shopping centre of the future

ISSUE 6, MAC/APR 2013
SHOPPING CENTRE OF THE FUTURE
SOUTH KOREAN PROPERTY
MARKET - TIME TO TAKE A LOOK?
CROSSRAIL BOOSTS LONDON
HOUSE PRICES UP TO 40%
SOUTHEAST ASIAN ART PAVES
WAY AT HB’S 5TH AUCTION
HB HERALD
Issue 6
SHOPPING CENTRE OF THE FUTURE
By Tan Hai Hsian, Henry Butcher Retail
In the 2002 science-fiction movie
Minority Report, Tom Cruise character
walked through a shopping mall with a
row of digital billboards that displayed
holographic advertisements that greeted
him by his name and offered products
that appealed directly to him. When he
stepped into a GAP store, a big screen
with an image of a woman recalled his
recent purchases.
Bull Ring Shopping Centre in Birmingham, United Kingdom was completed in
2003. This impressive 4-storey shopping mall has a total retail floor area of 1.3
million sf. It is anchored by Selfridges, Debenhams and TK Maxx. The main façade
of this shopping mall is clad in 15,000 shiny aluminium discs that were inspired by a
Paco Rabanne sequinned dress. A multi-storey car park connects the shopping
mall with a 37m, curved polycarbonate-covered pedestrian bridge known as the
Parametric Bridge.
Kanyon is an ultra-modern
shopping mall located in Istanbul,
Turkey. Opened in 2006, it has a
nett retail floor area of 400,000sf.
The exterior architecture of this
shopping mall looks like an
inverted building. At the inside, the
retail walkways curve in the shape
of a canyon.
Such futuristic technologies are now a
reality!
Japan tech giant NEC has developed
digital signage with built-in cameras that
identify shopper’s age and gender when
he/ she walks past it. The display signage
will then suggest products and services it
thinks will appeal to the shopper based
on his/ her demographics. This
technology is currently been tested in
shopping areas in Japan.
Future
Centre
Trends
of
Shopping
Visiting shopping mall is not just buying
goods and services; it is also a leisure
activity among Malaysians. Shopping is
now a recreation, not a chore.
Exciting visual shopping features, freefor-all public space, environmentalfriendly facilities, real-time parking
channel, retail locator app, and mobile
concierge will be some of the common
features available at our shopping malls
in the near future.
Exciting Shopping Experience
Shopping malls of the future will offer
exciting visual shopping experience from
both outside and inside. They will offer
unique architectural features and interior
design.
SOHO Galaxy in Beijing, China was
completed in 2012 with 900,000sf
of retail space spread over 3 floors.
The entire building (with office
above)
comprises
of
five
continuous flowing volumes, set
apart yet linked by a sequence of
stretched bridges. Each volume
adapts outwards, generating a
panoramic architecture devoid of
corners.
Namba Hips in Osaka, Japan opened in 2007. It is
an entertainment complex that has a big hole at
the centre of the 10-storey building that
resembles a natural number 8 or a violin. This
unique architectural building houses cafes,
restaurants, pachinko centre, bars, golf studio,
spa, an open rock climbing wall and an outdoor
free-fall thrill ride.
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HB HERALD
Issue 6
Non-Retail Facilities
More Eco-Friendly Facilities
Non-retail facilities are not uncommon in shopping centres. Cineplex, bowling alley,
futsal centre, badminton court, fitness centre, post office, bank, etc. are found in
many shopping centres today.
Atrio is a 416,000sf shopping mall
located in Villach, Austria. Opened in
2005, it is one of the greenest shopping
centres in the world. The shopping mall
used the earth beneath it to generate
heat during the winter and power airconditioning during summer. The
shopping mall is equipped with a
geothermal heat supply system based
on the exploitation of 652 borehole
pillars that bear the foundation of the
whole structure through which heat is
collected from the soil. These ‘energy
pillars’ help to save almost half of the
electricity it needed to run the shopping
mall. Atrio, the building, is also
constructed with eco-friendly materials.
However, the offering of FREE non-retail facilities is either none or limited in
Malaysian shopping centres.
Osaka Station City is an
integrated transport hub
located in Osaka, Japan. It
consists of a multimodal
transport centre, shopping
malls, hotel and office
buildings. On the 10th and
11th floor of this mega
structure, there are two
public terraces (called Healing
Garden and Wind Plaza)
offering green spaces, seating
area and a beautiful view of
Osaka city. These are the dining area and resting places for office workers during
lunch hours. At the rooftop, it has a sky farm named Tenku no Noen. This green
area is planted with various vegetables, herbs and fruits.
Vivo City is the largest shopping mall in Singapore. It has a large, knee-deep splash
pool on the rooftop called Sky Park. It also has an open-air wet and dry children
playground at Level 2.
White Sands shopping centre in
Singapore has a community
library on the fourth floor. This
rental library is operated by
government-owned
National
Library Board. The library offers
120,000 books and magazines to
the 150,000 of population living
nearby.
Rouse Hill Town Centre in Sydney, Australia has a community garden for the
residents living in the neighbourhoods. This is a partnership with a not-for-profit
organisation Stephanie Alexander Kitchen Garden Foundation in 2011. This
shopping centre also has a library and community centre.
The first eco mall in Singapore, City
Square Mall, has a 49,000sf urban park
in front of its shopping centre. It is also
equipped with rainwater harvesting
system for non-potable uses, motionsensor car park, twin-chute pneumatic
refuse collection and disposal system,
charging stations for electric cars and
solar panels to power selected area of
the mall.
