Our web analytics reveals that a significant number of visitors to this site would like to know how Perdana Emerald compares to Metropolitan Square. This is not an easy comparison to make, and we understand that no matter how objective we try to be, some of you may hold different opinions. We welcome this diversity of opinion and urge you to add your constructive input in the comments section.

General Comparison

Perdana Emerald (Emerald) is situated in a relatively quiet enclave in Damansara Perdana. There is a lot of shade in the surrounding area, making the open areas fairly pleasant even in the peak of the afternoon heat. Although there are commercial units on the lowest levels, there is not much commerce here. Many of the commercial units are unoccupied or do not receive much patronage. This is quite a pity as the facade for the commercial area is pretty good.

The condominium is older to Metropolitan Square having been fully completed sometime in 2005. Yet, Emerald does not look older to Metropolitan Square in terms of building condition. Emerald boasts a very functional design, good facilities, and well-built parking spaces.

Metropolitan Square is situated beside the main road of Damansara Perdana (Jalan PJU 8/1). It is closer to the commercial hub of Damansara Perdana. Metropolitan Square’s better vantage point offers units on the higher floors a much better view of the surrounding hills and the urban landscape of Mutiara Damansara. Metropolitan Square’s commercial units are also doing relatively better. It boasts a more modern facade but it is architecturally not as functional as Emerald.

Navigating through Metropolitan Square can be tough. Visitors who are visiting for the first time will find it perplexing to get to the visitors car park and to the unit they are visiting from there. In comparison, getting to units in Block 1 and 2 is a breeze in Emerald. However, access to Block 3 in Emerald is not as easy.

Design

Metropolitan Square certainly looks more modern than Emerald but we’re not judging on looks alone. Design includes architecture, functionality, and layout. The common areas on the residential floors in Metropolitan Square look bare. It could be the color of the walls and tiles but we’re generally not impressed. Normal tube lights light the aisles. The lifts are also nothing to shout about.

Emerald on the other hand fares better. The common areas in the residential floors are bright as it receives good sunlight. The flooring here consists of earthy tones that give a richer, more exquisite feel. The flooring on the lifts match the flooring of the lobbies. The lift lobbies on the ground floor are also air-conditioned.

The units in Metropolitan Square have a generally narrow layout when compared to Emerald. Call us old-fashioned but we prefer the wide layout. The duplexes in Metropolitan Square are nearly the same in as the duplexes in Emerald.

Perdana Emerald's visually pleasing and shady pool area

Emerald and Metropolitan Square have very beautifully landscaped pool areas. In Emerald, shrubs grow at aesthetically well chosen areas on the parking floors and tall palm trees line the pool area offering good shade. All the facilities surrounding the pool in Emerald is built with clear demarcation, enhancing the exclusive feel, and offering more privacy.

Metropolitan Square has a more open concept with 6 pools. That’s right, 6. There are 2 infinity pools, 2 lap pools, and 2 children’s pools. The pools are well designed and are the highlight of the open space here. There is a clubhouse that is vacant with the exception of a gym on the first floor and a sundry shop on the ground. Metropolitan has better pools than Emerald, however, when taken into context with the rest of the facilities, Emerald offers more a more pleasing design.

Emerald has a beautiful drive way that is paved with earthy-toned tiles all along. Again, this is much better than the tar roads leading to the residential units of Metropolitan Square. Like this, there are plenty of small things done right with Emerald that gives it that exclusive feel lacking in Metropolitan Square. On the other hand, Metropolitan Square has a lot of wasted, empty spaces. Even if it is not, it does look like a design flaw.

In summary, Metropolitan Square offers better pools and a larger walking area. If you like swimming and evening strolls, it is an attractive option. However, for overall design, we have to give Emerald the thumbs up.

Facilities

The table below out lines the list of facilities in Emerald and Metropolitan Square:

In terms of diversity of facilities, Emerald is the winner here. However, Metropolitan Square has an arsenal of pools that make Emerald’s pale in comparison. Both condominiums have sufficient facilities for their respective densities.

1 of the 6 stunning pools in Metropolitan Square

Of significant notice is that Metropolitan Square’s BBQ area is not as impressive as Emerald’s. Emerald has a very private BBQ Terrace with 3 pits and japanese style sitting areas. Metropolitan Square’s on the other hand, is rather minimal, with only 1 pit. Overall, we prefer the way Emerald’s facilities roll-out.

Density

Metropolitan Square currently has 3 completed blocks with a total of 948 units. Upon completion of the remaining 3 blocks, it will house a total of 1,929 units. Emerald has a total of 3 blocks with 560 units. Hence, when fully completed, Metropolitan Square will be nearly 4 times as dense as Emerald.

If you are the claustrophobic type, this may be a serious consideration. It must be noted though that Metropolitan Square is built over a larger area than Emerald.

Lifestyle

Metropolitan Square is closer to amenities like the bus stop and eateries. Metropolitan Square’s high vantage point and good distance from external obstructions provide residents here with better views. The views from many of the higher floors are great. The busier commercial area has attracted notable eateries like Old Town Kopitiam and Deutsches Gasthaus. There is a mamak restaurant and other decent places to eat here too. There are also a variety of pubs in the commercial area. Banks like Citibank and Nova Scotia have branches here. The lifestyle value provided at Metropolitan Square is definitely above par.

Emerald has a few obstructions close-by. It is flanked by Ritze Perdana 2 on the East and Surian Residences on the South. The views from a significant number of units are therefore undesirably obstructed. Units that face Surian Residences, which is under construction, may have slightly higher noise levels. The commercial area in Emerald does not have the diversity and quantity of good businesses found in Metropolitan Square. There is one gastro-pub here called Friendscino.

Overall, Metropolitan Square gets our thumbs up here.

