Rahim-CoPMRJan2015.

Transcription

Rahim-CoPMRJan2015.

This document is prepared by Rahim & Co Research for information only. Whilst reasonable care has been exercised in preparing this document, it is
subject to change. Interested parties should not rely on the statements or representations of fact but must satisfy themselves by inspection or
otherwise as to the accuracy. This publication highlights only selected projects to provide general property market condition. This publication may not
be reproduced in any form or in any manner, in part or as a whole without written permission of the publisher, Rahim & Co Research. The publisher
accepts no responsibility or liability as to its accuracy.
Foreword
Envisaged to keep investors, financiers, developers and buyers
informed, I am pleased to present Rahim & Co’s Property Market
Review 2014/2015. In this issue, we cover the country’s property
market and new development trends in 5 geographical regions –
from Perlis in the Northern Region to Sabah & Sarawak in the East
Malaysia Region.
It has been an eventful year with its ups and downs. The economy
grew steadily amidst a very cautious sentiment in the market, be it
in the bustling metropolitan city of Kuala Lumpur or in the green
paddy fields of Kuala Kedah.
When official 2013 numbers from the government were released
in the second quarter of 2014, the market became more discerning
and concerned about property investments. The property market
in 2013 saw a slowdown by 10.9% in property transaction
activities, (from 427,520 transactions in 2012 to 381,130 in 2013)
despite an increase in total value of transactions by 6.7% (up
from RM142.84 billion in 2012 to RM152.37 billion in 2013). As
at 1H 2014, the property activity had resumed its growth trend
with 193,405 transactions recorded (equivalent to a 3.3% growth
compared with 1H 2013) with total transaction value of RM82.03
billion, i.e. an increase of 19.3% from 1H 2013. Transaction
numbers for the whole year in 2014 is expected to reach between
390,000 to 400,000 with total transaction value of approximately
RM170.00 billion.
The higher collective value of transactions resounded the
connotations of house prices going beyond the masses’ reach
and spiralling cost of living for the people at large. Driven by the
needs of the rakyat, the 2015 Budget formulated 7 main strategies
to propel the nation’s economic prosperity – through its theme of
‘Ekonomi Keperluan Rakyat’. In the property sector, the Budget
addressed issues of affordable housing through the continuation
and enhancement of housing programs and incentives. This
includes ‘1Malaysia People’s Housing Programme (PR1MA)’,
‘People’s Housing Programme (PHP)’ and a newly-introduced ‘Youth
Housing Scheme’ for young married couples – to name a few.
Despite housing affordability being debated in almost every
property forum, we can still see encouraging sales performance
of newly launched projects in selected locations, specifically those
in established corridors built with quality products and high
accessibility – via highways and the future rail transit system.
Although overnight queues at property launches may not be
as common as before, there are still ‘great buys’ in the market
commanding good sales rates especially those by top developers
with strong brand recognition. Market interests along main
transport and infrastructure corridors remain robust spurring new
transit-oriented-developments and townships, particularly in the
Klang Valley. Highway projects such SUKE, DASH, WCE and EKVE,
as well as rail-transit system extensions such as MRT Line 2 and LRT
3 have already stirred interests in and around the Klang Valley. The
Klang Valley Mass Rapid Transit (KVMRT) Sg. Buloh-Kajang Line
has already seen a number of new projects along the alignment
and in areas nearby the stations – and some are even selling at
new area benchmark prices.
In April this year, we will see the implementation of the Goods
& Services Tax (GST). Buyers, sellers and developers alike are
concerned on the GST’s impact on the property sector and are
expected to adopt a wait and see attitude. It is expected that
property prices would steadily increase not only due to the GST
but also the market’s supply and demand mechanism. Prices are
expected to increase in the range of 7% to 10% - a slower pace
compared to the double-digit growth in previous years. In addition,
despite the lower crude oil price and currency, economists and
researchers are forecasting 2015’s GDP growth to be in the region
of 5.0% to 5.5%, which, in turn, would fuel sustained demand
especially for mainstream residential properties.
The property market is expected to stabilise and show signs of
slower but steady growth this year. Prices are still expected to rise,
but at a more gentle curve. The market will be more cautious in
bracing themselves for the impact of the GST on 1st April this
year. Though it is expected to be a challenging year, there are – as
always – good investment opportunities to those who prudently
invest through informed decisions.
Senator Tan Sri Dato’ Abdul Rahim Abdul Rahman
Executive Chairman, Rahim & Co Group of Companies
1
Property Market Snapshot
Alor Setar
Kota Bahru
Sungai Petani
Kuala Terengganu
Penang
Kemaman
Ipoh
Kota Kinabalu
Temerloh
Cheras
Kuala Lumpur
Petaling Jaya
Klang
Seremban
Kuantan
Melaka
Johor Bahru
Kuching
Perlis
Selangor
Terengganu
Resi
PBO
Retail
Resi
PBO
Retail
Resi
PBO
Retail
>5%
0
>5%
>-5%
<5%
<-5%
>5%
<5%
<-5%
Kedah
Negeri Sembilan
Kelantan
Resi
PBO
Retail
Resi
PBO
Retail
Resi
PBO
Retail
>-5%
<5%
>5%
>5%
<5%
<-5%
>-5%
<5%
0
Penang
Melaka
Resi
PBO
Retail
Resi
PBO
Retail
Resi
PBO
Retail
<-5%
<5%
<5%
<5%
0
<5%
<-5%
<5%
Johor
Retail
Growth of Retail Complex
Occupancy Rates
Sarawak
Resi
PBO
Retail
Resi
PBO
Retail
Resi
PBO
Retail
>5%
<5%
>5%
>5%
<-5%
<5%
<5%
<5%
<5%
Kuala Lumpur
PBO (Purpose Built Office)
Growth of Purpose Built Office
Occupancy Rates
(Comparing 1H 2014 and 1H 2013)
Sabah
>5%
Perak
Resi (Residential)
Growth of Residential Property
Transaction Volume
Pahang
Resi
PBO
Retail
Resi
PBO
Retail
>-5%
<5%
>5%
<-5%
<5%
<-5%
Movement
Decrease
>-5%
<-5%
Increase
0
<5%
>5%
(Source : Rahim & Co Research, JPPH)
2
KEY ECONOMIC INDICATORS
KEY PROPERTY MARKET INDICATORS
GDP & CPI Growth Rate and Net FDI (2010 - 1H 2014)
Quarterly House Price Index (2010-Q2 2014)
(RM billion)
7%
6%
5%
4%
3%
2%
1%
0%
2010
2011
2012
2013
1H 2014
45
40
35
30
25
20
15
10
05
00
300
250
Net FDI (RM/
billion) (RHS)
GDP (LHS)
CPI (LHS)
200
150
100
50
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2010
2011
2012
2013
2014
(Source : BNM)
Population & Unemployment Rate (2010 - 1H 2014)
Malaysia
Kuala Lumpur
Johor
Penang
Selangor
(Source: IHRM, JPPH)
Household Debt to GDP Ratio (2010-2013)
(mil)
30.5
30.0
29.5
29.0
3.5%
(%)
3.0% Population
(million persons)
2.5% (LHS)
2.0%
100
1.5% Unemployment
Rate (RHS)
1.0%
28.5
28.0
0.5%
27.5
2010
2011
2012
2013
1H 2014
86.8%
90
75.8%
80
80.5%
76.6%
70
60
50
40
30
0.0%
(Source : DOSM)
20
10
0
2010
Average Household Income by State
Average Annual
Growth Rate
2012
2013
Purchase of
residential properties
Personal use
Purchase of
securities
Credit cards
Others
Purchase of
non-residential properties
2009
2012
(2009 - 2012) (%)
Malaysia
4,025
5,000
7.2
Johor
3,835
4,658
6.5
Kedah
2,667
3,425
8.3
Kelantan
2,536
3,168
7.4
Melaka
4,184
4,759
4.3
Average Price in RM
Purchase of
transport vehicle
(Source: BNM)
Average Terraced House Price to Annual Household
Income Ratio*
Negeri Sembilan
3,540
4,576
8.6
700
Pahang
3,279
3,745
4.4
600
Pulau Pinang
4,407
5,055
4.6
500
Perak
2,809
3,548
7.8
Perlis
2,617
3,538
10.1
Selangor
5,962
7,023
5.5
Terengganu
3,017
3,967
9.1
Sabah
3,102
4,013
8.6
Sarawak
3,581
4,293
6.0
W.P. Kuala Lumpur
5,488
8,586
14.9
W.P. Labuan
4,407
6,317
12.0
W.P. Putrajaya
6,747
8,101
6.1
400
300
5.6
6.2
5.9
4.3
3.6
2.4 2.4 2.9
2.8
200
4.4
3.9
3.7
3.3
2.1
2.5
100
Terrace House Price
(Q2 2014) (LHS)
* Refer to Explanatory Note #1 on page 59
Sabah
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0
Sarawak
Perlis
Kelantan
Terengganu
Pahang
Kedah
Melaka
Negeri Sembilan
Perak
Selangor
Malaysia
Kuala Lumpur
0
Johor
Average
(RM)
Pulau Pinang
State
2011
House price to income ratio
(2014 Income) (RHS)
(Source : IHRM, DOSM, Rahim & Co Research)
(Source : DOSM)
3
Northern Region
// Perlis, Kedah, Penang, Perak
PERLIS
Area
821 km²
Population
244,000
Around 66% of the total transaction are within the price range of
RM50,001 to RM200,000. Existing housing schemes with selling
prices at a higher band are 2-storey terraced houses in Taman Bukit
Jaya (RM380,000) and Taman Seri Jelita (RM435,000), located in
Kangar.
Population Density
297 per km2
Capital City > Kangar
RESIDENTIAL
Prime 1-storey terraced houses are in Taman Utara Jaya, Kuala Perlis
(RM200,000), Taman Mesra, Jejawi (RM190,000) and Taman Ira
Jaya, Sena (RM190,000).
Residential supply in the State of Perlis has grown over the past 5
years at about 1.5%. Total supply of residential units in 1H 2014
has amounted to about 22,521 units.
Arau is an area driven mainly by the existence of institutions such
as University Teknologi MARA, Perlis Matriculation College and
Universiti Malaysia Perlis, Ulu Pauh Campus.
Higher growth of about 4.0% was noticed in 1H 2014 when
compared against total residential supply in 1H 2013 (21,635 units).
Existing 1-storey terraced houses in Arau are selling between
RM145,000 to RM180,000. Notable schemes in the area include
Taman Sri Wang and Taman Bersatu.
About 50% of residential properties are made of 1-storey terraced
houses and 1-storey semi-detached houses whilst another 30%
comprise of low-cost houses.
Looking at the pattern of supply, the residential preference in Perlis
seems to revolve around 1-storey landed houses. Some examples
of established residential schemes in Perlis are in Kangar, Arau,
Kuala Perlis and Sena.
Total property transaction in the state of Perlis portrays the
residential sector as the second highest contributor at 38% of
total property transaction behind agriculture properties (56%).
2-storey terraced houses in Taman Bukit Kaya, Kangar are currently
selling at an average of RM350,000. 2-storey low cost houses
along Jalan Raja Syed Alwi in Taman Kemajuan are selling at prices
between RM100,000 and RM150,000.
Other type includes 1-storey semi-detached houses with an average
selling price range of RM255,000 to RM380,000.
2-storey semi-detached houses in Taman Ismail Shaik average at
RM350,000 whilst Taman Siswa at RM450,000 for a standard unit.
An upcoming 2-storey semi-detached housing scheme known as
Taman Desa Saujana is currently under construction and is selling
at a starting price of RM450,000.