Setia City Mall in Selangor introduces
extensive
environmental-friendly
features. Light censors are installed to
provide sufficient lighting when the
external natural light reduced. It uses
energy-saving light fixtures including
LED, TF fluorescent lamps and ceramic
metal halide bulbs. Rainwater from the
roof is flowed into tanks and used in
watering plants. Tenants are also
required to sign a green lease that
requires them to minimise wastage and
uses sustainable products in their shop
designs.
On the rooftop of One Utama
shopping mall in Selangor, it has a
30,000sf garden with more than 500
species of plants and flowers. Named
as The Secret Garden, it was opened
in 2009 with limited publicity.
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HB HERALD
Greater Use of Mobile Devices
Malaysians will soon be able to use their smart phones to search for empty car park
lots in shopping malls. In addition, they can locate empty car park lots near to the
shops they want to go. From their smart phones, they can receive latest promotions
from their favourite shops and restaurants. They can also compare prices of the
same products from different stores within a shopping mall. Furthermore, they can
reserve tables at their favourite restaurants and purchase movie tickets from a
cineplex in a shopping mall via their smart phones.
Issue 6
Successful shopping centres of the
future will be those that are able to
integrate modern technologies with its
tenants, provide unique physical
environment as well as offer many
public facilities to keep shoppers longer.
Malls of the future will not only
generate sales, but also create products,
generate energy and provide education!
Mall of America, the largest mall in
United States, introduced 3 ways to
inform shoppers in real time on the
parking situation within its mall.
With more than 12,000 car parking
lots in Mall of America, its shoppers
can use Twitter and mobile web
app to check on the car volumes at
specific parking areas and levels.
Prior to arrival at the mall, it
installed 6 hybrid way finding signs
at various freeway locations leading
to the mall. These signs advise and assist drivers in finding the least congested way
to reach the shopping mall.
Point Inside provides a mobile shopper engagement platform that uses multiple
indoor location technologies to provide retailers with micro-location marketing and
private advertising network capabilities. Point Inside has an app containing more
than 1,600 indoor maps and geo-location cross-retailer product search for malls and
big box stores. This app helps shoppers to locate retail stores in shopping centres.
ShopSavvy is a mobile application for shopping that scans products and finds online
and local stores providing these products. While browsing a item in a shopping
centre, a shopper is able to use this app to check on prices of similar items found in
other stores within the shopping centre. In addition, it can read users’ reviews and
compare prices offered by online stores.
In 2011, the largest cinema operator in Malaysia, Golden Screen Cinemas (GSC),
introduced a mobile app that allows moviegoers to purchase tickets and select
seats through their smart phones. While in shopping centre with GSC cineplex,
shoppers can book their show tickets before show times without queuing at the
ticketing counters.
Last year, Sunway Pyramid shopping mall in Selangor launched its mobile app with
car park locator, retail outlet navigator, shopping directory and information on
latest events and promotions. This app assists shoppers to find their cars and shops
as well as view the latest promotions and events.
Brick-and-Mortar Shops Not Disappearing Soon
We will continue to return to the shopping centres because of the mall experiences
that cannot be found elsewhere. These experiences cannot be duplicated online.
Brick-and-mortar shopping centre will not disappear any time soon. Advanced
technologies, better architectural presentation and enhancement of offering will
continue to draw consumers back to shopping centres. Smart phones will be
playing a major role in enhancing the shopping experience in retail malls.
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HB HERALD
Issue 6
SOUTH KOREAN PROPERTY MARKET –
TIME TO TAKE A LOOK?
By Tang Chee Meng, Henry Butcher Marketing
With the conquest of the world music
scene by Korean rapper, Psy’s
monstrous hit, Gangnam Style in 2012
and now with his latest hit, Gentleman,
South Korea looms large in the
consciousness of the world.
The first Korean wave came in the early
2000’s in the form of Korean dramas
such as April Snow and Winter Sonata
featuring Korean heartthrob BYJ (Bae
Yong-Joon) and Jewel in the Palace
featuring sweetheart, Lee Young Ae.
This was followed by the the K-Pop
phenomenon in the early to mid 2000’s
when the Hallyu wave brought in idols
such as BoA and Rain and boy / girl
bands such as Super Junior, Big Bang,
2NE1, Girls Generation, 2PM, Wonder
Girls and Kara, with their youthful, good
(albeit cosmetically enhanced) looks,
catchy tunes and sexy dance moves.
The spread of the K-Pop culture was
greatly aided by social media such as
YouTube, twitter and facebook. The
worldwide popularity of the K dramas
and K pop acts led to a surge in interest
in anything Korean and the tourism
industry in South Korea benefitted as a
result, as did Korean cuisine with its
ubiquitous kim chi as well as Korean
fashion.
Jeju Island which was the filming
location for several K dramas including
the wildly popular series Jewel in the
Palace became a pilgrimage destination
of sorts for fans of the movie stars.
The spread of South Korean influence is
not only restricted to its culture. South
Koreans have also been actively
investing in real estate abroad. In the
second quarter, of 2012, it was reported
that South Koreans bought about
USD$53.7 million worth of real estate
overseas compared to USD$50 million
in the first quarter. This, however, pales
to the situation before the financial
crisis of 2008. Statistics show that in
2007, South Korean investors snapped
up USD $874 million worth of foreign
real estate but the investments
dropped to only USD $438 million in
2008 and USD $201 million in 2009. A
slight pick-up was noted in 2010 when
investments increased slightly to $251
million in 2010 but remained almost
unchanged at $253 million in 2011.
