Residential homes in Malaysia may soon find a floor price due to the 47% reduction in completed dwellings and 9% decline in new planned residential supply, said Juwai IQI.

The international real estate technology group said the property sector will reduce supply enough to limit future price declines.

“As agents, we still see sufficient activity and buyer demand to keep us busy. We have more concern about supply. The pipeline of new supply is shrinking,” its head of Bumiputera segment Muhazrol Muhamad said in a statement today.

“Prices last quarter fell by 2.2%, but we believe the shrinking pipeline will put a floor under future price falls.”

He said prices drop when there are more properties than buyers, and developers are shifting the equation in favour of supply by reducing the flow of new properties onto the market, noting that inflation is probably the number one factor behind developers deciding not to launch new projects.

“Supply is still sufficient today, and there is still some overhang, but the pipeline is reducing, and the overhang is shrinking,” he said.

Muhazrol said dwelling completions are dropping quickly – in the first quarter of 2022, completion plummeted 47% versus the fourth quarter of 2021, from 25,074 to 13,284.

“New planned residential supply has also dropped. Over the past three quarters, planned new supply fell 36% from 26,392 units to 16,774 units.

“That’s a significant change from the previous trend in which new planned supply increased steadily, quarter after quarter. Compared to Q4 2021, new planned supply is down 9%,” he added.

Juwai IQI is also sanguine about the impact of rising interest rates.

“We don’t believe interest rate increases will significantly impact Malaysia.

“Firstly, inflation in Malaysia is lower than in many other countries, so our interest rates don’t have to rise as (high) to get inflation under control.

“Secondly, even though the overnight policy rate has increased slightly to 2.25%, that is still well below the historical average,” Muhazrol said, noting that current rates are very close to historic lows, which will help limit any potential impact on the real estate market.

Source: Bernama

Sunway Dora is a mixed development by Sunway Property in the established township of Bayan Baru. The project is located on a 1.6-acre land along Persiaran Mahsuri 1, within the vicinity of Bandar Sunway Tunas. It is only a stone’s throw away from Olive Tree Hotel and SPICE Convention Centre, and a short 5 minutes drive from Bayan Baru roundabout. The land is currently used as a paid parking space with a 2-storey building.

The existing car park building will be demolished to give way to a 20-storey building with 13 storeys of residential, 5 storeys of car park podium and 1 storey of commercial. It will feature 156 residential units and 22 units of shops on the ground floor.

Project Name : Sunway Dora
Location : Bayan Baru
Property Type : Mixed development
Total Units: 156 (residential), 22 (commercial)
Built-up Size: 1,050sf & 1,250sf (condo), 624sf to 1,819sf (shop)
Land Tenure: Freehold
Indicative Price: (to be confirmed)
Developer: Sunway Tunas 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.

About Marriott Residences

A mixed development by BSG Property in Georgetown in Penang. It is located between the famous tourist belt of Gurney Drive and Kelawai Road, next to Evergreen Laurel Hotel. The project comprises a 55-storey skyscraper, featuring a mixed of hotel rooms and condominium units

Find out more about Marriott Residences

Rubica, a serviced apartment development by OSK Property at Harbour Place in Butterworth. Located along Jalan Assumption, with direct access to Butterworth Outer Ring Road (BORR). It is easily accessible via the Famous Jalan Chain Ferry, surrounded by amenities such as eateries, wet market, hypermarkets, mall, schools, colleges, hotels, banks, clinics, hospitals and more.

This development will see the construction of a 34-storey building comprising of 230 serviced suite units with five (5) types of unit layout, along with the facilities podium located on the 11th floor. Rubica is also one of the few low-density new apartments available in Butterworth. The apartment is targeted towards the working professionals and newlyweds who are looking for their first home that comes with full facilities at the central of Butterworth city. Built-up size ranging from 946sq.ft. to 1,335sq.ft.

Project Name: Rubica
Location : Harbour Place, Butterrworth
Property Type : Serviced apartment
Total Units: 230
Built-up Size: 946sq.ft. – 1,335sq.ft.
Land Tenure : Freehold
Indicative Price : RM480,000 onwards
Expected Completion: 2026
Developer: OSK Property

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.

AME Elite Consortium Bhd and Majestic Builders Sdn Bhd will jointly develop a RM1bil gross development value (GDV) integrated industrial park in Seberang Perai Tengah, Penang.

The industrial space solutions provider, in a statement, said its wholly-owned subsidiary Northern Industrial Park Sdn Bhd and Majestic Builders had jointly formed a special purpose vehicle (SPV) to undertake the industrial park development.

The SPV, Suling Hill Development Sdn Bhd, has entered into a sale and purchase agreement with landowner Waz Lian Holdings Sdn Bhd to acquire the 175.98-acre freehold development land for a total purchase consideration of RM130mil.

According to AME, the acquisition will be satisfied partly via cash amounting to RM80mil, while the remaining consideration of RM50mil is anticipated to be settled in-kind via industrial properties from the intended industrial park development within 24 months upon fulfilment of conditions of the sale and purchase agreement.

“We are thrilled to find in Majestic Group an equally visionary partner that yearns to bring the tested concept of our fully-integrated industrial parks to Penang, to attract even more high-quality investments.

“The tremendous job-creation and economic multiplier effects from the proposed industrial park will certainly position Malaysia as an advanced industrial hub, conducive to propel the expansion of growth-focused multinational and domestic corporations,” AME Elite group managing director Kelvin Lee Chai said.

“This strategic acquisition is consistent with AME Elite’s strategy of expanding our i-Parks beyond Johor. We anticipate the next seven years to be very exciting for us as this project with potential GDV of RM1bil comes into fruition,” he added.

Source: TheStar.com.my