The future Center of Seremban in NEXT 10 years! (You never see this before!)
Read before you buy the next property in Seremban!
Seremban Property is forecasting the Center of Seremban in the next 10 years will be 【S2 Height and it's surrounding】!
The forecast is base on the major townships, shopping malls, and future development in Seremban. The most active and significant projects like Bandar Sri Sendayan (BSS) by Matrix Concepts, S2 Height by IJM Land, Bandar Ainsdale by Sime Darby Property and Bukit Kepayang by GUH Properties are going to be in shape and maturing in the next 5 to 10 years.
As we can see the trend of town development in Seremban is actually shifting toward the North-West area of Nilai and KLIA.
The future land banks owned by the major properties players are our concern in term of successful management and in line with their original master plan. If the development of Bandar Sri Sendayan, Sime Darby Vision City (SDVC), Bandar Enstek and the balance of Sime Darby Future Development Land Bank toward the Port Dickson area are excellently built, we can foreseen, the so call "Center of Seremban" is going to move slowly toward the Bandar Enstek Area.
At the time, we are not sure whether we should continue calling Seremban City as "Seremban City".
Its price went down to 3.31+ only for one day last week! Congrats to those long termists who were succesfull to top up at 3.31+. Believe this kind of golden opportunity will no longer be possible in future. Nevertheless, if there is correction again in foreseeable future be well prepared with your bullets. Talk only is of no use without action.
Bandar Sri Sendayan (BSS) a new BOOM town in Seremban. (RHB Research)
BSS, Matrix Concepts Holding Berhad (MCH’s) flagship development, has about 1,000 acres of remaining land. The freehold integrated township is just 5km from the Seremban toll gate, 22km from KLIA, 20km from Port Dickson, and 70km from Kuala Lumpur.BSS is the jewel. Five reasons why we think BSS will be a new growth area are:
(i) Affordable housing a buffer against policy headwindsBesides Tambun Indah (TILB MK, BUY, FV: MYR2.08) and Hua Yang (HYB MK, BUY, FV: MYR2.76), we also regard MCH as an affordable housing player. Given that the prices of its properties are at about MYR400k (for a double-storey link house) and their reasonable proximity to KL, BSS has the right products that suit the needs of the market. Compared to other bigger players, affordable housing developers will fare better amid the various cooling measures imposed by the Government, as the demand for their products will be relatively more sustainable. As such, the impact of tightening measures on the affordable housing segment will not be severe given that home prices are typically below MYR500k (the bar before the floor price was raised to MYR1m in Budget 2014). As such, MCH’s exposure to foreign purchasers is minimal.
(ii) Pent-up demand in Seremban as buyers seek affordable housesThe higher property prices and cost of living in KL have driven a small number of KL residents to relocate to Seremban even though the travelling distance is longer. Apart from this, the pent-up demand in Seremban itself is apparently very strong. IJM Land’s high-rise Kalista Residence in Seremban 2 (S2), which was launched in Oct 2013, has set a new benchmark of sorts in the state’s property scene. We were pleasantly surprised by the overwhelming response to this condo project, which saw potential buyers queuing up overnight for the units, racking up a booking rate of 80% at an ASP of about MYR250-260 psf. We reasonably believe that the demand will spill over to BSS given the latter’s more affordable landed properties, and its location just 5km from the North-South Highway and 3-4km from S2. Based on our checks with industry players, we learnt that most of the buyers of BSS’ properties are not only those living and working in Seremban, but also civil servants (army, navy etc) who are not working in the area but will stay there on a sporadic basis. This group of buyers is entitled to a bumi discount and also benefits from easier financing from financial institutions.
(iii) TUDM and STV to boost demand for BSS propertiesThe heightening of industrial activities at STV and the relocation of TUDM in 3-4 years’ time will be BSS township’s key growth catalysts. In addition, BSS is also targeting KLIA workers and the population in Seremban, Putrajaya and Cyberjaya. Currently, the township contributes over 60% of MCH’s turnover. As more factories are set up in STV, the growing working population will eventually translate into higher demand for residential properties in BSS, which is just next to STV. BSS houses are more affordable to the middle-income group. Currently, BSS only offers single and double-storey terraces and semi-detached houses that are priced a tad lower (about 5-10%) than those of its neighbor, S2 (by IJM Land). The latest launch of two-storey terrace houses with land areas of 22’ x 80’ are priced at about MYR400k after discounts. This is comparable to the prices at S2 but come with a bigger land area.Further away, after the Sungai Besi Air Force base in KL (which will be developed into Bandar Malaysia) is relocated to BSS, the new TUDM academy and training centre is expected to have 5k-8k staff. In 2011, TUDM bought 750 acres of land in BSS for MYR295m (or MYR9 psf) for the relocation of its ground training facilities, whereas runway training will be moved to Subang and Kuantan. We understand that the complex at BSS, on which construction has begun, will cost an estimated MYR2- 2.5bn. The complex will be completed in three years while actual staff movement will take about 6-12 months after that. Although TUDM will provide its own staff housing, the growing population would boost business activities, and accordingly, demand for properties in the area. Plans for the commercial clusters of Sendayan Metropark, Merchant Square and schools under Matrix Global Schools are already in place. These will be located in the areas surrounding the TUDM site and serve the needs of TUDM staff and the BSS community.
(iv) MCH is also an industrial proxy within the Klang ValleyLocated next to BSS is STV, a 685-acre industrial hub that is creating job opportunities. A few newly built factories have already started operations, with some undergoing construction. Given the ready infra such as power and water supply, freehold land status, connectivity to the North-South Highway and KLIA as well as the flexibility for industrial players to choose their preferred land sizes, STV has managed to attract many
I think SO FAR Matrix is the BEST fundamental counter.
1) Strong earnings, Regular high dividends payout of 40%. 2) High ROE, High profit margin, Low PE. 3) KL / KV workers are actually picking up more houses from Seremban. Double storey landed house for only RM200-300k++ 4) Huge landbanks bought at low price. 5) Gov helps to bring foreign investors to Sendayan Tech Valley. More international companies coming soon.
* Better grow with growth company as they're having biggest potential to blossom.
From DCF calculations of estimated 8% growth annually and using discounted rate of 5%, I arrived at an intrinsic price of 4.50. However, 8% which I used is a very conservative estimate. The actual intrinsic price could well be 5.00 or higher assuming a 10% growth annually. I suggest buy and hold for long term (half year to a year). Yield from dividend would exceed 5%, another good thing from this counter.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
emma
281 posts
Posted by emma > 2014-01-02 12:27 | Report Abuse
Got ppl run. ...?