Korean ubiquitous – K drama, K pop,
Kimchi and lately, the sensational
self-made millionaire rapper Psy.
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HB HERALD
Issue 6
Malaysia, too, saw a wave of Korean
interest in its property market in the
2007/8 period with several enbloc deals
with Korean investors being announced
by a number of Malaysian developers.
However, the subsequent slowdown in
the Korean economy following the
global financial crisis in 2008 led to
quite a few of these deals being aborted
when the Korean enbloc buyers found
that individual Korean investors have
lost their appetite for international real
estate investments.
With the heightened consciousness of
South Korea on the world stage, it is no
wonder then that when the Korean
government liberalized the country’s
real estate sector in a bid to revive the
market after the Asian financial crisis of
1997/8, foreign investments in South
Korea’s real estate sector took off.
The amount of South Korean land
owned by foreign entities, including
foreign-invested
companies,
was
reported to have increased to 224.71
square km by the end of June 2012,
based on information provided by the
Ministry of Land, Transport and
Maritime Affairs whilst the number of
properties owned by foreigners has
risen to 82,729 properties worth
approximately KRW 33.5 trillion
(USD$29.9 billion) in the April-June
2012 period. American ccompanies and
individuals are the leading foreign land
owners, accounting for about 54.2% of
total foreign land ownership, followed
by the Europeans and Japanese with
10.5%
and
8.5%
respectively.
Approximately 59.2% of foreign owned
land was either forest or farmland,
whilst industrial land made up about
29.9%.
How about Malaysian interest in the
Korean property market? Apart from a
resort project being undertaken by the
Berjaya group on Jeju Island*, it is very
rare to read of Malaysian real estate
developers or investors taking an active
interest in the Korean property market.
This is despite increasing trade between
the two nations over the past few years.
According to Secretary-general of the
Asean-Korea Centre, Chung Hae
Moon,the trade volume between
*The Berjaya JejuAirest City project, which has a total gross
development value of US$3.2 billion is a 74.4ha integrated resort
located by the coastline of Yerae-dong, Seogwipo City in Jeju
Province. Once completed, the site will boast of a 45-storey
Landmark Tower, a casino hotel, a massive retail and shopping
mall, a medical centre and entertainment and sports facilities.
Malaysia and South Korea has
increased to US$17.6bil last year from
US$16.7bil in 2010 whilst South Korea's
investment in Malaysia between
January and September last year was
US$244mil, a two-fold increase from
the same period a year ago.
Although Malaysia has, over the past
few years, emerged as an important
market for property developers from
Singapore, London and Melbourne,
Korean real estate has never really been
promoted to Malaysians. The lack of
familiarity with the market besides the
language barrier, have been key factors
why Malaysians do not take an interest
in the Korean property market. Are
there strong reasons now to take a look
at the market? Perhaps, it is time to do
so as the Korean administration under
the newly elected President, Park Geun
Hye, has unveiled several measures to
stimulate the country's property
market, as part of overall efforts to
improve the faltering economy.
slumped
after
mortgage-lending
restrictions were rolled out over the
past decade to prevent asset bubbles
from building up and as pessimism over
valuations increased because of the
global financial crisis.
Reviving the housing market will be one
of the key policies for the new
government as falling home prices can
send household debt out of control.
Under the new policies, first-time home
buyers will now be allowed to borrow
more at a lower interest rate from a
government administered fund whilst
home buyers in general will be exempt
from capital gains tax for the next five
years if the home that they purchase is
worth not more than KRW909 million
(RM 2.49 million). In this regard, the
current capital gains tax is between 6 %
and 38 % so this represents a significant
saving for those planning to sell their
home within the next five years. This
may be the spark needed to revive the
Korean residential property market.
South Korean housing sales are at the
lowest levels since 2006 as housing sale
transactions fell 14% to 47,288 units in
February whilst prices slid. Home prices
in Seoul are lower than at any time
since March 2008. Demand has
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HB HERALD
House Price Change
% change over a year earlier
Issue 6
For those who are considering investing in the Korean property market but are not
familiar with the property scene there, there are a few important things that you
should take note of. NB: the following are not meant to be a comprehensive guide.
Property Tenure/Ownership
Property tenure/ownership in South Korea is based on the following:



House Purchase Change
% change over a quarter
Fee simple or freehold title (similar to Malaysia)
Strata title – Sub-division of air space to provide the equivalent of freehold
ownership on a floor-by-floor basis. (similar to Malaysia)
Leasehold – Short-term nature. (land is rarely leased).
 Land: Maximum lease is 10 years with possible extension for a further 10
years.
 Commercial buildings: Essentially for 12 months, but can be for 3 to 5
years.
 Housing (government-built apartments): For ‘long-term housing’, the
minimum lease term is 5 years. For ‘permanent rental housing’, the
minimum term is 50 years.
Regulations Governing Foreigners
1. Foreigners who are resident in South Korea
Housing Purchase Price Index
(June 2011=100)
Source: Global Property Guide
Foreigners who plan to buy property in South Korea are subject to the Foreigner's
Land Acquisition Act and the Real Estate Registration Act. The foreigner must
report the purchase transaction to the appropriate district office, ie.
theSi/Gun/Gu office, within 60 days of signing the contract to purchase the
property. Once the buyer pays the whole purchase price, the registration of the
transfer of ownership must be completed at the registry within 60 days of the date
of payment of the balance of the purchase price.