Conclusion

Emerald and Metropolitan Square have unique advantages that will appeal to different types of people. If you value aesthetics, form, functionality, privacy, and generally good design, Emerald may be your kind of place. It is suitable for established, medium sized families.

Metropolitan Square on the other hand will appeal to you if you prize a modern look, resort like pools, and good lifestyle options. It is suitable for young, small families.

Do you disagree with our conclusions? Tell us what you think in the comments section below.

DP: So to understand you correctly Dato’, although in theory there is a difference between freehold and leasehold, in practice you can actually own a leasehold in perpetuity?

I think it will depend on the type of land. If it is a residential property, because of the underlying socio-economic and political problems, there is a very good chance of getting extensions. Whereas for commercial lands, even industrial lands, the government may or may not extend the lease.

There is no question though of extending the lease under the National Land Code. You have to surrender the land and renew your lease. There is a surrender and what they call re-alienation. That’s the process. The process is not an extension of the lease. The actual process is to surrender your land for whatever period, 2 or 3 years, then you ask for re-alienation for 99 years. That is the only process allowed under the law. But we colloquially address it as an extension of lease. The National Land Code does not recognize extensions.

DP: So someone who owns a landed property in Petaling Jaya for example, has to return and vacate her property at the end of her lease?

Yes. If she does not want to renew, if she does not want to ask for a re-alienation, then that’s it.

DP: But she has to move out prior to the re-alienation?

Otherwise she will be a squatter on state land. The land becomes state land after the expiry of the lease. However, most owners will apply for re-alienation for which a premium will be charged. And theoretically they can charge full premium but because the owners have been there for some time, they may be given grace with a certain formula being applied to reduce the burden.

DP: What is your view on studio apartments?

So long as it serves a particular need it is okay. So long as it is not a way out for developers to get more units built on the same area using the same debt ratio and trying to flog it out as a residential unit, it is okay.

DP: Given our current demographics, do you think it is wise to invest in a studio apartment?

I see a pattern appearing but it is not that prevalent. I don’t see young adults, or unmarried adults above 20 or 21, moving out and setting up a home for themselves. It is not the preferred choice. In most families things (in this respect) are still traditional. The unmarried children still stay with the parents. I think we are a little bit ahead of time. But it will change.

DP: What advice can you give to someone who is new to investing in property?

First, property prices are a bit on the high side. You might not have enough savings to find the first 10% or 15% that you need to put into the property. I would think if you want to buy a house you have to have your objectives right. What do you want? Do you want a house for yourself? Or do you want to invest? Or do you want to speculate? They are 3 different things and there are 3 different people in the market.

Those who want a house for themselves don’t look too much into (investment) details. They look at convenience, like whether the house is close to their parents’ house, whether it is close to infrastructure, whether it is closed to means of transportation, and how quickly they can get from home to work. If they are married and have children, other factors also come in to consideration, like proximity of schools. So these considerations far outweigh the returns.

An investor invariably looks for returns but many local investors do not actually look for long-term returns. They look at (relatively quick) capital gains. So they buy in an area where they notice that the price has been going up, and where every year there has been some increase in returns.

Most of the people buying new houses, appear to be from this category. They seem to be people who are speculators. They buy property today and when it is completed, it would have appreciated and they can just sell it and move on. They are known as flippers in the market. And quite a lot of people are forming into groups, and clubs to put their spare money into buying property during its development stage, and then when it is completed, selling it off.

They are not people who want to buy a house for an investment. They have noticed that the property market has always been going up and that each time a developer launches a 2^nd development, the 2^nd launch price is always higher. They want to take advantage of that.

In the KV, for new people to buy houses is always very difficult unless you have savings of RM100,000 to RM200,000. The average price of a terrace house is about RM400,000 to RM500,000, and 10% may not be enough. Even if you pay 10%, the repayment on the balance of the loan may be above RM2,500 per month. If you are young and new to the market, you probably would not be in the income bracket to pay so much per month from your income.  So it is going to be difficult for new people in the KV to buy houses for themselves, unless they look at the secondary market and look at areas or pockets where prices are within their means, for example smaller apartments or single storey terrace houses in certain locations which may be well below the average.

Most of the people who buy houses today are not first time buyers. They already have houses. They are either upgrading, or selling and moving on, so for them, whatever money they make from the sale of the current house, they put into the new house, and then they take a loan on the difference. Such people are okay because they already have the benefit of a house. But new people who don’t have a house and want to buy a house, are going to face a problem.

DP: For investors who are looking at property as a good area to invest money in as opposed to the stock market, what should they look out for?

If you are an investor with enough money, and you already have a house to yourself, my suggestion is invest in shops with tenancies. Look for areas that are popular where businesses are thriving. Businesses tend to shy away from putting their capital or rather too much capital into real estate.  They need the capital to carry on operations. They don’t like paying outright. That’s why you find a lot of REITs becoming owners of business premises on a sale and lease back basis.

By doing so, the owner of the building frees up her capital. But, she can continue her business there because she has got this tie-up. She essentially does not have to sit on that RM100 million capital. Similarly, many businesses prefer that their capital is not tied-up.

For shops, you can look at rental returns of 6% to 7%. The rate now is about 5% or even less which means that the asking price for shops are very high. I would suggest looking for returns of 6% – 7% from shops. Invariably that 6% will be able to pay off a loan which is between 70% – 80% of the purchase price.

Rental for shops is typically revised every 3 years so there is also the possibility of rental appreciation every 3 years. In established places, businesses will not want to move on when they have goodwill, the advantage of location, and local customers. They tend to stay in the same place. So my advice or suggestion has always been to buy shop lots if you have the money and you want to go into property.