Kangar Residential Property Price Trend & House Price Index (2010 - Q2 2014)
Price ‘000 (RM)
Price Index
500
450
400
350
300
250
200
150
100
50
0
250
200
150
100
50
0
2010
1TH (LHS)
2011
2TH (LHS)
1SD (LHS)
2012
2SD (LHS)
2013
1D (LHS)
Q2 2014
2D (LHS)
All house price Index (RHS)
(Source : Rahim & Co Research, IHRM)
4
Prices of Residential Properties in Selected Schemes
Scheme by Location
Type
Price
KANGAR
Existing Supply & Occupancy Rate of Retail Spaces in
Perlis (2010-1H 2014)
(mil sf)
(%)
0.80
100
Taman Putra Utama
2-storey terraced
RM270,000
Taman Bukit Kaya
2-storey terraced
RM350,000
Taman Bukit Jaya
2-storey terraced
RM380,000
Taman Seri Jelita
2-storey terraced
RM435,000
0.40
Taman Kemajuan
(low-cost)
2-storey terraced
RM100,000 RM150,000
0.20
Taman Bintong Ceria
1-storey terraced
RM275,000
Taman Bintong Ceria
2-storey terraced
RM330,000
Taman Bintong Ceria
2-storey semi-detached
RM378,000
KUALA PERLIS
Taman Utara Jaya
1-storey terraced
RM200,000
1-storey terraced
RM190,000
1-storey terraced
RM190,000
SENA
Taman Ira Jaya
JEJAWI
Taman Mesra
ARAU
Taman Sri Wang & Taman 1-storey terraced
Bersatu
RM145,000 RM180,000
Taman Ismail Shaik
RM350,000
2-storey terraced
(Source : Rahim & Co Research)
80
0.60
Existing supply
(LHS)
60
40
Occupancy rate
(RHS)
20
0
2010
2011
2012
2013
1H 2014
0
(Source : JPPH)
Whilst observing the retail activity in Perlis, it is noted that many
retailers are still located within shop offices where they occupy
the ground floor.
There are a few weekend hotspots noted for family shopping such
as Kompleks Tok Arau (C-Mart) in Arau and Kompleks Kayangan
Square in Kangar. Another famous shopping destination among
tourists is the Arked Niaga in Padang Besar located near the border
of Perlis and Songkhla, Thailand.
Rental for shopping malls in Kangar ranges from RM1.70psf to
about RM2.60psf for secondary lots. Prime lots, normally at ground
floors, demand a higher rental rate of RM3.40psf to RM6.00psf.
According to the official PR1MA website, a project will be developed
on a 20-acre land in Padang Siding providing 231 units of 1-storey
terraced houses. The starting price is proposed at RM198,000.
Another project under PR1MA is believed to provide another 500
affordable houses in Arau which is currently in its planning stage.
In Kompleks Tok Arau, rental rate for retail lots varies from
RM2.80psf to RM7.90psf with prime lots offering a higher range.
Some of the established housing developers in Perlis include Nepta
Development Sdn Bhd, Teguh Harian Sdn Bhd, Aima Development
Sdn Bhd and Insaniaga Sdn Bhd.
A number of new complexes are planned in Perlis; namely the
Giant Hypermarket, to be developed next to Taman Putra (by Aima
Development Sdn Bhd in Kangar).
Upcoming 2-storey terraced houses in Taman Putra Utama, Kangar
have sold out with a selling price for its standard unit at RM270,000.
UDA Land North also plans to develop an integrated commercial
development known as K-Parc in Kangar, while Nepta Bumita
Holding plans to develop a retail complex in Bandar Baru Kangar
Jaya.
Another example is the 2-storey semi-detached houses in
Taman Bintong Ceria in Wang Bintong, Kangar, that is selling
at RM378,000. 1-storey terraced house is expected to sell from
RM275,000 and 2-storey terraced house from RM330,000.
RETAIL
As at 1H 2014, there is a total of 18 existing retail complexes
available in Perlis with 9 located in Kangar.
Due to the limited supply of shopping malls in Perlis, occupancy
rates of retail complexes are close to 100%.
SHOP OFFICE/ PURPOSE BUILT OFFICE
Supply of shop offices in Perlis are mostly contributed by 2-storey
shop offices (67% of total shops supply in the state).
Existing 2-storey shop offices with higher selling prices are located
within Taman Putra Utama (RM460,000), Taman Kemajuan
(RM380,000) and Taman Seriap Baru (RM500,000) in Kangar.
5
Northern Region
Prices of Shop Offices in Selected Schemes
Location
HOTEL
There are 21 hotels available in Perlis as at 1H 2014 where 33%
comprise of 3-star and 4-star hotels.
Type
Price
Taman Kemajuan
2-storey
RM380,000
Taman Putra Utama
2-storey
RM460,000
KANGAR
Taman Seriap Baru
2-storey
RM500,000
Kompleks Kuala Perlis & Kompleks
Pertiwi Indah
3-storey
RM600,000 RM800,000
There are also 3-storey shop offices available with selling prices
that range from RM600,000 to RM800,000.
Some existing 3-storey shop offices to note are Kompleks Kuala
Perlis and Kompleks Pertiwi Indah.
Several notable existing hotels include Putra Brasmana Hotel (3star) in Kuala Perlis and Seri Malaysia Hotel (3-star) in Kangar. The
two hotels offer room rates starting from RM140 per night and
RM185 per night respectively.
The highest star rated hotel in Kangar is a 4-star hotel known as
Putra Palace Hotel offering a standard room at RM159 per night.
Generally, the average occupancy rate of hotels in Perlis range from
42% to 45%. However, selected hotels are able to achieve almost
100% occupancy during peak season.
INDUSTRIAL
Many purpose built offices are located in Kangar town (38 of
51 buildings in Perlis). For example, Menara KWSP in Kangar is
currently rented out at a range of RM1.80psf to RM2.70psf.
Other notable purpose built offices are UniMap Tower which houses
the administration and students’ facilities of University Malaysia Perlis.
Existing Supply & Occupancy Rate of Purpose Built
Offices in Perlis (2010-1H 2014)
(mil sf)
(%)
1.50
100
80
1.00
Existing supply
(LHS)
60
40
0.50
Occupancy rate
(RHS)
20
0
2010
2011
2012
2013
1H 2014
0
(Source : JPPH)
Existing Supply & Occupancy Rate of Hotels in Perlis
(2010-Q1 2014)
(no. of rooms)
(%)
1,000
100
800
80
600
60
400
40
200
20
0
6
2010
2011
2012
2013
Q1 2014
Existing supply
(LHS)
Occupancy rate
(RHS)
0
(Source : JPPH)
The state of Perlis plays an important role in the country’s agriculture
production especially rice and sugar cane. Additionally, Kuala Perlis
will be developed into a fishing hub according to the 10th Malaysia
Plan (2011-2015).
Many factories in Perlis are terraced, detached and semi-detached.
Terraced and detached factories showed growth over the last 5
years whilst semi-detached remains stagnant. Total supply of
industrial units stands at about 212 units.
About 55% of the industrial units are located in Kuala Perlis
and Jejawi. A 1-storey semi-detached factory in Jejawi Industrial
Area is selling at an average price of RM182,000. A 2-storey
terraced factory in Padang Besar Industrial area is selling at about
RM180,000.
OUTLOOK
Currently, the state government is promoting ‘Perlis Maju 2015’
to inspire modernisation in the state, particularly in terms of
development.
Chuping, the largest sugar cane plantation in Malaysia, will soon
become the new economic growth centre in northern Perlis through
the Chuping Valley project.
Following the growing potential of investment in Perlis such as
the proposed development of Perlis Inland Port and Ipoh-Padang
Besar Double Electric Train Project (as mentioned in Budget 2014),
the population is expected to increase at a faster pace in Perlis as
more job opportunities are created. Thus, demand for residential
property in Perlis would be on the rise.
NOTABLE ANNOUNCEMENTS / ACTIVITIES IN PERLIS
UÊ /iiÊ>>ÞÃ>ÊiÀ>`Ê/®Ê>ÕVi`ÊÌiÊiÝ«>ÃÊvÊÌÃÊ}Ê-«ii`ÊÀ>`L>`ÊÃiÀÛViÊ1ÊÌÊ*iÀÃÊ
UÊ /iÊiVÌÀwi`ÊÕLi/À>VÊ*ÀiVÌÊ«*>`>}ÊiÃ>À®ÊÃÊiÝ«iVÌi`ÊÌÊV«iÌiÊÊÓä£È
UÊ *iÀÃÊ-«iV>ÃÌÊÃ«Ì>ÊLÞÊ*Êi>ÌV>ÀiÊÃÊiÝ«iVÌi`ÊÌÊLiÊV«iÌi`ÊLÞÊÌiÊi`ÊvÊÓä£x
UÊ Ê£{{ÊiVÌ>ÀiÃÊvÊ>`ÊÃÊLi}ÊìÛi«i`Ê>ÃÊ>ÊiÜÊÌÜÃ«]Ê`ÕLLi`Ê>`>ÀÊ>ÀÕÊ*ÕÌÀ>Êi}ÌÃÊÊ
Õ«}ÊiÝ«iVÌi`ÊÌÊV«iÌiÊ
in year 2015)
KEDAH
Area
9,500 km²
Population
2,057,700
Sg. Petani is reaping the benefits of being close to the established
automotive industrial area in Gurun and also bordering the northern
part of Seberang Perai, Penang. These two factors help support
the growth in Sg. Petani making it a property hotspot in Kedah.
Population Density
216 per km2
Capital City > Alor Setar
RESIDENTIAL
Currently, the total residential supply stands at 279,654 units
dominated by landed houses. The majority of residential properties
are 1-storey terraced and low-cost houses, which together account
for 57% of total supply. However, more 2-storey developed houses
are being offered recently from upcoming projects due to the
increase in population and stable purchasing power of local buyers.
In 1H 2014, total residential transaction showed a decline by about
28% from the same period last year (1H 2013: 8,463 units).
Some of the more established housing developers in Sg. Petani
include Plenitude Heights Sdn Bhd, OSK Property Holdings Berhad
(Bandar Puteri Jaya & Hillpark), Paramount Property (Utara) Sdn
Bhd (Bandar Laguna Merbok & Bukit Banyan), Emico Development
Sdn Bhd (Bandar Mutiara) and EUPE Corporation Bhd, JESIN Group
(Taman Sutera) & Chin Hin Group (Amanjaya Mall).
A housing scheme in Sg. Petani is Perdana Heights. The recent
completion of Amanjaya Mall helps elevate the perception of
traditional lifestyle in Bandar Amanjaya area.
A notable upcoming project in Sg Petani is located in Bukit Banyan
developed by Paramount Property Development Sdn Bhd. Its
standard double storey terraced house is selling between a range
Alor Setar Residential Property Price Trend & House Price Index (2010 - Q2 2014)
Price ‘000 (RM)
Price Index
700
250
600
200
500
400
150
300
100
200
50
100
0
0
2010
1TH (LHS)
2011
2TH (LHS)
2012
1SD (LHS)
2SD (LHS)
2013
1D (LHS)
Q2 2014
2D (LHS)
Condominium /
Apt / S. Apt (LHS)
7
Northern Region
of RM320,000 and RM360,000 while the double storey semidetached house start at RM600,000.
Established housing schemes in Sg. Petani such as Bandar
Amanjaya, Bandar Laguna Merbok, Bandar Puteri Jaya, Bandar
Puteri Hillpark, Bandar Sri Astana, Lagenda Heights and Cinta
Sayang Resort Homes are all holding its prices firmly.
The selling price of 2-storey terraced houses in Cinta Sayang Resort
Homes, adjacent to the golf resort, increased at an average of 6%
per annum in the past 7 years from RM208,000 per unit (developer
price in 2007) to RM350,000 per unit (current market price).
An upcoming luxurious landed residential scheme near Cinta
Sayang Golf Resort dubbed The Somerset, launched its limited 64
units of 2-storey detached houses last year, with lot sizes starting
from 6,000 sf and built up area from 4,000 sf. Some of the units
were sold with a selling price of more than RM1.0 million. Its
unique selling point is the readily installed fibre optic UNIFI cable
for high-speed internet.