2. Foreigners who are not resident in South Korea
Non-resident foreigners buying property in South Korea must similarly abide by the
Foreigner's Land Acquisition Act and Real Estate Registration Act as well as Foreign
Exchange Transactions Act. They have to provide documents certifying their
residency in the foreign country with proper authentication. Non-resident foreign
investors bringing capital into South Korea to buy property must report the
transaction to a foreign exchange bank by submitting a copy of the property sale &
purchase agreement, an appraisal report, and a certified copy of the property
registration. They must report the transaction to the appropriate district office,
ie.theSi/Gun/Gu office, within 60 days of signing of the sale & purchase agreement.
Once the balance of the purchase price is settled, the buyer must complete the
registration of the transfer of ownership at the registry within 60 days with a
registration number issued by the appropriate immigration office and a certified
copy of the land acquisition report and a copy of his passport.
3. Registration of title
The purchase of the property is legally secured via the official registration. In the
event that there is a title defect after registration, the rightful owner can recover
the property title through civil procedures in a court of law.
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HB HERALD
4. Payment
The buyer can make payments by way of a cashier's cheque
issued by a bank or by telegraphic transfer. In South Korea,
personal cheques are not usually accepted but cashier's
cheques, which are guaranteed by the issuing bank are
accepted.
5. Property related taxes
There are three types of taxes related to property as follows:
5a. Purchase-related taxes
Stamp duty is levied on the preparation of documents and
account books that certify the establishment, transfer, change
or lapse of rights to property. It ranges from KRW 100 to KRW
350,000.In general, the acquisition of real estate is also subject
to the following taxes:






Acquisition tax: 2% of purchase price
Special tax for rural development: 10% of acquisition tax
Registration tax: 2% of purchase price
Education tax: 20% of registration tax
Value added tax: 10% of purchase price for building
(corporations will be reimbursed)
Purchase of National Housing Bonds (NHBs). In the case
of an FDI company, the NHB purchase requirement shall
be reduced according to the FDI ratio of the company.
Where the acquisition of real estate is by an FDI company
undertaking an advanced technology and services
business supporting the domestic industry or by an FDI
company located within an FIZ, the acquisition,
registration and property taxes shall be reduced
according to the sum of the calculated tax, multiplied by
the FDI rate by 100% for the first 5 years and 50% for the
following 3 years. The period and ratio of reduction may
be extended by 8 to 15 years in accordance with
ordinances of local governments. In the case of
construction permission and real estate registration for a
building of an FDI company, the duty of purchasing
NHBs shall be reduced.
5b. Possession-related taxes
Property tax must be paid on each property owned if the total
value of all the owner's properties in South Korea is over KRW
600 million or KRW 900 million if the property is owned by one
family. Taxes that are to be paid for the holding of real estate
include:

Property tax
 Building: 0.25-4% of the building value (taxation
standard price determined by the government)
 Land: 0.07-4% of the official land value (taxation
standard price determined by the government)
Issue 6
 Aggregate real estate tax: 0.6-4% of the property value
as determined by the government
 Regional education tax: 20% of property tax/aggregate
land tax
 Special tax for rural development: 20% of aggregate real
estate tax
In the case of construction or expansion of factories in an
overconcentration control region, property tax shall be
imposed at a multiple of five times the standard rate for five
years. Property tax shall be reduced for advanced technologyrelated business or businesses located in a Foreign Investment
Zone (FIZ).
Those engaged in the leasing business shall pay a value added
tax of 10% of the rent and a corporate tax (13% or 25%) or an
individual income tax (8-35%) on income generated from the
leasing transaction.
Almost 90% of the land in South Korea
is mountainous, meaning that the 50
million over Koreans have had to use
space ingeniously to make room for
everybody. By far, the most popular
type of housing in South Korea is the
apartment, and Koreans see the
“apatu” much like Westerners see the
single-family house with white picket
fence and private lawn. For this reason,
there has been a housing boom in
South Korea as speculators build more
and more apartment blocks. Renting
apartments in Korea can be expensive,
with equally high housing deposits.
Apartments are usually stacked above
one another in identical blocks that can
be found throughout the country.
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HB HERALD
Issue 6
5c. Transfer-related taxes
8. Corporate taxation
This is a form of capital gains tax. Individuals pay transferincome tax based on the difference between their original
purchase price and the subsequent sale price of their
properties. Corporations pay transfer-related taxes through
their corporation tax.
Stamp duty is levied on the preparation of documents and
account books that certify the establishment, transfer, change
or lapse of rights to property. It ranges from KRW 100 to KRW
350,000.
Corporations are classified as ‘domestic’, ‘resident foreign’ and
‘non-resident foreign’ for tax purposes:


Taxes to be paid for the disposal of real estate are as follows:


Value added tax: 10% of the sale price of the building
Individuals
 Transfer income tax: 8 – 35% of capital gains
 Inhabitant tax: 10% of transfer income tax
Corporations
 Corporation tax: 13% or 25% of capital gains (NB:
The gains generated from the transfer are included in
non-operating profits and are thus subject to
corporation tax)
 Inhabitant tax: 10% of corporation tax
The surcharge on transfer income tax shall be increased by
60% when an individual transfers without filing a registration
with the authorities.