Buy a house for yourself if you don’t have one to stay in. Investment returns for housing is very low. There are places where it is less than 3%. The other option is to buy agriculture land. The income may not be there but the capital appreciation has always been quite high. Buy a piece of land, if it is oil palm very good, you will get some income, but the land value may not be proportionate to the income. However, 5 years or 10 years down the road, the land value will appreciate significantly.

DP: How do you recognize a good developer or good development?

We always say track record – how long has the developer been in business, where are his projects, what sort of quality of housing has he been delivering. That will mean that only a chosen few developers would be preferred. And invariably in the KV you can see which developers command a big rush for their properties during market launch.

Labor used in the construction industry is mostly imported. Legal or otherwise. We do not know to what extent they have been trained and what level of supervision they have. So one of the things of course is to see what kind of labor is used but as a purchaser you don’t get access to all this information in the first place. We pre-buy properties before they are built. We do not have houses that are built and then sold. If houses are sold like this then you can do an inspection to find out if there are any defects. You can bring in a building surveyor who can tell you if there are defects or not.

But we don’t buy houses off the shelve. So how well a house is constructed depends on who is building. And that means the new developers will always be at a disadvantage.

DP: So by that token is it wiser for first time home buyers to buy from the secondary market in an established place where they can inspect the home?

Buying from the secondary market is fine but if you’re buying from developers, buy from established developers.

We recently had the opportunity to interview Dato’ Mani Usilappan for his thoughts on the general property market in Malaysia. Amongst other things, we asked him if the property market was going to crash and what his advise was for first time property investors.

Mani is a very accomplished professional in the property sector. He is a Chartered Surveyor and served as the Director General of the Valuation and Property Services Department, Ministry of Finance. His portfolio includes serving as an Independent Non-Executive Director, an Audit Committee Member and Chairman of the Risk Management Committee of Keretapi Tanah Melayu Berhad. He is an expert in the area of valuation and estate agency.

Mani’s insights were very sharp and he shed light on areas that would interest any keen property enthusiast. Inevitably, we probed a lot and Mani had a lot to dish out. This was an exciting interview that we present to you in 2 parts.

DP: Dato’, is the property market going to crash? This seems to be on top of most people’s minds.

Certainly not. There are no indications that the property market will crash. I always find it odd when people say that the property market will crash. The property market is not a separate market. It is not a market that works on its own. The property market is part of the national economy.

If the national economy goes down then you can’t prevent the property market from going down as well. So it is a derived market. It is not an independent market. It is dependent and derived from the national economy. When the national economy is performing well, there is no reason to believe or to anticipate or to expect or even to worry about the property market crashing.

You’ll always have indications from the general market, the stock market for example will be affected when other stock markets are affected. In a global downturn, where our economy is holding good, there will be a kind of plateau or wait and see attitude. The sub-primes are a very good example.3 or 4 years ago, in Europe and America, the economies and the property markets went down but it did not affect us. There was a wait and see attitude, people were a little worried. But realizing that our property market is not shored up by dubious loans, it held its own. It didn’t go down. In fact when people realized that every thing was okay, it went up to new heights, from 2009 to 2010 to 2011.

I believe the reason that the property prices have gone up tremendously is because of Real Property Gains Tax (RPGT). The government decided to reduce the tax to zero some time ago. They did not remove it but they reduced it. So people started trading property as though it was stock. And it went on a spiral. I buy at RM 1,000  per square feet (psf) and sell at RM 1,200 psf. The guy who buys at RM 1,200 psf sells at RM 1,400 psf and so forth. Nobody had to pay any tax. So it became like a medium for transactions, just like the stock market. However, there was no real value in the increases.  They were not being supported by rental or investment fundamentals.

When the govt decided, wisely, to bring back the RPGT, it wasn’t much in my opinion (5%), it put a halt to unrestricted speculation and prices retracted somewhat. At least in the areas where it had gone up too much – in the KLCC area for example.

Large scale speculation was only happening in certain areas in the Klang Valley (KV). Not throughout the country, not throughout the KV. So prices in some of these places retracted back a little and people thought there is a bubble. This was not the case. 

The government, I think, made a mistake in reducing the tax. So people had the opportunity to push up prices. These increases were not supported by fundamentals. It was speculation for quick gains. Having gone up to the heights it reached, it has since come down and pretty much stabilized at around RM 1,000 psf to RM 1,200 psf for condominiums in the KLCC area. Now that has sort of set a mark.

Prices in the KLCC area now hover in the RM 1,000 psf to RM 1,200 psf range

Having said that, the fundamentals are still there, the economy is still growing at about 4% – 5%. It has grown in this range over the last 3 years or so and there is no indication that the general economy is due for any correction. Fundamentally the agriculture side is quite strong, the petroleum income is still very good, and the manufacturing sector is doing well. We’re still exporting to many countries, including trading partners like the US and traditional partners like Japan and China.

Electronic goods are doing well and the services side is also good. So I don’t see anything that indicates the property market is headed for a crash. Prices though have gone up a bit too high. Especially in certain areas in the KV where properties are at what we would term ‘beyond the affordable bracket’. Personally I do not know what is affordable in the KV. We do not know what is the real average household income in the KV.

Statistics indicate that the average income per household is about RM 6,000 per month.But if you translate this into affordability, there is no house in the KV that is affordable. Going by the 1/3 ratio, the average household can only afford monthly installments of RM 2,000 on their home loan. For RM 2,000, you can only borrow up to about RM 230,000 or RM 240,000.

I have done enough calculations to know that there are no houses available around that price region unless you go for low cost. Even low cost houses in the secondary market fetch over RM 150,000. Therefore, the average person cannot buy a house which is launched today if we go by the statistics. So something is not right. I assume we do not know what is the actual income of the average KV household and I suspect it is more than what the statistics are telling us. Otherwise, I cannot explain how developers are able to sell houses at RM 600,000 or RM 600 psf, RM 700 psf, RM 800 psf, and they’re all taken up.

