Bursa Malaysia-listed property developer Tropicana Corporation believes it is time to scale up its expansion in Johor, Malaysia. It intends to unlock 800 acres of “premium landbank” with a gross development value (GDV) of RM43 billion ($12.3 billion).
Artist’s impression of the Lido Waterfront Boulevard across a 90-acre plot and positioned as the next CBD in Iskandar Malaysia (Picture: Tropicana Corp)
Lido Waterfront Boulevard is a freehold development with green features, a plot ratio of 1:8 and a proposed Multimedia Super Corridor status (Picture: Tropicana Corp)
Lido Waterfront Boulevard is positioned as the next CBD in Iskandar Malaysia. It is a freehold development with green features, a plot ratio of 1:8 and a proposed Multimedia Super Corridor (MSC) status. It is poised to be an “international-grade development” in terms of sustainability, with Leadership in Energy and Environmental Design (LEED) and Green Building Index (GBI) certifications.
The upcoming Watermark Residences will feature a 54-storey high-rise development with 1,596 serviced apartments. Sizes range from 463 sq ft to 807 sq ft. There are also 16 retail lots within the development, with sizes from 1,012 sq ft to 4,133 sq ft. The project is targeted for launch in 3Q2024.
In the pipeline is a Grade-A modern office tower at Lido Waterfront Boulevard, catering to a wide spectrum of businesses given its MSC status. It will also feature a wide range of facilities and energy-efficient fixtures.
The upcoming Watermark Residences will feature a 54-storey high-rise development with 1,596 serviced apartments. It is targeted for launch in 3Q2024 (Picture: Tropicana Corp)
Tropicana Danga Bay, located less than 10km from Lido Waterfront, is envisioned as a vibrant community hub with serviced apartments and retail lots.
The upcoming 26-storey Bora Residences Tower B at Tropicana Danga Bay will have 245 modern serviced residences, ranging from 531 sq ft to 892 sq ft. There are also six retail shop lots, ranging from 353 sq ft to 672 sq ft. It will debut in 1Q2024.
Both townships are located within a five- to 10-minute drive of the Malaysian terminus of the RTS Link, points out Tropicana’s Lee. Hence, the projects will benefit from the completion of the RTS in three years
Many malls in the Klang Valley near KL have reported a decline in footfall and business from the second quarter of 2023, due to the waning impact of revenge spending post COVID-19.
However, he noted that some key malls in Johor Bahru - such as JBCC Komtar, City Square and Mid Valley Southkey - have reported uptrends in business and that the rental rates have even increased, especially for prime retail space on ground floors.
Two malls in the city centre, JBCC Komtar and City Square, are registering 65,000 footfall on weekdays and 100,000 on weekends. At least 30 per cent of that are Singaporean visitors.
The current footfall figures are between 85-90 per cent of pre-pandemic levels. “There is a high spend in these malls, and also at Mid Valley Southkey, because of the currency (disparity between Singapore Dollar and Malaysia Ringgit), safety, better quality of malls in terms of tenant mix and concept, great food, and trendy cafes. They are simply good places to enjoy during the weekends.”
Many of these locals work in Singapore, and have a higher disposable income than Malaysians in the rest of the country.
The Singaporean visitors are another catchment group on top of these locals. The average household income (of both groups) is above RM7,000 (S$2,009), placing them in the middle income group (in Malaysia) and that is where retail thrives
Some JB malls such as Mid Valley Southkey, have reinvented the retail scene and are now offering outlets like artisan bakeries and international fashion brands which have “attracted crowds from across the Causeway
Toppen has stepped up its quality of offerings recently such as an anchor supermarket Lulu Grocer which opened last November as well as sports retailer Decathlon and Japanese furniture firm Nitori.
The mall is also looking to add to their offerings with an indoor theme park, badminton courts as well as a retail golf simulator experience.
Many of these malls have things like indoor kids' playground, rock climbing and quality restaurants
To stay relevant, meeting customer needs is important to ensure sustainable growth. Constant evaluation and optimization of tenant mix, offers, and experiences created to ensure what our customers truly want
Johor could go from strength to strength as a key retail destination if the city’s retail offerings are streamlined and it focuses on quality over quantity.