6. Value added tax/goods and services tax (‘GST’)
A standard 10% value added tax is levied on all goods and
services except for specified exempt goods and services,
including:



Unprocessed foodstuff
Certain professional services
Banking services
The following goods are zero-rated:




Goods and services for export
Services rendered outside South Korea
International transportation
Other goods or services supplied for foreign exchange
earnings
7. Tax depreciation
Generally, expenses which are incurred for business purposes
and adequately documented are allowed for tax purposes. For
buildings and intangible assets, only the straight-line method
of depreciation is allowed. Corporations must notify the tax
authorities of the depreciation method adopted. Depreciation
allowed under the CITA is deductible only if the amount is
recorded in the appropriate accounting records and reflected
in the official financial statements.


Domestic corporations – these are corporations with their
head office located in South Korea, regardless of the
place of incorporation. Such corporations are subject to
corporate tax on their worldwide income.
Resident foreign corporations – these are corporations
whose parent company is not incorporated in South
Korea and they are only subject to corporate tax on their
income generated in Korea.
Non-resident foreign corporations – these are
corporations without a permanent establishment in
South Korea and are subject to a withholding tax on their
income generated within Korea.
Corporate income tax is levied on a sliding scale.
9. Personal Taxation
For income tax purposes, all individuals are classified as
‘citizens’, ‘residents’ or ‘non-residents’. South Korean citizens
or resident individuals are subject to an income tax on their
worldwide income. Non-resident individuals are subject to an
income tax only on income derived from sources within South
Korea, unless a bilateral taxation treaty stipulates otherwise.
(Malaysia has a bilateral tax agreement with South Korea). A
person is considered to be a resident if his or her occupation
requires a continuous residency in South Korea for a year or
more.
Taxable income derived by individuals is grouped into four
categories:




Global income, which includes salaries and wages,
termination payments, interest, dividends, rental income
and income derived from business and other sources
Severance payments
Capital gains from the sale or transfer of property and
shares in unlisted companies
Income from forestry
Individual income is subject to global and scheduler taxation.
‘Global income’ denotes income that is subject to global
taxation at the following tax rates:
Under scheduler taxation, severance payments, capital gains
and forestry income are taxed separately at varying rates.
____________________________________________________
The information herein is believed to be correct at the point
of publication of this article. However, we do not vouch for
the accuracy of such information and shall not be held liable
in any way to any party relying on such information.
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HB HERALD
Issue 6
CROSSRAIL BOOSTS LONDON HOUSE PRICES UP
TO 40 per cent
By Feng Wai Chia, Henry Butcher International Marketing
Crossrail, a new railway linking
Maidenhead and Heathrow in the west,
to Shenfield and Abbey Wood in the
east, was introduced in London in 2008.
It is the largest addition to London’s
public transportation system since
World War II. The 118 km railway is
currently under construction and the
central section is estimated to be
1
completed by the end of 2018 .
The ten-car trains will
run at the frequencies
of up to 24 trains per
hour (tph) in each
direction through the
central tunnel section,
providing high
frequency, safe and
comfortable journey.
During peak times, up
to 78,000 commuters
will be able to travel
every hour.
Crossrail - Central Section
The central tunnels run from a portal
just west of London Paddington station
to Whitechapel, with further tunnelling
to Stratford and to Canary Wharf.






Paddington (additional
facilities)
Bond Street (additional
facilities)
Tottenham Court Road (major
reconstruction)
Farringdon (additional
facilities) – also connects to
Thameslink and Barbican
Liverpool Street (additional
facilities) – also connects to
Moorgate
Whitechapel (additional
facilities)
Currently, property prices within a 10minute walk of central London Crossrail
stations have risen by more than 30%
since the Crossrail project was
announced in 2008.
The planned Crossrail project is poised
to lift the value of residential properties
within a 10-minute walk of new
Crossrail stations by an average 9%
above normal home price growth in
London by 2018, according to new
2
research .
1
Transport for London website, May’13
Knight Frank Report 2013, London
Hotspots
2
10 | P a g e
HB HERALD
Issue 6
It was critical that Crossrail gets the
internal design of stations right as the
new stations have been designed to last
for the next century. Taking into
consideration that around 200 million
passengers will travel on Crossrail each
year and the route will provide a 10%
increase to rail capacity in the capital.
The
design
incorporates
retail
components in most of the stations in
the Central Section with easy
underground
access
to
current
operating tube lines.
It will also support the delivery of over
57,000 new homes and 3.25 million
square metres of commercial space.
Significant property investment could
take place at locations including Canary
Wharf, Whitechapel, Liverpoool Street,
Farringdon, Abbey Wood, Custom
House, Ealing Broadway, Southall and
Woolwich.
Image: The Telegraph
Traveling to Airports in London
via the Crossrail
The Crossrail, together with the
Thames Link Rail (another new British
railway system running 225 km north to
south through London from Bedford to
Brighton, serving both London Gatwick
Airport and London Luton Airport) will
lessen travelling times to the major
airports in London.
Popularity of Developments
Surrounding the Upcoming
Crossrail Stations
In Q1 2013, properties surrounding
future Crossrail stations such as Canary
Wharf and Whitechapel have sold very
well in launches overseas and in the UK
with up to 90% of the apartments in a
particular development being snapped
up in less than a month.
In May, Henry Butcher International
Marketing will be launching an
exhibition for Lincoln Plaza, a highly
anticipated project by Galliard Homes
that is located nearby Canary Wharf
Station. The earlier completed phase
adjacent to this block being launched
has achieved up to 7% in rental yield.
