1.0 PURPOSE OF THE VALUATION
The purpose of this valuation is to establish an estimate of market value of the property described herein as of the material date of this valuation.
This report is prepared to furnish a guide as to the value that the subject property should command as at the date of this valuation for financing purposes.
2.0 BASIS OF VALUATION
The basis of valuation, for the purpose of this report, is on market value.
By market value is meant the estimated amount for which an asset should exchange on the date of valuation between a willing buyer and a willing seller in an arm's-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion. (STANDARD 1 - Market Value Basis of Valuation of the Malaysian Valuation Standards issued by the Board of Valuers, Appraisers and Estate Agents, Malaysia).
An inspection of the subject property was made on XX February 2011 by KRUZ AHMAD.
For the purpose of this report, we have, therefore, taken the date of inspection as the material date of valuation.
4.0 PARTICULARS OF PROPERTY
The subject property is a 3-bedroom condominium unit, legally identified as Parcel No. M2-2-118, Storey No. 2, Building No. Block M2, Hillview Loft together with an accessory Parcel No. SP 180 and bearing postal address Unit No. M2-2-118, Kondominium Hillview Loft, Jalan Melor, 83000 Batu Pahat, Johor Darul Takzim, which is erected on the freehold land held under Master Title bearing Grant No. 335693 for Lot No. 49516, Mukim of Simpang Kanan, District of Batu Pahat, State of Johor Darul Takzim.
A separate individual (strata) document of title to the subject property is not issued. It is presently held under a Principal Sale and Purchase Agreement made on 27 January 2011 between Concord Link Realty Sdn Bhd (the “Vendor”) and Lee Tee Yang (the “Purchaser”).
We have made a search at the Registry of Titles, Johor Darul Takzim and confirm that Master Title to the subject property is described in the register document of title as shown by the copy of CATATAN CARIAN PERSENDIRIAN as dated 22 September 2010 which is enclosed, herein, as APPENDIX I.
While due care is taken to obtain the above CATATAN CARIAN PERSENDIRIAN, we would advise that the Client seeks the services of its own solicitors to conduct a further search at the Land Registry to confirm the same and/or to ascertain the true nature of the registered proprietor's interest in the land and also to determine the existence of any further encumbrances on the land.
5.0 LOCATION DATA
The subject property is located in a completed housing development known as KONDOMINIUM HILLVIEW LOFT, Batu Pahat, Johor Darul Takzim. The location is shown on the plan in APPENDIX II.
KONDOMINIUM HILLVIEW LOFT is condominium project developed by CONCORD LINK REALTY SDN BHD, comprising only residential (condominium units). The structures are in new and are in good physical condition.
The neighbourhood is well located within the administrative area of the Majlis Perbandaran Batu Pahat (MPBP) and within a few minutes’ drive, by bus or car, of other housing estates (Taman Koperasi Bahagia, Taman Sri Jaya, Taman Pasifik Selatan, Taman Suria, Taman Budaya, Taman Ceria, Taman Sri Saga, Taman Broleh and Taman Sentosa), commercial (Batu Pahat Mall [BP Mall] and BR Jaya Sdn Bhd – Mercedes Benz show room) and Industrial (Taman Perindustrian Broleh and Taman Perindustrian Damai Plus).
Notable landmarks located within close proximity to the subject property would also include Sekolah Kebangsaan Bukit Saga, Honsin Knitting Industries Sdn Bhd and Batu Pahat Golf Club.
Batu Pahat town is located some 2km on the Southwest of the subject property, whilst North-South Highway (Ayer Hitam Interchange) is some 20km. to the North via Jalan Kluang (Ayer Hitam bound).
In view of the favourable location, the area is expected to maintain its appeal for mixed development in the foreseeable future.
6.0 SITE DATA
KONDOMINIUM HILLVIEW LOFT is erected on the land identified as Lot No. 49516, in area approximately 2.801 hectares (6.92 acres), geographically located along Jalan Melor. It is accessible from Batu Pahat town centre is via Jalan Kluang (Kluang bound) and a right turn onto Jalan Melor.
The lot is near trapezoidal in shape, generally even in contour and more or less at road level with a frontage onto Jalan Melor: see APPENDIX III for site plan.
The abutting road (Jalan Melor) is a tarmac surfaced and fitted with concrete drains to facilitate surface drainage.
7.0 PROPERTY DATA
KONDOMINIUM HILLVIEW LOFT is a condominium project developed by CONCORD LINK REALTY SDN BHD, comprising THREE (3) condominium blocks identified as Block M1, M2 & M3.
The condominium blocks are of standard design and meet accepted architectural standards. Basic building specifications and fittings are as set out below:
Reinforced concrete framework with brickwork infilling walls.
Interlocking roof tiles.
Plastered and painted – suspended ceiling boards - to top floor units.
Aluminium casement window and aluminium top hung window.
Solid timber, aluminium framed sliding and plywood flush doors.
Ceramic tile to Living, Dining, Bedrooms, Kitchen, Balcony and Bath/w.c.
Cement render to other areas.
Kitchen : 5’-0” height glazed wall tiles/others are plastered and painted.
Bathrooms : 7’-0” height glazed wall tiles/others are plastered and painted.
Vertical access to and between floors is provided by means of two (2) passenger lifts and staircases strategically and conveniently located throughout each blocks.
