Week 46 - 2023
PROPERTY MARKET REGISTERS DEALS WORTH RM57 BILLION IN 3Q23
The Edge & The Sun, 16/11/2023
The property market activity recorded more than 100,000 transactions worth RM57.15 billion in 3Q23, an increase of 3.7% in volume and 22.6% in value compared with 3Q22, according to the Valuation and Property Services Department in the Finance Ministry. According to NAPIC, 87.7% (95,511 transactions) were transfers dated in 2023 while the remaining percentage share was for prior years’ transfers which were completed in the review quarter. The market sectors that improved marginally were: residential (5.6%), commercial (33.3%) and development land (2.4%) while the industrial and agriculture sub-sectors declined by 0.6% and 12.2% respectively against the similar period in 2022. The value of transactions of the agricultural sub-sector tops the list and increased significantly by 52.3%, followed by commercial (34.3%), industrial (30.9%), residential (13.4%) and development land (11.6%) sub-sectors.
The residential property in the price range of RM300,000 and below dominated the market activity, recording 35,948 transactions (52.4%), followed by RM300,001 to RM500,000 with 16,947 transactions (24.7%) and RM500,001 and above with 15,666 transactions (22.9%).
The primary market saw more new launches in 3Q23 at nearly 6,900 units against 4,797 units in 2Q23. The sales performance of the new launches was 37.6%, higher than 24.7% compared to 2Q23. Selangor recorded the highest number of new launches at 2,491 units which was about 36.2% of the total new launches nationwide and registered a better sales performance of 69.1%. WP Kuala Lumpur offered the second highest new launches (1,439 units, 21.9% share) with a sales performance of 23.4% while Johor came third (1,088 units, 15.8% share) with sales performance at 16.4%.
By price range, the new launches priced at RM300,000 and below dominate over 70% (5,075 units) with a better sales performance of 44.1%, followed by RM300,001 to RM500,000 with 11.8% (813 units) and above RM500,001 amounting to 993 units (14.4%).
The number of residential overhang declined as the number reduced in 3Q23. A total of 25,311 units worth RM17.4 billion was recorded, showing a decrease of 3.7% and 4.9% in volume and value respectively compared with 2Q23. By price range, those priced RM500,001 and below formed more than 50% (13,910 units) of the overhang units in the country. Johor recorded the highest number and value of overhang with 4,500 units worth RM3.6 billion, accounting to 17.8% and 20.7% respectively of the national total. This was followed by Perak (3,625 units worth RM1.04 billion), Selangor (3,296 units worth RM3.48 billion) and WP Kuala Lumpur (3,111 units worth RM3.32 billion).
The serviced apartment segment also saw a marginal decline in the number and value of overhang units by 1.5% and 4.7% respectively to 22,152 units worth RM18.24 (2Q23: 22,497 units valued worth RM19.13 billion). Johor remained the highest number in the country with a share of 57.1% (12,646 units) in terms of number and 65.8% (RM11.02 billion) in terms of value.
In terms of supply, residential construction activity recorded a decrease in starts and new planned supply, each down by 19.5% to 25,259 units and 14.4% to 23,418 units respectively. Nevertheless, completion increased by 14.4% to 22,711 units compared with similar period last year.
For the serviced apartment segment, construction activity was overwhelming. The number of completions increased by two-fold to 12,218 units while new planned supply increased 57.6% to 8,150 units against 3Q22. Starts recorded a decrease of 9.9% to 6,234 units.
RM18.3 BILLION WORTH OF UNSOLD HOUSES IN 2Q23, SAYS DEPUTY MINISTER
The Edge, 16/11/2023
A total of 26,286 completed houses, valued at RM18.3 billion, were reportedly unsold in 2Q23. This indicates a 5.3% decrease in total units and a 0.6% decrease in value compared to the same period in 2022. To control the issue of unsold houses, the government had implemented the mapping of the Affordable Housing Index based on median income by state and district obtained from the 2022 Household Income and Basic Facilities Survey Report. This method considers the median income of people by locality using the median multiple method, and the mapping serves as a guide for developers and housing agencies to determine the sale price of houses in a given locality. Additionally, the ministry is currently developing the Housing Big Data Analytics System as a centralised reference source for housing data. Throughout the implementation of the Housing Credit Guarantee Scheme (SKJP) from 2008 until 30th September 2023, a total of 30,841 loan applications, worth RM5.85 billion, had been approved.