Residential prices around Canary Wharf
are expected to increase by 40% over
the next five years, according to Jones
Lang LaSalle latest report.
Architects impression image shows a
cross section view of Canary Wharf
Crossrail station. Canary Wharf will be
one of the largest Crossrail stations,
to be built in the North Dock water of
West India Quay. The station and
proposed retail and park areas will be
six storeys high.
11 | P a g e
HB HERALD
Issue 6
SOUTHEAST ASIAN ART PAVES WAY AT
HENRY BUTCHER’S 5TH AUCTION
By Chris Tay, Henry Butcher Art Auctioneers
Mindscape remained the highlight of
the sale with its impeccable provenance
and a remarkable combination of
quality and rarity that sparked strong
interest among prospective buyers. The
diptych gem fetched a buoyant
RM396,000 to a room bidder. Also on
offer were two immaculate paper works
both dated 1965 from the Pago-Pago
series which continued to gain buyers’
attention. The works established new
records for the artist as the prices for
these rare sketches soared to RM50,600
(lot 35) and RM40,700 (lot 26)
respectively. Pago-Pago series is one of
the most compelling in Southeast Asian
art by the artist whose works were
heavily influenced by nature at the
time.
KUALA LUMPUR - An enthusiastic
crowd of over 500 were present at
Henry Butcher Art Auctioneers’ fifth
sale on Sunday, 21 April 2013 which
concluded
a
strong
total
of
RM3,451,140, well beyond the pre-sale
estimates of RM1.9 to RM2.7 million.
With such positive response, the
auction attained outstanding results
with 99% lots sold and 72.5% were sold
above higher estimates.
“We are extremely delighted to
witness energetic bidding
across the saleroom that
contributed to the vibrant
atmosphere this afternoon.
This is by far the best crowd we
have ever seen!”
“HBArt’s first endeavour to introduce
Southeast Asian art into the market has
proven a great success with all 11
Indonesian works sold above the higher
estimates. We are also pleased to see
new interest from collectors locally as
well as from overseas. This new venture
to penetrate the regional market is
aimed at promoting and presenting
Southeast Asian art to Malaysian
collectors and Malaysian art to
counterparts abroad,” said director of
Henry Butcher Art Auctioneers Mr. Lim
Eng Chong.
The Southeast Asian art segment
contributed to the excitement in the
bidding room with Sudjono Abdullah’s
Market Scene setting the highest
record percentage of 523.3% above
higher estimate, sold at RM37,400.
Koempoel Soejatno’s Countryside
dated 1972 fetched a smashing
RM17,600. An anonymous telephone
bidder won the bid for a nostalgic and
desirable piece by Henry van
Velthuysen
entitled My
Village
executed in 1939 for RM19,800. Dang
Xuan Hoa’s My Child was also sold
above the higher estimate at RM11,000
while Chen Wen Hsi’s Swimming Ducks
saw intense bids across the saleroom
and it reached its peak price of
RM88,000 to an anonymous telephone
bidder.
“The Chinese ink section also thrived
tremendously in this sale. Among the
high record-setting prices were
established by Huang Yao (lots 83 and
84) - fetching RM41,800 and RM30,800,
248.3% and 242% above higher
estimates respectively - Calligraphy of
Zen Poem by Chuk Mor, Reverend
Dato’ brought RM12,100 which showed
demand and growth for Chinese ink
painting,” director Datuk Vincent Sim
commented.
Henry Butcher Art Auctioneers has
been conducting successful auctions in
Malaysia since 2010, raising more than
RM16mil in sales. The company’s
pioneering
work
in
promoting
Malaysian art through a transparent
and competitive platform vis-à-vis an
auction house has provided a
comparative benchmark to local art
pieces’ latest valuation.
For more information, kindly contact
Mr. Christopher Tay at +6016 298 0852
or email [email protected]. To view
the April 2013 catalogue and full results,
please visit www.hbart.com.my
13 | P a g e
HB HERALD
Issue 6
CHARITY BEGINS AT HOME…THE HB HOME!
By Callie Poh, Henry Butcher Property Management
“It's not how much we give but how
much love we put into giving.”
- Mother Teresa -
For almost two months, the HB
Property Management team worked
with the residents from Kiara Park TTDI
and The Residence TTDI to collect daily
home supplies including groceries,
toiletries,
household
products,
stationery and clothes. These items
were later donated to the residents at
Pusat Penjagaan Kanak-kanak Cacat
Taman Megah (PPKKCTM), Taman
Megah and Rumah Hope, Taman
Paramount on 16 March and 23 March
respectively.
“I feel truly blessed with what I have,
and what I am today, knowing that
there are so many other people out
there who are not as lucky as I am. I am
glad that the residents at Kiara Park
TTDI shared the same sentiment and
went all out to donate these items for
PPKKCTM. I would like to thank Mr.
Low Hon Keong, Mr. Lee Choon Hoe
and their team for organising this
donation drive on our behalf, and we
hope to contribute more to the next
one soon!” quipped Ms. Grace Adams,
former chairperson of Kiara Park TTDI
Management Corporation.
“Disabilities aside, the residents at the
Pusat are very polite, well-mannered
and friendly. I am humbled to see little
boys and girls trying their best to help
us carry some (heavy) items when we
arrived there,” general manager of HB
property management division Mr. Low
Hon Keong said.
