PropertyGuru Malaysia announced that its Malaysia Property Market Report (MPMR) Q3 2022, powered by PropertyGuru DataSense, saw an expected trend of gradual improvements, with the overall demand index moving upwards by 7.93% QoQ, despite being in negative territory in the previous quarter.

The report registered upward trends in several areas such as the Property Sale Market Index, Demand Index, and Supply Index across the landed and high-rise sectors. The slight improvements can be attributed to the transition of the COVID-19 endemic stage, allowing for the reopening of borders and increased productivity, leading to better consumer confidence.

Sheldon Fernandez, Country Manager, Malaysia (PropertyGuru.com.my and iProperty.com.my), shared, “As expected, the property market in the second quarter of the year saw a gradual trend of improvements, although it may not be fully out of the woods yet. Several ongoing factors such as the rising inflation, increase in the Overnight Policy Rate and affordability issues weigh in on the market conditions. While we have seen more activity in the last quarter, it will take some time before consumers are more confident in making large property decisions. The full impact of these factors will most likely be seen in the current quarter’s performance.”

Rental Demand Continues to Increase Amid Rising Inflation

With the rising inflation of 3.4% as of June 2022 and the Overnight Policy Rate increase to 2.25% earlier this year, potential homebuyers may continue to be cautious in making large purchasing decisions.

This trend was also captured in the Malaysia Property Market Report Q3 2022, as rental demand continued on an upward trend, registering a 12.89% QoQ growth and a massive 96.83% YoY rise in Q2 2022. With the ongoing inflation and worries of rising purchasing costs taking effect, potential homebuyers will gravitate towards rental as a short-term alternative, and the rental market will likely continue to expand to the year’s second half.

Meanwhile, the Rental Price index saw an increase of 2.82% QoQ and 4.46% YoY in Q2 2022. The slow but steady growth of asking rental prices is also leading to growth in the supply of rental properties, as landlords will be taking the opportunity to leverage the rising demand trend and enthusiastically listing properties.

Various Factors Contributing to Ongoing Market Recovery

According to the Malaysia Property Market Report Q3 2022, landed properties outperformed high-rise properties, with the Landed Sale Price Index moving upwards by 1.32% QoQ and 5% YoY in Q2 2022. There was also an uptick of 1.91% QoQ and 7.31% YoY in supply, indicating a slight increase in confidence for both buyers and sellers at this point.

This is consistent with the latest market report published by the Valuation and Property Services Department in April 2022, highlighting that the overall volume of property transactions increased by a marginal 1.5%. This comes on the back of transaction values rising by a significant 21.7%. The report also shared that the residential sub-sector is the largest contributor accounting for 66.2% of transaction volume and 53.1% of the transaction value.

Adding on to the gradual improvements seen in the last quarter, the reopening of borders after a long period of restrictions has brought back the prospect of the market’s expansion to appeal to foreign buyers. Findings by the Malaysian Development Investment Authority (MIDA) had indicated that Singaporean property investors were among the top 3 foreign direct investors in 2017 when exchange rate conditions were favourable.

Source: Facebook

The Malaysia Semiconductor Industry Association (MSIA) celebrated Penang’s 50th anniversary of industrial excellence via a gala dinner at the Eastern & Oriental Hotel Monday evening.

The event was attended by some 300 members of the industry.

Chief Minister Chow Kon Yeow said technology is expected to bring transformation to the industry in the next decades.

“As we all have witnessed, digitalisation was accelerated globally during the Covid-19 pandemic. In Malaysia, the digital economy is expected to contribute 23% of the country’s GDP and create over 500,000 jobs by 2025.

“With that in mind, Penang pledges to make great strides in developing the digital economy ecosystem.

“This includes the readiness of physical and digital infrastructure, availability of workforce and enhancing the livability stature.

“These are critical to sustaining our status as the Silicon Valley of the East,” Chow said during his speech at the dinner.

Chow shared that the state has undertaken various efforts related to STEM (Science, Technology, Engineering, Mathematics) to build a healthy talent pipeline to meet the industrial demands.

“I would like to ask for more industry support and partnership for our STEM initiatives to help cultivate an industry-ready talent pool in this fast-paced environment.

“The tripartite partnership (Public, Private and People) is critical in charting Penang’s path to become a high-income state as well as creating quality jobs.

“Together, we can make a huge leap forward, making the state shine on the world map of technology,” he added.

Chow said that Penang’s 50 years of industrialisation journey has impacted the local economy in terms of raising the state’s gross domestic product (GDP), uplifting the skill set of the local workforce, as well as having huge economic spill-over effects on the country.

