property development costs are classified as construction costs which include construction components such as concrete and bricks.

This article first appeared in The Edge Financial Daily, on July 11, 2014.

Another affordable housing project for Penang

GEORGE TOWN: Penang Development Corp (PDC) has called for request for proposal (RFP) for what seems to be the state’s ninth affordable housing project, to be located on a former marshland and site once gutted by fire.

The 4.23-acre (1.71ha) tract on Sandiland Foreshore in the northeast district on the island will house more than 321 low-medium-cost (LMC) units and about 482 medium-cost (MC) units, said Chief Minister Lim Guan Eng.

The land owned by Chief Minister Inc (CMI) and located just 2km from government administration offices in Komtar, has a reserve price for land premium at RM125 per sq ft.

Developers have been given till Sept 3 to submit their proposals for joint development on the Jalan CY Choy land which has a 99-year lease, said Lim.

“Developers submitting their proposal must have LMCs with a minimum 700 sq ft space and a ceiling price of RM72,500.

“The proposer should also ensure that there are 241 units at 1,000 sq ft with a ceiling price of RM400,000, 161 units with a minimum of 900 sq ft at RM300,000 and 80 units featuring a minimum 800 sq ft space at RM200,000,” he said.

He said all 54 families affected by the development would be offered a free unit from the project while extended families who lived with them would be given the priority to purchase the LMC units.

“The families requested that they be given a ‘one for one’ unit after being affected by the development. This project will also cater to first-time buyers in Penang who are looking for affordable homes,” he said.

Lim said the LMC units should include floor tiles for the toilet, kitchen and living room, and wall tiles for the toilet and kitchen while the MC units should have similar features, as well as floor tiles for the bedrooms.

A closed-circuit TV fixture should also be installed in the common areas while the gate at the entrance and lifts should feature an access card security system. 

Speaking at a press conference, Lim said developers would not be allowed to build single-office-home-office (SoHo) units, serviced apartments, business suites, medical suites or any other developments that are similar to SoHo.

Earlier this year, a similar RFP was called by the government for the Sandiland Foreshore project but cancelled despite receiving five proposals due to “legal issues” surrounding the bid.

“We felt it was better to go through the PDC instead of the CMI which is not a builder. This project is a joint venture, and we don’t want to get caught up with the legal issues on whether the CMI can conduct housing development.

“It would be more appropriate for the PDC to carry this out to avoid complications on this matter,” said Lim.

According to news reports, a state survey found that the site had 31 squatter houses, 12 workshops, two temples, five shrines and two godowns, all of which did not possess temporary occupancy licences (TOL).

Conversely, 23 residential houses and an office possessing TOL are located on the land that was a marshland and often suffered floods during heavy downpours and high tides.

About 10 years ago, a massive fire burnt down a large area of squatter homes preceding the construction of the Jelutong Expressway.

The affordable housing project comes on the heels of eight other projects that were announced by Lim two years ago. The eight projects, three on the island and five on the mainland, will provide nearly 20,000 housing units, costing between RM72,500 and RM400,000 each.

This article first appeared in The Edge Financial Daily, on July 22, 2014.

Value engineering consultants help developers build better, cheaper projects

One of ZNA’s first projects was for low-cost houses in Chembong, Negri Sembilan, in 1995. The company won the 1st prize in the Malaysian National Low Cost Housing Competition for the cost-efficient structural design.

DURING World War II, General Electric Company purchase engineer Lawrence D. Miles was assigned to deal with material shortages when production of turbochargers of B-24 bombers had to increase from 50 units per week to 1,000 units per week.

Miles, who is recognised as the “father of value analysis and value engineering”, developed a systematic methodology that reduced unnecessary costs by identifying and separating costs that had no impact on customers.

Value engineering (VE), as the methodology came to be known, is a powerful approach that can be applied in various industries and Perunding ZNA (Asia) Sdn Bhd uses it for civil, structural and geotechnical consultancy works.