The existing Sky Residences @ Cinta Sayang in Sg Petani, is currently
selling at RM420,000 to RM550,000 and is mainly occupied by
expatriates. Cinta Sayang Resort Villa on the other hand, is selling
at about RM800,000 onwards.
In the state capital of Alor Setar, selling price of houses vary
according to location and type. A 1-storey terraced house in
Taman Saga and Taman Kenari Merah is selling at RM140,000
and RM160,000 respectively while a 2-storey terraced house is
priced at RM250,000 and RM270,000 in Taman Mutiara and Taman
Alor Setar respectively. The average selling price of a 1-storey semidetached house in Taman Vistana is within the range of RM380,000
to RM420,000. A 2-storey semi-detached house starts from
RM455,000.
A new landmark condominium is being developed in Alor
Setar known as Aman Suri Residences by Belleview Group. Its
smallest unit of 1,248 sf is currently selling at RM516,800. This
development has set a new benchmark in high rise living in Alor
Setar with encouraging take up rates. After selling out its first phase
comprising of 140 units (with prices from RM461,760), half of its
second phase of 137 units have been sold at higher selling prices
starting from RM516,800.
A different scenario is seen for residential supply and prices within
Langkawi. While it only contributes to 3% of total residential supply
in Kedah, prices of houses are slightly higher on the island due to
its attraction as a tourism destination. Average transacted price
for 1-storey terraced houses has reached RM200,000 as seen in
Taman Helang Perdana and Taman Indah Phase 3.
8
In Langkawi, a new condominium has been completed in 2014
known as the Laguna Langkawi with a view of the Andaman Sea.
Its 2-bedroom unit with sizes of 1,010 sf to 1,421 sf are selling
from RM539,000 per unit. Bigger units of 3,800sf are selling at
an estimated RM2.1 million.
Overall, the residential market in Kedah is active with more
upcoming residential projects in the pipeline with new concepts
being introduced i.e lifestyle condominiums and detached/
bungalow schemes.
RETAIL
Total supply of retail space in shopping malls within Kedah grew at
an average of 4.6% over the last 5 years. In 1H 2014, total supply
of retail space has reached net lettable area of 4.94 million sf (an
increase of about 7.7% from 1H 2013). Sungai Petani contributed
highest retail space at 1.85 million sf (37%) followed by Alor Setar
at 1.45 million sf (30%).
Some of the shopping malls and hypermarkets to note in Alor
Setar are Star Parade Shopping Mall, Alor Star Mall and City Plaza
Shopping Mall and Village Mall, Amanjaya Mall, Central Square
(HEKTAR REIT) and SP Plaza in Sungai Petani.
Two shopping hotspots for tourists in Kedah are Duty Free Zone
in Langkawi, Ukir Mall (shops relocated from Pekan Rabu) in Alor
Setar and The Zon Duty Free Shopping Mall in Bukit Kayu Hitam.
Local residents in Kedah can also choose to do their grocery shopping
in hypermarkets occupied by well-known tenants nationwide i.e
Tesco, Giant and Econsave. Many of the hypermarkets are pooled
within the Sungai Petani area as evidenced by the existence of two
Tesco hypermarkets (Jln Bakar Arang and Lagenda Heights), a Giant
Hypermarket (Jln Lencongan Barat) and Econsave Hypermarket
(Bandar Puteri Jaya). Mydin Hypermarket is also under construction
at Taman Batik, Sg Petani.
Kedah (2010-1H 2014)
(mil sf)
(%)
5.00
100
4.80
80
4.60
60
4.40
40
4.20
Occupancy rate
(RHS)
20
4.00
3.80
Existing supply
(LHS)
2010
2011
2012
2013
1H 2014
0
(Source : JPPH)
Scheme by Location
Type
Price
Taman Kulim Techno Park City
1-storey terraced
RM160,000
Taman Kulim Techno-City
Phase 3
2-storey terraced
RM170,000 RM175,000
Taman Kulim Square
2-storey terraced
RM230,000
Taman Kulim Utama 3
2-storey terraced
RM230,000 RM240,000
Taman Kemunting II
2-storey terraced
RM350,000
Taman Merawan
RM450,000
2-storey terraced
RM200,000 RM300,000
Sky Residences @ Cinta Sayang 2-storey terraced
RM280,000 RM300,000
KULIM
SG. PETANI
Bandar Laguna Merbok
ALOR SETAR
In Alor Setar, a hypermarket, AEON Big along Jalan Gangsa has
opened in December 2014. Aman Central Mall with about 760,000
sf of retail space by Belleview Group is the talk of the town as a
new landmark in Alor Setar. It is expected for completion in 2016.
Further to the north of Kedah, there is Jitra Mall (with C-Mart as
the anchor tenant) that serves the population in Jitra area. There is
also Tesco Hypermarket in Jitra. Towards the south of Kedah, there
is Landmark Central Shopping Centre (HEKTAR REIT) and Tesco
Hypermarket in Kulim to cater to residents within the vicinity. In
the popular Kuah Jetty of Langkawi, there is a 2-storey mall known
as Jetty Point Complex.
The average rental rate of prime retail lots for selected malls within
Kedah is around RM8.20psf to RM17.36psf (mostly in Alor Setar
area). Malls in Sungai Petani command lower rental rates which
range from RM3.00psf to RM5.95psf. Other notable existing retail
complexes in Langkawi are Teow Soon Huat supermarket, Haji
Ismail Group Complex and Idaman Suri Complex.
The average occupancy rate for shopping malls in Kedah has been
stable for the past 4 years, increasing from 73.4% in 2010 to 79.0%
in 2013. Completion of upcoming malls will create competition to
the existing malls. However, with a good tenant mix, rental rate
for the retail lots are expected to remain stable.
Taman Saga
2-storey terraced
RM140,000
Taman Kenari Merah
2-storey terraced
RM160,000
Taman Mutiara
2-storey terraced
RM250,000
Taman Alor Setar
2-storey terraced
RM270,000
Taman Vistana
1-storey semidetached
RM380,000 RM420,000
Offices in Kedah (2010-1H 2014)
Taman Vistana
1-storey semidetached
RM455,000
(mil sf)
(%)
3.60
100
LANGKAWI
Taman Helang Perdana &
Taman Bukit Indah Phase 3
1-storey terraced
Taman Bukit Indah Phase 3
2-storey terraced
RM350,000
Taman Helang Perdana
2-storey terraced
RM250,000 RM290,000
3.20
Istana Condominium
Condominium
RM170,000 RM175,000
3.00
Century Suria Condominium
Condominium
RM265,000 RM340,000
2.80
Laguna Langkawi
RM200,000
80
3.40
Condominium
From
RM539,000
JITRA
Taman Golf, Darulaman
1-storey detached
RM360,000
Lakehomes, Darulaman
2-storey detached
RM950,000
60
40
Existing supply
(LHS)
Occupancy rate
(RHS)
20
0
2010
2011
2012
2013
1H 2014
(Source : JPPH)
Total supply of shop office units in Kedah are mainly made of
2-2½-storey terraced type (50% of total supply – 26,377 units). A
total of 75% of shop units are located in Alor Setar, Sg. Petani and
Kulim. The total number of transaction for shop offices increased
by 6.7% average in 3 years (1H 2013: 1,070 units, 1H2014: 1,142
units).
9
Northern Region
The average annual growth of total supply for shops increased
slightly at 1.3%. This shows that there are limited activities involving
shop offices in Kedah. Even so, an upcoming shop office named
Star Avenue Commercial Centre will be launched soon by Belleview
Group.
Total existing office space within purpose built offices in Kedah
has accumulated to about 3.4 million sf where 70% are located in
Alor Setar. Office development in Alor Setar town area are mostly
government-linked offices i.e Telekom Tower, Wisma Negeri and
IPD Kota Setar with several existing corporate towers i.e BDB Tower
near Kompleks Alor Setar , PKNK Tower (KWSP) along Jalan Sultan
Badlishah and Dewan Perniagaan Melayu Malaysia Negeri Kedah
which was newly completed in 2014.
Generally, the average occupancy rate of purpose built offices in
Kedah within the past 4 years (2010-2014) have been stable at
92%.
Prices of Shop Offices in Selected Schemes
Location
Type
Price
2-storey
RM476,000
Taman Berjaya & Stargate
2-storey
RM400,000 RM450,000
Kompleks LITC
2-storey
RM680,000 RM800,000
Alor Setar Town
3-storey
RM700,000 RM850,000
2-storey
RM345,000
KULIM
Kulim Business Centre
ALOR SETAR
JITRA
Darulaman Shoppe
Average Rental Rate of PBO
Location
Rental Rate (RMpsf)
KULIM
Kulim
RM1.60 - RM1.80
Sg Petani
RM1.60 - RM2.50
Alor Setar
RM1.70 - RM2.50
Langkawi
RM1.00 - RM1.50
Existing Supply & Occupancy Rate of Hotels in
Kedah (2010-Q1 2014)
(no. of rooms)
(%)
15,000
100
80
10,000
Existing supply
(LHS)
60
40
5,000
Occupancy rate
(RHS)
20
0
2010
2011
2012
2013
Q1 2014
0
(Source : JPPH)
Pulau Langkawi houses most of the 5-star hotels in Kedah. Among
those are the Four Seasons Resort Langkawi, The Danna Langkawi
(room rate from RM1,800 per night), Tanjung Rhu Resort (room
rate from RM2,270 per night), The Andaman Langkawi and The
Datai Langkawi Resort.
Some 3-star hotels scattered in Langkawi are the Grand Continental
Hotel Langkawi, The Lanai Langkawi and The Aseania Resort
Langkawi. Standard room rates for 3-star hotels in Langkawi start
at about RM150 per night while room rates of 4-star hotels range
from RM300 to RM500 per night.
In Alor Setar, there are 4-star hotels noted as Holiday Villa Hotel, TH
Hotel & Convention Centre and Grand Alora Hotel with standard
room rates that start from RM231 per night to RM380 per night.
Some examples of 3-star hotels are the New Regent Hotel, Star
City Hotel and The Regency Hotel.
There are new hotel developments coming up in Kedah such as
a 5-star hotel by Belleview Group in Alor Setar and a star rated
Colonial Beach & Spa Resort in Langkawi. An international hotel
chain, the Ritz Carlton is slated for opening in 2015.
Another upcoming 5-star hotel to be known as Rahsia Estates Resort
Residences, Eco Hotel and Spa located in Kampung Temoyong,
Kedawang in Pulau Langkawi will comprise of 116 rooms, 30 luxury
cabana villas and 130 resort suites. The six-hectare resort is said to
be overlooking the popular Pulau Dayang Bunting.
Overall, the occupancy rates for 3 to 5-star hotels average at about
54% in Kedah.
HOTEL
INDUSTRIAL
According to JPPH, there are a total of 41 existing 3-5 star hotels
in Kedah. Star-rated hotels are more likely to be found in the
established area of Langkawi, Sungai Petani and Alor Setar.
Kedah has steadily shifted its focus from agri-based industrial
activities to technology-based industrial sector which include
automotive, electric and electronic, oil and gas, pharmaceutical
and food production.
In 2013, total number of 3-5 star hotels increased by 10.0%
(2013: 41, 2012: 37). A new hotel opened in 2013, identified as
Seri Chenang Resort & Spa Langkawi.
10
Total supply of industrial units in Kedah has improved with an
average annual growth of 1.8% over the past 4 years. Terraced
factories account for 42% of total supply for industrial units in
Kedah while semi-detached factories contribute about 30% of
total supply.
Established industrial areas in Kedah are scattered around Kulim,
Alor Setar, Gurun, Bukit Kayu Hitam and Yan. Kulim Hi-Tech Park
is one of the successful industrial development in Kedah becoming
a catalyst in spurring other developments within the surrounding
area. For example, Kulim Techno City by Belleview Group is to
create residential products to cater to the needs of the growing
population in the area. Among multinational companies setting
their operations here include Intel Products, Fuji Electric, Silterra,
BASF Electronic Chemicals, Infineon, AIC Semiconductor, and First
Solar Incorporation. There are also automotive assembly plants in
Kulim, e.g Inokom & Mazda.
