The Q4 out­look

> Lo­cal prop­erty land­scape and what to ex­pect

The Sun (Malaysia) - - MEDIA & MARKETING -

GEN­ER­ALLY, things have been chug­ging along as usual one could say but look harder and you will no­tice that re­tail­ers, prop­erty de­vel­op­ers in­cluded, have been com­ing up with all sorts of clever bar­gains and pro­mo­tions to spur con­sumer spend­ing. The econ­omy is slug­gish some say, and why not es­pe­cially with many re­ceiv­ing the golden hand­shake sooner than ex­pected and some be­ing laid off.

Ac­cord­ing to a re­cent re­port from the Malaysian sta­tis­tics depart­ment, Malaysia’s Lead­ing In­dex (LI), which mon­i­tors the coun­try’s eco­nomic per­for­mance in ad­vance, showed a de­crease. It also stated that our Coin­ci­dent In­dex (CI), which mea­sures cur­rent eco­nomic ac­tiv­ity, also de­clined. Over­all, Malaysia’s Con­sumer Price In­dex (CPI) has risen by 1.5%. Prices of most things have shot up – the peo­ple are cau­tious, hence, the eco­nomic growth in Q4 is ex­pected to trudge along at an even slower pace. With that, we ex­plore how the up­com­ing sloth-like scene will af­fect the prop­erty and real es­tate mar­ket, if it hasn’t al­ready.

VIEWS AND COM­MENTS Ac­cord­ing to the grapevine on the prop­erty scene, in­ter­est will re­main high, but there will be doubts when it comes to the ac­tual buy­ing. The prop­erty mar­ket in Kuala Lumpur is an­tic­i­pated to be sub­dued. One web­site stated that although the num­bers are hold­ing up, there is not much ac­tion, trans­ac­tion-wise. Ap­par­ently, buy­ers with in­ten­tion to sell claim they have not much choice as prices in well­con­nected ar­eas are not at­trac­tive, un­less they sell and move out of KL.

SOME SOCIO-ECO­NOMIC ADVANTAGES THAT MAKE MALAYSIA AT­TRAC­TIVE TO FOR­EIGN HOUSE PUR­CHASERS.

1. Rel­a­tively low liv­ing costs com­pared to other de­vel­oped coun­tries. 2. Tourist friendly en­vi­ron­ment that is wel­com­ing to all na­tion­al­i­ties. 3. English is widely used in

com­mu­ni­ca­tion in gen­eral. 4. In­fra­struc­ture, trans­porta­tion and global con­nec­tiv­ity is rel­a­tively good. 5. Peace­ful and safe place to live in.

How­ever, ac­cord­ing to Knight Frank, Malaysia, the Malaysian mar­ket of­fers the best mar­ket value for global real es­tate in­vestors. It records the high­est yields and the least volatil­ity across the mar­kets in the Asia Pa­cific. The global real es­tate con­sul­tancy firm’s Malaysian of­fice man­ag­ing direc­tor Sarku­nan Subra­ma­niam sug­gested that buy­ers and sell­ers look at the step up on the lo­cal trans­port in­fra­struc­ture de­vel­op­ment which in­creases mo­bil­ity and im­proves con­nec­tiv­ity through­out Greater KL. While Sarku­nan viewed this de­vel­op­ment as giv­ing the city an edge, many ex­pect the new MRT and LRT sta­tions to trans­form area dy­nam­ics and more.

Malaysia Prop­erty In­cor­po­rated gen­eral man­ager Veena Loh, how­ever, felt that lo­cal real es­tate

6. Free from nat­u­ral dis­as­ters. 7. Health­care and hos­pi­tals pro­vide mod­ern and up-to-date ser­vices. 8. Va­ri­ety of food caters to global

tastes. 9. Avail­abil­ity of in­ter­na­tional and pri­vate schools and higher ed­u­ca­tion in­sti­tu­tions. 10. Hous­ing and prop­erty own­er­ship schemes open to for­eign­ers. agents need to get fa­mil­iar with cross-bor­der prop­erty in­vest­ment knowl­edge and em­brace glob­al­i­sa­tion. In this light, we take a look at some de­vel­op­ers who have ac­tu­ally taken it in their stride to de­velop projects and mar­ket their de­vel­op­ments abroad.