MALAYSIA ON TRACK TO ACHIEVE 4% GDP GROWTH TARGET THIS YEAR — BNM
The Edge, 17/11/2023
Malaysia remains on track to achieve its gross domestic product (GDP) growth target this year, albeit at the lower end of its forecast range of 4% and 5% for this year. The GDP growth for 3Q23 came in at 3.3%, slightly better than the 2.9% year-on-year (y-o-y) growth recorded in 2Q23, but lower than the 5.6% y-o-y growth in 1Q23. Based on the latest indicators, growth for 2023 is expected to be around 4%. For 2024, the World Bank raised its projection for Malaysia’s GDP to grow 4.3%, up from 4.2% previously, on the back of the country’s economy is expected to be driven by recovery in global growth, the tourism sector and anticipated higher oil prices.
MALAYSIA AIRLINES TAKES OFF FOR AMRITSAR, TRIVANDRUM
NST & The Sun, 13/11/2023
Malaysia Airlines commenced its inaugural flights between Kuala Lumpur (KUL) to Amritsar (ATQ) and Trivandrum (TRV) with a send-off event held at the Kuala Lumpur International Airport (KLIA) Terminal 1 on 8th and 9th November 2023. The introduction of two new routes expands Malaysia Airlines’ point-to-point connectivity from Kuala Lumpur to India to 8 key hubs including New Delhi, Bengaluru, Mumbai, Chennai, Hyderabad, and Kochi. Malaysia Airlines remains dedicated to enhancing connectivity and will commence operations to Ahmedebad in December 2023.
PUBLIC TRANSPORT INFRASTRUCTURE TO BE UPGRADED IN 2024.
The Edge & The Sun, 15/11/2023
Seven local councils in the Klang Valley have been instructed to identify bus stations and sidewalks leading to train stations that need to be upgraded in 2024 to address the traffic jam and encourage people to take public transport. The ministry received some feedback regarding the safety of public transport users, particularly women, not only in train coaches but also at the walkway leading to the station, which sometimes can be dangerous due to poor lighting. Therefore, the safety and comfort of the users must be addressed. At least 100 bus stations are expected to be renovated or built in 2024, together with the sidewalks connecting them to train stations. The daily ridership of trains in the Klang Valley has increased by about 800,000 individuals and 250,000 people for buses.
IJM LAND GIVES RM1 MILLION FACELIFT TO SEREMBAN 2’S CITY PARK
The Star, 15/11/2023
IJM Land, the developer of Seremban 2 has allocated RM1 million to upgrade and reinvigorate City Park, the central park that has doubled up as one of the township’s main recreational spots since it opened in 2005. The allocation will go towards the broad categories of repair and replacement of wear-and-tear features and new installations that will excite and rejuvenate the 15-acre park.
MALAYSIA’S AIR PASSENGER TRAFFIC REACHED 77.5% OF PRE-PANDEMIC LEVELS IN FIRST NINE MONTHS OF 2023
The Edge, 16/11/2023
Malaysia’s air passenger traffic in the first nine months of 2023 has reached 77.5% of pre-pandemic levels, according to Transport Minister Anthony Loke. The recovery was the highest for domestic passengers at a rate of 84.4%, followed by ASEAN passengers at 77.5%, and 63.4% for other international destination passengers. Malaysia Airports Holdings Bhd (MAHB) had reported that the total local passenger movement in 3Q23 reached 21.7 million, with 3.3 million representing international passengers — marking a 79.3% recovery compared to September 2019 — and 3.6 million domestic passengers, an 86.7% increase from September 2019. This brings Malaysia’s overall performance for September to an impressive 83% compared to the corresponding period in 2019.
The recovery in number of flights between January and October 2023 stood at a rate of 74.1%, totaling 381,475 flights compared to 514,896 flights for the same period in 2019. Airports in Malaysia have handled a total of 62.8 million passengers up to September 2023. The government aims to increase the number of passengers this year by 87.8 million, which is 80.6% compared to the number of passengers recorded in 2019. The number of passengers is expected to return to pre-pandemic levels in 2024.