The common facilities and services provided in KONDOMINIUM HILLVIEW LOFT are as follows:
(a) Common Facilities:
- Club house
- multi-purpose hall
- children playground
- swimming pool
- Basket ball court
- Tennis court
- Convenient shop
- Sauna rooms
- Barbeque pits
- Jogging track
- Landscaped garden
- Access card with boom gate
- 24-hour security services
- rubbish collection
- management office
7.2 SUBJECT PROPERTY
The subject property which is under valuation, identified as Unit No. M2-2-118, Block M2 is a 3-bedroom condominium unit situated on the 1st floor (Level 2) of Block M2, Kondominium Hillview Loft. It contains approximately 1,000 square feet (93 square metres) total gross floor area.
Detailed accommodations of the unit are shown in the schedule and floor plan in APPENDIX IV(a) and IV(b), respectively.
The unit is estimated to be about 2 years in age and is in good condition.
We have made an informal enquiry at the Management Office and are informed that the service charge payable for the subject property is RM100.00 per month.
Photographs of the subject property and relevant photographs are presented in APPENDIX V.
8.0 SERVICES DATA
All public and quasi-public utilities such as water, telephones and electricity are available and connected to the subject site.
Public transportation in the form of buses and taxis is available at regular intervals along Jalan Kluang.
9.0 PLANNING DATA
The subject property is located in an area designated and approved for Residential land use.
10.0 ASSESSMENT DATA
The entries appearing in the Valuation List of the Majlis Perbandaran Batu Pahat at the date of inspection of the List indicate that the subject property is currently assessed for rating purposes at an Improved Value of RM75,500.00.
The rate payable is 0.40% of the Improved Value, or RM 302.00 per year.
11.0 OCCUPANCY DATA
The subject property is, as at the date of inspection, unoccupied.
In this instance, the Comparison Approach to value was used to provide a means for determining the market value of the subject property. Under this approach, an estimate of value is derived by comparing the property under valuation with other properties of similar size, quality and location that have been sold in recent times.
In the determination of value by this approach, a survey was made of property sales which have occurred in Kondominium Hillview Loft within the past few years. From our investigations, we are aware of the following:
12.1 the sale price of the subject property itself vide Sale and Purchase Agreement made on 27 January 2011 between Concord Link Realty Sdn Bhd (the “Vendor”) and Lee Tee Yang (the “Purchaser”). The consideration price for this sale is stated as RM175,000.00.
12.2 sales of 3-bedroom condominium units (pool view) within Kondominium Hillview Loft indicate prices ranging from RM180,000.00 to RM204,500.00 per unit in 2009 & 2010 as shown in the schedule enclosed, herein, as APPENDIX VI.
12.3 the current asking prices for 3-bedroom apartment units within Kondominium Hillview Loft are in the region of RM200,000.00 to RM240,000.00 per unit. These asking prices are, of course, subject to floor sitting, floor area and further negotiations between the parties. (Source: Various Estate Agents)
The sale prices are first adjusted for time differences (versus the material date of valuation) in order to obtain an estimation of what the property would bring if sold on that date. In addition to the time adjustment, the transaction price is adjusted to reflect differences in location, site facilities, lot size and shape, and others in order to make the sale properties as nearly as possible comparable with the subject property.
13.0 FACTORS AFFECTING VALUATION
The following are the principal factors which have influenced our opinion of value in this case:
13.1 Subject property is held in Master Title under a freehold interest.
13.2 Separate individual (strata) document of title to the subject property has not been issued.
13.3 Subject property is held in Master Title under the Category of Land Use of “Bangunan” and is subject to the following Express Condition and Restriction-in-Interest:
“Tuanpunnya tanah hendaklah tidak dibenarkan menawar atau menjualkan unit-unit (parcels) bangunan yang akan dibina di atas tanah ini melainkan bangunan telah mula dibina mengikut pelan yang diluluskan oleh Pihak Berkuasa Tempatan yang berkenaan.”
“Hakmilik tanah ini apabila dipechakan kepada hakmilik strata, pechahan hakmilik strata tersebut apabila sahaja bertukar hakmilik kepada kepada seorang Bumiputra/Syarikat Bumiputra maka tidak boleh terkemudian daripada itu dijual, dipajak atau dipindahmilik kepada orang yang Bukan Bumiputra/Syarikat Bukan Bumiputra maka tanpa persetujuan Pihak Berkuasa Negeri.”
“Pechahan Hakmilik strata daripada hakmilik ini tidak boleh dijual atau dipindahmilik dengan apa cara sekalipun kepada bukan Warganegera/Syarikat Asing tanpa persetujuan Pihak Berkuasa Negeri”.
13.4 Kondominium Hillview Loft enjoys good accessibility to various parts of Batu Pahat via Jalan Kluang.
13.5 Kondominium Hillview Loft is only condominium project in Batu Pahat town that provides comprehensive condominium facilities & services.
13.6 The unit appears to be well maintained and is in good condition.
14.0 OPINION OF VALUE
As based on the above approach to value, we are of the opinion that the value of the Freehold interest in the property described above, in its existing conditions, free from encumbrances, and with good registrable title is, for financing purposes as of the material date of this valuation (16 February 2011), in the amounts as follows:
MARKET VALUE - RINGGIT MALAYSIA: ONE HUNDRED AND SEVENTY FIVE THOUSAND ONLY
FORCED SALE VALUE - RINGGIT MALAYSIA: ONE HUNDRED AND FORTY THOUSAND ONLY
The FORCED SALE VALUE is the amount that may reasonably be received from the sale of a property under forced sale conditions that do not meet all the criteria of a normal market transaction.
It is not practical to insure the subject property on its own because it forms part and parcel of whole building. Under Strata Title Act 1985 the `Management Corporation is under absolute obligation to insure the subdivided building as a whole to its replacement value against fire’.
To be completely effective we recommend the whole building be adequately insured against total and partial damage by fire and other insurable perils inclusive of the costs of demolition, clearance of debris, rebuilding new and professional fees.