Mont Kiara Property

07/07/2023

BNM maintains OPR at 3%, as expected

BNM’s latest OPR decision follows the 25 basis point (bps) hike in May as it moved to further normalise monetary policy in line with resilient domestic growth prospects.

18/04/2023

Selangor aims for 2 mil property ownership within 3 years, up from 1.8 mil now

Selangor aims to have about two million stratified and landed holdings or ownership within three years, up from 1.8 million ownership so far, under the various development projects presently being carried out.

These development initiatives, according to Selangor Menteri Besar Datuk Seri Amirudin Shari, are mainly concentrated in the districts of Petaling, Hulu Langat, Kuala Langat, and Sepang.

Selangor is the state with the greatest holdings in the country currently.

This does not include gazetted and reserve holdings specifically under the government's management either under the state secretary or government ownership, he said, according to a Bernama report.

Amirudin was speaking to reporters after officiating Selangor Land and Mines Office's one-stop centre (OSC) in the Sultan Salahuddin Abdul Aziz Shah building today.

The OSC facility offers services to customers in administrative matters such as submission of land and strata documents, document collection, purchase of official and private searches, lost/damaged titles application, and payment of land tax and fees.

The construction of the centre, costing RM10.76 million, started on Dec 14, 2020, and it commenced full operations on March 1, 2023.

17/04/2023

Real estate industry: With market recovering, now's the time to buy homes before they get more expensive

The Malaysian Real Estate Association (Pertama) has reportedly said that property prices are expected to increase by 25 per cent — especially for homes valued RM500,000 and above — as the economy continues its recovery.

Its president, Ismail Omar, told Utusan Malaysia that developers and owners are still forced to sell at a lower price now, and therefore it would be the time for Malaysians to buy homes.

“Especially houses priced above RM500,000 which are largely unsold when buyers are more likely to buy homes below RM300,000. So developers or owners are forced to sell at a lower rate to avoid selling at all.

“However, the situation is only temporary, as the Malaysian economy recovers, the housing market is expected to stabilise again with a price increase of around 25 per cent. So some people are aware of this, they are scrambling to buy a house now that the price has fallen before the value has risen," he was quoted by the Malay daily.

Ismail pointed to the property overhang in the past few years caused by cautious homebuyers.

He also added that banks and financial institutions are willing to offer loans and make the process easier for buyers, thus resulting in an increase in the demand for homes.

However, Ismail said the purchase of homes would re-stabilise and cause an increase in house prices as everyone attempts to prevent the abandonment and overhang of houses in the market.

“Perhaps the bank will facilitate financing a loan while developers can take steps not to increase house prices and building materials manufacturers sell their materials at not too high of prices” he reportedly said.

Therefore, Ismail said the government needs to monitor the current situation of house prices to avoid prices from shooting up which would then make it difficult for the public to attain homes — and prevent a similar cycle of unsold properties.

He said one of the best mechanisms to encourage people to buy a home is through the rental method for the bottom and middle 40 per cent households to own homes without the burden of lending.

KUALA LUMPUR, April 8 — The Malaysian Real Estate Association (Pertama) has reportedly said that property prices are expected to increase by 25 per cent — especially for homes...

16/04/2023

Malaysians were the 2nd largest property buyers in Singapore last year

Foreigners made up 4.7 per cent of non-landed private residential property buyers in Singapore in 2022, with Malaysians coming in as the second largest or Top 2 buyers in the Republic, said OrangeTee & Tie chief executive officer Steven Tan.

Tan said Singapore is considered a haven for property investments and that demand for private residential homes has been quite high due to various factors, including political stability and a strong currency.

He said the rise in Singapore's real estate costs during the Covid-19 epidemic was modest.

Speaking at a recent media roundtable for Perfect Ten, he said he is conservatively expecting this year's growth to be about four per cent.

Housing supply will be increased, which OrangeTee & Tie Research & Analytics predicts would help stabilise prices in Singapore in 2023. A bumper crop of more than 20,000 landed, non-landed, and executive condos may be completed, it said in its Private Residential Sales Market Outlook 2023 report.

Roughly 11,000 new residences could also be put on the market.

It predicts that with future launches, new sales volume may increase to between 8,500 and 10,000 units in 2023, although it does not anticipate a significant price adjustment in 2019.

