Week 10 - 2024
PROPERTY SALES HIT FRESH RECORD RM196.8 BIL IN 2023; JOHOR SEES HIGHEST PRICE RISE
The Edge & NST, 06/03/2024
In 2023, Malaysia’s property transaction value reached a record high of RM196.83 billion, marking a 9.91% year-on-year increase. Although the number of transactions saw a modest 2.54% rise, with the majority coming from the residential subsector, the residential segment contributed significantly to the overall transaction value. All property subsectors experienced growth in transaction value compared to 2022. The Malaysian House Price Index (MHPI) grew moderately by 3.2%, with positive annual growth recorded across major states. The property market is expected to maintain cautious optimism in 2024, supported by government initiatives outlined in Budget 2024 and the 12th Malaysia Plan. These initiatives include allocations for affordable housing development, the Housing Credit Guarantee Scheme, stamp duty exemptions for first-time homebuyers, and relaxed conditions for the Malaysia My Second Home (MM2H) program.
OVERHANG RESIDENTIAL UNITS DOWN 7% IN 2023, AFFORDABLE HOUSING THE LARGEST CATEGORY
The Edge, 06/03/2024
In 2023, the number of unsold completed residential properties continued to decrease, with a 7% year-on-year decline to 25,816 units. The value of these overhang units also dropped by 4% to RM17.68 billion. Notably, Perak saw a significant increase in overhang units, while Johor experienced a decline. Kuala Lumpur and Selangor remained among the states with high numbers of overhang units. Additionally, there were 59,058 unsold incomplete residential units in 2023, with a significant portion falling within the affordable housing range. Despite this, there was a 4.4% increase in new residential launches compared to the previous year, with 56,526 units introduced in 2023.
SHOPPING COMPLEX OCCUPANCY RISES SLIGHTLY Y-O-Y IN 2023, OFFICE SPACE REMAINS FLAT
The Edge, 06/03/2024
In 2023, Malaysia’s shopping complex retail space occupancy rate increased by 2% points compared to the previous year, reaching 77.4%. This growth was attributed to the completion of nine new shopping complexes, adding approximately 2,368,058 sq. ft. of retail space. Conversely, the occupancy rate of purpose-built office space remained steady at 78.5%, with no change from the previous year. Despite this, 13 new purpose-built offices were completed in 2023, contributing 4,305,560 sq. ft. of office space. The Klang Valley Shopping Centre Rental Index rose by 1.4% in 2023, while the Klang Valley Purpose-Built Office Rental Index declined by 0.5% during the same period.
AUSTRALIAN COMPANIES KEEN TO INVEST RM24.5 BILLION IN MALAYSIA
The Edge, 06/03/2024
Major Australian companies have expressed interest in investing a total of RM24.5 billion in Malaysia, including the expansion of existing investments. Among the potential investors are data center operators AirTrunk and NextDC, with planned investments of around RM11 billion and RM3 billion, respectively and Fortescue, Macquarie Group and Arnott’s Group. These potential investments demonstrate Australia’s confidence in Malaysia’s policies and could create jobs for about 1,200 skilled workers. The mining firm Lynas aims to expand its investment in Malaysia.
BRITISH AIRWAYS RESUMES ROUTE TO KUALA LUMPUR IN NOVEMBER
The Edge, 05/03/2024
British Airways will resume its flights to Kuala Lumpur in November, underlining its commitment to expanding its Asian network post-pandemic. The airline will operate daily flights between Kuala Lumpur and London Heathrow using a Boeing B787-9 aircraft. This decision is part of British Airways’ modernization efforts, which include a £7 billion transformation plan over the next two years. The plan encompasses various initiatives such as a new website, free onboard messaging, and upgraded short-haul seats.
BEACHFRONT PARADISE
The Edge, 03/03/2024
KEB Group is set to launch Cove Residence in Melaka on 9th March 2024, featuring a beachfront development with a gross development value of RM710 million. The project aims to offer resort-style living at accessible prices, with three towers and over an acre of facilities including a swimming pool and playground. Cove Residence is strategically located near the Encore Melaka performance theatre and is approximately 10 minutes from Melaka town.
HCK CAPITAL IN RM34 MILLION LAND ACQUISITION
The Star, 05/03/2024
HCK Capital Group Bhd has announced its acquisition of land spanning 207,130 sq. ft. in Bukit Raja, Selangor, from Ecofirst Worldwide Sdn Bhd for RM34 million. The proposed acquisition is seen as a strategic move aimed at increasing the group’s landbank and enhancing its potential development profits. HCK emphasized its commitment to monitoring its investment in the land and implementing effective measures such as prudent management and efficient operating procedures to mitigate potential risks. However, the company also acknowledged the possibility of adverse economic, political, and regulatory changes affecting its performance in the future, despite its proactive approach to risk management.