Gurun in Kedah is well-known as an automotive manufacturing
area featuring Naza Automotive Manufacturing Sdn. Bhd and
Modenas.
Looking at the price range of factories in Kedah, 1½-storey semidetached factories within Bakar Arang Industrial Area and Sungai
Tukang Industrial area are set at RM600,000 whilst in Sungai Petani,
the average price is about RM800,000.
In Alor Setar, a 1½-storey terraced factory in Mergong Barrage
Industrial Park is selling at an average of RM600,000. Prices of a
similar type of factory in Bandar Baru Mergong (Taman Perindustrian
2010-Star City) average at RM550,000, while a 2-storey terraced
factory within Sri Tandop Industrial Park is selling at an average
of RM460,000.
More excitement in terms of foreign investments into Kedah are
seen lately with the Great Wall Motor Co Ltd from China securing
a RM2 billion investment to set up an assembly plant in Gurun.
The Yan Petroleum Industrial Zone is expected to be revived with
the presence of China Energy as a major shareholder in Merapoh
Resources Corp to build an oil refinery complex in Kedah.
OUTLOOK
Overall, the residential property market remains attractive in Kedah.
This is evidenced by the increase in total residential transaction of
about 5% in 2012/2013. However, in 1H2013/1H2014 transaction
showed a big decrease of about 28%.
Some commercial buildings were completed this year such as an
office building known as Dewan Perniagaan Melayu Malaysia
Negeri Kedah (DPMM) and AEON Big Hypermarket along Jalan
Gangsa. The state government is currently pushing investment
attractions to convert Kedah from an agriculture-based industry
to more advanced technology industrial activities.
Some investors have acquired land in Kedah such as Bina Darulaman
Bhd and China Energy Huacheng Industrial Investment Co Ltd.
There are also initiatives by the state government to develop more
infrastructure such as Kulim International Airport and other big
projects e.g Aerocity, Rubber City and Kedah Medical Science City.
Kedah has begun to hear major infrastructure investments which are
much needed to provide a good platform for other developments
to be materialised.
NOTABLE ANNOUNCEMENTS / ACTIVITIES IN KEDAH
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i) Kulim International Airport (KPX) on a 6,000 ha land at a cost of RM1.6 billion
ii) Kedah Aerocity
iii) Sungai Petani-Kedah Inner Expressway (Spike)
iv) Kedah Rubber City (Bukit Ketapang)
v) Kedah Science & Technology Park
vi) Kedah Medical Science City
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to build The Merapoh refinery complex
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11
Northern Region
PENANG
Area
1,048 km²
Population
1,662,800
New launches for residential properties in Penang remain active.
After completion of the most awaited ‘Second Bridge (Sultan
Abdul Halim Muadzam Shah Bridge)’, new projects nearby have
gained interests. The southern part of Penang Island received good
response for properties located in Sg. Ara, Teluk Kumbar and Batu
Maung.
Population Density
1,586 per km2
Capital City > Pulau Pinang
RESIDENTIAL
Total residential supply in Penang grew steadily at 2.6% on average
in the past 4 years. Existing supply of terraced houses in Penang
are still dominant at about 28% of total residential supply.
Number of transaction for residential properties in Penang increased
in 1H2013/1H2014 by about 6.5% (1H 2014: 9,023 units, 1H
2013: 8,476 units).
Marinox Sky Villas in Tanjung Tokong is the first project to be
certified with ‘Green Building Index Provisional Gold Rating’ in
Penang. It is developed by Masmeyer Development Sdn Bhd and
is expected to be completed by 2016.
Condominiums in prime areas within Penang Island, are selling at
about RM700psf to RM800psf while others located in Sungai Ara
are selling at RM450psf to RM550psf.
The potential boost created by the completion of the Second Bridge
linking the island to the mainland is being observed by many –
especially in parts of southern Seberang Perai.
Among new launches to expect in 2015 are The Coastal in
Southbay City by Mah Sing Group Bhd and Stramax Residences
by IOI Properties Group Bhd. Selling price for condominium units in
The Coastal are expected to start from RM580,000. The Stramax
Residences will be a gated and guarded development comprising
of 3-storey terraced houses, townhouses and bungalows.
Another new development recently launched is an integrated
development known as Juru Sentral. The development comprise
of a 31-storey condominium (Exo Residences) with shop offices
and a hotel. It was launched in January 2015 at about RM487,000
for 1,450sf unit.
A notable upcoming condominium project is Tree Sparina@Ideal
Vision Park, selling from RM400,000 with sizes ranging from 800sf
to 1,650sf.
Many new condominiums in Penang mainland are concentrated
in Butterworth. New condominiums in Palma Laguna Water Park
and Pinang Laguna Water Park are sold out and is currently selling
at RM300,000 and above in the subsale market.
Higher selling prices offered for houses in Penang have generally
pushed the state government to realise the importance of providing
Penang Island Residential Property Price Trend & House Price Index (2010 - Q2 2014)
Price ‘000 (RM)
Price Index
3,000
250
2,500
200
2,000
150
1,500
100
1,000
50
500
0
2010
1TH (LHS)
12
2011
2TH (LHS)
1SD (LHS)
2012
2SD (LHS)
2013
1D (LHS)
0
Q2 2014
2D (LHS)
Condominium /
Apt / S. Apt (LHS)
Price
Penang (2010-1H 2014)
Scheme
Location
Type
Sunway Tunas
Bayan Baru
2-storey terraced RM950,000
(mil sf)
(%)
Setia Pearl Island
Sungai Ara
2-storey terraced RM1,100,000
18.00
100
The Residence
Feringhi Park
3-storey
semi-detached
RM2,500,000
Casa Permai 2
Tanjung Bungah 3-storey
semi-detached
RM2,800,000
Residence 21
Jalan Macalister
Condominium
RM2,750,000
Fiera Vista @ One
Residence
Sungai Ara
Condominium
RM700,000
Taman Sutera
Indah
Seberang Jaya
Taman Cheng Leng Seberang Perai
& Taman Pauh Jaya Tengah
Setia Alam @
Duta Villa
Bandar Perda
3-storey terraced RM2,200,000
Cassia
Condominium
Butterworth
Condominium
RM350,000
Harbour Place
Butterworth
Condominium
RM300,000
80
16.00
affordable houses. PR1MA houses are expected to be built in Bayan
Lepas and Bukit Gelugor area.
Penang will continue to be a favourite among foreign property
investors, despite the implementation of 3% levy and an increase
of minimum price limit to RM1.0 million for high-rise residential
properties and RM2.0 million for landed properties, on property
purchase by foreigners in Penang Island. As for the mainland, the
restriction is RM500,000 and RM1.0 million respectively.
A most-talked about upcoming project involving land reclamation
is Seri Tanjung Pinang in Tanjung Tokong by E&O Property
Development Berhad. Selling price for its condominium unit has
increased from about RM700psf in year 2011 to about RM1,100psf
(57% increase). Another project land reclamation is The Light
Waterfront by IJM Land. Currently, The Light Collection I & II are
completed whereby the price have increased from about RM700psf
in 2011 to RM900psf currently. The project will further expand in
phase 2 (STP2) which will involve reclamation works and is expected
to begin in 2016.
Overall, prices for residential properties in Penang Island especially
for condominiums and landed residential properties such as
terraced houses and semi-detached houses are still competitive in
comparison to other major cities in the country.
Existing supply
(LHS)
60
40
14.00
Occupancy rate
(RHS)
20
12.00
2010
2011
2012
2013
1H 2014
0
(Source : JPPH)
RETAIL
Total retail space in Penang has increased by 4.2% in the past 4
years. As at 1H 2014, total supply of retail space in Penang has
increased from 15.3 million sf to 17.4 million sf (13.5% increase).
Among the notable shopping malls in Penang Island include
Prangin Mall and First Avenue Mall in Georgetown, Gurney Plaza
and Gurney Paragon along Persiaran Gurney and Queensbay Mall
in Bayan Lepas.
In Seberang Perai (Penang mainland), there is the Sunway Carnival
Mall and AEON Seberang Perai City Mall in Bandar Perda, Seberang
Jaya. In the middle of 2014, AEON Seberang Perai City Mall was
closed temporarily and has shifted to AEON Mall Bukit Mertajam
along Jalan Rozhan near Tesco Bukit Mertajam. Another mall is
Megamall Penang located in Bukit Mertajam along the busy trunk
road of Jalan Baru.
In Georgetown, the rental rate for prime lots in malls average at
RM12.50psf to RM38.00psf. Rental rate for secondary lots vary
from RM1.00psf to RM5.00psf. Within Seberang Perai, average
rental rates for prime lots average at RM3.65psf to RM14.50psf.
Overall, average occupancy rate for retail malls in Penang is stable
ranging from 67% to 70% in the past 4 years. As at 1H 2014, the
average occupancy rate was recorded at 69.4%.
Shopping malls in the pipeline are within BM City in Bukit Mertajam
while Belleview Group is targeting to build a regional mall with net
lettable area of more than 1.5 million sf in Perai. Post completion
of the Second Penang bridge, retailers are keen to set up in the
Batu Kawan area due to the upcoming IKEA and Premium Outlet
at Batu Kawan.
13
Northern Region
Offices in Penang (2010-1H 2014)
(mil sf)
(%)
12.00
100
11.80
80
11.60
60
11.40
40
11.20
20
11.00
0
2010
2011
2012
2013
1H 2014
Existing supply
(LHS)
Occupancy rate
(RHS)
(Source : JPPH)
Total supply of shop offices in Penang grew slightly by 1.6% in the
past 4 years. In 1H 2014, total supply of shop offices in Penang
was recorded at around 20,000 units (increased 2.0% from 2013:
19,620 units).
About 62% of the total supply are made of 2-storey shop offices.
As at 1H 2014, the total number of transactions for shop offices
improved by 28% (1H 2014: 619 units, 1H 2013: 483 units).
The newly completed Vantage Desiran Tanjung at Seri Tanjung
Pinang near Straits Quay is selling its ground floor strata shop unit
at RM2.00 million and about RM1.40 million to RM1.65 million for
the upper floor units, whereas 2-storey shop offices in Fortune Park,
Jelutong (Penang Island) is now asking for RM3.20 million. 3-storey
terraced shop offices in Desaria and Sri Kenari Sungai Ara are selling
at about RM4.00 million. Towards the south of Seberang Perai,
Krystal Point in Sungai Nibong is selling at about RM2.10 million.
In Seberang Perai, shop offices in Taman Chai Leng (2-storey) are
priced at RM700,000 onwards while others, mostly 3-storey shop
offices are priced at RM1.4 million to RM1.6 million onwards. Rental
for prime shop lots in strategic locations range from RM0.80psf
to RM2.30psf. A higher rental rate is noted for Autocity in Juru,
Seberang Perai at about RM7.00psf to RM13.00psf. The row of
shop offices within the accorded UNESCO World Cultural Heritage
Site are asking for rental of RM3.00psf.
Some upcoming shop offices in Seberang Perai such as the 3-storey
shop office in Sunway Wellesley, Butterworth and 2-storey shop
office in BM City, Bukit Mertajam have selling prices starting from
RM1.0 million per unit. 2-storey shop offices at D’Square along
Jalan Baru, Perai sells at about RM690,000 per unit.
Following the completion of Second Penang Bridge in Batu Kawan
an upcoming shop office scheme, Vortex Business Park has launched
in Bukit Tambun for its 2-storey shop offices at RM800,000.
14
HOTEL
Most of the tourist attractions are located in Penang Island as
compared to the mainland (Seberang Perai) such as the beaches
and historical buildings.
