According to the latest property market transaction data for 2019 to Q1 2020 by the National Property Information Centre (NAPIC), overall overhang properties recorded in Q1 2020 showed that there are a total of 29,698 overhang units, amounting to a total value of RM18.91 billion. From that number, 35% of all overhang units or 10,401 units are in the RM300,001 to RM600,000 price range. More than half of the overhang are condominium/apartment type, making up 54.7% with 16,241 units.

Johor recorded a total number of 6,057 units, of which 1,974 were condominium units or apartments and 2,160 were two to three-storey terrace houses.

Perak emerged as having the second-highest overhang with a total of 4,919 units with 16.6%, followed by Selangor with a total of 4,844 units or 16.3%.

The report also revealed that the next highest was Penang accounting for 10.2% with 3,043 overhang units, and Kuala Lumpur at 8.7% with 2,584 units. Sarawak makes up 6.6% with 1,966 units and Pahang has 5.1% at 1,510 units.

The remaining states that make up less than 5% respectively and in descending order are Sabah (4.8%), Kedah (4.7%), Negeri Sembilan (3.7%), Melaka (2.3%) and Terengganu (1.7%).

The states that account for less than 1% each are Kelantan (0.5%), and Perlis (0.1%). The only place with zero overhang units is Putrajaya.

NAPIC property market division deputy director Tee Siew Bee said the overall property market was slowing down this year due to a mismatch in demand and supply for certain states/districts/ locations, types and prices.

“The residential overhang situation has continued to improve, but remains a major concern. There are fewer new launches that might help to reduce the number of overhang and unsold units,” she said during the Real Estate & Housing Developers’ Association’s (Rehda) event entitled “Selling a property successfully in the new decade – is big data & proptech the ultimate solution?”

Rehda’s event highlighted how property developers can move forward in boosting their property sales, whilst easing the process of home ownership in these tough times by embracing Big Data and PropTech.

Source: FreeMalaysiaToday.com

Hong Leong Investment Bank Research (HLIB) is not discounting the possibility that Bank Negara Malaysia (BNM) will cut the overnight policy rate (OPR) by another 25 basis points (bps) to 1.50% by as early as its next Monetary Policy Committee (MPC) meeting in September.

The central bank yesterday announced it had cut the OPR by 25bps to 1.75% to provide additional policy stimulus to accelerate the pace of economic recovery, and will continue to assess evolving conditions and utilise its policy levers as appropriate to create enabling conditions for a sustainable economic recovery.

“Consequently, as economic activity is expected to remain weak and inflation prospects modest, we think it’s possible for BNM to reduce the OPR by another 25bps as early as its September MPC meeting to bring it to 1.50%.” the research house concluded.

The 1.75% OPR is the lowest since the floor was set 16 years ago. Yesterday, BNM made its fourth rate cut this year, with a cumulative 125bps slashed so far.

HLIB said while it had expected a 25bps cut in the second half of 2020 (2H20), the timing of the reduction was earlier than expected.

“Despite expectations of gradual improvement in Malaysia’s growth prospects, the pace and strength of the recovery remain subject to downside risks emanating from domestic and external factors,” it said.

HLIB added that policy measures implemented domestically to mitigate the negative impact of Covid-19 will lapse in October, putting downside risks on the economy, while sluggish and uncertain growth could lead to further job losses and deter investment.

“Globally, countries that opened their economies had to reimpose lockdowns in certain areas as the rate of infection rose. This will lead to downward pressure on global demand and supply conditions, limiting the strength of global recovery,” HLIB said.

The MPC expected inflation to be muted in 2020, with average headline inflation likely to be negative for the year as global oil prices are projected to be substantially lower.

The risk of a broad-based and persistent decline in prices is assessed by the MPC to be limited, but inflation will be ultimately dependent on global oil and commodity prices.

Source: EdgeProp.my

Valencia Residence Show Unit
[View in FULL SCREEN]

Affordable yet luxuriously comfortable, Valencia Residence nestled within a friendly neighborhood with a myriad of cultures and ethnicities. It is conveniently located with an abundance of nearby amenities which include international schools, hospital, golf course and mall. With just a short stroll, you will discover a scenic spot that offers endless play and relaxation along the stretch of sandy beach at Teluk Bayu.

