Malaysia belongings market has experienced a drastic alteration in 2008. The belongings market moved from a roar at the terminal of 2007 to uncertainnesss due to increasing building cost. Finally, the belongings market moved into a comparatively quiet market towards the terminal of 2008. With all the Bankss seeking to fasten their loan footings, obtaining loans for development of all types of commercial edifice have been hard in the last three old ages.
Yet, survey shows that there is still a high demand for infinite in office edifice in country like Kuala Lumpur. From clip to clip, there are several developments of new office edifices in Klang Valley country. From the survey done by JPPH, there is an addition of about 10 million square meters of new office infinite throughout Kuala Lumpur. Yet, the mean vacancy rate in office infinite decreased to 18.6 % . This proved that the demand for office edifice is still able to provide the addition in new office infinite. Study besides showed that there is a new supply of about 280,000 square meters of new office infinite and extra 92,000 square meters of office being refurbished and repositioned in the twelvemonth of 2009. So, edifice proprietors have to fight to keep the popularity and the fight of their edifice. The current deficiency of new-build development raises the likeliness of grade-A supply deficits when the occupier market returns, making investing chances for carefully targeted renovation.
But, normally proprietor is in great quandary when they are in such state of affairs. As everyone know, the renovation of office infinite offers advantages over new-build which can ease the accomplishment of economic, societal and environmental sustainability. But, renovation is the ultimate solution for extinguishing all jobs sing the care, altering renters demand and other probems.
Making comparings between renovation and renovation is besides debatable because the term renovation can be used to embrace a broad spectrum of edifice plants, from minor decorative betterments through to extended Reconstruction. But, in the bulk of instances, renovation will be a quicker and cheaper agencies of reconstructing second-hand office infinite to grade-A specification. As a low-priced option, the renovation of office infinite should be intuitively attractive in an economic clime marked by a deficiency of development finance. But in many instances renovation is every bit dearly-won as renovation and likely to transport with it greater hazards and physical restraints.
Malaysian has been accused as a clever builder but hapless director. For illustration, certain office edifices in Golden Triangle are frequently looked deteriorated and comparatively matured compared to other purposed-built office edifice. Example of such older office edifices are those office edifice located on the periphery of Central Business District, like Jalan Ampang. These older office edifices have a higher inclination to be left vacant due to its hapless office edifice images. This will leads to take down rental rate to be paid by the renters to stay its fight. Other of import feature of such office edifice besides includes by low tenancy rate, lower quality of the edifice and services provided.
Besides, recent office developments are really likely to follow green characteristics such as energy economy, decrease of wastage and H2O use, every bit good as the usage of environmentally friendly stuffs. This new tendency in development had forced many proprietors evaluate the status of their edifice and attempt to do several alterations to the edifices to pull more renters. These attempts are of import to pull corporations who fascinate energy-saving and environmental-friendly edifice.
But doing such determination is non easy. The proprietors have to measure the cost and benefit of each pick, and find the solution he desires to better the status of his edifices. But other factors besides have to take into consideration. For illustration, the rate of involvement the bank would bear down for development of different hazard, the clip of completion and others besides greatly affect the decision-making of proprietor
Aims of survey
This survey has three chief aims. There are:
To find factors act uponing the decision-making in deducing a solution to the method chosen.
To place the benefits of edifice renovation or renovation to the edifice users.
To find whether tenant likes refurbished secondary office edifice or freshly redeveloped edifice.
Scope of survey
The range of this survey will concentrate on selected office edifices, both edifice which had undergo renovation and those which had undergone renovation. To guarantee a more complete survey, the freshly constructed edifice is besides considered as edifice undergone renovation.
The respondents of the questionnaire are limited to renters in Golden Triangle country merely. As for the belongings director, all belongings directors can be chosen as the interviewee. Building director who are hired by proprietors and acted on behalf of them, will gives their sentiments in proprietor positions ( maximize net income ) and current renters will voice out their penchants in taking a edifice infinite.
All the relevant informations are collected through primary informations and secondary informations.
Primary informations includes questionnaire, samplings, interviews and instance survey. In this survey, respondents identified in questionnaire survey are selected belongings director who represents edifice proprietor & A ; acirc ; ˆ™s point of position and some renters within Golden Triangle country through trying. As for interview session, interviewees targeted are belongings director who are the representatives of edifice proprietors. Through this interview Sessionss, benefit of edifice renovation and renovation will be ascertained. Finally, instance survey of three similar office edifices will besides be done as the quantitative analysis. All three edifice will be compared harmonizing to the cost incurred for building and the benefit obtained. Then the differences in term of tenancy rates, rental and others will be calculated to stand for the increase in term of market value.
On the other manus, aggregation of informations in this survey will besides includes mentions such as mention book, diary, articles, conference paper, belongings market studies, internet/ website seeking and other beginnings.
In add-on, informations will besides be collected from books, magazines or newspaper article to obtain general information on edifice renovation and the effects of edifice renovation.
Further inside informations of methodological analysis will be discussed in Chapter 3.
Structure of Study
This survey consisted of five chapters. The brief treatment of each chapter is discussed as follows:
Chapter 1 is the debut of the survey. This chapter starts with an debut of this survey with a brief background. Besides, other things like job statement, range of survey, methodological analysis and others are besides discussed in this chapter.
Chapter 2 is about the literature reappraisal. In this chapter, definition of edifice renovation and renovation, benefit of edifice renovation and renovation and others will be discussed in this chapter. Besides, factor act uponing determination devising of edifice renovation and the renter penchants will besides be discussed.
Chapter 3 is the methodological analysis. In this chapter, methodological analysis used to study and interview in order to garner information needed. The construction of questionnaire is besides discussed in this chapter. Furthermore, a brief treatment on the sentiment of respondents of questionnaire and interviews will besides be carried out in the last portion of this chapter.
Chapter 4 is the chapter sing research findings analysis. In this chapter, information gather will be analysed and presented in this chapter. An analysis on the benefit of edifice renovation and its value-enhancing ability will besides be carried out by analyzing the information gathered through interviews, questionnaire study, and secondary informations.
Chapter 5 discuss about the decision and recommendation. In this chapter, decision from the findings and analysis of informations in the old chapter will be discussed and summarized. Besides, it besides illustrate on the verification of the aims and overall sum-up for the whole survey. Other information included in this chapter is the suggestions for farther survey.