“I’ve never seen anybody enjoying a
simple food like ‘nasi lemak’ as much as
them!” remarked property manager Mr.
Lee Choon Hoe while he was helping to
serve the food during tea break.
According to the administration
manager Mr. Baskin, the Pusat is selfsupporting and depends solely on
public contribution and volunteers for
PPKKCTM provides shelter and
services to physically handicapped
and disabled children. There are
about 138 children of all races living
at the Pusat, ranging in age from 9
months and adults up to 56 years of
age and coming from all over
peninsular Malaysia.
If you wish to make a personal
contribution or organise a donation
drive, please contact them directly:
Rumah Hope is currently housing 60
children between the ages of 5 and 17
who were either formerly abused,
neglected or under-privileged.
its day-to-day running. Currently they
are collecting funds to build a one-stop
centre on a piece of land they recently
acquired in Taman SEA. The projects
construction is estimated to cost RM5-6
milliion.
In the latter donation drive, Ms. Callie
Poh collected the donated goodies
from The Residence TTDI and
personally made sure the items arrived
safely at Rumah Hope. The children
were particularly excited to see some
toys and stationery in the boxes.
Pusat Penjagaan Kanak-kanak Cacat
Taman Megah (PPKKCTM)
Address: 2, Jalan SS 24/10, Taman
Megah, 47301 Petaling Jaya, Selangor
Tel: 03-7806 1143
Fax: 03-7805 1484
Email: [email protected]
Website: www.ppkkctm.org.my
Rumah Hope, Taman Paramount
Address: 45, Jalan 20/2, Paramount
Garden, 46300 Petaling Jaya, Selangor
Tel: 03-7954 5523 / 79572860
Fax: 03-7954 5722
Email: [email protected]
Website: www.rumahhope.org.my
14 | P a g e
HB HERALD
Issue 6
Henry Butcher Rewards Clients
Henry Butcher Malaysia started its operation from an office of four staff in Kuala
Lumpur in 1987. Since then the company has grown into a network of 25 offices with
over 400 personnel and the group has expanded into Southeast Asia with equity interest
in an asset management company in Thailand, a full office in Cambodia and associates
in Indonesia, Singapore, Hong Kong and the U.K.
In collaboration with HBM Building Solutions Sdn. Bhd., the company has launched the
HB+ membership programme, designed exclusively for clients, associates, and business
partners of Henry Butcher Malaysia group, to say thank you for their support throughout
these 26 years. HB+ is conceived with the objective of fostering a better relationship
with HBM clients, through products, services and events that will enhance the quality of
living of our members.
50% Discount for
Home Repair
As an introductory offer, HB+
members will get 50% off the total
1
bill for any repair and maintenance
services related to plumbing,
electrical
and
air-conditioning.
Please
call
us
our
HB+
Hotline
1700-81-5505
(Mon to Fri, 9am to 9pm).
Win the Latest iPad!
HB+ Home Services, Expertise at Your Doorstep
HB+ Home Services is our inaugural programme that
provides home services and maintenance solutions to
our members. Knowing the difficulty of getting a
good and reliable plumber, technician or even
contractor, our concept is simply based on efficient
services, effective solutions and peace of mind for
home owners.
Our scope of services includes:
 Electrical – Lightings, fuses, circuits and
electrical outlets, and any other related home
electrical issues.
 Plumbing – Water taps and hose, shower
head, bathroom inner workings, and any other home
related plumbing issues.
 Air Conditioning – remote control and unit
circuit, air filter, fan motor, and any other home related air conditioning issues.
HB+ and More!
We also have plans to roll out more benefits and privileges to our members, including:
 Talks on home maintenance, investment and health
 Special rebates and bulk discounts from merchants and property developers
 Invitation to exclusive members-only previews of projects to be marketed
 Members-only discounts on fees for professional services provided by Henry
Butcher Malaysia group
 Reward Programme through HB+ Points
It is our sincere wish that you, as one our clients,
associates or business partners fully reap the benefits of
our HB+ membership. If you wish to join our programme
or find out more information, please contact our Ms.
Lim Sooi Ping at +603-2694 3688, email
[email protected] or visit our website at
www.hbplus.com.my. Our HB+ membership is free.
We would like to get to know you
better and make your experience
with HB+, a wonderful one. By
completing the Member Profile
Registration Form and returning to
us
(kindly
email
[email protected]), you will
get a chance to win the latest iPad
and other attractive prizes in our
2
Lucky Draw !
1
The introductory discount is limited
to one-time use per member, subject
to a maximum of RM200. The
discount is only applicable for repair
and maintenance works (see HB+
Home Services leaflet for full
details), and not for new installation
or purchase of parts. Standard
conditions of service apply.
2
To be eligible for the Lucky Draw,
member must complete the Member
Profile
Registration
Form
and
successfully submit to the HB+ Team.
The Lucky Draw will be held in June
2013. Standard conditions of lucky
draw apply.
15 | P a g e
HB HERALD
Issue 5
Upcoming Events – May 2013
Henry Butcher Retail Director Speaking Engagement at PUNB Industrial Talk
Perbadanan Usahawan Nasional Berhad (PUNB) is a national entrepreneur
development corporation, focusing on developing high-potential Bumiputera
SME entrepreneurs particularly in retail & distributive trade industry. RGM Retail
Group (Malaysia) Managing Director Mr. Tan Hai Hsin will be giving a talk on, “The
Outlook of Malaysia Retail & Distributive Trade Industry”.
