Property developers are mainly neutral about the real estate market outlook for the next 12 months, particularly for the second half of 2023 (2H 2023), according to Datuk NK Tong, president of REHDA Malaysia.

According to him, poll respondents have a moderate opinion of the business, economic, and property industry outlook for the coming months, with greater optimism for the first half of 2024 (1H 2024).

“The increase in the number of launches and sales is a positive sign towards a property market that is slowly returning to normalcy,” he said in his presentation on the REHDA Property Industry Survey for 1H 2023 and Market Outlook for 2H 2023 and 1H 2024 yesterday.

“However, true recovery is still out of reach as developers are still struggling with challenges that have yet to be properly addressed, such as material price hikes, cross-subsidisation, and high compliance and utility costs,” he added.

According to the survey, nearly 3/4 of the respondents reported an average 15 per cent increase in their overall cost of doing business in 1H 2023, as opposed to 13 per cent in the previous half.

And 84 per cent of respondents also reported being impacted by the current economic scenario and have opted to take cost-cutting measures in terms of operations (freezing recruitment, offering fewer benefits and perks, as well as reducing salaries) and production/delivery (rescheduling the launch of planned projects, reducing the scale of launches, and delaying projects due to poor demand).

With regards to future launches and outlook for 2H 2023 and 1H 2024, about half of respondents (or 53 per cent) planned to launch their projects in the second half of 2023, with 3/4 of them anticipating their sales performance to be 50 per cent or below.

Most of these planned launches are priced between RM150,001 and RM300,000, particularly in Kedah, Perlis, Melaka, Pahang, Penang, and Perak.

The survey saw the participation of 148 member developers, in which both new launches and sales performances recorded a hike compared to 2H 2022 results.

Meanwhile, the majority of new launches in the first half of 2023, or 62 per cent, were priced at RM700,000 and below.

About 14,392 residential units were launched between January and June 2023, representing a 50 per cent increase compared to the previous period under review (9,426 units; 28 per cent).

Most of the units were apartments or condominiums (7,183 units), followed distantly by two- to three-storey terraces and serviced residences (3,729 units and 1,223 units, respectively).

Residential sales performance increased in 1H 2023, totaling 11,273 units (1H 2022: 5,087 units), out of which 35 per cent were new launches.

Apartments and condominiums performed the best sales-wise at 3,749 units, with serviced residences at a close second (3,688 units), followed by two- to three storey terraces (2,040 units).

Source: NST Online

Jayamas Property Group marked a significant milestone with the groundbreaking ceremony for their second affordable housing project, Aston Minka, nestled in the heart of Bukit Mertajam. The event, held on the Aston Minka site, was attended by the Management Team and Directors of Jayamas Property Group yesterday.

Aston Minka is nestled on a 1.29-acre plot of land along Lebuh Aston, comprising an 18-storey residential tower, the project encompasses 237 affordable units, complemented by a four-level car parking podium. The fifth level is designated for resident facilities.

* FIND OUT MORE ABOUT ASTON MINKA *

The newly sworn in housing and environment state exco Datuk Seri S. Sundarajoo will focus on providing more affordable housing to the B40 group in Seberang Perai.

The first-term Perai assemblyman said the previous housing exco has introduced a lot of affordable housing projects but most of it were focused on the island.

“I noticed that there are a lot of lands in Perai and on the mainland to introduce affordable housing projects,” he told reporters after the state exco swearing in ceremony at Dewan Sri Pinang yesterday.

He said there were also existing old low cost housing that needed to be upgraded.

“I will look into upgrading those projects and introducing new development on the mainland,” he said.

He said he had experience of 37 years as a developer so he is well versed in the housing industry to hold the housing portfolio.

When asked about whether there was conflict of interest due to his previous occupation, he said he has retired from the corporate world about seven months ago.

“I have completely retired, I was not a director of the main board, I was not a director of the Eco World board, I was only a director of one of the subsidiaries, I don’t own any major share to quality to sit on the board of directors, I don’t hold any position in Eco World or SP Setia,” he said.

He said joining politics and running for elections as an assemblyman was a “national service”.

“With my vast experience, I am sure I can do this job well,” he said with regards to the portfolio he holds.

Source: MalayMail.com

A newly proposed mixed development by Chia Ui Chong Holdings Sdn. Bhd. near Kota Permai in Bukit Mertajam. Positioned at the crossroads of Jalan Bukit Minyak and Jalan Permai Jaya 1, the site is conveniently situated in proximity to Econsave Alma. Its strategic location provides seamless connectivity to neighboring townships, with a mere 5-minute drive to the main thoroughfares of Jalan Song Ban Kheng and Jalan Bukit Tengah.

The development is to be completed in three phases. The initial and second phases will encompass a combined total of 16 units of shop offices. In the third phase, it will feature a gated and guarded project, comprising 38 units of 2-storey terrace houses.

The project is still pending approval. More details about the development to be available upon its official launch.

Project Name: (to be confirmed)
Location : Bukit Mertajam
Property Type : Mixed development
Built-up Size: (to be confirmed)
Land Area: (to be confirmed)
Total Units: 16 (shop office), 38 (2-storey terrace)
Land Tenure: (to be confirmed)
Indicative Price : (to be confirmed)
Developer: Chia Ui Chong Holdings Sdn. Bhd.

DISCLAIMER: This article is solely based on research done using publicly available data. This is not an advertisement. Any claim, statistic, quote or other representation about a project or service should be verified with the developer, provider, or party in question.

The construction sector is expected to get a boost after the outcome of the hotly contested state elections saw the status quo maintained, lifting the dark political clouds that have weighed down the Malaysian economy.

This has prompted RHB Investment Bank Bhd (RHB IB) to retain its “overweight” call on the sector, in a note yesterday.

The research house is upbeat on the sector, citing expectations of a more robust federal government that can prioritise programme implementation and reforms, potentially resulting in an acceleration of government job opportunities in the upcoming months.

The state polls concluded with the unity coalition of Pakatan Harapan and Barisan Nasional keeping control of Selangor, Penang, and Negeri Sembilan while Perikatan Nasional strengthened its grip on the states of Kedah, Kelantan, and Terengganu.

RHB said infrastructure initiatives gaining momentum include the Mass Rapid Transit 3 (MRT3) project with an ongoing cost assessment, the Bayan Lepas Light Rail Transit (BLLRT) project, and the final stage of the Pan Borneo Highway development.

Meanwhile, the re-elected Penang government, now potentially backed by state funding, is poised to enhance collaboration with the federal authorities, potentially expediting the commencement of BLLRT operations by the close of the year.

Furthermore, it indicated that the ongoing prequalified tender phase for the government’s RM10.9 billion flood mitigation initiatives across the country could experience advancements, potentially diverging from the initial timeline set for a June launch.

“Hence, we may see further upside in terms of the value of jobs awarded to contractors in the coming months,” RHB said.

Moreover, it noted the total value of construction contracts granted in the current year so far has reached RM59.4 billion, versus the RM77.6 billion recorded in the previous year.

The research house named Gamuda Bhd, Sunway Construction Group Bhd (SunCon), and Kerjaya Prospek Group Bhd as its top picks due to their consistent track records in securing new projects.

The “buy” recommendation for all three groups was maintained, accompanied by target prices of RM5.27 for Gamuda, RM1.55 for Kerjaya Prospek, and RM2.08 for SunCon.

Source: FMT Online