The consultancy company, which began in a rented room in Old Klang Road, Kuala Lumpur in 1992, was set up to use VE so construction projects could be designed and built while reducing cost without compromising safety.

Founder and executive director Zulhkiple A. Bakar said his interest in the field began when he worked in the engineering design section of the Public Works Department (JKR).

Bucking the conventional: Perunding ZNA (Asia ) Sdn Bhd founder and executive director Zulhkiple A. Bakar (seated) discussing a design plan with some of the members of his team.

“I noticed that most of the engineering designs were conservative, wasteful and sometimes unsafe. I started questioning the conventional wisdom but, working within the government hierarchy, it was not easy to introduce radical changes in the design approach,” Zulhkiple said.

This prompted him to carry out his own research and, with the guidance of his former lecturer from Liverpool Polytechnic (now known as John Moores University) in the UK, realised that even in the 1980s, most projects in Malaysia could be optimised while maintaining or even increasing safety levels.

By using VE, he said, construction costs could be reduced as much as 20%. For example, a 50-storey mixed development could see its construction costs reduced from RM750mil to RM650mil.

With considerable savings at stake, it is no surprise that the Economic Planning Unit (EPU) of the Prime Minister’s Department has stipulated that all public service projects costing more than RM50mil will require value management analysis, which includes VE, to ensure value for money.

Benefit of the doubt

When Zulhkiple first started out, he used savings from his salary as a government engineer and also fees earned from his part-time design work. However, he was surrounded by people who were sceptical about his idea of helping housing developers reduce construction costs by optimising the foundation and structural design.

“I was only a junior JKR engineer when I left the government. I don’t blame detractors in those days because the public perception then was that anything cheaper was considered inferior,” he said.

Perceptions changed after Perunding ZNA won first prize in the Prime Minister’s Award in the Malaysian National Low-Cost Housing Competition in 1995, beating more established competitors.

A ZNA employee looking at some of the company’s previous projects.

“We were able to build 620sq ft single-storey terrace houses in Negri Sembilan for RM14,600 per unit using building methods similar to those in the UK,” he said.

Even today almost all residential houses in the UK are built using load-bearing brick walls and the developers do not use the expensive reinforced concrete structures used in Malaysia.

“Today, we can still see some examples of load-bearing brick wall construction in the Sultan Abdul Samad Building and the Kuala Lumpur Railway Station built during British colonial rule in Malaya,” he said.

While the technique helps reduce foundation and structural construction costs, he explained that the steel and cement industries market themselves as more modern materials.

“Our local universities also taught engineers to design their projects with concrete and steel, which has led our construction industry to where it is now,” he said.

Apart from public perception, some of the early challenges that his company faced included the culture of secrecy where companies, including listed companies and government-linked companies, did not want to reveal construction details to an external party.

“They prefer to keep certain things like costing a private affair, which is understandable, because sometimes their strategic operations are not based on being cost efficient alone,” he said.

However, he said developers are slowly opening up to ideas and several large private and public-listed property developers are engaging the company’s services to help reduce construction costs.

ZNA used VE and managed to save about 12% of the construction costs for The Haven, a residential condominium development in Ipoh.

The human touch

The company long since left the rented room behind and now occupies a 4,000 sq ft office in Petaling Jaya, housing 40 employees.

Zulhkiple explained that clients can consult the team for an audit.

From there, his team works out how the client can optimise designs.

“If the client agrees, we sign a contract with the client where we share a percentage of the savings,” he said.

He cautioned that VE involves a lot of study and skills before using computerisation to calculate the materials needed for a project. He explained the situation using the example of the number of beams in a building.

“If the engineer over-engineers the design and uses too many beams, you would end up allocating more steel than needed,” he said.

Over the years, Zulhkiple has created a field manual of observations and construction wisdom thatcan be shared with the team.

He said it was a “live” document that continues to evolve and he has been invited to share his knowledge with various universities, the latest being the National Defence University of Malaysia.