Malaysian airlines’ on-time performance for domestic flights dropped to 79% in 3Q23, compared to 82% in 2Q23. Among domestic airlines, SKS Airways achieved the highest on-time performance during the period with 95%, followed by MASwings at 93%, Batik Air Malaysia at 82%, FireFly at 77%, Malaysia Airlines at 74%, and AirAsia at 74%.
BATANG KALI-GENTING HIGHLANDS ROAD EXPECTED TO OPEN BY MAY 2024
The Edge, 17/11/2023
Selangor Infrastructure and Agriculture Committee chairman said that the slope repair and stabilisation work had reached 38.6% progress. The repairing of the slopes started on 28th May 2023, and is expected to complete on 29th March 2024. Currently, only one lane is open and is restricted to workers in the Genting Highlands area only.
SIME DARBY EXITS HEALTHCARE BUSINESS IN RM5.7 BILLION DEAL
NST, The Edge & The Sun, 13/11/2023
Sime Darby Bhd’s wholly-owned subsidiary Sime Darby Holdings Bhd (SDHB) has entered into a sale and purchase agreement (SPA) with Columbia Asia Healthcare Sdn Bhd for the disposal of its interest in Ramsay Sime Darby Health Care Sdn Bhd (RSDH) for RM5.7 billion, marking its exit from the healthcare business. RSDH is a 50:50 joint venture between Sime Darby and Ramsay Health Care Ltd (Ramsay).
APEX EQUITY TO SELL MENARA APEX TO NEW ERA UNIVERSITY COLLEGE’S PARENT COMPANY FOR RM55 MILLION
The Edge, 16/11/2023
Apex Equity Holdings Bhd is disposing off the 11-storey Menara Apex in Kajang, together with the land, for RM55 million to Era Edu Sdn Bhd, which operates the New Era University College education arm. Apex Equity estimates net proceeds of RM49.95 million, with an actual gain on disposal of RM39 million. The proposed disposal is on ‘as-is-where-is’, ‘lock stock and barrel’ and willing-buyer-willing-seller basis at the disposal price, subject to the property being free from all encumbrances.
FULL STEAM AHEAD FOR TA GLOBAL
The Edge, 12/11/2023
TA Global Bhd will soft launch its latest high-rise serviced apartment development named Amaya Residences in the 48-acre Damansara Avenue, Bandar Sri Damansara in November 2023. The development will be located on top of the upcoming DA Central Mall. Damansara Avenue will be developed in two parcels, Parcel 1 will be spread across 26.55-acres while Parcel 2 will occupy 21.51 acres. The final component of Parcel 1 will be Ativo Annexe, a 14.86-acre mixed-use development, which has components such as Amaya Residences, DA Central Mall, offices, a hotel and a wellness hub.
Amaya Residences, which has a gross development value (GDV) of RM1 billion, will feature two 68-storey residential towers with a total of 1,268 units. The units will have built-ups of 539 to 1,230 sq. ft., and are priced from RM553,000 to RM1.35 million each. The maintenance fee inclusive of sinking fund is an estimated 45 sen per sq. ft. per month. DA Central Mall, on the other hand, will be spread across five storeys, with a net lettable area of 420,000 sq. ft.
GLOMAC’S LOOP CITY: REDEFINING LIVING IN PUCHONG FOR YOUNG PROFESSIONALS AND RETIREES
The Edge, 13/11/2023
Glomac is continuing the development of Lakeside Residences at Puchong City Centre, a township development spanning 188-acres with a total gross development value of RM4 billion. This development encompasses three serviced residence plots, one commercial plot slated for a private school or hospital. This includes Loop City, Lakeside Terrace and Lakeside Semi-D, Lakeside Boulevard shops and the RSKU e-Khas affordable homes. Glomac’s Loop City is set to redefine affordable living in Puchong, making it accessible to a wider range of buyers.