Sellers' pricing power is maintained by high employment, therefore they might not be prone to making drastic price reductions. Nonetheless, given the uncertainty surrounding the inflationary environment and the often shifting interest rates, housing affordability will be of utmost importance to the majority of buyers.

Several cooling measures and the rising cost of living could further slow the rate of price increases, the report stated.

According to the report, most purchasers will probably exercise caution while making their house purchases because the period of cheap mortgage rates may not return any time soon.

Other factors that will continue to dampen consumer confidence in buying include the onslaught of Covid-19 variations, political upheaval and civil unrest in several nations, inflationary pressures, and rate hikes.

"Therefore, prices of private homes are forecast to climb at a slower pace of around 5.0 per cent -8.0 per cent in 2023, down from 9.0 per cent-11 per cent in 2022," it said.

The report also said the gap between buyer-seller price expectations may cause fewer deals to be closed or deals to take longer to seal. This slowdown may be mitigated by more completed homes ready for resale," it said.

It was highlighted that the net effect might be a slower rate of demand, with 20,700–21,800 private homes traded in 2022, down from 33,557 units in 2021, and 19,000–22,500 private homes in 2023.

Perfect Ten is a new freehold luxury development located in the prime District 10 along Bukit Timah Road, developed by CK Asset Holdings, one of Hong Kong's largest property developers.

The project comprises two towers consisting of 230 units of two-bedroom units with built-ups of 753 to 797 sq ft, and three-bedroom units ranging from 1,227 to 1,281 sq ft.

Tan said it may be another selection for Malaysian property buyers, Bernama reported.

As of Feb 7, 2023, Perfect Ten recorded 177 transactions with a median price of S$2,979 (S$1=RM3.32) per sq ft compared to four other resale types of projects in Bukit Timah.

Foreigners made up 4.7 per cent of non-landed private residential property buyers in Singapore in 2022, with Malaysians coming in as the second largest or Top 2 buyers in the Republic, said OrangeTee & Tie chief executive officer Steven Tan.

15/04/2023

Large-scale infrastructure and development projects in Bayan Lepas are luring homebuyers

Homebuyers are swarming to purchase new properties in Penang's high-growth Bayan Lepas due to several significant developments there, including the Bayan Lepas light rapid transit (LRT) project.

According to the Penang Transport Master Plan (PTMP), the Bayan Lepas LRT will have 23 stations and a 26.8 kilometer (km) length. It will link George Town to the Penang International Airport (PIA) and the Bayan Lepas Free Economic Zone in the southeast of Penang Island.

A new Mitsui Outlet Mall, a joint venture between Mitsui Fudosan Co Ltd and Malaysia Airport Holdings Bhd is also being planned as part of PIA's expansion.

The other significant development is Intel Corporation's RM30 billion expansion over the following 10 years in the Bayan Lepas Industrial Park.

With the addition of advanced packaging capabilities to Intel's operation in Malaysia, the investment focuses on the growth of Intel's assembly test manufacturing and the building out of die preparation capability, which is expected to result in the creation of over 4,000 new job opportunities.

When the LRT line is completed, traffic congestion will be significantly reduced, said a senior consultant who is acquainted with Penang's public infrastructure and real estate development activities.

"The LRT line is intended to improve connectivity between the highly congested Penang island and the mainland by moving people. Residential properties in Penang are anticipated to appreciate due to improved accessibility. Additionally, Penang housing developments will likely rise," he told NST Property.

He said the Penang property market is expected to continue its gradual recovery phase from the pandemic-induced slowdown.

The years 2021 and 2022 were favourable for purchasing real estate in Penang due to the Home Ownership Campaign (HOC), historically low-interest rates, and developer incentives like freebies, discounts, and refunds to move inventory.

But going forward, the market is expected to experience some difficulties in 2023 as a result of rising building material and labour costs as well as the 1% Overnight Policy Rate (OPR) rise in 2022.

Despite these difficulties, he said, Penang's real estate market is anticipated to experience thrilling times in the future thanks to an increase in infrastructure projects and building launches.

He said thousands of jobs will be created as a result of the PTMP's announced infrastructure projects, Intel's RM30 billion investment in Bayan Lepas, and other major developments throughout Penang, which will also increase demand for real estate.