Date: 13 May 2013
Time: 3.00pm –5.00pm
Venue: Level 10, Blok 1B, Plaza Sentral, Kuala Lumpur Sentral
Contact Person: Pn. Norliza Mohd Nazri, +603-2785 1433
Preview – Lord Kensington, Kensington High Street, London W1
A prestigious collection of 1, 2 and 3 bedroom apartments and penthouses located at prime
Kensington High Street. One of the rare and remarkable opportunities to invest in the Royal
Borough of Kensington and Chelsea. Private residents’ leisure suite to include swimming pool,
spa, fitness studio and business suite. Harrods concierge service.
Date: 18 – 19 May 2013
Time: 10.00am – 7.00pm daily
Venue: Mandarin Oriental Hotel Kuala Lumpur
Contact: Jazmine, +6017-877 7489, [email protected]
Exhibition – Royal Victoria Garden, Marine Wharf, Surrey Quays, London SE16
Only 3 minutes to Canary Wharf by tube, this new vibrant destination features contemporary
apartments, duplex apartments and duplex penthouses in an established residential area. Short
walk to Canada Water Underground station for direct links to Canary Wharf, London Bridge,
Bond Street and Baker Street. On-site shops, restaurants and leisure facilities include a newly
opened Tesco Express. Potential to earn 6% rental yield with rental demand from Canary Wharf
and the City.
Date: 24 – 26 May 2013
Time: 10.00am – 7.00pm daily
Venue: Mandarin Oriental Hotel Kuala Lumpur
Contact Person: Jazmine, +6017-877 7489, [email protected]
Exhibition – Lincoln Plaza, South Quay, Canary Wharf, London E14
New luxurious apartments just 5 minutes walk to Canary Wharf and within 10 minutes walk to
Jubilee Line and forthcoming Crossrail. Facilities include exclusive health spa, sauna, gym, pool,
private cinema and snooker suite. Potential to enjoy strong rental returns with potential
corporate tenants of over 43,000 employees.
Date: 31 May – 2 June 2013
Time: 10.00am – 7.00pm daily
Venue: Mandarin Oriental Hotel Kuala Lumpur
Contact Person: Jazmine, +6017-877 7489, [email protected]
16 | P a g e
HENRY BUTCHER MALAYSIA
For enquiries, please contact our Headquarters:
PENINSULAR MALAYSIA
HENRY BUTCHER MALAYSIA Sdn Bhd (160636-P)
25, Jalan Yap Ah Shak, 50300 Kuala Lumpur, Malaysia
T : +603-2694 2212 F: +603-2694 5543
E: [email protected]
www.henrybutcher.com.my
Klang Valley
Ampang
T • +603-4270 2072 / 73
F • +603-4270 2082
E • [email protected]
Eastern Region
Kota Bharu
T • +609 747 4001
F • +609 747 5003
E • [email protected]
Valuation
Mr. Long Tian Chek, [email protected]
Mr. Gary Liew, [email protected]
Damansara
T • +603-7118 3800
F • +603-7727 4077
E • [email protected]
Kuala Terengganu
T • +609-620 3838
F • +609-620 3828
E • [email protected]
Kuala Lumpur
T • +603-2694 2212
F • +603-2694 5543
E • [email protected]
Kuantan
T • +609-516 1155
F • +609-516 3355
E • [email protected]
Project Marketing
Mr. Tang Chee Meng, [email protected]
Ms. Linda Ooi, [email protected]
Ms. Lenna Liew, [email protected]
Agency & Investment
Mr. Tang Chee Meng, [email protected]
Ms. Lenna Liew, [email protected]
Mr. Low Weng Soon, [email protected]
International Marketing
Ms. Jazmine Goh, [email protected]
Research Consultancy
Pn. Fahariah Abdul Wahab, [email protected]
Retail Consultancy
Mr. Tan Hai Hsin, [email protected]
Asset Management
Mr. Low Hon Keong, [email protected]
Auctions
Mr. Tang Chee Meng, [email protected]
Mr. Tan Peen Yeow, [email protected]
Plant & Machinery
Mr. Gary Liew, [email protected]
Art Consultancy
Mr. Christopher Tay, [email protected]
MM2H
Ms. Suyi Chong, [email protected]
DISCLAIMER
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We make no warranties or representations as to its accuracy and we
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The property information provided in this newsletter is for
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statement or representation of fact based on which a contract is
created.
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or in part.
Petaling Jaya
T • +603-7873 3888
F • +603-7873 7288
E • [email protected]
Subang Jaya
T • +603-5631 5555
F • +603-5632 7155
E • [email protected]
Northern Region
Alor Setar
T • +604-731 5525
F • +604-731 5699
E • [email protected]
Kluang
T • +607-775 1500
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E • [email protected]
Muar
T • +606-955 5968
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E • [email protected]
Butterworth
T • +604-398 8999
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E • [email protected]
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E • [email protected]
Ipoh
T • +605-253 9933
F • +605-254 9933
E • [email protected]
EAST MALAYSIA
Kulim
T • +604-491 2999
F • +604-491 2311
E • [email protected]
Sabah
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T • +6088-255 000
F • +6088-257 333
E • [email protected]
Pulau Pinang
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Sandakan
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Seberang Perai
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Central Region
Melaka
T • +606-281 2188
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accordance with the laws of Malaysia.
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E • [email protected]
FOR INTERNAL & CLIENT CIRCULATION ONLY
Southern Region
Johor Bahru
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E • [email protected]
Sarawak
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