The retail market in Johor Bahru is "bucking the trend" of retail decline in Malaysia, due to the influx of Singaporean visitors to the malls, which he estimates to be around 40,000 daily.
Currently, an average 320,000 people cross the Causeway daily between Johor and Singapore.
Improvements to cross-border immigration processes, such as the use of newly installed immigration e-gates, the digital arrival card and the revival of the Malaysia Automated Clearance System (MACS), have made it far easier for the estimated 50,000 Singaporeans that enter Johor every weekend.
A weekend JB shopping trip may still see a two to three hours one-way commute, but pledged improvements to systems and manpower on both sides might reduce this, making it more attractive and giving visitors more time to shop, dine and enjoy JB services.
While Johor Bahru’s retail scene is promising for consumers and investors, it is also plagued by issues relating to strata title ownership and an oversupply situation.
Johor Bahru has 19.3 million square feet of retail space of malls and hypermarkets in total, and that this is equivalent to more than 11.2 square feet per capita.
Malls that are close to the Causeway border with an array of international brands are more likely to succeed while those in the suburbs of Johor Bahru are unlikely to attain the right catchment of visitors.
Johor’s housing committee chairman Jafni Md Shukor reportedly said that the state government was pushing for a “win-win solution” in rejuvenating abandoned shopping malls in the city.
He identified two malls located in downtown Johor Bahru as examples - Danga City Mall and JB Waterfront Mall. He also identified Skudai Parade, a mall located on the outskirts of the city, as another mall to be redeveloped.
The Bukit Permai state assemblyman said that these premises were still owned by some parties and that these parties had sold the lots inside their buildings to traders.
“Solving this issue is not as simple as many people think as demolishing it involves legal issues and huge financial complications,” said Mr Mohd Jafni.
Mid Valley Southkey, City Square and Toppen have benefitted from being wholly owned while the likes of abandoned strata-owned malls such as Danga City and Waterfront City have closed and authorities are grappling with legal issues to have them redeveloped.
Abandoned strata-owned malls should securitize their ownership to join new developers to revive the mall.
“The real estate value of these abandoned buildings is high with the current value as it is within prime area. But the state government is working towards finding a win-win solution on this matter,” he added.
JB Waterfront City Mall
A report by New Straits Times in April said that the development may be converted into a commercial building similar to KL Tower with an estimated gross development value of RM1 billion, citing unnamed sources.
Property developer SKS Group to rehabilitate the abandoned “Pacific Mall” in Jalan Storey, Johor Bahru into a mixed-use development known as SKS Tower.
The upcoming Singapore-Johor RTS Link project due for completion in end-2026, which aims to connect Bukit Chagar to Woodlands in Singapore, could double the volume of retail visitors to malls in Johor Bahru city when it starts operations.
LRT should be built connecting the megamalls from Bukit Chagar to ease the road congestion and along congested highways.
The single family market is the “canary in the coal mine” for the overall economy and has been in recession since late 2022, Lokar says. “Now it’s rounding into recovery,” he says.
However, the sector continues to face some notable headwinds, including affordability issues and high interest rates. “The market needs lower interest rates for people to consider selling their homes that they refinanced when rates were low,” he says.
2. MULTIFAMILY IS HEADING FOR A TOUGH YEAR
Companies that have leaned into multifamily contracts during the sector’s boom of the last several years should prepare for slowdown in the near term, Lokar says. “If you’ve been living off multifamily, [the sector] is entering recession,” he says. “Starts were down 28.1% in the last quarter, and permit pulls have cratered.”
3. NONRESIDENTIAL IS STRONG, BUT WILL SLOW IN LATE 2024
While single-family construction leads the economic business cycle, nonresidential construction lags. As a result, the market has been strong throughout 2023 and will likely stay strong through much of 2024.
“For companies on the nonresidential side, it has been great. … And next year should be great, or at least good. But be careful for what comes next,” Lokar says. “You’ll be in recession by end of 2024.”
4. THE SILVER LINING AMID SLOWDOWN: IMPROVEMENTS IN LABOR, SUPPLY AND INFLATION
An economic slowdown will provide some relief for companies when it comes to the three top pain points of the pandemic and post-pandemic era: supply chain problems, inflation and labor shortages.