S P SETIA’S IRAMA VILLA IV 85% TAKEN UP
The Edge & NST, 04/03/2024
S P Setia Bhd has reported an 85% take-up rate for Irama Villa IV since its launch on 3rd March. This development marks the final addition to the Irama Villa series within the Bandar Kinrara township in Puchong. Irama Villa IV, occupies 5.53 acres of freehold land and comprises 38 units of two-storey terraced homes. The homes boast built-ups ranging from 2,414 sq. ft. to 2,927 sq. ft., with selling prices starting from RM1.7 million to RM3.05 million. Completion is slated for 2026. The good take-up was driven particularly among affluent families and upgraders in Puchong and surrounding areas. Targeting couples, young families, and upgraders, Irama Villa IV will embrace the Setia eGreenLiving concept, incorporating sustainable amenities such as Box 366 food and parcel delivery dropbox, smart locks for security, solar photovoltaic conduit for clean energy, and electric vehicle ports.
FIRST PHASE OF IJM LAND’S SUTERA LANDED HOMES IN SEREMBAN 2 HEIGHTS AMAN 70% TAKEN UP
The Edge, 07/03/2024
IJM Land Bhd’s Sutera development in Seremban 2 (S2) Heights Aman is 70% sold for the first phase. It is the final precinct of the S2 Heights township in Seremban 2, Negeri Sembilan. Phase one of Sutera consists of 204 two-storey link homes with prices starting from RM698,000. These homes emphasize an elevated living experience with spacious designs, ample ventilation, and smart features like digital door locks and EV charging points. The development prioritizes nature integration, with green areas, parks, and pet-friendly zones nearby. Conveniently located near amenities and major highways, S2 Heights Aman aims to provide residents with a harmonious and enriching community experience.
MAH SING TO LAUNCH M SINAR SERVICE APARTMENTS IN SOUTHVILLE CITY IN 2Q2024 AND UNVEIL M LEGASI TOWNSHIP IN SEMENYIH BY END 2024
The Edge, 04/03/2024
Mah Sing Group Bhd is set to launch M Sinar, a new service apartment development, in its Southville City township in Bangi, Selangor, in 2Q24. Spread over a 5.77-acre area, M Sinar will consist of two 33-storey towers offering a total of 999 units, available in two layouts with selling prices starting from RM270,000. There are plans for a new township named M Legasi in Semenyih by the end of the year, with a sales target of RM2.5 billion for 2024. The developer is also planning Mah Sing Business Park in Sepang, focusing on customised factories and industrial lots to attract players from high-tech and value-creation manufacturing sectors.
GAMUDA COVE TO WELCOME MORE TENANTS IN 2Q24
The Edge, 05/03/2024
Gamuda Land, the property arm of Gamuda Bhd, is set to introduce new food and beverage (F&B) and education-related tenants within Gamuda Cove, Selangor, by 2Q24. The upcoming F&B tenants include Kenangan Coffee and Long John Silver’s, while educational institutions like Big Apple Kindergarten and TVET AustralAsia by Technoriant Sdn Bhd are also expected to open their doors. TVET AustralAsia will establish the Hospitality TVET Hub training center, providing practical training for students. The development progress includes the imminent vacant possession of Maya Bay Residences serviced apartments and Enso Woods terraced homes. There are plans to launch European-inspired commercial shops and offices at Cove Centrum in 3Q24.
ECOWORLD INTRODUCES ATTAINABLE HIGH-RISE IN KAJANG FROM RM400,000*
The Edge, 07/03/2024
ECOWORLD has launched a new property development named Se.duduk D’ Kajang in Kajang, catering to first-time homebuyers, young couples, and small families. With 1,220 units, the development offers 1,000 sq. ft. units starting from RM400,000, each featuring three bedrooms, two bathrooms, and two parking lots. The units are partly furnished with light fittings, air conditioning, kitchen cabinet, dryer, water heater, and a digital lockset. Se.duduk D’ Kajang boasts a practical layout, modern facilities such as a gym, swimming pool, playground, EV charging bays, and convenient access to nearby amenities including cafés, restaurants, supermarkets, and educational institutions.
IJM LAND ACHIEVES 60% TAKE-UP RATE FOR THE PROMENADE IN BANDAR RIMBAYU
The Edge, 04/03/2024
The Promenade, a new commercial development was launched in Bandar Rimbayu township in Telok Panglima Garang, Selangor, on March 1 and has achieved a 60% take-up rate. The Promenade features two and three-storey shop offices with built-up sizes ranging from 3,476 to 6,936 sq. ft, at a selling price of RM2.09 million onwards. Scheduled for completion in the second quarter of 2027, the development emphasizes natural lighting, incorporates solar panels, and includes features for ease of movement. The vision for The Promenade is to create a vibrant lifestyle hub offering retail, dining, and entertainment options, enhancing the community experience within the Bandar Rimbayu township.
GOVERNMENT ACQUIRING LAND FOR DEVELOPMENT OF BAGAN DATUK NEW TOWNSHIP
The Edge, 03/03/2024
The government plans to develop a new township called Bandar Baharu Bagan Datuk. Upon completion, all administrative offices of federal and state governments in the district, including the district police headquarters, will relocate to the 385-acres new township. This development aligns with Bagan Datuk’s status as the 12th newest district in Perak and addresses land constraints in existing townships.