Glomac’s Loop City is an integrated mixed use development project. It introduces Loop Residences, the first phase of 980 units of 450 and 750 sq. ft. serviced apartments. Pricing begins from RM230,000 to RM660,000, targeting young professionals, first-time homebuyers and retirees. Glomac’s Loop City stands out as an environmentally conscious development, with a certified bronze-category green building certification. The project incorporates sustainable features that minimise its environmental footprint. Co-working spaces on the podium decks provide residents with a convenient space to work and collaborate, a neighbourhood lake spanning over 27-acres will be made accessible to the residents and the Iconic Ring, a 1.2km covered jogging and bicycle track encourages residents to stay active and enjoy a balanced, quality lifestyle. Other common facilities include a children’s playground, a games room, a swimming pool, a lounging deck and a multipurpose court for futsal, basketball, sepak takraw and badminton.
FIRST HIGH-RISE OF GAMUDA COVE TOPPED OUT
The Edge, 16/11/2023
Gamuda Land on Thursday, 9th November 2023 announced the topping off for Maya Bay Residences in Gamuda Cove in Kuala Langat, Selangor. It is also the first high-rise residential project of the 1,530-acre township development. Maya Bay Residences comprises three towers of serviced apartments with a total of 972 units. The built-ups range from 550 to 968 sq. ft. All units are designed to maximise natural lighting and ventilation. There are also 35 retail outlets in the retail podium. The booking rate for the residential units stands at 95%, while the retail units are fully sold. It is also one of the first few developments built using the Industrialised Building System (IBS).
Maya Bay Residences is walking distance from the 60-acre Central Park, SplashMania Waterpark and Discovery Park of Gamuda Cove, while the first commercial centre — Townsquare — is set to offer retail options and al fresco shops to the residents in 2024. The existing e-tram line, connecting Discovery Park to Townsquare and SplashMania will extend towards Maya Bay Residences by 2026 — further improving sustainable intracity connectivity.
FIRST PHASE OF SIME DARBY PROPERTY’S HYPE RESIDENCES FULLY BOOKED
The Sun, 16/11/2023
Sime Darby Property Bhd’s newest SJ7 township in Subang Jaya, Hype Residence comprising 310 homes has achieved 100% booking rate within one hour of its official launch. With a gross development value (GDV) of RM597.2 million, Hype Residences is situated on 4.32 acres of land, with two towers to accommodate 961 homes upon completion.
SJ7 is a 34.6-acre TOD and the largest masterplan in Subang Jaya with a GDV of RM4 billion. Designed to be a dynamic, mixed-used development encompassing retail, office and residential components, SJ7 is slated to become a self-contained ecosystem where residents can live, collaborate, work and play. Sime Darby Property has integrated various green features into Hype Residences including North/South orientation that minimises heat gain, common electric vehicle charging stations at the visitor parking lot and rainwater harvesting for landscape irrigation.
A GERMAN CONSULTING FIRM EXPANDS ITS FOOTPRINT WITH THE GRAND OPENING OF THEIR NEW MALAYSIA OFFICE
The Edge, 15/11/2023
cbs Corporate Business Solutions, a leading German-based consulting firm, is thrilled to announce the grand opening of its new office in Kuala Lumpur, Malaysia. This new office represents a significant milestone in their journey of growth expansion in the region and the establishment of the Centre of Excellence (COE) driven by Malaysia. cbs Malaysia’s office space is designed to accommodate up to 180 professionals. This space has been meticulously crafted to foster collaboration, innovation, and productivity, further strengthening their commitment to delivering exceptional services to their clients in Malaysia and beyond.
TGV CINEMAS LAUNCHES NEW OUTLET IN PAVILION BUKIT JALIL
NST & The Sun, 15/11/2023
Local cinema chain TGV Cinemas is marking the opening of its latest venue in Pavilion Bukit Jalil. This new cinema will hold the distinction of being the first cinema in Malaysia to offer IMAX with laser systems and 12-channel sound technology. This outlet will occupy a total of 16 halls and 1,555 seats, including three indulge halls, and two beanie halls. This TGV outlet also collaborated with Mattel South Asia to introduce the largest “City of Play”, which spans a substantial 2,041 sq. ft.
