DWG Has Evolved Into an Investment Service Provider

PETALING JAYA: Developers with projects in Malaysia have turned Hong Kong’s adversity into an opportunity.

A few developers with projects in Malaysia have launched or are planning to market their projects there.

Property tycoon Tan Sri Desmond Lim Siew Choon, who is building the 15.89-acre Pavilion Damansara Heights with the Canada Pension Plan Investment Board in a joint venture, has sold 170 units of the Pavilion residences to Hong Kong buyers, sources said. Developer Impian Ekspresi Sdn Bhd, Lim’s private entity, is the vehicle for the 51:49 joint venture.

“There was a surge in sales the last couple of weeks with 50 to 60 contracts signed in a week, compared with 10 before the street demonstrations became violent, ” a source said.

Sales momentum picked up by the end of June to early July, the source said.

The main agent is Singapore-based DWG, which stands for Dennis Wee Group, which has strong financial muscle and which also buys into a development (with huge discounts) to eventually re-sell it, according to sources.

DWG has a group of financial backers behind it and is marketing Pavilion Damansara Heights in Hong Kong.

DWG also market properties in Thailand, Japan, Britain and Malaysia. DWG has invested more than US$500mil in key cities with offices in Vietnam, Beijing, Shanghai and Thailand, is website said.

DWG used to provide real estate services and were doing agency work involving buying and selling of properties but has since evolved into an investment service provider.

A source said about 70% of the 1, 314 residential units in the mixed integrated development with mass rapid transit (MRT) links have been sold.

According to a source, its first two blocks, launched more than a year ago, are 70% sold, and a third block, launched early this year is about 50% sold.

The project is scheduled to be completed in the last quarter of 2020. It is being marketed at between RM1, 600 and RM2, 000 per sq ft (psf) with a 6% rebate.

“It is just like the 1997 handover of Hong Kong to China. In that event, the Hong Kong people were buying properties around the world to spread their risk.

“They are worried the demonstrations will escalate, ” the source said.

ParkCity Group, together with Singapore’s CapitaLand group will have their roadshow for Park Regency this month and next. They will be taking the freehold 505-unit development to Hong Kong, Singapore and Vietnam. CapitaLand is one of Asia’s largest diversified group.

In their promotional material in traditional Chinese writing, it said project were located in a 473-acre development with hospital, international and retail facilities. It is being marketed with an average price of RM1, 100 per sq ft.

More than 353 (or 70%) of the 505-unit project have been sold, with 80% of the buyers being Malaysians and the rest from Singapore, Britain, Australia, South Korea and Hong Kong, among others.

Property consultant VPC Alliance Malaysia Sdn Bhd said the demonstrations in Hong Kong have gone beyond China’s now-abandoned extradition bill.

“The bill is just the catalyst for the protests. This protracted unrest is causing a lot of anxiety and uneasiness in Hong Kong, ” said its managing director James Wong.

“This has resulted in a rise in interest to look abroad to buy properties, including Malaysia, both for investment to spread risks and also for retirement, and permanent stay, ” Wong said.

Developers with projects in Malaysia should seize this opportunity to promote and sell their properties in Hong Kong. Unlike Singapore, where foreigners can only buy private high rise residential developments with a yearly limit on landed units for those with permanent resident status, foreigners are allowed to buy landed units in certain states in Malaysia.

Wong called on the federal and state governments to relax some of the guidelines on purchases and the Malaysia My Second Home to boost the sector.

He said property prices were at a comparatively low relative to Bangkok and Jakarta, not to mention Hong Kong and Singapore.

“Developers in Malaysia must seize the opportunity to sell their projects in Hong Kong now in order to boost the sluggish market in Malaysia, ” Wong said.

Source: The Star Online