According to the 2022 Property Market Report launched last month, there were 243,190 transactions for residential properties worth RM94.28 billion recorded in 2022 in the whole of Malaysia, an increase of 22.3 per cent in volume and 22.6 per cent in value year-on-year, supported by the uptrend recorded in Penang (31.1 per cent), Johor (24.3 per cent, Perak (18.9 per cent), Kuala Lumpur (18.4 per cent), and Selangor (15.9 per cent).

The commercial property segment registered 32,809 transactions worth RM32.61 billion in 2022, a growth of 46.3 per cent in volume and 16.7 per cent in value compared to 2021.

Sunway Property obtained a non-bumi residential unit take-up rate of 89 per cent and a non-bumi commercial shop take-up rate of 100 per cent for its most recent property launch in Bayan Baru, called Sunway Dora.

Sunway Dora comprises 156 residential units and 22 commercial shops, with a gross development value of RM128 million.

The success of the project is attributed to its location, which is 2km from Bayan Lepas Industrial Zone, 3km from Tun Dr. Lim Chong Eu Expressway, 5km from Penang International Airport, 6km from Second Penang Bridge, and 7km from Penang Bridge.

It is also located close to the world's first hybrid solar-powered MICE and sports venue, SPICE Arena (800 metres), and the Bukit Jambul Golf and Country Club (3km) offering a multitude of recreational facilities.

Sunway Property Penang general manager Fong Choon Fuoi said homebuyers and investors view Sunway Dora's strategic location and green living amenities as a great investment that takes full advantage of Bayan Baru's rise as Penang's new economic hotspot with the Bayan Lepas LRT track and Intel Corporation's RM30 billion expansion in the Bayan Lepas Industrial Park.

There is also the rise of business services and outsourcing activities within the area as exemplified by the nearby Mayang Global Business Service Centre and Mahsuri Global Business Service Centre, he said.

As Penang's industrial hub, Bayan Baru is expected to develop faster and become a thriving township, creating jobs and attracting more foreign direct investments, Fong said.

Homebuyers are swarming to purchase new properties in Penang's high-growth Bayan Lepas due to several significant developments there, including the Bayan Lepas light rapid transit (LRT) project.

14/04/2023

Higher occupancy, new leases at the Curve last year

Boustead Properties Bhd said its Mutiara Damansara neighbourhood mall, the Curve, did better in 2022 with 40 new leases and a 92 per cent occupancy rate.

According to the company, the overall number of tenants in the Curve is now 248, up from 228 a year ago.

Jazmi Kamarudin, its senior general manager of property management and investment, said that the Curve's improved tenant mix has increased its average monthly mall footfall to 900,000 by 2022.

In addition to the new tenants, he said that 12 current Curve tenants are upgrading and refurbishing their spaces to expand their footprint at the mall.

"We are headed in the right direction, as the first two months of 2023 continued to draw an average monthly footfall of 1 million," he said.

Moving forward, Jazmi said that the company is optimistic about the mall's prospects and intends to continue giving its customers an exceptional shopping experience.

Meanwhile, he said that Boustead Properties is finalising its plans for the redevelopment of the eCurve shopping centre.

eCurve was closed to the public in March 2021 for redevelopment to become a new landmark or location in Mutiara Damansara.

Boustead Properties intends to redevelop eCurve into a high-rise residential building that will accommodate multigenerational living.

The redevelopment is aligned with the group-wide goal of 'Reinventing Boustead,' according to the company, which runs eCurve through its subsidiary Damansara Entertainment Centre Sdn Bhd.

"(The redevelopment) will certainly boost traffic into Mutiara Damansara once it is completed," Jazmi said.

Boustead Properties Bhd said its Mutiara Damansara neighbourhood mall, the Curve, did better in 2022 with 40 new leases and a 92 per cent occupancy rate.

13/04/2023

RST Link a major draw for Singaporeans to invest in Johor's property market

The Johor Bahru-Singapore Rapid Transit System (RTS Link), which is expected to be completed by the end of 2026, has become a major draw for Singaporeans looking to invest in the Johor property market.