“This deceleration and ultimate recession is going to take pressure off all of those,” says Lokar. “Your workforce issues won’t be fixed, but they will be easier to manage. Inflation is not fixed, but it’s coming down. And the supply chain has gotten better.”
5. INVEST IN YOUR BUSINESS DURING A SLOWDOWN
slowdown will give the construction industry its first “breather” since prior to the pandemic. “You’ll have an opportunity to get the house in order. You’ve spent 3 to 3.5 years surviving the pandemic, with unprecedented supply chain issues, inflation pressures and turnover. You’re going to be able to breathe.”
For businesses that plan ahead, slowdowns can be opportunities for investment and preparation for future growth
In Malaysia, flat is a term which tends to be more commonly used to describe affordable housing at the lower price ranges, particularly relating to public housing.
Apartment, on the other hand, is a word which had previously been used as an overall term for stratified properties in Malaysia, until the word condominium made its challenge for the title.
A condominium is now widely seen as a luxury property which offers much more facilities and appealing characteristics than your average apartment. The term 'condo' is almost like a helpful marketing tool to show off the fancy nature of the property.
The term apartment is now commonly used to refer to more middle-value properties, those that are still accessible to many income groups, but lacking the comprehensive facilities (and price tag) of a condominium.
Interestingly, from a Malaysian perspective, what is widely called an apartment in the US (and now Malaysia), is more commonly called a flat in British English.
While the word apartment is creeping in to some usage in the UK, the term 'flat' is still widely used to cover all such stratified property types.
'Apartment' is a term that’s widely used around the world to describe a self-contained unit in a strata-titled property.
Condominiums in Malaysia today tend to be defined by luxury. They make up a large share of the stunning new launch properties you find emerging in desirable or up-and-coming areas of Malaysia’s urban centres.
While prices for property can be influenced by a range of key factors, that almost-RM400,000 price tag is a good affordable baseline price for a luxury condominium.
Prices can go lower, but it’s rare to find price tags for a condo for sale at less than RM300,000-RM500,000, and starting prices are often much higher, particularly in desirable addresses located close to hotspot areas.
Luxury condo prices are a place where the sky knows no limit, with the most luxurious condominiums going for hundreds of millions of Ringgit!
Affordable apartments in less competitive areas in Malaysia can be listed for asking prices as low as RM35,000-RM100,000, significantly less than the benchmark price for even the cheapest condominium.
These properties often have limited facilities onsite, as well as lacking the extensive integrated public and social spaces of the more upmarket condo complexes.
Apartments cover a wide range of property values and types however, providing an important opportunity for homeowners from a diverse range of income groups.
It offers simple facilities such as a swimming pool, basketball court, and playground, alongside a relatively affordable opening price point at RM290,000-RM363,000.
As we've discussed earlier, the question of condo vs apartment is sometimes just a matter of word preference.
For that reason, you can often find luxurious apartments that overlap heavily with what you might expect of a condo, particularly in the lucrative area of serviced apartments.
Serviced apartments are basically fully-furnished units, with regular housekeeping and convenient nearby amenities like supermarkets.
They're generally more affordable than hotels, especially if you’re planning for a longer stay. Of course like most questions about property, there are some key points that can change that equation - amenities and location.
Serviced apartments are commercially-titled, thus, the laws and taxes governing this type of property are completely different.
Although condominiums and serviced apartments have amenities that are rather similar, there are actually some notable differences between both property types.
One clear difference between the two is that a service apartment is almost always flagged for commercial use, as opposed to residential stays at condominiums. Here are some key differences:
Land status
A condominium is registered as a private residential area, with its individual units owned by different people/ owners.
Serviced apartments are built on land registered for commercial use, and operate more like hotels. They tend to have a single owner who owns all units in the building.
As serviced apartments sit on commercial land, owners need to fork out higher amounts for costs such as quit rent, electricity and water charges, as well as monthly maintenance fees.
For example, the minimum water tariff in Malaysia for domestic use is RM6. For commercial use, this amount is six times higher at RM36!
The minimum electricity tariff in Malaysia for residential use is RM3, while the low-voltage commercial tariff is RM7.20.
Local authorities impose slightly higher assessment rates for serviced apartments, compared to landed and stratified residential properties. 3.5% assessment rate on stratified properties such as condominiums, but 5% on serviced apartments.