DP: Could it be an influx of foreign investors?

No. The foreigners are not buying those kind of houses. There’s no reason why they should or have to or want to. They will buy in very select areas. If they are looking for investment then they will go for areas like KLCC or Mont Kiara or other well established areas.

They will not venture into many of the areas which are more popular with the locals. Just like we would not go into unknown areas in England. We would rather stay or invest in cities that we know, like London or Manchester. Hence, foreigners will go for certain places in KL. They will not go to places like Cheras or Kepong or the back of Brickfields.

DP: Could we the assume that banks are over-lending?

Banks have been lending quite a bit to the property market. If you look at Bank Negara data, you’ll find that something like 47% of all bank lending is to the broad property sector. That includes construction, purchase of housing, purchase of non-housing property, and also other real estate. If you take away construction, you will find that something like 33% to 35% of all lending is to the purchase of properties, out of which the bulk is for housing.

In 1994, if I remember correctly, it was about 23 – 24% and we thought it was a little high. Now it is 47%. Generally speaking, compared to most countries this is high. In developed countries, lending to the property sector would probably be below 20%. But since we are a maturing economy, and housing is a prime necessity, there is significant lending to the property market. This is not bad in a growing economy.

Back to your question, I don’t think banks are over-lending. Banks are quite prudent in their lending. For example, they ask quite a number of professionals for an opinion of value before lending. The unfortunate thing is that banks don’t want to pay a valuation fee. What they do is they pick up the phone and ask people whom they know practice valuation as to what they think the value will be. They want a verbal opinion.

On the one hand they want to encourage more lending but on the other hand they want the cost related to it to be low. I don’t know why banks fail to realize that a risk management tool for lending is to get a professional opinion of a valuer who is already protected by professional liability insurance. If anything goes wrong with the lending, the banks can always pursue recourse through the valuer who provided the opinion and thereby shift the risk from the bank to the valuer.

DP: Most people prefer freehold property but are there any advantages to leasehold properties? What are the risks associated with a leasehold?

In reality there are only 2 types of titles. Whether you are in the U.S or in Australia or any country for that matter, they recognize 2 types of titles. One is called a ‘Grant in Perpetuity’, and the other is called ‘A Lease for A Term’. Common words used for these are ‘freehold’, which is an ownership in perpetuity, and ‘leasehold’ which is a lease for a period of years.

We derive our land laws from UK, where in the past, all land were freeholds owned by dukes and duchesses and earls and so on. Whenever a common person wanted land to do some work, a lease was drawn up. That’s how this thing started. You want to farm my land, I will give you a lease for 10 years, 15 years, 20 years, or 99 years. At the end of the lease you must return the land.

So there were landlords and the rest of the common people were tenants or lessees who were holding on to a lease. The government also leased out land by giving out a crown lease for 999 years. Not quite in perpetuity but long enough. In Malaysia, if you go to Penang, Perak, and Malacca you will find that there are crown leases for 999 years.

A Crown Lease is for 999 years

In Malaysia, the leaseholds started where there was a temporary need for land. For example during the emergency, there was a need to re-group people from one place to another. They set up new villages. These new villages were all on short term leases, 20 to 21 years. P.J and Jinjang were new villages with short leases. The fact of the matter is that this land was supposed to be given for a short term until the inhabitants were resettled somewhere.

Subsequently in 1965 when the National Land Code came in, it recognized 2 types of titles, the freehold and leasehold, and 99 years became the maximum number of years that a lease can be issued. From thereon the government started giving leases for 99 years.  However, the National Land Code has been amended in such a way that all new land alienated to individuals will only be 99 years. No more alienation of freeholds.

Obviously with freeholds there are more advantages. Freehold means you own the land in perpetuity and you can pass it on to generation after generation. A leasehold will be owned for a period of time, 99 years, after which it must be returned to the government. So you own the property for 99 years and after that you give it up.

When you buy a leasehold you determine the value of it based on what you have ownership for. There will certainly be a price difference between a freehold and leasehold, because freehold is in perpetuity and leasehold is for a period of time. You are not going to pay the same price. If you pay the same price, something is not right. When you buy a property, you must take that into consideration. You also cannot assume that the lease will be 99 years forever.

Now coming back to the reality of the situation, when a whole area becomes leasehold, and you have a thriving population, it becomes difficult for the government to re-zone the land. It creates socio-economic problems, which will tie back to political problems, which translates into who comes into power.

For people living in a leasehold area, they will have nowhere to go when their leases expire. The government will need to re-house them. So one of the easier ways of doing it is to give them the same type of title back again.

Of course there are some people asking why can’t the government convert leaseholds into freeholds.  There will be a price to pay for that, the difference between a leasehold value and a freehold value. But right now the position is that only leaseholds are granted under the National Land Code. There is absolutely no provision for converting leaseholds into freeholds but the state authority has the final say in this. Land is a state matter.

The state authority can decide to convert leases. We hear of this happening in Perak for example. If you look at the bigger picture though, in terms of revenue for the government, quite a fair bit of revenue comes from land and land based taxes. Countries like Singapore and Hong Kong are dependent almost totally on revenues from income tax and land based taxes such as property tax.

Stay tuned for Part 2 of this installment next Sunday.

1. Visit Central Park Bandar Utama

This park is pretty impressive. It is large, has a good jogging / walking track, and has a pond with turtles. Walking or jogging here early in the morning is a great way to get some fresh air and unwind. It does not get overcrowded in the mornings and there are some nice spots to do a little bit of outdoor yoga if you’re into it.

