Brunsfield Embassy View

EmbassyView is located in the most prestigious address in the city, the embassy row along Jalan Ampang.  Next to the Russian Embassy and a stone’s throw away from the Chinese Embassy.  It is designed as a luxurious upscale condominium.  Brunsfield calls it: the epitome of sophisticated city resort-type living.

Fact-Sheet

Location           :           Jalan Ampang, next to the Russian Embassy.

Tenure              :           Leasehold.

Land Area        :           4.02 acres.

Total units         :           283.

Plot-ratio          :           70 units per acre.

Units per floor  :           7.

Built-up Area    :           From 1,631s.f. to 7,509s.f.

Maintenance     :           Approximately RM0.45 per sf inclusive of sinking fund.

Car parks         :           2 bays for every unit.  3 bays for penthouse units.

All our units are facing the KLCC Twin Towers with 180 degree view.  By far, one of the most PRESTIGIOUS condo in the embassy row.

Best Views:

http://limyk.iagent.my/default.aspx?p=ShowListing&pid=1066789

http://limyk.iagent.my/default.aspx?p=ShowListing&pid=1066776

http://limyk.iagent.my/default.aspx?p=ShowListing&pid=1066804

Three biggest errors people make when investing in properties

By Michael Tan

“You cannot make money buying properties in Malaysia!” exclaimed a relatively disgruntled investor from Singapore. It was a statement made when we made a visit to our neighboring country. We were in Singapore in collaboration with Malaysian Property Incorporated (MPI) to promote real estate investment in Malaysia.


We ended up having a meal with the gentleman and listening to his experience of investing in properties in Malaysia. To my surprise, he was an extremely well informed person with amicable knowledge of investments and had invested in other countries as well. However, his ventures have had somewhat mixed results. Some turned out mediocre results, some incurred losses and some were profitable ventures. He concluded saying: “Nothing beats investing in your own country”.

His story is not uncommon. I have had similar encounters with many foreign investors - both in Malaysia and abroad. After some research, I realised there were some fundamental errors that most investors made when they ventured into unknown territories or countries. I would like to share three of the most common errors made by foreign (and even some local) investors.


1st common error: To FLIP or to KEEP?
The first common mistake most investors committed is to invest without figuring out who their target market is.


First things first. Are you investing to FLIP or to KEEP? What’s flipping or keeping? Well, flipping is buying with the intention to sell with profit. Keeping is buying with the intention of profiting from renting the property out.


Properties for flipping are usually the ones with has the highest capital appreciation in the shortest amount of time. These are usually the landed properties.


Here’s a simple formula to calculate capital returns:


                                               SELLING PRICE - BUYING PRICE
CAPITAL RETURNS (%) =      -----------------------------------------------  x 100%
                                                           BUYING PRICE


The returns will be the total returns you would get. Assuming you achieved 30% returns in 3 years, the next thing you need to do is to divide that to determine your simple returns per year (as compared to compounded returns)


                                                               SELLING PRICE - BUYING PRICE
CAPITAL RETURNS PER YEAR (%) =    ---------------------------------------------  x 100%
                                                                           BUYING PRICE
                                                            -------------------------------------------------------------------
                                                                                      NO OF YEARS


Properties for keeping are the ones that fetch rental returns higher than 6%. These are usually high-rise in nature.


Here’s the formula for rental returns:


RENTAL RETURNS (%) = MONTHLY RENTAL x 12
                                        -----------------------------------   x 100%
                                                  VALUE (RM)


It is key that you decide what strategy to adopt before deciding what type of property to invest into. Also, it’s crucial to estimate the returns of investment you desire and the timeline of which to exit. Having exit strategies prior to starting is critical to your success.


Knowing your strategy before investing is crucial. Assuming you are planning to flip, next question is, who is your target market?


2nd common error: Not getting to know the area well.
“I bought into an apartment in the city center (worth RM1.8mil) three years back and I couldn’t sell it out till today!” claimed the Singaporean investor. “Who were you planning to sell it to?” I asked then. “Anyone la!” he replied.


If you go around with a strategy like that, you might end up including the super natural market as well! Look, if you don’t know who you are going to sell or rent your properties out to, why buy it in the first place?

You should know your target market very well before even investing into real estate in the area. Understand what the market needs, and what it is lack of.


What I see most investors do is to trust the developer or the agents to do the research for them. Why would you trust someone else with hundreds of thousands of ringgit (if not millions) of your own money?! Even if they were right, you still need to verify it. Remember, regardless of whether the developer or agent is right or wrong, they make their money when they sell their properties to you, and their liability stops there!


My advice for both locals and foreigners investing in Malaysia is to make the effort to visit the places of interest for you over and over again. Study the market and get to know the locals before you finally make the decision to invest.