MATRIX CONCEPTS SECURES RM512 MILLION FINANCING FACILITY FROM AMBANK FOR MVV 2.0 PROJECT
NST & The Edge, 15/11/2023
Seremban-based property developer Matrix Concepts Holdings Bhd has secured a RM512 million financing facility from AMMB Holdings Bhd (AmBank Group) to facilitate the development of 1,382.2-acres of prime housing in Malaysia Vision Valley 2.0 (MVV 2.0) located in Sendayan, Negeri Sembilan. The project, which has a gross development value of RM7 billion, will be developed through an 85:15 joint venture between Matrix Concepts’ indirect subsidiary MHCB Development (NS) Sdn Bhd and NS Corporation called N9 Matrix Development Sdn Bhd. It will feature a mix of residential, commercial and retail elements.
TH PROPERTIES UNVEILS FINAL PHASE OF TECHPARK@ENSTEK, INTRODUCES SEMI-DETACHED FACTORIES
The Star, The Edge, 16/11/2023
TH Properties Sdn Bhd, the wholly-owned subsidiary of Lembaga Tabung Haji, unveiled techpark@enstek Phase 3, Bandar Enstek, Negeri Sembilan. In addition to commercial and industrial plots, the latest phase will introduce semi-detached factories in the industrial park. Phase 3 is not only the largest among the three phases, covering a total area of 616.64-acre, but it will also introduce an additional product — semi-detached factories. This product was not present in Phases 1 and 2 but is incorporated in Phase 3 to meet the demands of investors, aligning with current trends. techpark@enstek covers 1,750.8-acre of freehold land and is located within the 5,119-acre Bandar Enstek in Negeri Sembilan.
Phase 3 has a gross development value of RM 1.36 billion and is to be developed in six phases over 14 years. The development of phase one of techpark@enstek Phase 3, covering an area of 189.38 acres, commenced in 2023 and is expected to be completed by 2026.
TH Properties forecasts a strong sales rate for Phase 3, given the success of the past two phases. Phase 1 which spans 336.44-acre, was launched in July 2002, is fully sold out, whereas Phase 2, which covers 307.34-acres was launched in October 2013 and has achieved a sales rate of 88%. techpark@enstek holds the HALMAS status by the Halal Industry Development Corporation and the industrial park houses notable brands such as Ajinomoto Malaysia Bhd, Farm Fresh Bhd, Coca-Cola Bottlers (Malaysia) Sdn Bhd, and Kellogg’s Malaysia in Phase 2, while in Phase 1, it features brands such as PureCircle Sdn Bhd and Hokto Malaysia Sdn Bhd.
139 KL AREAS IDENTIFIED FOR REDEVELOPMENT
NST & The Sun, 13/11/2023
A total of 139 locations have been identified as redevelopment areas until the year 2040, as stipulated under the Kuala Lumpur Structure Plan 2040 (KLSP2040). The redevelopment would involve “brownfield” areas with less economical use, old industrial areas, and potential areas resulting from investments in transit infrastructure and river conservation to create a more attractive environment in Kuala Lumpur. Under the plan, redevelopment around transit zones will have higher intensity compared to other areas and must blend well with the surroundings. The redevelopment land use zone around transit areas is recommended for mixed-use development activities to create a more integrated environment. The identified transit zones as redevelopment areas namely Federal Cable, Jalan Berangan, Jalan Kenanga, Jalan Tiong Nam, Jalan Haji Taib, Jalan Alor, Jalan Raja Bot, Jalan Rahmat, Jalan Melayu, Jalan Masjid India, Jalan Raja Laut, Jalan Petaling, Jalan Inai, Jalan Maharajalela and Jalan Talalla. Redevelopment for brownfield areas aims to create sustainable and livable development. The identified brownfield areas include old public and private housing, old markets, small-scale trading premises and food courts, as well as old residential, industrial and commercial areas.
CRESCENDO UNIT DISPOSES OF JOHOR LAND FOR RM111 MILLION
The Edge & The Sun, 16/11/2023
Crescendo Corporation Bhd’s wholly-owned subsidiary Panoramic Industrial Development Sdn Bhd has disposed of nine parcels of freehold vacant lands in Johor Bahru for a total cash consideration of RM111 million. The group said that it has entered into a conditional sale and purchase agreement with Yu Ao Sdn Bhd for the disposal with a total land area of about 20.39-acre. Barring any unforeseen circumstances, the disposal is expected to be completed by 3Q24.