Every 1st Sunday of the month, Central Park is host to a lovely farmers’ market. If you like your greens, you should make it a point to visit.

A group of people doing yoga early in the morning at Central Park

2. Watch A Movie

With e@Curve practically a walking distance away from Damansara Perdana, it really does not take much effort to plan a movie date with your partner and/or family. Add to this fact that 2012 promises a whole load of awesome movie releases, and it becomes all the more imperative for you to watch them all at the cinema.

The Cathay Cineplexes at e@Curve offer good ambiance, audio visuals, and comfort. They’re not as great as GSC, a minor hiccup  for the convenience of proximity though.

3. Take The Kids To Kidzania

If you live in Damansara Perdana, you’d be blind not to notice the advertising blitz that Kidzania has launched recently. Kidzania, a product of Mexico, is an educational indoor theme park for children. Kids get to play adult roles and we’ve been told that you get to earn and spend money in this exciting make believe world.

You can admit your children in for the morning session (10am – 3pm) or the evening session (4pm – 9pm). Admission prices are pretty reasonable at between RM 35 – RM 75 for the children.

4. Go Ice Skating

There’s a skating rink in town and it’s right next to Damansara Perdana. Situated in the new Royale Bintang wing in Mutiara Damansara, the skating rink promises to be a lot of fun. This is the perfect activity for a hot afternoon. Even if you’ve never skated in your life, you should make it a point to go. Bring the whole family for added fun.

5. Visit The Flea Market

The Street at the Curve is home to a bustling, thriving flea market. On weekends, this place is teeming with people, activity, and commerce. There is plenty of good restaurants and a few good pubs on either side of The Street. You’ll find the usual products sold at the flea market here including accessories, clothing, and trinkets.

You could spend good quality time in this section of The Curve alone. It beats spending the entire day indoors, so the next time you find yourself cooped up at home on a weekend, head over to the flea market.

6. Bar Hop In Metropolitan Square

There’s a lot of them at Metropolitan Square. Recently, the famous Backyard from Hartamas also opened an outlet here. The bars here do not have the mojo of bars in Changkat Raja Chulan for example, but if you’re a resident of Damansara Perdana, they’re close to home. This means you don’t have to drive and you’ll save a lot of money on cab fare.

Some of the bars here have good promotions and places like the Deutsches Gasthaus also offer pretty good food.

Metropolitan Square is home to a variety of gastropubs

7. Get A Massage

Quite a number of massage and foot reflexology centers have sprung up in Damansara Perdana in recent times. Some of these centers look plain dodgy but there are a few that look pretty decent. However, to be on the safe side, you can always go to the Thai Odyssey at One Utama Shopping Mall. The massage here is fabulous and reasonably priced.

The Thai Odyssey has won numerous awards locally and is definitely a good way to unwind before the start of the work week.

8. Practice Golf

Have you been putting of your golf for far too long? If you live in Damansara Perdana, or in its vicinity, there’s no more excuses to put it off any longer. Not when you have a driving range less than 3KM away from you.

The Bandar Utama Driving Range is a pretty decent driving range and at RM10 for 100 balls, it is pretty reasonably priced. They also make real good fresh juices. The only downside to this range is it does not have an area to practice your chipping and putting. But hey, it is close by.

9. Learn To Scuba Dive

This activity is becoming very popular and for good reason too. Learning how to dive opens a whole new world, one that you have to experience yourself to appreciate. So, the next weekend that you’re lying around with nothing to do, head on over to Sealantis in One Utama Shopping Mall and book yourself into some classes.

Sealantis is pretty well equipped with their own pool for dive lessons.

10. Catch Up On Some Reading

Three very well equipped bookstores open their doors to the public everyday within a 3KM radius of Damansara Perdana. They are Borders at the Curve, Popular at IPC (Ikano Power Center), and MPH at One Utama Shopping Mall. There is an MPH at the Curve but it is not as well stocked as the MPH in One Utama.

There are literally thousands of book titles between these 3 outlets that cater for nearly everyone. Whether you love novels, self-improvement, religion, or business, you’re bound to find something at one of these outlets. You can spend and entire weekend between these 3 outlets and a few more weekends reading the books you buy here.

If you’re a sociable person, start a book club. We know of some people who belong to book clubs made up of a small group of friends and they’re enjoying it tremendously.

So there you have it – our top ten list of things to do on a weekend. If you know of anything else interesting to do around the Damansara Perdana area, do share by leaving a comment below.

A protestor holding a placard

Exactly 1 week ago, on a Saturday morning, residents of Damansara Perdana held a rally in protest of the proposed Damansara-Shah Alam Highway (DASH). The DASH has been a very contentious issue with residents from Damansara Perdana and Mutiara Damansara. This rally drew a crowd of about 400 people.

Early this year, residents of Mutiara Damansara launched a successful campaign to stave of the encroachment of DASH’s 6-lane elevated highway into the neighborhood. Unfortunately, the proposed DASH alignment now runs through a portion of Jalan PJU 8/1 and Jalan PJU 8/2 in Damansara Perdana.

A good number of the communities in Damansara Perdana were represented by speakers at the rally, notably:

• Eddie Hong representing Emerald Perdana residents,
• Tok Batin representing the orang asli from Desa Temuan,
• Yap representing Ritze Perdana 2 residents,
• Henry Quah representing Ritze Perdana 1 residents, and
• Adrian Ong representing Perdana Exclusive residents

David Chai who also delivered a speech represented the Mutiara Damansara community. Also lending their support to this cause was YB Sivarasa, the member of parliament for Subang and YB Elizabeth Wong, the assemblywoman for Bukit Lanjan.

As the proposed alignment for the DASH would significantly affect residents of Metropolitan Square, it was odd that there was no speaker from this condominium community.