PEKAT GROUP SELLS VACANT INDUSTRIAL PLOT IN SHAH ALAM FOR RM21 MILLION CASH
The Edge, 02/03/2024
Pekat Group Bhd, a key player in renewable energy, has decided to sell an industrial freehold land measuring 137,927 sq. ft. for RM21 million cash. The purpose of the sale is to unlock the value of the unused property, with proceeds to be utilized for working capital. The sale was formalized through an unconditional agreement between Pekat Teknologi Sdn Bhd and Titan Equity Sdn Bhd.
HUAWEI PARTNERS NUR POWER, JS SOLAR TO DEVELOP SMART AND GREEN INDUSTRIAL PARK
The Edge, 05/03/2024
Huawei Technologies (Malaysia) Sdn Bhd, NUR Power Sdn Bhd, and JS Solar Sdn Bhd have joined forces to develop the first smart and green industrial park within the Kulim Hi-Tech Park (KHTP). This collaboration aims to create a Green and Smart Energy Transition Roadmap for KHTP, setting a benchmark for sustainable energy in Malaysia. NUR Power will operate as the strategic independent power utility operator, Huawei Malaysia will provide technology expertise, and JS Solar will oversee project development.
ISKANDAR WATERFRONT OUTLINES RM4.3 BILLION DEVELOPMENT PROJECTS IN JOHOR IN 10-YEAR PLAN
The Edge, 05/03/2024
Iskandar Waterfront City Bhd has revealed a comprehensive 10-year development plan in Johor Bahru, encompassing three projects with a combined gross development value (GDV) of RM4.33 billion. These projects include the RM3.5 billion waterfront township Tebrau Bay, the RM500 million mixed waterfront development Danga Rivera, and the RM330 million mixed-use development project Danga Heights. The initial phase of these projects, covering 63 acres, is anticipated to yield a total GDV of RM1.8 billion over the next five years. Tebrau Bay, spanning 100 acres, will kick off with a 30-acre pilot phase, while Danga Heights focuses on retail, featuring a branded hotel, office, and serviced apartments. Danga Rivera, situated in Permas Jaya, will comprise shop offices, retail spaces, hotels, and service suites. Iskandar Waterfront has partnered with Meliá Hotels International SA to develop a hotel under the Meliá Hotels & Resorts brand within the Danga Rivera project. This collaboration emphasizes the company’s dedication to excellence and community enrichment. With strategic locations near mature areas, the Rapid Transit System (RTS) Link station, and Johor Bahru city center, Iskandar Waterfront expresses confidence in its ability to develop and leverage its extensive land bank effectively.
FAJARBARU BAGS RM121 MILLION JOB TO BUILD CLUBHOUSE, DRIVING RANGE COMPLEX IN JOHOR BAHRU
The Edge, 05/03/2024
Fajarbaru Builder Group Bhd has secured a contract worth RM120.82 million to construct a clubhouse and driving range complex for the Johor Golf and Country Club (JGCC) in Johor Bahru. The contract, awarded by Tanjung Nakhoda (M) Sdn Bhd, spans a period of 90 weeks from 11 March 2024 to 30 November 2025. This project signifies Fajarbaru’s first venture in Johor and demonstrates their expanding project portfolio across diverse regions in Malaysia.
IWH, PLS PLANTATIONS IN TALKS WITH CHINA STATE-OWNED FIRM TO DEVELOP INDUSTRIAL PARK, INNOVATION HUB IN JOHOR
The Edge, 05/03/2024 & The Star, 06/03/2024
Iskandar Waterfront Holdings Sdn Bhd (IWH) and PLS Plantations Bhd have entered discussions with a China state-owned company, Shenzhen Shenyue Joint Investment Co Ltd (SSJI), to develop an industrial park and innovation hub in Johor. The proposed project includes a 1,000-acre Johor-Shenzhen Industrial Park in Ulu Sedili and a 50-acre Johor-Shenzhen Innovation Development Hub in Johor Bahru. The industrial park aims to be a fully integrated industrial estate offering offices, production facilities, and support services to foster industrial development and collaboration. The innovation hub will support innovative activities and research and development initiatives in Johor. IWH, with 37% ownership by the Johor state government, is a major land developer in Iskandar Malaysia, owning over 4,200 acres of land, including prime waterfront land in Johor Bahru. The collaboration signifies a significant development in Johor’s industrial landscape and is expected to attract both domestic and foreign businesses.
FURNITURE MAKER ACTIFORCE TO SET UP RM50 MILLION MANUFACTURING PLANT IN PENANG
The Edge, 05/03/2024
Actiforce, a part of Germany’s Hettich Group, is investing RM50 million to establish a second manufacturing plant in Bukit Minyak Industrial Park, Penang spanning approximately 13,300 sq. ft. Originating from the Netherlands, Actiforce plans to use the plant as a hub for research, design, manufacturing, and distribution of furniture fittings for European and US markets.