The recognition of Georgetown as a UNESCO’s World Heritage
site has attracted more local and international tourists to Penang
Island. Eastern & Oriental Hotel is located near to Penang UNESCO
Heritage Site and is able to achieve an average occupancy rate of
72% with an average room rate of RM551 per night.
Hotels along the shoreline are concentrated in Batu Feringghi,
Tanjung Bungah and Tanjung Tokong.
Examples of 5-star hotels along Batu Feringghi are Hard Rock Hotel,
Golden Sands Resort and Rasa Sayang Resort & Spa by ShangriLa. These hotels are able to fetch an average occupancy rate of
about 74% to 85%. The room rate for Rasa Sayang Resort & Spa
is currently averaging at RM626 per night.
Some established star-rated hotels in Seberang Perai are the 3-star
Pearl View Hotel in Perai, 4-star Summit Hotel in Bukit Mertajam
and 4-star Sunway Hotel in Seberang Jaya. These hotels, however,
only achieve an average of 50% occupancy rate.
Pearl View Hotel is offering room rates at RM141 per night whilst
Summit Hotel offers a lower rate at RM128 per night. Location is
also a factor that determines the room rates, where Perai that is
facing Jalan Baru is able to command a higher rate as compared
to the old area in Bukit Mertajam.
Penang (2010-Q1 2014)
(no. of rooms)
(%)
20,000
100
15,000
80
Existing supply
(LHS)
60
10,000
40
5,000
Occupancy rate
(RHS)
20
0
2010
2011
2012
2013
Q1 2014
0
(Source : JPPH)
INDUSTRIAL
In Penang, most of the industrial activities are concentrated within
Seberang Perai (Penang mainland). About 80% of the total supply
for industrial units as at 1H 2014 is located in Seberang Perai.
As at 1H 2014, total supply of industrial units in Penang is 7,920
units with an increase of 2.0% from 1H 2013. Terraced factory
dominated total supply making up 63%. Within the past 4 years,
only a slight growth is noticed by about 0.7%.
In Penang Island, a well-known industrial development known as
Bayan Lepas Free Industrial Zone (FIZ) is a high-tech industrial zone
located on the southern part of Penang Island. Others to note are
Diamond Valley in Batu Maung and Fortune Park Light Industrial
in Bukit Jelutong.
Central Seberang Perai District in Penang mainland is the centre of
matured industrial activities whereby the industrial hub stretches
from Perai, Bukit Tengah, Bukit Minyak to Juru areas. Among the
notable industrial areas are Perai Industrial Estate, Bukit Tengah
Industrial Estate, Bukit Minyak Industrial Estate and Penang Science
Park.
Prices of existing 1-storey terraced factories in Diamond Valley
were transacted at RM1.2 million to RM1.3 million and above.
Other 2-storey terraced factories have an asking price of RM1.75
million onwards. In Seberang Perai, a 1-storey semi-detached
factory in Industri Beringin, Juru is selling at RM1.0 million whilst a
2-storey semi-detached factory in Taman Bukit Panchor in southern
Seberang Perai is selling at RM1.2 million.
Industrial activities in Penang are active with big companies eyeing
for investment within the state. For instance, Seagate (a US based
company involved in the data storage industry) are to invest about
RM1.05 billion for their operation expansion.
OUTLOOK
The property market in Penang remains attractive and is expected
to continue its growth due to strong investments from foreign
and local companies. In 2015, more upcoming developments are
estimated to set in Seberang Perai especially in the Batu Kawan
area with the completion of the ‘Second Bridge’.
NOTABLE ANNOUNCEMENTS / ACTIVITIES IN PENANG
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Technology Park and Business Process Outsourcing Prime on a 206-acre land in Batu Kawan
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Total land cost is estimated at RM483.95 million
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shareholder for some RM126 million cash
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about 20.2ha in Batu Kawan, Penang, to set up the plant
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Seberang Prai
15
Northern Region
PERAK
Area
21,035 km²
Population
2,459,900
institutions such as Universiti Teknologi MARA (UiTM) and Universiti
Teknologi PETRONAS (UTP) which forms the majority of population
in the area.
Population Density
116 per km2
Prices of houses have also increased significantly in that area. The
price for a 1-storey terraced house in Bandar Universiti has increased
from RM155,000 in 2013 to RM185,000 in 2014, marking a 19%
growth in price.
Capital City > Ipoh
RESIDENTIAL
The existing supply of residential units in 1H 2014 for the State
of Perak increased by 2.5% from 2013. The increase in supply
was matched by the 7.5% increase in transaction activities where
13,936 residential units changed hands during the same period.
1-storey terraced houses is the highest contributor to residential
supply in Perak, totalling 129,556 units in 1H 2014, followed by
low cost houses with a total of 79,692 units. The District of Kinta
where the state capital is located, accounts for 40% of the total
existing stock in the state.
2 & 3-storey terraced houses showed the highest supply in the
District of Kinta in 1H 2014 with a total of 59,264 units in 1H 2014,
followed by 1-storey terraced houses with a total of 54,990 units.
Demand for 2-storey terraced houses seemed to be high and
growing as most launches recorded a 100% sales rate. Newly
launched products have also seen 50% take up rates within 6 to
9 months of release.
The rental market is more active in Perak Tengah where Seri
Iskandar is located. This is fuelled by the students from education
A freehold development Tiara Lake Park offers a 2-storey terraced
house with a built up area of 2,178 sf at RM399,000. Meanwhile, a
2-storey semi-detached house in Hartamas Villa with a built up area
of 3,368 sf is selling at RM798,800. It is expected to be completed
at the end of 2015.
A new concept has been brought into Ipoh by developers is “resort
lifestyle”. Most developers capitalise on the advantages of its
surroundings such as natural limestone hills, caves, waterfalls and
lakes to attract investors and buyers.
Apart from that, green, health and sustainable development
elements are also highly adopted amongst new products in the
market to enhance their selling pries. For example, The Enclave II,
which offers luxury boutique residences of 3-storey semi-detached
houses with 3,763 sf built-up commands a price tag starting from
RM1.5 million – about RM400psf.
One of the growing townships in Ipoh, Bandar Meru Raya by
PKNP has gained momentum recently. With new prices seen at
RM398,800 for a 2-storey terraced house in Meru Desa Park, this
area is poised to grow as a future hotspot in Ipoh. The shifting of
several key government offices to Bandar Meru Raya and the set
Ipoh / Kinta Residential Property Price Trend & House Price Index (2010 - Q2 2014)
Price ‘000 (RM)
Price Index
1,000
900
800
700
600
500
400
300
200
100
0
250
200
150
100
50
2010
1TH (LHS)
16
2011
2TH (LHS)
1SD (LHS)
2012
2SD (LHS)
2013
1D (LHS)
Q2 2014
2D (LHS)
0
Condominium /
Apt / S. Apt (LHS)
Perak (2010-1H 2014)
Scheme by Location
Type
Price
Bandar Baru Tambun
RM320,000
(mil sf)
(%)
Gerbang Meru
1-storey semi detached
RM290,000
10.00
100
Bandar Seri Botani
RM480,000
80
Bandar Baru Tambun
RM550,000
8.00
Gerbang Meru Indah
RM600,000
Bandar Baru Sri Klebang
1-storey detached house
RM730,000
Bandar Baru Tambun
2-storey detached
RM1.2 million
Prima Condominium
Condominium
RM280,000
Damaipuri Condo
Condominium
RM380,000
up of Mydin Hypermarket along with the city’s new bus terminal at
the township underlines its future prospects. Also, the announced
Movie Animation Park Studios (MAPS), a RM450-million partnership
project between Sanderson Group and Perak Corporation Berhad,
is expected to catalyse the town’s growth as a tourism and business
hub.
In Bercham, the launch of Hua Yang Bhd’s Greenview Residence
project last year, consisting 39 units of 3-storey terraced houses and
three 2-storey terraced houses, reportedly achieved 70% take up
in just 2 weeks. After seeing the success of Greenview Residence
and another of its project, Ridgewood (consisting 3-storey cluster
semi-detached houses and 3-storey link bungalows), the developer
is now targeting to launch its Bandar Universiti Seri Iskandar later
this year.
RETAIL
Currently, there are 64 shopping complexes with a total NLA of
8.12 million sf in Perak. The majority of complexes are located in
Ipoh, totalling 28 of them. Seven shopping malls are in the pipeline
with a total space of 1.32 million sf.
The performance of shopping malls in Ipoh is generally good with
occupancy rates ranging between 85% to 100%. Occupancy rates
for Giant and Tesco Hypermarket in Ipoh are both 100% and
command stable rental rates between RM3.00 to RM20.00psf
per month.
The Octagon located at Jalan Theatre, Ipoh is a leasehold
development that offers a total of 160 units of serviced apartments
and 33 units of retail outlets. The NLA is 50,000 sf and is expected to
complete by early 2016. The retail outlets are selling at RM298,800
(RM374 psf).
Existing supply
(LHS)
60
6.00
40
4.00
Occupancy rate
(RHS)
20
2.00
2010
2011
2012
2013
1H 2014
0
(Source : JPPH)
There will be a 3rd Aeon complex in Ipoh, expected to be
completed in 2015. Known as Aeon Klebang Shopping Mall, it
will offer 400,000 sf of retail space. In Taiping, Aeon has opened
its shopping mall to the public on 14th November 2014, offering
NLA of 440,000 sf.
The existing supply of shop units in Perak is dominated by 2-storey
shops, accounting for 27,841 units of the total 47,099 in the state
as at 1H 2014. The total incoming supply is estimated at 8,549
units with the majority located in the District of Kinta (2,761 units).
Some existing 2-storey shop offices with higher selling prices
are located in Tasek Square (RM1,000,000), Persiaran Greenhill
(RM800,000) and Medan Ipoh Bestari (RM640,000). A 3-storey
shop office in Jalan Laksamana is priced at RM700,000. Similar
type of shop offices in Tasek Square costs around RM1.0 million
and in Simpang Pulai Business Centre, it starts from RM600,000.
Bandar Seri Iskandar, located at Perak Tengah, saw prices of a
4-storey shop office at approximately RM798,000.
Offices in Perak (2010-1H 2014)
(mil sf)
(%)
6.80
100
6.60
80
Existing supply
(LHS)
60
6.40
40
6.20
Occupancy rate
(RHS)
20
6.00
0
2010
2011
2012
2013
1H 2014
(Source : JPPH)
17
Northern Region
For the time being, the existing stock for purpose built offices in
Perak is 215 buildings with a total space of 6.44 million sf. There
are 6 purpose built office building that are at various stages of
construction, 3 located in Ipoh and others in Manjung, Grik and
Seri Iskandar. Total incoming supply of office space amounts to
190,897sf.
The performance of purpose built offices in Perak has been
stable with a 95.6% occupancy rate recorded in 1H 2014 (1H
2013: 94.8%). Bangunan Seri Kinta is fully rented out at a rate
of RM2.00psf per month. Bangunan Perak Techno Trade Centre,
a 19-storey office building near the Jelapang PLUS Toll Exit in the
northern parts of the city, commands a rental rate of RM4.50psf
per month. The same rental is noted for Bangunan KWSP and is
fully occupied. Bangunan Maybank Trust also has 100% occupancy
with NLA of 219,000 and rental of RM2.00psf per month.
An upcoming commercial development in Ipoh is the Times Square
Ipoh by Team Keris Berhad. This integrated project comprising
commercial, educational and retail outlets, and small offices,
versatile offices (SOVO), stands over a 5.92-hectare site with a
GDV of RM1.2 billion, and is expected to be fully completed by
2020. Its most recent phase launched, The Suites (SOVO), is priced
between RM468,000 and RM700,000 for a 2- or 3-bedroom unit
(about RM391psf onwards). Reportedly, some 20% of the 246
SOVO units have already been sold during the Times Square Ipoh
pre-launch earlier in the year. The Suites (SOVO) is expected to be
completed in 3 years.