FOR­EIGN IN­TER­EST Many de­vel­op­ers are seen to be reach­ing out to for­eign buy­ers and con­sumers of the higher-in­come bracket. An ex­am­ple is Sun­suria Ber­had which teamed up with Tai­wan-based Welcome Global Co Ltd. The part­ner­ship will see the rise of a Korean-themed in­te­grated project be­ing de­vel­oped on an 8.48-acre plot in Sepang, Se­lan­gor. Called Sun­suria Provence Vil­lage in Sun­suria City, the project will of­fer ser­viced apart­ments, a wed­ding house with a themed gar­den, a Korean-in­spired shop­ping mall and a bou­tique ho­tel. There is also I-Bhd, the de­vel­oper of 8Ki­aPeng@KLCC which re­ports that a large per­cent­age of its buy­ers are for­eign­ers from China, Hong Kong and Sin­ga­pore.

Sim­i­larly, an­other de­vel­oper which has man­aged to at­tract for­eign in­vestors and high-end prop­erty buy­ers is the de­vel­oper of The Ritz-Carl­ton Res­i­dences, lo­cated in Jalan Sul­tan Is­mail. Its de­vel­oper Wangsa Te­gap Sdn Bhd, a wholly-owned sub­sidiary of Ber­jaya Cor­po­ra­tion Ber­had, re­cently held a me­dia sneak pre­view of its lux­ury suites that come in three de­sign con­cepts un­der the glob­ally renowned and award­win­ning Peter Silling & As­so­ci­ates la­bel.

The soon-to-be launched res­i­dences have al­ready re­ceived a 30% take-up by Tai­wanese buy­ers. Ac­cord­ing to Wangsa Te­gap direc­tor Datuk Fran­cis Ng, the com­pany hopes for a 50/50 take-up of for­eign and lo­cal buy­ers. Struc­ture-wise, the project is al­ready com­pleted. Mi­nor in­te­rior touch ups and sys­tems are be­ing ad­dressed as this ar­ti­cle is writ­ten.

In the south­ern re­gions of the coun­try, it makes sense for Sin­ga­pore­ans to in­vest in prop­erty. An on­line web­site also reported that the main­land Chi­nese are huge in­vestors of Malaysian prop­erty, fol­lowed by In­done­sians and In­dian na­tion­als.

CON­CLU­SION No doubt, times may re­quire Malaysians to tighten their belts. How­ever, for the for­eigner whose lo­cal cur­rency is strong, the cost of liv­ing in Malaysia is aw­fully cheap.

How­ever, over­all, an on­line prop­erty re­search por­tal claimed that growth in the coun­try’s con­struc­tion sec­tor is set to mod­er­ate over the com­ing years, de­cel­er­at­ing into 2017. But like all things that go up must come down and vice versa, the trans­port seg­ment will bring hope and drive over­all growth, while the non­res­i­den­tial seg­ment will lever­age on this growth.

The above is not the best piece of news yet still, prop­erty in­vestors long in the in­dus­try will tell you the com­ing pe­riod makes good a time to buy. What more with news re­ports claim­ing for­eign in­vestors have re­turned to Bursa.

While un­af­ford­abil­ity re­mains an is­sue for ma­jor­ity of the lo­cals, prices have some­what mod­er­ated slowly but surely. Peo­ple are also start­ing to look at prop­erty again and look­ing at it with more real­is­tic ex­pec­ta­tion plus with a fine-toothed comb. De­vel­op­ers are said to have be­gun to put in more ef­fort in lis­ten­ing to what the peo­ple want, adding value to what is on the ta­ble. The sit­u­a­tion has also led peo­ple to be­come more ac­cept­able to liv­ing fur­ther from the city for the sake of lower hous­ing prices, or liv­ing in smaller built-up liv­ing spa­ces.

On the whole, while some de­vel­op­ers tap into the for­eign mar­ket to at­tract buy­ers, oth­ers delve into pro­vid­ing more af­ford­able homes and some of­fer more at­trac­tive re­bates and pro­mo­tions. Over­all, the mar­ket is still ex­pected to be slug­gish.

Email your feedback and queries to: prop­er­tyqs@ the­sundaily.com

LRT sta­tion.

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