The rally drew a crowd of about 400 people

The Contentious Issues

The speakers at the rally raised some valid issues that explain why residents are worried about the DASH. Chief among these concerns was the potential degradation of the quality of life in the area. As Henry Quah put it, residents who chose Damansara Perdana as their home opted for a premium lifestyle. This included good, unobstructed views, and a degree of serenity. The DASH threatens this lifestyle.

Adrian Ong too did not mince his words on this.

Yap was concerned that there was no consultation between the promoters of the DASH and residents of Damansara Perdana. According to him, even the Selangor state government was not aware of the DASH project initially.

Tok Batin speaking for the orang asli community

Another worrying concern was highlighted by Elizabeth Wong. According to her, the Highway Authorities of Malaysia claimed in a written report that only 2 residents were against the proposed DASH alignment. This drew a strong reaction from the crowd. Sivarasa alluded to the fact that this was a lie.

It is clear that the DASH will affect Damansara Perdana residents. While there may be some positive effects on certain property prices, the negative effects will be overwhelming, especially to residents of Ritze Perdana 2, Emerald Perdana, and Metropolitan Square.

The construction of the highway would affect everyone in this enclave which already experiences traffic congestion during peak hours. In addition to this, the increased noise and air pollution from a 6-lane highway would be too much to bear for many of the residents who paid good money for this location.

For more information on how the DASH will affect residents and property prices, read our analysis on the DASH here.

Watch a video of the rally below.

• best overall customer experience; and
• the most competitive pricing

I’m betting that you’re interested in the outcome of the challenge too. Let the games begin…

New kid on the block, 99 Speedmart

Best Overall Customer Experience

Firstly, we needed to decide on the criteria we would use for best overall customer experience. We settled on the following criteria:

• Variety of choice
• Customer service
• Store layout
• Checkout speed

Jaya Grocer offers a much larger inventory spread than 99 Speedmart. The variety of fruits, vegetables, seafood, meats and condiments are far superior to 99 Speedmart. We found that the seafood in Jaya Grocer is fresh while 99 Speedmart’s very limited selection were of the frozen variety.

There was no significant difference in the friendliness of the staff at both Jaya Grocer and 99 Speedmart. However, Jaya Grocer had more staff available to assist customers. In 99 Speedmart, I had to walk all the way to the check-out counter to inquire when I found that the whole chicken did not have a price tag. Another win for Jaya Grocer.

Jaya Grocer’s store layout won hands-down over 99 Speedmart’s. Finding items in Jaya Grocer is much easier. Every aisle is labeled properly and items are grouped in an intuitive fashion. For example, the meats, seafood, vegetables, and fruits were grouped close together. 99 Speedmart had a less intuitive arrangement and lacked proper labels for their aisles. Again, Jaya Grocer trumps 99 Speedmart.

We were not able to determine the check-out speed conclusively. It would have been ideal if both stores had long queues during our visit as this would have helped us make an objective assessment. Unfortunately, when we visited both places, the checkout counters were free. We have to give a draw here.

Jaya Grocer is looking good after Round 1. They provide the best overall customer experience.

Round 1 winner, Jaya Grocer

Most Competitive Pricing

On to Round 2: pricing.

As far as possible, we tried to do an apple to apple comparison for pricing. We did our best to measure identical products between Jaya Grocer and 99 Speedmart. Unfortunately, this was not always possible as they did not always carry the same product inventory.

We also pre-determined a basket of 14 products that we would compare. We chose the basket of products based on our estimate of the demographic in Damansara Perdana. This was to ensure that the products we compared were relevant to  most Damansara Perdana residents. Our price comparison follows in the table below.

99 Speedmart beat Jaya Grocer in 9 out of the 14 categories above and drew in 1 (for sugar which is a controlled item). Ironically we could not do an apple to apple comparison for the apples and oranges as both stores carried different inventories for these. More significantly, Jaya Grocer is cheaper when it came to cabbage and diapers. For almost every other item, 99 Speedmart wins. So 99 Speedmart delivers a knockout in the most competitive pricing category.

Our Verdict

Final score is 1 – 1. Jaya Grocer offers superior customer experience while the new comer, 99 Speedmart, has the cheaper pricing.

If price is an important consideration when you shop for groceries, you may find that 99 Speedmart is the better option. However, you will not be able to find a large variety of items in 99 Speedmart.

If you prefer a real “supermarket” experience, and are looking for a greater choice of meats, seafood, vegetables, and fruits, we certainly recommend Jaya Grocer.

We’ve tested the new traffic flow and it does seem to have some positive  effect on the traffic flow along this side of the LDP, although I think that a fully-automated toll system to replace the toll booths ala the City Link in Melbourne is the best way to ease traffic congestion. If this was done throughout the LDP stretch, we would see a great improvement in traffic flow but I digress.

A major problem that all of us (who tested the new traffic flow) found, is that many people are confused as to which lane goes where. This confusion creates a bottleneck and inevitably, traffic congestion. So we captured photos at 3 different points of the revamped 500m or so stretch of road with the intention of providing you with fail-proof instructions.

After the 1st Mutiara Damansara exit (to Persiaran Surian), or if you are coming from Persiaran Surian headed towards the LDP, look out for traffic signage early on.

Here’s the first important tip: if you are going towards the Penchala Link, stick to the extreme right lane as soon as possible.

Look out for the traffic signage early on.

Many people headed towards the Penchala Link get confused and during my first tryst with the new traffic flow, I was confused too.

Up ahead along this road, a concrete divider separates the lanes going to Penchala Link and the lanes going to Damansara Perdana and Mutiara Damansara. Hence, if you are not on the lane going to Penchala Link early, you will not be able to get on it later.

