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MONTH: FEBRUARY 2017ISSUE: 02/2017PropertyNewsPA International Property Consultants is a registeredreal estate firm committed to providing a comprehensiverange of property solutions to meet the needs of investors,occupiers and developers.PA INTERNATIONALPROPERTY CONSULTANTS (KL) SDN BHDPhone:03-7958 5933Fax:03-7957 5933Website: http://www.pa.com.myEmail:research@pa.com.myThe Research Division provides core real estateinformation to clients and internal departments in order toensure accurate real estate decision-making. Our researchteam has completed market studies and research work forvarious ongoing development schemes within Klang Valley,providing comprehensive economic analysis, propertymarket information, forecasts and consulting advice basedon reliable sources.We constantly strive to present the most up-to-datemarket knowledge in order to ensure clients are wellarmed with sufficient data to make the right propertydecisions.

Issue 2: 1- 28 February 2017GENERAL ECONOMIC & PROPERTY MARKET1. Tighter rules for foreign buyers (New Straits Times, 6 February 2017 ) The Penang government has introduced measures to control the purchase of properties by foreignersin state which included the following:Allow foreigners to purchase only landed properties costing not less than RM2 mil on the islandand not less than RM1 mil on the main land.Foreigners were not allowed to purchase stratified properties costing less than RM1 mil on theisland and RM500,000 on the mainland.Foreigners had been subjected to an approval fee of 3% on top of the purchase price of theproperty bought by them since April 2014.2. PR1MA scheme to boost home ownership (The Star, 14 February 2017) Perbadanan PR1MA Malaysia has launched Special PR1MA End Financing (SPEF) scheme to improveloan eligibility for prospective buyers and also increase home ownership among the bottom 40% andmiddle 40% of Malaysian households.Under the SPEF scheme, home buyers are required to start repayment of the borrowed principalamount beginning from the sixth year. For the first five years, the home buyers are only required topay loan interests via instalments.Alternatively, interested buyers also can opt for the Employees Provident Fund (EPF) Account 2withdrawal option, by allowing the usage of future contributions in Account 2 to complement themonthly house loan instalments.3. GDP expands quicker in Q4 (The Star, 17 February 2017) The Malaysian economy grew 4.5% in the 4Q of 2016, supported by the strong showing in themanufacturing and service sectors, while steady private spending helped to mitigate a decline ingovernment spending.In overall, the economy expanded 4.2% in 2016.As measured by the annual change in the Consumer Price Index (CPI), Malaysia’s inflation in the 4Q of2016 rose by 1.7% compared to 1.3% in the 3Q, and was mainly driven by upward adjustment todomestic fuel prices during the quarter.4. CPI up 3.2% in January (The Star, 23 February 2017) Malaysia’s consumer price index (CPI) rose 3.2% to 118.2 in January 2017 from 114.5 in thecorresponding period last year, with a 1.1% increase in a monthly basis.The rise mainly driven by the higher prices in transport, food and non-alcoholic beverages andrecreation services and culture.The CPI is an index which measures the variation in prices paid by consumers for retail goods.1Our philosophy is simple: A unique combination of People, Intellectual Property, Relationships, Services and Commitment

Issue 2: 1- 28 February 20175. Developers holding back on land banking (The Star, 25 February 2017) The slowdown in the property market will see plenty of developers holding back plans to purchase newland bank this year, as commented by few consultants at the 2017 Property Market Outlook seminarorganized by the Association of Valuers, Property Managers, Estate Agents and Property Consultants inthe Private Sector Malaysia (PEPS).Comments by Kenanga Investment Bank Bhd: Developers are cautions about overloading their bookswith land as sales may remain lackluster while they concentrate on cash flow and keeping their balancesheets light. However, SP Setia Bhd and Eco World Development Group Bhd are likely to continueheavy land banking.PEP president: The current growth level in residential prices is healthy and sustainable. The secondarymarket has weakened, adding however that many owners are still unwilling to sell below their entrycost. As for primary market pricing, developers are trying to maintain their asking prices due to higherreplacement costs, by offering incentives and smaller built-ups to increase affordability.Finance Ministry: First timers should consider to purchase from secondary or the auction market asonly 46.5% of the residential units under the primary market were priced below RM300,000, whilstclose to 70% of the units in the secondary market were in that range during the first nine months of2016.Kenanga Investment Bank Bhd: Overall residential transactions are expected to be similar to pre-2007levels. The residential market is seeing a bottoming effect. The Malaysian residential absorption rate isat a 14-year low, while the major states are seeing 9-10 years low. The population analysis indicatedthat the incremental population base demand, namely those turning 30 years old or first home buyers,has gone back to pre-2007 levels and transactions are likely to start leveling off. Rental yields withinthe Klang Valley have been declining for both landed and high rise residential properties.SIGNIFICANT TRANSACTIONS AND PARTNERSHIPS6. Mammoth Empire sells Empire Shopping Gallery to PHB, has option to buy it back in 5 years(The Edge Property, 1 February 2017) Property developer and asset manager Mammoth Empire Holdings Sdn Bhd (MEH) has signed theagreement last week to sell Empire Shopping Gallery in Subang Jaya, Selangor, to Pelaburan HartanahBhd (PHB) for RM570 mil cash.It is learnt that MEH has been granted a call option to buy back the shopping mall on the fifthanniversary of the sale. It also has the right of first refusal to buy the mall should PHB decide to disposeof it within the five years.The Empire Shopping Gallery has a gross built-up area of 600,000 sq ft and net lettable area of 350,000sq ft spread over 5 levels. A total of 216 tenants occupy 98% of the shopping centre. The mall wasreported to have a net rental yield of 6.5% to 7%.7. IOI, MJR to build condos at Resort City (New Straits Times, 1 February 2017) IOI Properties Group Bhd’s unit, Pine Properties Sdn Bhd, and MJR Investment Pte Ltd will jointlydevelop a 676-unit condominium project on a 3.88ha plot at IOI Resort City, Putrajaya.The company had entered into a shareholders agreement with MJR Investment to dispose of its 45%stake in PINE MJR Development Sdn Bhd to MJR Investment.IOI Resort City is an integrated development crafted by IOI Properties which comprises Puteri PalmaCondo, Green Building Index-Certified IOI City Towers, Putrajaya Marriott and Le Meridien Putrajayahotels, IOI City Mall, the biggest mall in southern Klang Valley, and Palm Garden Golf Club, home to an218-hole championship golf course.Our philosophy is simple: A unique combination of People, Intellectual Property, Relationships, Services and Commitment