The RTS Link will connect Bukit Chagar in Johor Bahru to Woodlands in Singapore, servicing roughly 10,000 passengers per hour in each direction to reduce traffic congestion on the Causeway.

When the 4km RTS Link shuttle service starts operating, passengers will be able to travel from the Bukit Chagar station in Johor Bahru to the Woodlands North station, or in the reverse direction, in roughly five minutes.

Kashif Ansari, co-founder and group chief executive officer of Juwai IQI, said the new RTS provides purchasers hope that if they buy now, their home would be worth considerably more in a few years.

He expects a huge surge in demand and cross-border property transactions when the new transit link opens in 2026.

According to him, the most significant impediment to cross-border property acquisitions has been the busy border, which 350,000 people cross daily.

While the travel should just take 20 minutes, it can take anywhere from 90 minutes to three hours to get across during rush hour and on weekends.

Peak-hour traffic volumes at the Woodlands and Tuas crossings have returned to pre-Covid-19 levels.

The Land Transport Authority of Singapore described the RTS Link as a "game changer that will significantly improve connectivity between Singapore and Johor Bahru, and ease congestion along the Causeway".

Kashif said that the new RTS Link is motivating property purchasers.

He said that a new project named The Quayside in Johor Bahru's city centre offers unsurpassed luxury living, but buyers are mainly intrigued by its location, which is just 100 metres from the upcoming RTS Link's Bukit Chagar Station.

That puts the project just five minutes from Woodlands North Station in Singapore, he said.

"We believe the number of people residing in Johor and travelling to Singapore for work every day could increase by one-third to one-half," he said.

According to Kashif, real estate agents and developers in Johor Bahru are starting to get a rush of fresh queries from Singapore purchasers compared to the fourth quarter of 2022.

He said that Singapore buyer queries in Johor Bahru increased by 20 per cent in March compared to the December quarter of 2022.

According to him, this demand will continue to strengthen through 2023.

Kashif said there are other driving factors behind the increase in Singapore buyers in the current quarter.

He said that Singaporean buyers are drawn to Johor because of the strong Singapore dollar, relatively affordable real estate, and lower cost of living.

When compared to the Malaysian ringgit, the Singapore dollar currently has five per cent more purchasing power than early last month and 40 per cent more than its 10-year low.

Kashif said basically, houses in Malaysia have become substantially more affordable for anyone with Singaporean dollars.

He quoted an RM2 million bungalow in Johor that costs roughly S$588,000 now.

Based on current currency rates, that same property would have cost roughly S$625,000 earlier this month. He said 10 years ago, the price would have been S$833,000.

"One of our clients is an excellent example of the growing demand from Singapore. These Singaporean buyers are a family with two children looking for a second home in the Horizon Hills section of Johor. They can buy a luxurious bungalow for RM2 to RM3 million. That's equivalent to less than S$900,000 at the most recent exchange rates.

"You can get a studio or one-bedroom condo in Singapore for that price. While the husband will continue working in Singapore, the wife will live in Johor, where the children will attend an international school. Daily life in Singapore is about four times more expensive than in Johor. International primary schools cost 80 per cent less, utilities are 72 per cent more affordable, and transportation and shopping are as much as 75 per cent lower, according to statistics from Numbeo," he said.

With a typical house price of RM320,000, Johor is Malaysia's third most expensive housing market.

Kashif said that while this is much higher than the national median property price of RM320,000, it is significantly less expensive than the average home price in Singapore.

"The average home price in Singapore is S$2 million, or about RM6.7 million, which is six times more than the median house price in Johor. To buyers from Singapore, purchasing in Johor allows them to buy more space, better views, and the land they couldn't afford at home, "Kashif said.

The Johor Bahru-Singapore Rapid Transit System (RTS Link), which is expected to be completed by the end of 2026, has become a major draw for Singaporeans looking to invest in the Johor property market.

12/04/2023

US home sales bounce in February, ending 12-month slide

Sales of existing homes in the United States made their biggest monthly jump since 2020 in February, ending a year of declines according to industry data released on Tuesday.

As the US central bank raised interest rates steeply over the past year to curb surging inflation, the rate-sensitive housing market has been reeling.

But last month, existing home sales rose 14.5 percent from January to a seasonally adjusted annual rate of 4.58 million, said the National Association of Realtors (NAR) in a statement.