Condominiums are more suited for families as they provide shared, non-exclusive amenities such as a swimming pool, gym, and party rooms.
If you're looking to rent a condominium unit, there’s also a chance you’re going to be living in a more bustling and active environment.
Although bustling does also sometimes mean more noise.
Serviced apartments, on the other hand, have fewer units and cater to short- and long-term stays. They're also usually right above, or next to, shopping malls.
Rental prices for serviced apartments vary according to the services and facilities they provide. Depending on the length of your stay, some places may offer you a discount for longer periods of time. There are real benefits in being a repeat customer!
A fully-furnished apartment unit can cost about RM2,400 per month. Such apartments will come with the basic necessities. While they aren't five-star experiences, they're pleasant enough.
You can definitely find cheaper rentals starting from RM1,200 per month, but these may not come with comprehensive facilities (for example, you may find they don’t provide bed sheets).
On the other end of the scale are the luxury serviced apartments. These are high-end, and more extravagantly furnished. Such serviced apartments usually cost at least RM10,000 a month.
A flat in Malaysia usually refers to the more economical end of the market, providing a unit that's accessible to those from the low-income and middle-income groups.
With that push for affordable homes being a real drive in the national property market, it therefore makes flats an essential part of the country’s property ecosystem.
Once again, it’s worth pointing out that there’s no single guaranteed rule on what makes a flat defined as such, and neither is there any hard and fast rule for an apartment or a condo.
The lowest priced flats on cover the RM25,000-RM35,000 range, overlapping significantly with the lowest prices for apartments.
Flats tend to have very limited facilities compared to the luxurious condominiums shining out like beacons across the cityscape of cities like.
The upper price limit for flats tends to be much lower than for other apartment types, with a limited number of more expensive flats reaching prices of around RM1 million.
Flats
Apartments
Condominiums
Defining features
Very affordable homes, limited or no facilities
Affordable or accessible middle-class properties, range of facilities, broad price range.
Extensive facilities and integrated design, high starting price, affluent communities.
Emirates Investment Group, a leading investment company, has announced 'Sana'a Terraces' and 'Sana'a East' as its maiden projects in Yemen.
The signature projects that EIG plans to launch in Yemen, will fall in prime locations. Strategically situated 10 kilometres away from the new airport expansion, 2.5 kilometres to the east of Old Sana'a City, the plush Sana'a Terraces overlooks the Movenpick Hotel Sana'a, one of the most exclusive hotels in the Yemeni capital.
The 36-storey HABICO Tower at 288 Pham Van Dong Street, Tu Liem District, Hanoi, was financed by the Hai Binh Joint Stock Company. It will be managed by the Korean Group Dongriwon Development Inc.
Sunway City Berhad (SunCity) (KLSE: 6289) on Tuesday said it has teamed up with South Korea's Daol Trust & Fund Company Limited to explore for real estate investment opportunities in Asia and Europe.
Marvic working with Dubai-based Nakheel on residential, commercial and retail developments, to redeploy people and capital, as Australia's property sector slips into downturn..
Nakheel raised its stake in Mirvac to 12.5 per cent.
Nakheel to launch Dubai-listed housing and infrastructure property trusts.
Mirvac is partnering Nakheel in its bid for the development of the massive Barangaroo regeneration project in the Sydney CBD.
Mirvac is also working with Abu Dhabi conglomerate Al Badie Group.
Hektar Real Estate Investment Trust (REIT) has acquired a shopping complex and hotel tower, together with a basement car park, in Muar, Johor, from Wetex Realty Sdn Bhd.
Prices of prime office space in Malaysia may hit RM1,500 per sq ft this year spurred mainly by demand from foreign buyers.
the current benchmark price of RM1,230 per sq ft paid by Kuwait Finance House (Malaysia) Bhd last January for half of the upcoming Menara YNH on a 1.2ha freehold tract along Jalan Sultan Ismail, Kuala Lumpur.
demand for office space in Kuala Lumpur was also pushing up rentals, which hovered in the range of RM5 per sq ft to RM7.80 per sq ft last year, when 3.25 million sq ft or 94.2% of the new supply 3.45 million sq ft in the Klang Valley were leased out.