HOTEL
There are a total of 265 hotels in Perak with 12,543 rooms available
in the market. Three of them are 5-star hotels, 5 are 4-star and
17 are 3-star hotels. 65% of hotels are operating in and around
Ipoh, while others are dispersed in Lumut/Pangkor area, Taiping,
Teluk Intan, Gopeng and around the state.
Perak (2010-Q1 2014)
(no. of rooms)
(%)
15,000
100
80
10,000
Existing supply
(LHS)
60
40
5,000
Occupancy rate
(RHS)
20
0
2010
18
2011
2012
2013
Q1 2014
0
(Source : JPPH)
There will be one 5-star hotel, four 4-star hotels and two more
3-star hotels that will be added into the market. Impiana Hotel’s
room rate per night is RM320 (5-star), Heritage Hotel (5-star) is
RM340 and Kinta Riverfront Hotel & Suites (5-star) is RM440.
The Banjaran Hotspring Retreat is Malaysia’s first luxurious natural
wellness hot spring destination. It consists of 25 luxury gardens
and water villas, with room rates starting from RM1,300 per night.
Occupancy rate for this hotel is reported to be 90%.
Swiss Garden Golf Resort & Spa Damai Laut houses 300 deluxe
rooms at a rate of RM550 per night. This hotel is also able to
achieve 95% occupancy rate.
There are five newly completed hotels namely the Casuarina @
Meru, Beverly Hotel, Ibis Style Hotel, KTC Hotel and M Boutique
hotel that offers 305 additional hotel rooms to the market. The
performance of 3 to 5 star hotels in the state is stable. Though
official figures for the state’s average hotel room occupancy rate
has been in between 40% to 50% for the past five years, our
observation noted some established hotels commanding higher
rates of between 60% to 65%.
INDUSTRIAL
The total existing supply for industrial properties in Perak stands at
7,423 units in 1H 2014. Of that, the total existing supply in District
of Kinta, where Ipoh the capital city is located, contributed about
73% (5,411 units). The highest number of industrial property in
District of Kinta is the semi-detached types (2,815 units), followed
by terraced type (2,306 units) and detached type (2,187 units).
Established industrial spots in Ipoh are located within Kinta Valley
and Menglembu areas. Some existing industrial developments to
note in Kinta Valley are IGB International Industrial Park and IPO
TECH Klebang Industrial Centre located along Jalan Kuala Kangsar,
both are mainly comprise of semi-detached factories.
A 1½-storey semi-detached factory in IGB International Industrial
Park and IPO TECH Klebang Industrial Centre is currently selling
at RM800,000 and RM400,000 respectively. A similar type in
Menglembu East Industrial Park and I-Park Menglembu is selling
at RM500,000 and RM550,000 respectively.
Jalan Kuala Kangsar is an established and matured area for
industrial activities, housing mostly detached factories that have
been long in operation. For example, detached lots within Tasek
Industrial Estate located along Jalan Kuala Kangsar are currently
priced between RM18 to RM30psf, making it one of the most
valuable industrial tracts in Ipoh. In comparison, Kinta Free Trade
Zone located further north along the same road, offers a lower
price at about RM8 to RM10psf.
There have been announcements of new industrial projects to
take place in Perak. However for most of them, minimal progress
are observed on the ground. As such, one has to be cautious in
assessing the prospects of an industrial area.
OUTLOOK
Overall, the state performance is moderate with no significant
changes from the previous year. The residential sector remains the
most active sector in Perak with numerous integrated developments
in the pipeline to be developed in order to cater to the demand of
a fast yet simple lifestyle.
As price affordability would also be a growing concern in Ipoh,
developers have begun to test new products such as SOHO and
SOVO suites. Being a type of dwelling with dual purposes of an
office or commercial use and a residential apartment, and typically
developed with smaller built-up areas with lower price tag, this
market subsector could see great interest as it has been so in Klang
Valley. In addition, developers have been adopting the “resort
lifestyle” concept in their developments to take advantage of
scenic views of limestone hills and greeneries in Ipoh while creating
financial premiums to their product values. This trend is expected to
continue as growing share of buyers are seen from neighbouring
markets in Klang Valley, Penang and even from Singapore.
Backed by the state government and the relevant agencies who
are actively looking into catalysing growth throughout the state,
coupled with the plans for better rail linkage between major
towns along the west coast of the peninsular, Ipoh could see huge
potential in the future. The project under PKNP, Bandar Meru Raya
and its MAPS, is steadily establishing itself and is worthy to note.
NOTABLE ANNOUNCEMENTS / ACTIVITIES IN PERAK
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from Taiping to Banting (276km) in 2015 with a budget of RM5.3 billion
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service will connect to the existing ETS that runs between Ipoh and Kuala Lumpur.
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UÊ ÊÃ>½ÃÊwÀÃÌÊ>>ÌÊÌiiÊ«>ÀÊÊÛiÊ>ÌÊ*>ÀÊ-ÌÕ`Ê*-®ÊV>Ìi`ÊÊ>`>ÀÊiÀÕÊ,>Þ>ÊÃÊÃVi`Õi`ÊÌÊLiÊ
completed by end-2015. Total cost estimated at RM390 million and is expected to attract 1.4 million visitors in 2015
UÊ Ê1-
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ÌÞÊ-iÀÊÃ>`>À]Ê>}ÊÌiÊ}ÀÕ«½ÃÊwvÌÊÕÛiÀÃÌÞÊ
campus in the country. It will be complemented by a USCI International School as well as Le Quadri boutique hotel. Total
development value is estimated at RM2 billion over a land area of 121 hectares
UÊ Ê-ÕÜ>ÞÊiÀ>`ÊÜÊìÛi«Ê>`Ê«iÀ>ÌiÊ>Ê«ÀiÕÊÕÌiÌÊÊ«]Ê*iÀ>°ÊÊ-ÕÜ>ÞÊ«Ê*ÀiÕÊ"ÕÌiÌÊÜÊLiÊV>Ìi`Êi>ÀÊ
to the Lost World of Tambun. Spanning over 35 acres, the project is expected to be completed in 2 years
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consideration of RM25 million (RM80psf) bringing its undeveloped landbank in Perak to 408 acres with an estimated potential
GDV of RM1.06 billion
19
Central Region
// Kuala Lumpur, Selangor, Negeri Sembilan
KUALA LUMPUR
Area
243 km²
Population
1,732,500
from 600sf. The 36-storey luxury residential tower forms part of
an integrated development comprising the Quill City Mall and a
40-storey office tower.
Population Density
7,129 per km2
The RM1.04 billion transit-oriented-development by Crest Builder at
Dang Wangi light rail transit (LRT) station is reported to be launched
in Q2 2015. The project is known as “The Bank” and will include
a retail mall, serviced residential suites, hotels and offices.
Capital City > Kuala Lumpur
RESIDENTIAL
In 1H 2014, total supply of condominiums has slightly increased by
1.1% to 150,111 units (1H 2013: 148,455 units). Out of that, a
total of 3,916 units were transacted in 1H 2014 showing a decrease
of 5.9% as compared to the same period in 2103 (1H 2013: 4,162
units). As for the serviced apartments subsector, an increase of
8.8% in total supply has been recorded (1H 2013: 16,819 units).
There were a total of 1,143 serviced apartment units transacted
in 1H 2014, which is an increase of 45.1% compared to 1H 2013
(1H 2013: 788 units).
A few developments have been earmarked to be launched in 2015
by notable developers such as Naza TTDI Sdn Bhd, Quill Group,
Crest Builder Holdings Berhad, i-Berhad and Tan & Tan Development
Berhad.
Naza TTDI is looking to launch its first residential tower in the
Platinum Park development. The RM452 million project will consist
of 500 serviced apartments in the first of two towers. According to
the developer, the unit sizes vary between 600 to 1,200 sf.
Quill Group’s first residential project, Quill Residences will offer
522 units of serviced apartments with a built-up area starting
i-Bhd plans to develop a luxurious high-rise development, dubbed
the Grand i-Residence located along Jalan Changkat Kia Peng with
a Gross Development Value (GDV) of RM820 million, the project
will offer 442 fully-furnished residences at an average price of
RM2,300 psf. It is slated for completion in 2019.
Another notable development within KLCC is Stonor 3, a jointventure between Tan & Tan and Mitsubishi Jisho Residence. The
41-storey upscale residential property will comprise of 400 units
of serviced apartments with sizes ranging from 688sf to 1,313sf.
The selling price starts from RM1.1million and averaging at
RM1.45million. The project is slated for completion in 2018.
Tan & Tan is also looking to launch Damai Residences in Desa
Pandan in Q1 2015 and is scheduled for completion in December
2017. The project has a GDV of RM62 million. It is one block
containing 30 units with a penthouse. Built-up areas are between
1,938 sf to 3,961 sf and the selling price ranges from RM1.9 million
to RM4.35 million.
Of late branded luxury residences have also taken the limelight.
Since the launch of the Four Seasons Hotel & Residences in
2012/2013 more branded residences were launched especially in
Kuala Lumpur Residential Property Price Trend & House Price Index (2010 - Q2 2014)
Price ‘000 (RM)
Price Index
7,000
300
6,000
250
5,000
200
4,000
150
3,000
100
2,000
50
1,000
0
0
2010
1TH (LHS)
2011
2TH (LHS)
2012
2SD (LHS)
2D (LHS)
2013
Condominium /
Apt / S. Apt (LHS)
Q2 2014
20
Prices of Condominium/ Serviced Apartment in
Selected Schemes
Scheme
Type
Price
Price psf
The Binjai On the
Park
Condominium
RM8,360,000
RM2,305
Marc Service
Residence
Serviced Apartment
RM1,975,000
RM1,292
Pavilion Residence
Serviced Apartment
RM3,600,000
RM1,788
The Troika
Serviced Apartment
RM2,850,000
RM1,269
One KL
Condominium
RM3,777,750
RM1,147
Suasana Sentral
Condominium
RM1,320,000
RM864
Scott Sentral
Serviced Apartment
RM490,000
RM609
Suasana Sentral
Loft
Condominium
RM1,200,000
RM1,093
KLCC
KL SENTRAL
BANGSAR / DAMANSARA
Palmyra Bangsar
Condominium
RM3,150,000
RM915
Damansara Villa
Condominium
RM798,000
RM403
Ken Bangsar
Serviced Apartment
RM968,800
RM1,216
Gaya Bangsar
Serviced Apartment
RM720,000
RM918
Mont Kiara 11
Condominium
RM2,430,000
RM899
Mont Kiara Verve
Suites
Serviced Apartment
RM670,000
RM1,055
Seni Mont Kiara
Condominium
RM1,989,075
RM825
MONT KIARA
KLCC. The latest being the Kempinski Hotel adding the branding
element to 8 Conlay Residences launched in 4Q2014. Another
proposed project, by Oxley at Jalan Ampang, is expected to be
launched later this year. Prices of branded luxury residences hovered
between RM2,000 to RM2,500psf with some reportedly reaching
RM3,000psf.
PR1MA has come up with several projects located within the Kuala
Lumpur territory, following the government’s initiative to develop
affordable houses with the RM1.3 billion allocation to build 80,000
homes under Budget 2015.
The approved projects are located in Cheras, Brickfields, Bukit Jalil,
Bukit Bintang and Setapak. Most of these developments are highrise condominiums with 416 to 803 units.
PR1MA in Bukit Bintang will be developed with built-up areas
ranging from 856sf to 1,100sf. The selling price starts at
RM275,000.
PR1MA in Brickfields will have built-up areas ranging from 750sf
to 1,000sf with a proposed selling price starting from RM270,000.
The built up areas for PR1MA in Bukit Jalil and Setapak will be 905sf
and 928sf respectively. The selling price starts at RM255,000 for
Bukit Jalil and RM335,000 for Setapak.