Compared with a year ago however, sales were still down by 22.6 per cent, the NAR said.

"Conscious of changing mortgage rates, home buyers are taking advantage of any rate declines," added NAR chief economist Lawrence Yun in a statement.

He added that sales are stronger in areas where home prices are falling and local economies are adding jobs.

According to home loan finance company Freddie Mac, the popular 30-year fixed-rate mortgage averaged 6.6 percent as of March 16, down from the week before.

Existing home sales make up the vast majority of the US property market.

"Mortgage rates remain high although they have come off recent peaks," said High Frequency Economics chief US economist Rubeela Farooqi in a note.

"But affordability remains a key constraint for buyers," she said.

Kieran Clancy, senior US economist at Pantheon Macroeconomics, added: "A dramatic improvement in affordability is still needed before sales can recover."

The median home price across housing types was down slightly from a year ago at us$363,000, said the NAR.

But Yun added that "inventory levels are still at historic lows."

Month-over-month sales picked up in all four major US regions.

As of end-February, total housing inventory was 980,000 units, identical to January and up from a year ago, said the association.

"Unsold inventory sits at a 2.6-month supply at the current sales pace," the NAR noted.

Nancy Vanden Houten, lead US economist at Oxford Economics, cautioned: "We expect home sales to come under renewed pressure in the months ahead, with a recession in the second half of the year also weighing on home sales." - AFP

Sales of existing homes in the United States made their biggest monthly jump since 2020 in February, ending a year of declines according to industry data released on Tuesday.

11/04/2023

Penang Technology Park will be the state's next exciting 'satellite city'

The new Penang Technology Park@Bertam, which will be completed in two years, will be the next exciting satellite city for Penang, according to Ideal Property Group executive chairman Tan Sri Datuk Alex Ooi.

Ooi further said that the technology park, with a gross development value of RM4.2 billion, represented a new milestone for the Group.

Penang Technology Park is situated on 356 hectares of freehold property in the municipality of Bertam. It will be the first cutting-edge technology park built in the North Seberang Perai district.

Ooi said that the group began this project to create a vibrant hub for talent, creativity, and technology.

"This technology park is not only attracting foreign investments but also from the local technology companies as well," he said.

According to Ooi, it is intended to offer new areas for investors in the research and technology sector, as well as to allow potential synergies and innovation (through) new and emerging technologies.

"The technology park which is designed to attract high technology industries as a catalyst to diversify the economy in the region will be constructed in three phases," he said after the recent groundbreaking ceremony officiated by Penang Chief Minister Chow Kon Yeow.

Ooi said that the park's vital role in incubating local technology enterprises would greatly contribute to the region's technology industry's growth and development, supporting innovation and promoting sustainable development.

He said that Ideal Property Group will work with the Malaysian Investment Development Authority and the Northern Corridor Implementation Authority to jointly market the park both locally and internationally, as well as to attract and facilitate investments and provide incentives and subsidies.

Meanwhile, Chow said the project was a timely boost for the state as it will spur the development of other related projects, especially in the north Seberang Perai district.

He said the technology park will uphold the state's competitive edge, optimising the state's resources to harness its full potential for strategic investors.

"The park is also designed with sustainability in mind, incorporating features such as green spaces, energy efficient facilities, recycling and waste management systems. This shows that Ideal Property Group is not only focusing on economic success, but also on the environment and social well-being," he said in his speech.

The new Penang Technology Park@Bertam, which will be completed in two years, will be the next exciting satellite city for Penang, according to Ideal Property Group executive chairman Tan Sri Datuk Alex Ooi.

24/03/2023

Wholesale and retail trade sales grew 12.4% in Jan 2023 — DOSM

Malaysia’s wholesale and retail trade grew 12.4% year-on-year (y-o-y) in January 2023 to record monthly sales value of RM135.1 billion, the Department of Statistics Malaysia (DOSM) said.

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the increase was attributed to the retail trade sub-sector, which recorded an increase of RM10.6 billion or 21.7% y-o-y to RM59.6 billion.

He said motor vehicles also expanded by 20.1% y-o-y or RM2.5 billion to RM15.2 billion while wholesale trade went up 3.1% y-o-y or RM1.8 billion to RM60.4 billion.