“I was also invited to assist the university in introducing VE as part of its engineering curriculum. This is a very good move to train a new breed of cost-conscious engineers,” he said.

Malaysia’s residential property sector enters cooling phase

“The macro-prudential measures implemented by Bank Negara to cool down the property market since 2010 look likely to have played a role here,” Mier said.

PETALING JAYA: The residential property segment, a sub-sector of the overall property market, appears to have entered “a cooling phase” in the first two quarters with sales expected to stay “moderate” for the coming third quarter, according to the Malaysian Institute of Economic Research (Mier).

“The macro-prudential measures implemented by Bank Negara to cool down the property market since 2010 look likely to have played a role here,” Mier said.

Mier based its conclusion after doing a residential property survey designed to be an indicator of economic activity in the property sector.

Its Residential Property Index fell for the second quarter to 109.9 points, slipping 1.3 points from the first quarter, and 28.3 points from a year ago.

The survey also showed that total unsold new residential properties have accumulated faster than sales in recent months.

More than a quarter of house builders reported bigger stocks in hand, which is at a three-year high.

The Mier report said that given the built-up in total unsold new units, those surveyed have decided to keep creeping prices at bay by maintaining them at current levels.

But in the months ahead, prices “are likely to escalate again” more than half of those surveyed said while the remainder said they will “neither raise nor slash theirs (their prices) for now.”

Fewer of them increased prices in the second quarter compared with the first and some even offered price cuts, the survey found.

Moving forward, about half of those surveyed expect sales for the current third quarter to remain the same while more than a third of those surveyed foresee higher sales as “home buyers bought ahead of the Goods and Services Tax” which will come into effect next April.

Property prices are envisaged to rise due to higher input costs after that.

Double-storey houses continued to be the most popular while none of those surveyed seem to have sold any bungalows during this same period.

The survey concluded that affordability issues may continue to haunt the market if property prices outpaced income growth and interest rates edged up.

“Housing demand may eventually lose ground,” Mier said. - The Star

More units in the offing

THE Penang Development Corporation (PDC) is holding a Request For Proposal (RFP) for a joint development project on a 1.7ha plot at the Sandilands foreshore in Jalan C.Y. Choy.

The project will comprise medium-cost apartments, low medium- cost flats and related commercial facilities.

PDC was appointed by Chief Minister Incorporated (CMI), the registered plot proprietor, to develop and manage the land.

Chief Minister Lim Guan Eng, who is also PDC chairman, said they were calling for RFP from incorporated local companies to design and build the whole project.

He said the development was initiated at the request of local residents who have been staying in 54 houses with Temporary Occupation Licences.

“The residents have been complaining of floods in the area that has fast become a mosquito breeding ground.

“We will ensure that there are sufficient units for the affected households. Each household will be given a unit as compensation while the extended families will also be given priority to purchase a unit.

“Besides, the CMI has always been supportive of the state government’s efforts to develop more affordable homes. If everything goes as planned, construction will begin next year and the project will be completed within 60 months,” he told a press con- ference at his office in Komtar yesterday.

The project when completed will have 482 medium-cost apartments — 241 units with a minimum 1,000sq ft priced at RM400,000, 161 units at minimum 900sq ft each at RM300,000 and 80 units at 800sq ft each at RM200,000.

There will also be 321 units of low medium-cost flats of 700sq ft each set at a ceiling price of RM72,500.

The development component will also have commercial content with a build-up area of not more than 90,014 sq ft.

The apartments and low medium-cost flats will be provided with finishes and facilities such as closed-circuit television cameras as well as electronic access cards at the entrance gate and inside the lifts.

Lim said the reserve price for the land premium was RM125 per sq ft, adding that interested parties could purchase the RFP documents for RM1,000 during office hours at PDC starting today. The deadline is Sept 3.

When being told that a similar RFP on the same plot was announced early last year, Lim said the move failed to take off due to some ‘legal complications’. - The Star