The supply for landed residential properties stands at 113,025
units in 1H 2014, a minimal increase from 1H 2013 (113,009
units). About 58% are made of 2 to 3- storey terraced houses
and 19% are 1- storey terraced houses. A total of 1,993 landed
residential units were transacted in 1H 2014 with a drop of 0.6%
as compared to 1H 2013.
Prime 2-storey terraced houses are noted in Bangsar Baru, Bangsar
(RM1.88 million), Damansara Heights, Damansara (RM1.4 million)
and Desa Sri Hartamas, Mont Kiara (RM1.61 million).
RETAIL
The supply for retail space as at 1H 2014 stands at 27.5 million sf
with 102 retail buildings as compared to 26.1 million sf in 2013.
Rental rates for prime retail buildings within Kuala Lumpur city
centre are noted to be stable. Retail buildings with higher rental
rates are Suria KLCC (RM50psf to RM87psf per month) and KL
Pavilion (RM40psf to RM60psf per month). Stesen KL Sentral in
KL Sentral (RM30psf to RM49psf per month) and 1 Mont Kiara in
Mont Kiara (RM9psf to RM18psf per month) have also recorded
stable rentals in 2014, with the exception of Mid Valley (RM30psf
to RM45psf per month) which recorded an increase of 6.5%
and 3.8% in rental rates for the lower ground and ground floor
respectively.
The average occupancy rate for the retail sector in Kuala Lumpur is
around 89% in 1H 2014, which is an increase from 83.5% in 1H
2013. The prime retail areas such as Suria KLCC however, has a
high occupancy rate of 100% even with one of the highest rental
rate in Kuala Lumpur.
Notable new retail establishment completed in 2014 are Nu Sentral
and Quill City Mall while projects targeted for completion in 2015
include Sunway Putra Mall, Capsquare Mall and Sunway Velocity
Mall.
Quill City Mall, the latest addition of retail malls in the Kuala Lumpur
CBD reported an occupancy rate of more than 80% in 2H 2014. The
main anchor tenant occupying approximately 28% of retail space
or 225,000sf spanning over five floors of its total 800,000sf retail
space is the first Aeon’s City Lifestyle Store concept in Malaysia.
The 8-storey mall has also secured ‘mini’ anchor tenants such as
Golden Screen Cinemas, H&M, Life Springs Pharmacy, Best Denki,
Red Lobster and LongHorn Steakhouse as part of its 320 retail lots.
21
Central Region
Kuala Lumpur (2010-1H 2014)
(mil sf)
(%)
28.00
100
26.00
80
Existing supply
(LHS)
60
24.00
40
22.00
Occupancy rate
(RHS)
20
20.00
2010
2011
2012
2013
1H 2014
0
(Source : JPPH)
The RM20 million enhancement work at 1 Mont Kiara has
completed and was reopened in 1H 2014. The refurbishment of
the 226,000sf mall reduced the number of shops from 132 units
to 127 units.
Parkson Group has made an announcement to take over the
management of Maju Junction Mall recently in 2H 2014. The
220,000sf mall will see a repositioning process with Parkson as
its anchor tenant. In 2H 2014, the leading department chain has
entered a sale and purchase agreement with KL Festival City Mall
Sdn Bhd and Asia Malls Sdn Bhd to dispose KL Festival City Mall
for RM349 million. The mall is a three-level shopping mall located
in Setapak with a total NLA of 487,342sf.
PURPOSE BUILT OFFICE
In 2014, the supply of purpose built office space recorded an
increase in NLA with 84.2 million sf (402 buildings) from 82.8
million sf (398 buildings) in 1H 2013.
2014 saw at least 4 new purpose built office completed i.e. NU
Towers, Sentral Vista, Menara Kembar Bank Rakyat in KL Sentral
and Menara Tabung Haji (TH) in Kuala Lumpur City Centre. These
buildings have added 1.89 million sf of office space into the market.
City Centre are the Petronas Twin Towers, Menara Maxis, Integra
and Vista Tower in The Intermark, with asking rental rates fetching
between RM9.50psf to RM12.00 psf while rental rates of Menara
CIMB and Quill 7 in KL Sentral fetches approximately RM7.50 psf
to RM8.00 psf.
The headquarters of the nation’s oil and gas giant Petronas in the
Petronas Twin Towers stood tall for over a decade with the highest
rental rate of RM13psf. Albeit the high rental rate, its occupancy
rate reached 100% with Petronas as the major tenant and the total
NLA at approximately 3.2 million sf.
Meanwhile, The Intermark’s Integra and Vista Tower, completed
last year, recorded an estimated occupancy rate of 50% and 75%
respectively. With a total NLA of 1.3 million sf, the asking rental
rate ranges from RM9.50psf to RM11psf. This Grade A building
houses many international oil and gas companies and financial
power houses with Åker Solutions and JPMorgan in Integra Tower
as well as BNP Paribas and Thomson Reuters occupying Vista Tower.
In the coming years, we will see most of the incoming purpose built
offices completed with a Green Building Index and MSC status to
compete with existing Grade A buildings.
Notable developments slated for completion early 2015 include
Menara Centara, Menara Ilham Baru, Menara Bangkok Bank, Naza
HQ Tower Platinum Park, Q Sentral and Damansara City.
Menara CIMB, a 41-storey Grade A office block located in KL
Sentral, is up for sale for a sum between RM600 million to RM700
million. Menara CIMB is jointly owned by CIMB-Mapletree Real
Estate Fund 1(CMREF1) and Singapore-based Mapletree Investment
Pte Ltd.
In 1H 2014, Quill Capita Trust has proposed to acquire Platinum
Sentral in Kuala Lumpur Sentral from MRCB Sentral Properties Sdn
Bhd with a consideration of RM740 million. The 5-block building
Offices in Kuala Lumpur (2010-1H 2014)
Menara Kembar Bank Rakyat which was completed in Q3 2014, is
a 32-storey twin-tower office development that is predominantly (mil sf)
occupied by Bank Rakyat as its new headquarters. One of the
towers is available for rent at RM5.50 psf. Menara TH within the 90.00
Naza Platinum Park development, is a 30-storey building, with an 85.00
approximate floor plate of 10,000 sf to 13,000 sf and total NLA
80.00
of 360,000 sf.
(%)
100
80
60
40
75.00
The average occupancy rate in 1H 2014 for purpose-built office is
70.00
circa 80.1% in Kuala Lumpur with a slight increase of 1.1% (1H
65.00
2013: 79%).
Notable prime purpose built office buildings within Kuala Lumpur
22
Existing supply
(LHS)
20
Occupancy rate
(RHS)
0
2010
2011
2012
2013
1H 2014
(Source : JPPH)
is a unique green, state of the art campus style office, offering
450,000sf of office space and 79,000sf of retail space.
Existing Supply & Occupancy Rate of Hotels in Kuala
Lumpur (2010-Q1 2014)
Redevelopment of Menara DBKL 2 in Jalan Raja Laut will see the
12-storey building being demolished and replaced with a fourtower structure. The redevelopment is estimated to cost RM300
million and is aimed towards centralising all its department within
an area.
(no. of rooms)
(%)
35,000
100
34,000
80
Despite concerns of oversupply in the office sector with many
incoming supply from major projects such as TRX, Warisan Merdeka,
Tradewinds Centre and the likes, rental levels are still stable albeit
being pressured with a relatively active investment market. The new
developments are expected to add another 9 million sf of office
space into the market in 3 years which fuels greater competition
and rental pressure. Nonetheless, it is hoped that government
efforts to attract more Multi National Companies (MNC) to set up
office and expand their presence in the nation’s capital through
Invest KL and other programmes would fuel demand for office
space in coming years.
HOTEL
The hotel sector in Kuala Lumpur continues to grow. As at 1H
2014 there are a total supply of 34,367 hotel rooms, an increase
of 5.17% from 1H 2013 (1H 2013: 32,679 rooms).
Prime hotel establishments noted within Kuala Lumpur city centre
area are the Doubletree by Hilton (RM320 per night), Grand Hyatt
Kuala Lumpur (RM650 per night), Intercontinental Hotel (RM404
per night) and Prince Hotel & Residence (RM310 per night). Other
notable hotels in KL Sentral area are the Aloft Hotel (RM385 per
night), Best Western Hotel Dua Sentral (RM345 per night) and The
Majestic Hotel (RM430 per night).
The average occupancy rate for 1 to 5 star hotels saw an increase
of 2.2% at 70% in Q1 2014 (Q4 2013: 67.8%).
3-star and 4-star hotels will see the addition of two new hotels
and four new hotels respectively. These additions bring the total
Upcoming hotels in Kuala Lumpur
Hotel Name
No. of Rooms
Completion Date
St. Regis Hotel
200
2015
The Ritz Carlton
251
2015
Banyan Tree
101
2015
The Ruma
263
2015
Four Seasons
150
2017
Harrods Hotel
250 - 300
2018
260
2020
Kempinski Hotel
33,000
Existing supply
(LHS)
60
32,000
40
31,000
Occupancy rate
(RHS)
20
30,000
29,000
0
2010
2011
2012
2013
Q1 2014
(Source : JPPH)
number of new rooms to 8,483 rooms and 7,090 rooms for 4-star
and 3-star hotels in Kuala Lumpur. As it currently stands, Kuala
Lumpur has 23 new 4-star hotels and 31 new 3-star hotels.
One of the additions of a 4-star hotel in year 2014 is Aloft Hotel at
KL Sentral which has 494 rooms. Aloft KL Sentral operates under
the Starwood hotel group who also manages other luxury hotel
brands worldwide such as Le Meridien, Westin, Sheraton, Four
Points by Sheraton, St. Regis and W Hotel.
Following the completion of its successful 3-star hotel, Wolo Bukit
Bintang, Mammoth Empire continues to expand the ‘chic’ concept
in China Town. The proposed project will convert Bangunan Hong
Leong, later renamed as Wisma Megah, at the corner of Jalan Tun
HS Lee and Jalan Tun Tan Cheng Lock into a 300-room boutique
hotel.
Another new hotel in the pipeline is a 5-star hotel known as
Clermont Hotel within the integrated development of Damansara
City. The hotel is slated to be completed by mid-2016 and will be
managed by Clermont (a London-based, global hotel subsidiary
of the Singapore-listed GuocoLeisure Group).
2014 saw a number of branded hotel operators brought into
Malaysia. This growing concept of luxury living whereby the
development is built along with a top hotel chain or an upscale
luxury brand has set a new benchmark for the hotel industry in
Malaysia.
OUTLOOK
Over the years, the development trend has moved towards the
southern, western and northwestern boundaries of Kuala Lumpur
City Centre. This can be seen through the rise of KL Sentral,
Midvalley City, Eco City, Bangsar South and PJ Sentral to the west,
and Taman Tun Dr Ismail, Bandar Utama, Mutiara Damansara and
Kota Damansara to the northwest of Kuala Lumpur.
23
Central Region
The residential and commercial property markets are expected to
see a more stable growth. Residential property in both primary
and secondary markets will continue to command great interest
for properties in good locations with affordable pricing. The office
sector is expected to remain challenging especially for smaller
offices and older office buildings as supply continues to overtake
demand.
Good grade dual compliant (MSC Cyber Centre status and Malaysia’s
Green Building Index) buildings will continue to be popular among
MNCs and tenants in the O&G sector, particularly those located
within prime and established/upcoming office locations in KL City
and KL City Fringes.
NOTABLE ANNOUNCEMENTS / ACTIVITIES IN KUALA LUMPUR
UÊ Ê >}Ê 6>iÞÊ >ÃÃÊ ,>«`Ê /À>ÃÌÊ 6,/®Ê >ÕVi`Ê Ê
2011, is touted as the largest infrastructure project in the
country. Currently, progress is on schedule with the recent
completion of the underground tunnel excavation as part of
an underground line. The current progress stands at 44%.
The project is expected to be completed in 2017 (Phase 1).