CRESCENDO TO RAISE RM543 MILLION IN TOTAL FROM PULAI LAND SALES WITH THIRD DISPOSAL IN 10 DAYS
The Edge, 17/11/2023
Crescendo Corp Bhd has announced its third land disposal in Pulai, Johor Bahru, this time three vacant pieces of land measuring 2.62 million sq. ft. for RM315.17 million cash to Microsoft Payments (M) Sdn Bhd. The land is located within the Nusa Cemerlang Industrial Park, and the purchaser intends to develop a data centre on-site.
This land parcel is located close to the other two land parcels which were earlier disposed by Crescendo Corporation Bhd.
UEM SUNRISE SELLS 115.91-ACRE OF FREEHOLD LAND IN JB TO PARAGON GLOBE
The Edge, 17/11/2023
UEM Sunrise Bhd is selling 115.91-acre of freehold land in Johor Bahru to Paragon Globe Bhd (PGB) for a total consideration of RM146.1 million. The property developer said in a statement that its indirect wholly-owned units Nusajaya Rise Sdn Bhd (NRSB), Symphony Hills Sdn Bhd (SHSB) and Nusajaya Heights Sdn Bhd (NHSB), are selling the land to PGB’s wholly-owned unit PGB Landmark Sdn Bhd. UEM Sunrise said NRSB and SHSB executed five sale and purchase agreements (SPAs) with PGB Landmark on Friday, 17th November 2023 pertaining to the divestment of 48.23-acre of land in Mukim Tanjung Kupang. In addition, NRSB entered into two SPAs with PGB Landmark for the sale of another 65.29-acre in Mukim Tanjung Kupang, while NHSB signed another SPA with PGB Landmark for the disposal of 2.37-acre in Mukim Pulai.
TALENTCORP OPENS INAUGURAL SOUTHERN REGION OFFICE IN JOHOR
The Sun, 16/11/2023
Talent Corporation Malaysia (TalentCorp) has unveiled its inaugural office in the southern region. The launch held yesterday was officiated by Johor Human Capital Strategic Unit general manager Tazrina Ahmad, on behalf of Johor Exco for Youth, Sports, Entrepreneur Development, Cooperatives, and Human Resources Mohd Hairi Mad Shah, along with TalentCorp Group CEO Thomas Mathew, and Universiti Teknologi Malaysia deputy vice chancellor Professor Dr Rosli Md Illias. The launch of TalentCorp’s inaugural office in the southern region reflects a strong vote of confidence in this state and its future growth potential and the office will help Johor intensify the partnership between the state and federal agency in line with the objectives of Maju Johor 2030, especially for the development of Johor’s talent ecosystem.
REX INDUSTRY UNIT TO SELL LAND IN PENANG FOR RM41.8 MILLION
The Sun, 14/11/2023
Rex Industry Bhd’s, a food and beverage company has entered into a conditional sale and purchase agreement with SkyDorm Industries Sdn Bhd for the disposal of two pieces of land worth RM41.8 million in Seberang Perai, Penang. The total size of the two plots is 338,288 sq. ft.
IBRACO, CHINA RAILWAY WIN RM569M KUCHING RAPID TRANSIT PROJECT
The Edge, 14/11/2023
Ibraco Bhd and China Railway Group Ltd have clinched a construction project worth RM568.81 million involving infrastructure works for the Kuching Urban Transportation System (KUTS). Ibraco via its wholly-owned unit Ibraco Construction Sdn Bhd (ICSB) together with China Railway units, China Railway Engineering Corp (M) Sdn Bhd and Nanyang Tunnel Engineering Sdn Bhd, won the tender for Blue Line Package 1 from Rembus to Stutong for the KUTS project from Sarawak Metro Sdn Bhd (SMSB) on Friday, 10th November 2023.
SMSB is the implementer of the KUTS projects that aim to transform Kuching into a dynamic and competitive city by providing user-friendly mobility services through the Greater Kuching area with the introduction of the autonomous rapid transit. Package 1 of the KUTS project will run from Rembus to Stutong.