Be wary, a concrete divider splits the lanes midway.

If you are headed towards the following places, keep to the extreme left:

• Mutiara Damansara
• Damansara Perdana
• Opposite side of the LDP (U-Turn)

As long as you are on the extreme left and look out for the signage at the later part of this stretch, you will have no problems exiting to the above mentioned places.

Finally (this only affects you if you are coming from Persiaran Surian), if you are headed towards Kepong, keep to the middle lanes. You will be able to go towards Kepong from both sides of the divider shown in the picture above.

Everything becomes clear towards the end of the stretch.

Towards the end of this stretch, the directions become much easier to follow as shown above.

The greatest benefit of this new traffic flow is that the traffic on the main LDP line towards Kepong is eased. For Damansara Perdana residents returning home via the LDP, you may experience slightly improved traffic flow.

We would love to hear what you think about the new traffic flow. Leave your comments below.

Mutiara D'Maju Restaurant

One such surprise is the roti cheese at Mutiara D’Maju Restaurant. Granted, it is not the best roti cheese in the Klang Valley but it definitely trumps all the other mamak restaurants in the neighborhood. In fact, I’ve tried the roti cheese at some of the mamak restaurants in Mutiara Damansara too and Mutiara D’Maju is the reigning champion in this category.

If you’ve never tried it before, roti cheese is roti canai with cheese. However, not all roti cheese are created equal. Some are better than others and in Mutiara D’Maju they do a pretty good job at it.

Freshly prepared roti cheese!

So what makes the roti cheese here stand out? Firstly, the dough for the roti is not bad. Again, it would not match up to the roti canai at Raju’s in Jalan Gasing for example, but relative to Damansara Perdana, it is decent. Secondly, the people here are generous with the cheese. Unlike some other places, you don’t just get a distant and vague taste of cheese. Quite to the contrary, it is rich in cheese. Thirdly, the cheese that they use goes well with the dough.

Add these points together, and you get a good blend of roti canai and cheese that is enjoyable.

The roti canai experience is never quite complete without its accompanying curries. Unfortunately, the curries at Mutiara D’Maju are mediocre. The dhal curry, fish curry, and sambal ikan bilis that the roti cheese is served with is not great, but neither is it bad. If you’re sticky about your curries, don’t expect too much here.

All in all, if you’re looking for a good roti chese dish and don’t want to look for it beyond the Damansara Perdana and Mutiara Damansara neighborhoods, Mutiara D’Maju is a great choice if not the best choice given the location constraint. We definitely recommend it.

Tell us what you think about the roti cheese here. Or if you’ve tried better in the neighborhood, let us know in the comment section below.

Before we we attempt to answer these questions, let’s take a closer look at the DASH. According to Prolintas, the DASH is a 20.1 KM expressway that connects Puncak Perdana Shah Alam to the Penchala Link with 12 interchanges along its alignment. It will serve the townships or areas of Puncak Perdana, Alam Suria, Denai Alam, Kampung Melayu Subang, RRIM, Kota Damansara, Damansara Perdana, and Mutiara Damansara.

However, I think the DASH does not really serve Damansara Perdana, and Mutiara Damansara as a transportation medium. Take a look at the proposed alignment, courtesy of Prolintas, below:

Click on image to enlarge. Picture courtesy of Prolintas.

How Will The Expressway Benefit Residents?

Unless you are enrolled in UiTM Puncak Perdana, or are traveling to the Subang Airport, I fail to see any major benefit for residents of Damansara Perdana and Mutiara Damansara in pure transportation terms. Residents in these areas already have direct access to the LDP and Penchala Link. There is nothing in Puncak Alam that residents here don’t already have access to. Examples in point include the Curve, IKEA, e@Curve, IPC, and One Utama Shopping Mall.

Residents around the areas of Puncak Alam and Denai Alam have more to gain from the DASH, which makes this expressway a one-way street (pun intended) as far as travel benefits are  concerned.

In fact, Damansara Perdana residents can expect increased traffic congestion on the roads surrounding the Mutiara Damansara commercial area as more traffic flows in from Puncak Alam and Denai Alam. This could be a boon for commerce but an absolute nightmare for residents. Already, the commercial area of Mutiara Damansara is congested during weekends and a significant increase in traffic will make things worse.

So, in terms of transportation and traffic benefits, here is the summary:

• Unless you travel to Puncak Alam or it’s surrounding area from Damansara Perdana, you will not experience any travel efficiency.
• Even if you like going to Sunway Giza or Giant Kota Damansara, I don’t see much increased efficiency via the DASH.
• Transportation to the Subang Airport will be much easier.
• There will be an influx of traffic to the Mutiara Damansara commercial area which, on weekends especially, could be a traffic nightmare.
• Prolintas implies that the DASH will ease traffic along Persiara Surian, but I seriously doubt it.

Will Property Value Be Affected?

Now let’s see how property prices will be affected. If you look at the proposed DASH alignment, you’ll see that it runs over Jalan PJU 8/1 and cuts over Jalan PJU 8/2 at the first intersection between these 2 roads. This part of the alignment is very close to Ritze Perdana 2, Metropolitan Square, and Emerald Perdana. Units in these developments that face the Jalan PJU 8/1 road will definitely experience:

• Increased noise and air pollution.
• A reduction in the quality of the view.

A view of Jalan PJU 8/1. This view will be affected by the DASH

The picture above of Jalan PJU 8/1, taken from Ritze Perdana 2, shows just how close the expressway will come to Metropolitan Square,  Emerald Perdana, and Ritze Perdana 2 itself. The greenery below may be sacrificed for the expressway. Owners of units that face Jalan 8/1 and Jalan 8/2 in these developments will find it harder to sell or rent out their property.

