GSB (7077) - GSB - The laggard property stock is coming alive - See latest photos of G Residence' (Calvin Tan)
Dear friends of i3 forum,
TodayI passed by G Residence in Plentong, Johor. To my surprise the building of G Residence is in progress. Not only that, I saw the take up rate of the apartments & shoplots have increased to 70%!
Ha! According to what I heard if a condo developer has sold just 40% of his stocks he would have already recovered the cost of his capital & the rest will be his "profits". How true I am not sure. But one Banker told me this, when one developer submitted proposal for building loan. The builder stated the sale of a condo worth Rm400,000 could cost as little as Rm100,000 or about one quarter of the Retail List Price. Again, I am not so sure as I have not build any condo for sale personally.
But at 70% take up rate I think G Residence stands a good fighting chance to complete the project with progessive billings & loan payment release from Banks.
So GSB has now moved to firmer ground. I think its unique concept & location play a part in its sales
These are the salient factors
1) Location Factor
Through Permas & EDL G Residence is only 15 minutes away to downtown CIQ Kastam of Johor.
2) Connectivity
The Pasir Gudang Highway has been upgraded from 4 lanes to 6 lanes. This connectivity creates ease of access
3) Amenities
Giant Plentiong has just gone into a multi million make over. It is only 5 minutes walk away. Plus AEON Tebrau City is only 5 minutes drive away. Above all IKEA will also be ready by end 2017. It was IKEA Damansara & One Utama Shopping Complex that lifted up the Value and prices of Bandar Utama & Taman Tun Dr Ismail in KL. So with these important ameninties G Residence has drawn more interest now.
4) Gentrification
The run down surrounding is now being gentrified & roads widened. The whole ambience is being transformed. A good surprise indeed.
5) The Unique Design of G Residence.
The Twin Towers are connected by a sky bridge. And ground level consists of self contained shops. So the all in one concept is all sufficient in itself.
6) Above all G Residence is priced at very competitive pricing. This attracts those that who look for Value
7) And to crown it all the entire project is in a joint venture with Land owner. So there is little fear of debt piling up through delay.
How I got to know G Residence?
I first heard about G Reidence through Mr. Law the OSK Iskandar Top Boss
He mentioned G Residence of GSB at 9 sen. He calculated that if all the projects of G Residence is sold "the one off profit" would equal to 9 sen - which is the price of GSB then. That means 100% profit on paid up capital?
However, G Residence together with other high end condos in Iskandar face imminent glut & also Banks have tightened loan margin. I cautioned fellow investors that G Residence might be in trouble.
All these doubts vanished as I saw its progress now.
With 70% of the development sold & building in fast progress everything is in good order. And so I have turned bullish on GSB again.
Now looking deeper into GST assets I noticed they have lots of lands in Shah Alam, Klang & especially Bentong.
Bentong?
Yes, Bentong will be one of the Major Transit Interchange when East Coastal Railway is built to link KL with the Eastern Coastal states of Kuantan & Kelantan. This will increase the Value of GSB's lands there.
See location map in Johor
Photo no 1
5 Minutes walk away is the Newly Refurbished GIANT SHOPPING MALL (PLENTONG)
Photo no. 2. Showing Sales Progress of Block A (70% sold) Sorry picture not complete
Photo no. 3. Sales progress of Block B (again picture not complete)
Photo no. 4. Shopfront View from the Road.
Photo. no 5 (More complete view of Condo Model Notice the skybride at the very top?
Photo. no. 6 The actual progress of G Residence (Now reaching level 4)
Photo. no. 7 Another View of G Residence from the Main Road.
Photo. no. 8 (Notice the GIANT SHOPPING MALL in the Distance? Also Tan Chong Building on the Right?
And nearer right is Kia Motor showroom
Photo . no 9 Notice the gentrification of the place. The Main Road now being upgraded & widen
Photo. no. 10 View of G Residence from across the road.
Note:
There were 2 property stocks in Iskandar that performed spectacularly
1) Focal Aims was 11 sen in year 2009. After taken over & renamed to Ecoworld price shot past Rm4.00 (Up 4,000%)
2) Tebrau Teguh was 10 sen before year 2005. After name changed to IwCity price shot past Rm3.00 (Up 3,000%)
G Residence of GSB is only 5 minutes away from IwCity of Permas Jaya (Refer to map - see how near is Giant to Permas Shopping Center & JUSCO?
And now in this mini bull run GSB is still a laggard at only 11 sen?
So the Market has overlooked & neglected this hidden gem?
Calvin has now turned bullish on GSB and call for a buy at current price.
So get some early before its price run away.
Your friend
Calvin Tan
Singapore
GSB (7077) - GSB - The laggard property stock is coming alive - See latest photos of G Residence' (Calvin Tan)
http://klse.i3investor.com/blogs/www.eaglevisioninvest.com/120638.jsp