Issue 2: 1- 28 February 20178. Prestariang buys 8-storey Cyberjaya property for RM25 mil (New Straits Times, 2 February 2017) The building is part of the ongoing mixed development project known as Star Corporate, Star Central@ Cyberjaya, which is currently developed by Joyful Star Sdn Bhd, a subsidiary of the Emkay Group.To-date, the building is 55% into completion and is expected to secure the certificate of complianceand completion by the 1Q of 2018.This building will house EduCloud operations, an integrated education platform which entails campusmanagement, teaching and learning, entertaining, digital payment as well as online services andapplications, following a tri-patriate memorandum of understanding with Alibaba Cloud andSingapore’s Conversant Solutions Pte Ltd to build EduCloud.Pretariang Bhd which is a computer services company will play the roles of platform owner, appdeveloper and serviced provider as well as training and certification delivery, among others.9. Gadang to buy land for RM56 mil cash (The Star, 7 February 2017) Gadang Holdings Bhd’s indirect unit, Gadang Construction Sdn Bhd, has entered into a sale andpurchase agreement (SPA) with Nuvista Development Sdn Bhd to buy a 2.66-acre leaseholdcommercial land in Damansara Perdana in Petaling Jaya for RM55.7 mil cash.10. PLB to sell land in Kulim for RM9.6 mil (New Straits Times, 8 February 2017) PLB Engineering is disposing of 5,963ha freehold agriculture land in Kulim, Kedah, to Tiong NamLogistics Solutions Sdn Bhd for RM9.6 mil in cash.11. Titijaya Land plans to buy Sri Komakmur for RM70.91 mil (The Star, 28 February 2017) Titijaya Land Bhd has proposed to acquire 3,000,000 ordinary shares equivalent to RM3 mil,representing the entire issued capital of Sri Komakmur Development Sdn Bhd for a purchaseconsideration of RM70.91 mil from Tan Chuan Cheong and Tee Tiong Lee.The proposed acquisition would enable Titijaya to gain access to 75.444 acres of prime land which islocated near Bank Negara building, Royal Malaysia Custom, Bukit Padang Hospital and Sabah Golf &Country Club.DEVELOPMENT LAND12. Three-year RM1.2 bil Qi City project begins in Bandar Meru (New Straits Times, 2 February 2017) Green Venture Capital (GVC) has started work on the Qi City development in Bandar Meru Raya, nearIpoh.The RM1.2 bil project, spread across 10.52ha, is a mixed residential and commercial developmentcomprising an 840-bed teaching hospital, 3 condominium blocks with 768 units, a lifestyle mall, aconvention centre to cater for up to 1,500 people, and 460 units of hotel suites, and the QuestInternational University Perak campus, a subsidiary of Wawasan Qi Properties. The project is slated forcompletion by 2020.China Energy Hua Ren Industrial Co Ltd has been appointed as the turnkey contractor for the mixeddevelopment project.3Our philosophy is simple: A unique combination of People, Intellectual Property, Relationships, Services and Commitment

Issue 2: 1- 28 February 201713. Sunway Property eyes RM1bil sales this year (The Star, 15 February 2017) Sunway Property has acquired 8.45 acres of land along Jalan Peel, Cheras which is located opposite theSunway Velocity Mall, and will develop Sunway Velocity TWO on it.With an estimated GDV of RM2 bil, more than 70% of Sunway Velocity TWO will comprise residentialunits, complementing Sunway Velocity Mall which consists of 75% commercial units. It will bedeveloped over a 10-year period.The developer proposed to build linkways between Sunway Velocity and Sunway Velocity TWO withinthe two integrated developments. Sunway Velocity Mall was launched on Dec 8 and is currently 97%occupied.14. RM750 mil mixed development on MCOBA land (New Straits Times, 22 February 2017) Sunrise Innovation Sdn Bhd, a wholly-owned subsidiary of UEM Sunrise Bhd will turn a 1.07ha site thatcurrently houses the Malay College Old Boys Association (MCOBA) building in Jalan Syed Putra into amixed development comprising 2 blocks of serviced apartments.Targeting mostly owner occupiers, especially families and upgraders from the surrounding areas, theunit sizes will range between 1,000 sq ft and 1,500 sq ft.In return, MCOBA will get a new building and a banquet hall with a capacity for 1,200 people.RESIDENTIAL PROPERTY IN KLANG VALLEY15. Aset Kayamas’ Hamilton project sold out in less than four hours (The Edge, 1 February 2017)Project nameDeveloperLocationType of propertyTenureGross development value (GDV)Launch dateBuilt-up areaSelling priceHamiltonAset Kayamas Sdn BhdWangsa MajuCondominium (435 units)LeaseholdRM250 millionPreview on 28 January 20171,000 sq ft to 2,200 sq ftFrom RM498,000 onwards4Our philosophy is simple: A unique combination of People, Intellectual Property, Relationships, Services and Commitment