With a spacious built-up of at least 2,110 sq.ft. and only 64 units, this project is optimally designed for a family-oriented lifestyle.

Find out more about Valencia Residence

Vortex Business Park 2 is the last phase of the light industrial component of a 35.3 acre mixed development strategically just next to Batu Kawan, the new industrial hotspot in Penang.

Due to its close proximity to the new township of Batu Kawan, it is increasingly on the radar of the property investors owing to its well-planned infrastructure and future potential with several significant residential, commercial, educational and industrial developments being planned. Located only 20 minutes away from Bayan Lepas Free Trade Zone and within a close proximity to the Penang First and Second Bridge as well as the North-South Highway, it provide the perfect connectivity to all nearby industrial parks. All transport and delivery from mainland to island will be more cost-effective, enabling businesses to move up the value chain.

Vortex Business Park 2, being centrally located within several established industrial parks such as Science Park, Juru Industrial Park, Prai Industrial Park, Bayan Lepas Industrial Park, not to mention the nearby Batu Kawan Industrial, it is a strategic choice for an industrial property investment in Penang.

This freehold development comprises of 4-storey semi-detached industrial units with built-up area of 8,960sf fitted with a private lift is scheduled to be completed by end 2020.   Vortex Business Park 2 offers owners the choice of an integrated business solutions, be it for PRODUCTION, WAREHOUSE, SHOWROOM or CORPORATE OFFICE.

Limited to only 6 units, Metrio Group is providing an attractive sales package to cater to the needs of the owners or investors with an option for a 7.5% guaranteed rental returns for 2 years which will help to ease the owner’s burden in their monthly loan instalments.

Find out more about VORTEX BUSINESS PARK 2
Call 1700-816-898 or Whatsapp: https://wa.me/60124187077

Bank Negara Malaysia (BNM) today reduced the Overnight Policy Rate (OPR) by another 25 basis points to 1.75 per cent, a record low since the floor was set in 2004.

In a statement today, it said the Monetary Policy Committee (MPC) decided to have the ceiling and floor rates of the corridor of the OPR correspondingly reduced to 2.00 per cent and 1.50 percent, respectively.

“The impact of Covid-19 on the global economy is severe. Global economic conditions remain weak with global growth projected to be negative for the year,” it said.

It added that the reduction in the OPR will provide additional policy stimulus to accelerate the pace of economic recovery.

“The MPC will continue to assess evolving conditions and their implications on the overall outlook for inflation and domestic growth. The Bank will continue to utilise its policy levers as appropriate to create enabling conditions for a sustainable economic recovery,” it said.

The central bank added that although a trough is expected in the second quarter, broad-based weakness in the labour market and precautionary behaviour by households and businesses could affect the recovery going forward.

“Several major economies have begun relaxing measures to contain the Covid-19 pandemic, leading to the gradual resumption of economic activity. Financial conditions have improved, although risk aversion remains elevated.

“Downside risks to the global outlook remain, especially if a resurgence of the pandemic necessitates the reintroduction of containment measures,” it said.

For Malaysia, BNM said that the economic activity contracted sharply in the second quarter of the year, due to measures introduced to contain the pandemic globally and domestically.

“Following the gradual and progressive re-opening of the economy since early May, economic activities have begun to recover from the trough in the second quarter. The fiscal stimulus packages, alongside monetary and financial measures, will continue to underpin the improving economic outlook,” it said.

BNM also said that the projected improvement in the domestic economy is expected to be further supported by a gradual recovery in global growth conditions.

The pace and strength of the recovery, however, remain subject to downside risks emanating from both domestic and external factors.

“These include the prospect of further outbreaks of the pandemic leading to re-impositions of containment measures, more persistent weakness in labour market conditions, and a weaker-than-expected recovery in global growth,” it said.

Meanwhile, BNM said inflationary pressures are expected to be muted this year as average headline inflation is likely to be negative this year, primarily reflecting the substantially lower global oil prices.

“The risks of a broad-based and persistent decline in prices are assessed to be limited as economic activity resumes and demand conditions improve. Nevertheless, the outlook remains significantly affected by global oil and commodity prices. Underlying inflation is expected to be subdued and within expectations,” it added.

Source: Bernama