3rd common error: Not understanding the locals
How many of you would invest into a RM14.5mil condominium near the city center with the intention to rent? How many of you would invest RM10.5mil for 1,250 sq ft of retail space in a new retail mall in Dengkil? While there may be some sane reasons to do so, majority would agree that you wouldn’t do either one of the deals. Although the examples are extreme, the common errors people do in investment are obvious here.


Some investors lose money because of this error - not understanding the lifestyle of the locals. You should always study the lifestyle of the locals.


Allow me to give a couple of examples:


"I once met an investor who focused only into FLIPPING properties. I asked him how he’s able to consistently make returns of 50% to 70% in the market, regardless of whether it was an up market or a down market.


He shared with me that he only invests in properties of RM500k to RM700k. He focuses on the trends of the people buying in the area. In other words, he focuses on the lifestyle of homeowners and what they were seeking. He further shared: “I usually ask my working colleagues, around the age group of 30 to 40, where they would buy to stay. I take note of the areas and the type of properties they would buy, should they be able to afford properties within my investment range.”


“I also keep track on the latest types of properties the developers are rolling out into the market. They usually have done their research before investing millions into marketing and developing such properties. Then I look into the areas and types and buy the best deal.”


“I never guess. I always make sure that whatever I invest into, I am 99% sure that its going to give me at least 30% returns or more, before I even bother to go it. It’s all in the research and it’s all in the network. If you want to make money, must consistently be in the market la. There’s no such thing as a good time, only a good buy!” he added with a smile."


So, if you want to make money investing to FLIP or to KEEP, does he’s advice make good investment sense? Again, most of us fail to do any sort of research prior to investing into the properties. The key to successful investment is to gather enough good information from the marketplace and make the money in the difference.


In many of my talks that I give these days, I mention to people that while it can be a good time to make money in the market, invest wisely. Keep yourself grounded and stick to the fundamentals. The best way of losing money is when you start speculating in the market.


Last advise, always remember to focus on the bottom line. Define your entry and exit points, keep to your strategies and always focus on making money.


Happy Investing.


(This article is extracted from:  http://www.starproperty.my/PropertyGuide/Finance/12111/0/0)

9. Eric Ooi, MD of Knight Frank

His view on the real estates market in Malaysia: extracted from THEEDGE FINANCIALDAILY 13th June 2011:

Snapshot of the residential market 
This market segment is the most active property sub-sector both in transaction volume and value. In 2010, residential transactions accounted for 60.2% and 47.1% of the country’s total volume (376,583 transactions) and value of transactions (RM107.44 billion) respectively.


The high-end condo market in Kuala Lumpur, which performed strongly in 2007, was dented by the global financial meltdown in 2H08. However, there was no widespread “fire sales” though selected developments reported sharp declines of about 20% from their peak in 2008.


The high-end condo market has also bottomed and stabilised since and the near term outlook remains cautiously optimistic.


In the landed homes segment, the trend is towards boutique projects within gated and guarded communities. Recently, the launch of The Mansions @ ParkCity Heights, a 19.6-acre gated and guarded development comprising 127 units of 2½ to 3½-storey parkhomes reportedly achieved 86% take-up during its priority sales launch despite the hefty pricing from RM2.7 million to RM7.5 million.


Outlook 
Landed homes growth in the next 12 months is expected to be more subdued due to rising borrowing cost with anticipated further hikes in the near term, coupled with the LTV ratio for the third loan. However, landed home prices in established locations and popular suburbs are expected to continue rising at a slower pace of 5% to 10%.


Similarly, high-rise residences in selected parts of KL City and its fringes are expected to perform well. Smaller-sized high-end units are gaining interest due to their affordable pricing.


Medium high-end condos in established and new growth areas with good accessibility, particularly along the proposed new MRT route may see more capital appreciation. They become more attractive as prices of landed properties in popular areas skyrocket. In 1H11, there has been a slight increase in average asking prices while demand remains relatively low due to limited tenants.


The outlook is cautious in the near term but competitively priced projects in good locations by reputable developers will continue to attract buyers.


Significant projects since 2007
1.  The Intermark
Developed by MGPA Asia Fund II, it involved the redevelopment of the former Empire Tower, City Square, Crown Princess Hotel and Plaza Ampang into an integrated first class asset with a prime A office building and a 4-star 540-room Doubletree Hotel which opened in August 2010.
The development of a new international green Prime A 39-storey office building named Integra Tower (NLA 736,000 sq ft) with LEED accreditation is expected to be completed by end-2012. The Intermark was recently recognised as a MSC Malaysia Cybercentre.


2.  Bangunan Lestari Kumpulan EMkay
Is the first LEED Gold certified building in Malaysia. Located in Cyberjaya and developed by the Emkay Group, the five-storey office building is occupied by Shell. Green features include use of materials with a high recycled content, energy saving equipment, storm-water management and high-efficiency bathroom fixtures.


