GSB – The laggard property stock is coming alive – See latest photos of G Residence’ (Calvin Tan)

Dear friends,

Today I 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

 

  • plan2

 

 

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