All properties in Damansara Perdana will not be affected in the same way though. A 2001 US study by the Arizona Department of Transportation titled, Impact of Highways on Property Values: Case Study of the Superstition Freeway Corridor, observed the following:

• Access benefits are transferred from highway users to non-users through changes in property values. Highway construction may have an adverse affect on some properties, but in aggregate , property values tend to increase with freeway development.
• Not all property values are affected by highways in the same way. Proximity to the freeway was observed to have a negative impact on the value of bungalows but to have a positive effect on condominiums and commercial properties.

Based on these findings, it is safe to conclude that developments in Damansara Perdana that are NOT too close to the proposed DASH alignment may see a healthy rise in property value. Commercial properties in the area will also see good appreciation.

In summary, here’s how I believe property value will be affected in Damansara Perdana:

• The property value of Ritze Perdana 2, Emerald Perdana, and Metropolitan Square may be negatively impacted, especially units that face Jalan 8/1 and Jalan 8/2.
• Other residential developments in Damansara Perdana that are not too close to the proposed expressway may see a healthy rise in property value.
• Commercial properties will also experience appreciation in value as a direct result of the expressway.

As a side, owners of Ritze Perdana 2, Emerald Perdana, and Metropolitan Square may benefit from their proximity to the proposed MRT route. Furthermore, there are more commercial developments slated for the Damansara Perdana / Mutiara Damansara area like Empire City Damansara. These developments will definitely cushion the negative impact of the DASH as demand for housing in the area increases.

Studio apartments invoke mixed emotions in the context of the Malaysia market. There are those who find it preposterous to live in a small unit that makes no distinction of the bedroom and living area. And there are those that find it is the perfect solution to current lifestyle trends. Essentially, you love it or hate it.

Smart investors that have been able to separate their negative feelings from the business case for studio apartments are making money in this niche.

There’s a whole lot of opinion on investing in studio apartments but unfortunately many of these opinions are based on nothing more than sentiment. Sometimes, there’s no sense in sentiment. So let’s separate the wheat from the chaff and see if there is a strong business case for investing in a studio apartment.

Fact #1: Demographic Changes

Firstly, as in any business case, there has to be a demand for your goods and services before you can turn a profit. If you’re savvy, you’ll also look at trends. Data from the Department of Statistics (Malaysia) indicate that Malaysia is slowly becoming an aging population. This means, the number of young people are decreasing. The median age in 2000 was 23.6. In 2010, this had increased to 27.6.

There are approximately 3,284,551 people between the ages of 20 – 29 who are unmarried. This is a large significant segment and it demands housing that is small, easy to maintain and reasonably priced.

Fact #2: Lifestyle Changes

As the cost of living continues to rise, we’re seeing more career focused individuals working long hours to escape the gravity of inflation. The typical urban professional is out of home most of the time either working, stuck in traffic, or socializing.

Work and social commitments demand that she eat out most of the time. She has little time to cook or clean. Her home is one of many transit points. She needs a place that is secure, small and practical.

The individual does not socialize like a family would. In a typical family setting, it is very common to invite friends over for lunch or dinner. Most husbands and wives enjoy playing host to visitors, the kids love to have friends over. The home for the typical family is an assortment of things central to their lives.

The young urban professional on the other hand does most of her socializing outside of her home. She explores new restaurants with friends and prefers to invite them to her favorite joint for teh-tarik (tea). She does not have the time to play host to visitors and prefers to savor the quiet time at home. Add to this that marriage is not something she’s considering in the next few years, and the studio apartment becomes the perfect solution to her living needs.

Fact #3:  Household Income

The average household income in Malaysia (2007) is RM 4,300. Escalating property prices in Malaysia make it very difficult for the average young professional to buy property. Landed property prices in urban areas are very much out of league for them. In a an October 2011 interview with BFM 89.9, Goh Seng Toh, Vice-President of the National House Buyers Association, stated that there is a gross mismatch between property prices and income in Malaysia.

Affordability of a home is considered in relation to household income. Generally one can safely afford a home that is up to 4 times the annual income. If a young professional earns RM 4,300 a month, her annual income is RM 51,600 and she could theoretically afford a home under RM 210,000. According to a Star Property report, 2011 housing prices in the Klang Valley have gone up as much as 11 times the average annual household income. It reports that some areas have sky rocketed to 20 times. This report is based on an average household income of RM 6,000 per month.

All trends seem to indicate that affordability of homes in urban Malaysia, especially in the Klang Valley, Johor Bahru, and Penang island areas, is a problem. Many young professionals will look at renting (instead of buying) good quality homes that meet their lifestyle demand and affordability. This presents an opportunity for investors.

If you need further convincing, there are approximately 4.1 million people in urban Malaysia between the ages of 20-29.

Based on the facts above, it would seem that the case for studio apartments is strong.

Investing in studio apartments and renting it to young professionals is a viable business model. However, investors should be realistic in their expectations and aim to provide feasible solutions to this situation. They should understand their market, and make their investments attractive to the market.

For example, many young professionals would prefer fully furnished units but this does not mean that they would be attracted to any fully furnished unit. They prefer tastefully decorated units. At the end of the day, investors stand to gain in terms of higher occupancy and rental rates when they invest in good deco.

Investors should also be sensitive to affordability and plan their financing appropriately. To illustrate, if your target market has an average household income of RM 5,000, it would be unwise to rent at prices beyond RM 2,500. You may have to increase your capital outlay when purchasing a unit for this market such that you monthly financing installments plus the monthly aggregate of your renovation costs do not exceed RM 2,500.

If you are keen to invest in studio apartments, browse through our inventory of studio units in Ritze Perdana 1 and Ritze Perdana 2 @ Damansara Perdana.