3.  Bangsar South
Completed and ongoing components include The Horizon Phase 1 boutique offices with MSC status, Phase 2 with Green Building Index accreditation and the Park Residences.

8. Jerome Hong, MD of PA International

His view on real estates market in Malaysia:  extracted from THEEDGE FINANCIALDAILY 13th June 2011:

Snapshot of the residential market 
The growth of Malaysia’s property market generally mirrors the growth of the country. In 2010, a total of 376,583 residential transactions valued at RM107.44 billion were recorded, reflecting increases of 11.4% in volume and 32.6% in value respectively. Comparatively, in 2009, a total of 338,089 transactions valued at RM81.02 billion were recorded. There was a strong rebound from the global financial crisis, with average value per transaction peaking at RM223,270 (2007: RM182,927), reflecting an increase of 22.1% between 2007 and 2010.


Outlook 
Prices of landed homes in selected locations in Klang Valley are expected to rise further in the next 12 months due to pent-up demand and limited new supply albeit at a slower pace (5% to 10% on average) compared to 2010/early 2011 where some locations registered price increases exceeding 20%. Further possible interest rate hikes and cooling measures could dampen the market.


Prices of condominiums, particularly the high-end segment in locations such as KLCC, Mont’ Kiara and Ampang/U-Thant are expected to remain relatively flat due to lower occupational demand. In general, smaller units are in greater demand due to their lower entry costs as well as ease in leasing.


However, mid-market condominiums are expected to perform well especially those located within established and emerging suburban locations or along the proposed MRT route. The recent sharp spike in prices of landed homes has made this segment a more affordable alternative for those looking to own homes.


Significant projects since 2007
1,  Bangsar South
The development has transformed the former Kampung Kerinchi into a much-sought after commercial spot.


2.  Garden Residence in Cyberjaya
This project by Mah Sing Group has helped transform the residential market in Cyberjaya and set new benchmark pricing levels.

7. Anthony Chua, Director of KGV-Lambert Smith Hampton

His View on Real Estates Market in Malaysia:  extracted from THEEDGE FINANCIALDAILY 13th June 2011:

Snapshot of the residential market 
The residential property market was due for correction in 2007/2008 if we subscribe to the view that the property market moves in a 10- to 12-year cycle. The last property downturn was in 1998 brought about by the Asian financial crisis. The property market generally takes six months to a year to react to the economic situation.


The global financial crisis’ impact was felt in our local property market in 2009 and this was seen in the HPI recording a small growth of 1.5% for that year. Since then, the market has rebounded strongly. As the impact was not so severe in 2009, some felt the downturn in the market has been delayed while others believe that we are on a new cycle.


Outlook 
Landed house prices are expected to appreciate further in the next 12 months in spite of the recent hike in interest rates. The perceived short supply of landed homes will contribute to their demand. The high-rise residential market is likely to grow at a slower rate mainly due to the large supply. The number of incoming landed houses in Wilayah Persekutuan is 1,575 units compared to apartments/condominium at 17,922 units.


Significant Project since 2007
Sunway Giza by Sunway group is a hybrid of a typical shop development where rows of shops dominate, and a shopping centre. It is designed to overcome the disadvantages of conventional shop lots such as parking and security problems. Prices for a 3-storey in Sunway Giza are about RM4 million while those just outside are about RM2.75million. It is envisaged that this project will set a new trend in coming commercial developments.

6. James Tan, Associate Director of Raine & Horne

His View on Real Estates market in Malaysia:  extracted from THEEDGE FINANCIALDAILY 13th June 2011:

Snapshot of the residential market 
The residential market has seen steady growth since 2007 with minimal impact from the global financial crisis. Currently, local demand is dominating the market due to the availability of cheap financing.


The property market is on an upward trend, and as long as interest rates remain as it is now, prices are unlikely to fall.


Outlook 
Prices of landed property will continue to rise unless a drastic situation akin to 1997, where liquidity was low and interest rates were around 12.3%, emerges. There is a strong inverse correlation between interest rates and prices.


The high-rise residential segment is expected to remain stable in light of the huge existing stock. Projects in certain locations such as Petaling Jaya, Bangsar and KL are likely to do well while there has been limited new launches in the KLCC vicinity for more than a year.


Significant Projects since 2007
Link homes in Desa ParkCity, Nadayu Melawati in Taman Melawati by Mutiara Goodyear and Setia Alam link homes in Klang by S P Setia — these three projects have set benchmark prices in their respective localities and helped pushed prices to stratospheric heights in the Klang Valley. The latest launch of link houses in Desa ParkCity fetched more than RM2.75 million, while the latest link houses in Setia Alam went for more than RM550,000. As for Nadayu Melawati, the minimum price is RM5.5 million.