He also added that the state government will be holding a grand dinner on Dec 2 to honour the industry pioneers who have laid the groundwork for Penang with regard to the E&E industry.

At the event, the launching of the MSIA ‘Silicone North’ map also took place.

Apart from that, several companies, namely TF-AMD, Motorola, Keysight Technologies, Intel Malaysia, Broadcom, Sanmina, and Agilent Technologies were recognised during the dinner.

Meanwhile, MSIA president Datuk Seri Wong Siew Hai lauded Penang for its successful 50 years of industrialisation journey.

“With the E&E powering the state for the past 50 years, the gross domestic product (GDP) has grown from RM964 million in 1972 to RM99 billion in 2021.

“This is equivalent to adding about RM2 billion every year to Penang’s economy for the past 50 years.

“The E&E ecosystem in Penang has been further strengthened by companies filling the gap in the E&E supply chain and existing E&E companies moving up the value chain,” Wong added.

The MSIA later contributed RM80,000 to Tech Dome Penang in supporting its STEM initiatives.

The mock cheque for the contribution was presented by Wong to Deputy Chief Minister II Prof Dr P. Ramasamy, who is also the Penang Human Resources, Education, Science and Technology Committee chairman.

Image Credit: Malaysia Semiconductor Industry Association (MSIA)

Source: Buletin Mutiara

A newly proposed beachfront hotel residence development by TGR Developments Sdn. Bhd. at Batu Ferringhi. Strategically located on approximately 4 acres of land along Jalan Batu Ferringhi, adjacent to Bayview Beach Resort. It is probably going to be the last hotel built along the stretch of Jalan Batu Ferringhi road before Teluk Bahang.

This development will see the construction of a 16-storey building, comprising a mix of hotel rooms and serviced residences with 4 levels of car parking podium. There will also be several commercial lots located at the ground level. Serviced residences will have their facilities located above level 11 whereas hotel facilities will be located at lower levels.

The project is still pending approval, more details to be available upon official launch.

Project Name: (to be confirmed)
Location : Batu Ferringhi
Property Type : Hotel and serviced residence
Total Units: 480 (serviced residence)
Built-up Size: (to be confirmed)
Land Tenure : (to be confirmed)
Indicative Price : (to be confirmed)
Developer: TGR Developments Sdn. Bhd.
Last Update: Nov 2024

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 demand for real estate in the industrial sector is leading the way to full economic recovery for the property sector in Malaysia.

Despite the rising concerns over inflation, property consultant Knight Frank said, the industrial property sector was already “flourishing” while demand for real estate in the retail sector across the Klang Valley, Penang, Johor Baru and Kota Kinabalu is “slowly recovering”.

In the industrial sector, the logistics segment is seeing growth, with third-party logistics and warehousing space showing the highest demand, Knight Frank said in a press statement release this morning.

In the Klang Valley alone, it said, 2,050 industrial properties worth RM9.21 billion changed hands in 2021, reflecting an annual increment of 20.2% in transacted volumes and 23% in value.

Allan Sim, executive director of land and industrial solutions at Knight Frank Malaysia, said that with more multinationals setting up new businesses and facilities in the Asean region, Malaysia is expected to benefit from the diversification and reshaping of the global supply chain.

Nonetheless, challenges remain. Sim said the main concerns among manufacturers and logistics players were rising transportation costs, shortage of labour and disruptions in the supply chain.

Institutional investors and real estate investment trusts are driving the demand for real estate in the industrial sector in Malaysia.

For instance, Sim said, the first industrial-related real estate acquisition by KIP REIT was a mixture of industrial land and facilities in Pulau Indah worth a total of RM78 million. KIP REIT is a real estate investment trust with a portfolio of community-centric malls.

In addition, Capitaland Malaysia Trust purchased a 5.11ha freehold industrial warehouse in Batu Kawan, Penang, for RM80 million, and IJM Corp partnered with China Harbour Engineering Company Ltd for their first industrial and logistics development in Kuantan.

Mark Saw, executive director at Knight Frank in Penang, said there is now an encouraging demand for logistics facilities to serve an expanding e-commerce sector.

“Batu Kawan Industrial Park will continue to be the main hotspot over the next three years,” he said.

However, Knight Frank cautioned, with the rise in the overnight policy rate to 2.25% in July and further potential hikes this year amid rising domestic and global inflationary pressures and the on-going geopolitical tensions, the growth momentum could be derailed.

Source: FMT Online

About Terraces Condominium

A highrise residential development by IJM Land at Bukit Jambul, Penang. Strategically located on 9.32 acres of land next to INTI International College. It comprises a 34-storey condominium tower, featuring 410 residential units with two different design types to choose from.

(Photo taken in July 2022)

Find out more about Terraces Condominium