“However, for month-on-month (m-o-m) comparison, sales value of wholesale and retail trade declined 1.6 per cent, mainly contributed by the motor vehicles sub-sector which decreased 13.4 per cent,” he said in a statement today.

Mohd Uzir said the retail trade sub-sector growth of 21.7% in January 2023 was supported by retail sales in non-specialised stores which grew 24.6% or RM4.5 billion to RM22.7 billion.

“For m-o-m comparison, sales of this sub-sector went up 0.2%,” he said.

He said the 20.1% growth in the motor vehicles sub-sector was attributed to sales of motor vehicles, which increased 25% or RM1.5 billion to RM7.7 billion.

“However, on a monthly basis, sales of this sub-sector decreased 13.4% influenced by sales of motor vehicles, which declined 23.4%,” he said.

He said for the wholesale trade sub-sector, the increase of 3.1% was attributed to the wholesale of household goods, which registered an increase of RM1 billion or 8.6% to RM12.8 billion.

Mohd Uzir said for monthly comparison, wholesale trade grew 0.1%, which mainly contributed to the wholesale of household goods, which increased 4.4% or RM0.5 billion to RM12.8 billion.

Additionally, he said the index of retail sale over the internet for January 2023 recorded 9.6% growth y-o-y versus 10.2% y-o-y growth in December 2022.

“For seasonally adjusted value, the index rose 1.3% as against the previous month,” he said.

He said in terms of volume index, wholesale and retail trade for January 2023 registered a y-o-y growth of 8.6%, attributed to retail trade, which increased 16.2%.

“Similarly, motor vehicles and wholesale trade also recorded positive growths of 10.8% and 0.3%, respectively.

“However, the seasonally adjusted volume index went down 4.4% m-o-m,” he added.

The retail trade sub-sector growth of 21.7% in January 2023 was supported by retail sales in non-specialised stores which grew 24.6% or RM4.5 billion ...

23/03/2023

Malaysia retail sales grew 13.7% y-o-y in 4Q2022

Malaysia's retail industry sales grew 13.7% year-on-year in the fourth quarter of 2022.

In its March 2023 Malaysia Retail Industry Report released on Tuesday (March 14), Retail Group Malaysia (RGM) said despite the high base rate of 26.5% a year ago, this latest quarterly result met market expectation.

It said members of Malaysia Retailers Association (MRA) and Malaysia Retail Chain Association (MRCA) projected the fourth quarter growth rate at 13.9% in November 2022.

It was also higher than the estimate made by Retail Group Malaysia (RGM) at 6.0%.

RGM said that for the last three months of 2022, Malaysia retail industry continued on its recovery path supported by two major festivals — Christmas and Chinese New Year (end January 2023).

The report pointed out that on November 3, Bank Negara Malaysia raised the Overnight Policy Rate (OPR) by 25 basis points to 2.75%.

It said this was the fourth revision in a year, adding that Malaysian households had to deal with reduced spending power due to higher monthly loan repayment.

RGM said after two consecutive years of dismay due to the Covid-19 pandemic, Malaysia retail industry recorded a positive growth rate of 33.3% for the entire year of 2022.

It said this final annual growth figure was based on seasonally adjusted volume sales on each quarter of last year.

It said this historical high annual growth rate was unprecedented, adding that during the first year of the pandemic, Malaysia's retail industry growth rate fell by 16.3%.

This was the worst contraction since the Asian financial and economic crisis in 1998, it said.

RGM said the second year of the pandemic led to two more rounds of lockdowns with majority of retail shops remained close for weeks.

It said in 2021, retail sales shrank by 2.3%.

In terms of total sale value, Malaysia retail industry in 2022 had recovered to 2019 level.

Going forward

RGM said that members of the two retailers’ association project an average growth rate of 9.2% for the Malaysia retail industry during the first quarter of 2023.

It said the department store cm supermarket operators are hopeful of a sustainable growth rate of 6.4% for the first quarter of this year.

After achieving steep growth rates last year, the department store operators will experience normalisation of its business with a growth rate of 15.8% for the first three-month period of this year.

In terms of total sale value, Malaysia retail industry in 2022 had recovered to 2019 level. KUALA LUMPUR (March 14): Malaysia's retail industry s...