In 2007, office vacancy levels in the Klang Valley improved to 13.2% from 13.9% in the previous year. The current office space supply of 68.6 million sq ft is expected to grow by 5% this year. The new buildings coming into the market include Menara Commerce and PJ Eight and several more within Mid Valley.
prices of luxury high-rise residential units to hit new highs of between RM2,500 per sq ft and RM3,000 per sq ft in anticipation of projects like the “Four Seasons Place” setting new benchmark rates.
High-end condominiums in the Kuala Lumpur City Centre is already fetching about RM2,000 per sq ft. But stiff competition due to additional supply of luxury high-rise homes this year will add pressure to occupancy and rentals.
projects comprising 3,644 units of upmarket serviced apartments are due for completion this year, adding on to the 6,421 units in 2007.
listing on the main-board of Bursa Malaysia. some successful housing projects in Johor Bahru consist of Taman Nusa Bestari 2, Taman Nusa Bestari, Taman Bestari Indah and Taman Kempas Indah.
KSL Holdings Berhad (KSLH) is a Malaysia-based company engaged in investment holding and provision of management services to the subsidiaries. The Company, through its subsidiaries, is engaged in property development, property management and property investment. It is involved in the development of residential and commercial properties, management of apartments and investment in real properties. The Company has 18 direct subsidiaries, including Khoo Soon Lee Realty Sdn. Bhd., Goodpark Development Sdn. Bhd., Harapan Terang Sdn. Bhd., Bintang-Bintang Development Sdn. Bhd., Eversonic Sdn. Bhd., Prosper Plus Industry Sdn. Bhd., Exportex Sdn. Bhd. and KSL Properties Sdn. Bhd., among others.
KSL City comprises a commercial podium which consists of retail shops, departmental store, cinemas, car parks, hotels and condominiums podium
Taman Nusa Bestari comprising two (2) parcels of freehold lands measuring approximately 227 acres. The lands are located along Jalan Sungai Danga and both sides of the Second Link Highway from Johor Bahru to Singapore.
Taman Bestari Indah covering an estimated area of over 700 acres is located at about 19 kilometres north of Johor Bahru city centre and about 4 kilometres west of Ulu Tiram town.
Taman Kempas Indah is located at about 18 kilometres north of Johor Bahru city centre and is strategically situated along the North-South Highway, Jalan Maju Jaya and adjacent to north-east of the Kempas Interchang
Maharani Riviera, a new township planned in Muar, was duly approved by the relevant authorities in 2006. It is located immediately after the Sultan Ismail Bridge (Muar Bridge) from the Muar town centre and at the waterfront of Sungai Muar and Straits of Malacca respectively.
KSLH is traditionally a company that grew up from the small town of Segamat.
source: http://www.ksl.net.my/thekslgroup.htm, http://www.reuters.com/finance/stocks/companyOfficers?symbol=KSLH.KLhttp://www.ksl.net.my/userfiles/image/2009.pdf Mr. Ku Hwa Seng serves as Executive Chairman of the Board at KSL Holdings Bhd since February 24, 2011. He was appointed to the Board on November 19, 2001 as an Executive Director. He joined the KSL Holdings ("KSLH") Group in 1981 and has since gained invaluable experience and built a business network over the past twenty-nine (29) years in the property development industry. Presently, he is involved in the KSLH Group's business development and operations in south Johor. He oversees the day-to-day management, decision-making and operations of the office in Johor Bahru. He is a director of most of the subsidiary companies of the KSLH Group and also a director of several other private limited companies. Mr. Khoo Cheng Hai @ Ku Cheng Hai Group Managing Director and Executive Director of KSL Holdings Berhad since November 19, 2001. He is Founder of the KSL Holdings Berhad Group. He is the driving force behind the Company's development, growth and expansion. With his experience, he is responsible for the Company's business development and day-to-day operations of the Company. He is Director of most of the subsidiary companies within the Company and also Director of several other private limited companies.
Mr. Ku Tien Sek is Executive Director of KSL Holdings Berhad since November 19, 2001. He has been involved in the management of the Company since 1981 particularly in the Company's public relations as well as the formulation of the strategic plans and policies. Presently, he is involved in the business development and operations in south Johor especially Taman Bestari Indah. He is also responsible for the development of the future expansion plans, particularly in the Klang Valley. He is Director of most of the subsidiary companies within the Company and also Director of several other private limited companies.