UÊ Ç
Ê È}Ê«iìÃÌÀ>ÊLÀ`}iÊÌ>ÌÊÃ«>ÃÊvÀÊ
L>Ê
Asia Hospital to the commercial centre is being built in
November 2014 to cater for 300,000 residents in Wangsa
Maju Section 2 and pedestrians using Jalan Genting Klang.
The new pedestrian bridge is slated for completion in mid
2015.
UÊ Ê ,/ÊÓÊiÊ-i>Þ>}*ÕÌÀ>>Þ>Ê>`Ê,/ÊÎÊ>`>ÀÊ1Ì>>
Klang will soon commence.
UÊ /Ê iÊ,£°nLÊ>Êi}ÊÃVÊ>`ÊìÛi«iÌÊ«ÀiVÌÊÊ
Jalan Ampang by Magna Prima Bhd is reported to defer its
mixed development by a year to make way for two other
upcoming projects in Petaling Jaya and Shah Alam.
UÊ /Ê iÊ,ÛiÀÊvÊviÊ,®Ê«ÀiVÌÊ>ÃÊÌÊÌÀ>ÃvÀÊÌiÊ>}Ê
and Gombak rivers into a liveable waterfront with economic
value. The progress stages are planned to be completed in
2020 and to date it is 14% completed.
UÊ /Ê iÊ*Õ`ÕÊÕìÀ«>ÃÃÊÜ>ÃÊw>ÞÊ«ii`ÊÊ+{ÊÓä£{°Ê/iÊ
RM125 million project serve commuters from three different
angles; Jalan Bukit Bintang, Cheras and Jalan Changkat
Thambi Dollah. This project has eased the traffic flow
leading in and out of the area that was formerly congested.
UÊ /Ê ÕÊ,>â>ÊÝV>}iÊ/,8®ÊÃÊ>Ê«ÀiVÌÊÌ>ÌÊÃÊÃiÌÊÌÊV>}iÊ
Kuala Lumpur into a centre for international finance and
business. It is estimated to have GDV of RM25 billion and
has currently undergone its earthworks. In 2014, TRX sold
its 28.3ha parcel of land at RM18bil to Lend Lease, an
international property and infrastructure group, which later
acts as its investor in the form of a joint-venture partnership
for outright plot sales for Stage 1 of TRX.
UÊ /
Ê iÊìÛi«iÌÊvÊ££nÊ/ÜiÀ]ÊvÀiÀÞÊÜÊ>ÃÊ
Menara Warisan Merdeka is expected to complete its
foundation and piling works by Q3 2015.The RM5 billion
project will have 118-storey and is currently progressing at
52% of its foundation works.
UÊ /Ê iÊn>VÀiÊÀiVÊiL>ÃÃÞÊ>`ÊÊ>>Ê«>}ÊÜÊLiÊ
sold via open tender.
UÊ /
Ê iÊ iÀ>Ê iL>ÃÃÞÊ Ê >>Ê >Ê *i}Ê >`Ê iÌiÊ
Institut along Jalan Langgak Golf are up for sale by tender
and is expected to fetch RM200million and RM25million
respectively.
UÊ /Ê ÜiÀÊ,/Ê>ÃÊiÌiÀi`ÊÌÊ>ÊÃ>iÃÊ>`Ê«ÕÀV>ÃiÊ>}ÀiiiÌÊ
(SPA) with Goldstone Kuala Lumpur Sdn Bhd to divest 19
office parcels within Menara ING for RM132.34 million
cash.
UÊ *
Ê Ê>`Ê-`Ê`Ê>`ÊiÌiÀi`ÊÌÊ>Ê->iÊ>`Ê*ÕÀV>ÃiÊ
Agreement with Able Starship Sdn.Bhd to dispose the
28-storey Menara PJD on Jalan Tun Razak for a total cash
consideration of RM220 million.
UÊ *
Ê >À>ÕÌÊ*À«iÀÌiÃÊ-`Ê`Ê>ÃÊ«À«Ãi`ÊÌÃÊ`Ã«Ã>Ê
of Tower 1, Avenue 3 in Bangsar South to Marak Moden
Sdn Bhd for total consideration of RM72.54 million. The
purpose built office has NLA of 61,700 sf.
UÊ Ê Ê ÌÊ ÛiÌÕÀiÊ LiÌÜiiÊ >ÌÊ `Ê >`Ê Ê Õ«Ê
Construction Company Bhd will reveal its new shopping
mall project, the Pavillion 2 in Bukit Jalil.
24
SELANGOR
Area
8,153 km²
Population
5,948,600
Gated and guarded projects continue to receive good response
from buyers due to an increase in security awareness among the
rakyat. Many gated & guarded landed housing communities are
scattered within Subang Jaya, Puchong, Shah Alam/ Klang and
Kajang areas.
Population Density
729 per km2
Capital City > Shah Alam
RESIDENTIAL
In 1H 2014 total supply of residential properties increased slightly by
1.3% to 1.36 million units (1H 2013: 1.35 million units) with a total
of 29,461 units transacted in 1H 2014 showing a decrease of 6.5%
compared to the same period last year (1H 2013: 31,507 units).
Recently, new regulations were being endorsed such as ‘Rumah
Selangorku’ launched in 2014 and RM2.0 million minimum house
price threshold for foreign buyers (increased from RM1.0 million).
Many upcoming residential developments are mushrooming in
many areas especially those near highways or rail lines, i.e Mass
Rapid Transit (MRT) & Light Rail Transit (LRT). Selling prices for
houses are seen higher in those areas with high connectivity to KL
city and established commercial spots i.e Bandar Utama, Bandar
Sunway, Mutiara Damansara and Kota Damansara.
For example, selling price for a 2-storey terraced house in Bandar
Utama, Petaling Jaya has reached RM1.3 million with built up of
2,200 sf averaging at about RM600psf. Further to the north of
Petaling Jaya, 2-storey terraced houses in Kota Damansara are
averaging at about RM750,000 to RM950,000 (RM400-RM480psf).
Kajang, located south east of Selangor, experienced rapid
development, benefiting from the spillover of fast growing
economic activities in the city centre and the planned KVMRT
linkage. Examples of gated and guarded houses in Kajang are
Taman Sutera (2-storey semi-detached houses selling at RM900,000
to RM1.04 million), and Nadayu 92 (2½-storey terraced selling at
RM840,000). Country Heights Kajang is another gated and guarded
scheme applying the resort community concept.
Bangi, an area close to Kajang, has matured and is currently selling
2-storey terraced houses at RM400,000 to RM500,000. A gated
and guarded development comprising of 2-storey terraced houses
in Taman Seri Bangi on the other hand, is selling at RM620,000
on average.
Puchong, famous for the Damansara-Puchong Highway (LDP),
boasts a number of upcoming developments in the area. Established
residential areas in Puchong include Bandar Puteri, Bandar Bukit
Puchong, Taman Tasik Prima and several others. 2-storey terraced
houses in Puchong are priced at about RM850,000 in its prime
area (Bandar Puteri) and about RM540,000 and RM640,000 in the
surrounding areas (Taman Tasik Prima & Bandar Bukit Puchong).
16 Sierra by IOI Group, an upcoming development spanning over
535 acres, has launched 2-storey terraced houses from RM448,000.
Petaling Jaya Residential Property Price Trend & House Price Index (2010 - Q2 2014)
Price ‘000 (RM)
Price Index
5,000
250
4,500
200
4,000
3,500
150
3,000
2,500
100
2,000
1,500
50
1,000
0
500
2010
1TH (LHS)
2011
2TH (LHS)
2012
2SD (LHS)
2D (LHS)
2013
Condominium /
Apt / S. Apt (LHS)
Q2 2014
25
Central Region
Shah Alam and Klang are well known areas for industrial activities
as its closer to Port Klang, involving trade at local and international
levels. Popular residential developments in Shah Alam include Bukit
Jelutong, Setia Alam, Setia Ecopark and Laman Seri gated and
guarded detached houses in Section 13.
Selangor (2010-1H 2014)
Due to land scarcity in areas such as Subang Jaya and Damansara
Perdana, most residential units built are high-rise dwellings
(condominium, apartment or serviced apartment).
In Subang Jaya, the current selling price of a condominium unit
range from about RM600psf to RM650psf whilst in prime areas in
Petaling Jaya prices are reaching about RM700psf to RM1,000psf.
(mil sf)
(%)
34.00
100
32.00
80
30.00
60
28.00
40
26.00
20
18.00
2010
2011
2012
2013
1H 2014
Existing supply
(LHS)
Occupancy rate
(RHS)
0
(Source : JPPH)
With rising awareness among developers to provide affordable
housing, Sime Darby Property Bhd in collaboration with PR1MA
has launched affordable homes comprising 321 units of 2-storey
terraced houses in Bandar Bukit Raja with prices expected to be
below RM400,000. The units will provide built-up areas between
1,310 sf to 1,380 sf.
As a whole, residential developments in Selangor are actively
growing with the improvement of infrastructure aimed to ease
the overpopulated and dense communities within the KL city centre.
This is evidenced by developers planning for new projects in less
dense areas such as Kwasa Damansara Township in Sungai Buloh,
SP Setia’s Ecohill as well as Ecoworld’s Eco-Majestic in Semenyih.
RETAIL
Retail developments are gaining momentum and demand within
a mixed integrated development of high rise condominiums and
offices. Some examples of existing notable developments include
Empire Gallery Shopping Centre, First Subang and The Summit
Shopping Complex, all in Subang Jaya, as well as D’Pulze Shopping
Mall in Cyberjaya.
Total retail space within Selangor has increased by 0.3% to 31.96
million sf in 2013 (2012: 31.87 million sf). In 1H 2014, total supply
was reduced to 30.09 million sf. This is due to retail malls closing
for renovation. An example noted is The Summit Shopping Mall
in USJ which is currently closed for renovation and is expected to
be completed in 2015.
There are several regional malls identified within Selangor i.e Sunway
Pyramid Shopping Mall and 1 Utama Shopping Mall. Comparing
these two malls, 1 Utama commands a higher rental rate as a
regional mall (prime lots: RM30.00psf to RM50.00psf) against
Sunway Pyramid (prime rental at RM22.00psf to RM32.00psf).
Other malls such as those in Kajang i.e Kompleks Metro Point
and Plaza Metro Kajang are offering average rental rates at about
RM7.00psf to RM19.00psf with a lower rental rate at about
RM2.00psf. Whereas prime lots in malls closer to KL city centre
26
such as Ampang Point Shopping Centre in Ampang currently rents
out its prime lots at about RM20.00psf to RM33.00psf (secondary
lots: RM2.60psf to RM10.70psf).
Street Mall @ One South was completed in early 2014 and is
currently filling in tenants to occupy its space. Some shops have
opened in The Strand Mall in Kota Damansara even though it is
still undergoing renovation for its tenants and is not yet officially
opened.
Renovation works on some existing malls have completed such as
the Jaya Shopping Centre in Section 14 Petaling Jaya (270,000 sf)
and Cheras Sentral Shopping Centre (500,000 sf). Another Federal
Territory within the Klang Valley is Putrajaya. Here, IOI Properties
has launched the “IOI City Mall” in 2014 with total retail space
of 1.4 million sf. During its opening day sometime in November
2014, it was reported that the occupancy has already reached
85%. Anchor tenants noted are Golden Screen Cinemas, Parkson
and Home Pro. D’Pulze in Cyberjaya has also opened with some
shops undergoing renovation.
Several shopping complexes are undergoing construction works
including Glomac Damansara, Main Place @ USJ 21, Sunway
Pyramid Phase 3, M-Square and The Summit Shopping Mall
(renovation).
Rental potential for malls very much depends on its location,
promotion in rent packages and facilities provided to attract retailers
to filling in spaces.
The average occupancy rate of shopping complexes in Selangor
had declined from 88.0% in 2010 to about 82% in 2013 and
maintained in 1H 2014. Some popular malls are able to maintain
with average occupancy rate of almost 100% i.e Sunway Pyramid
Shopping Mall and 1 Utama Shopping Mall.
Due to strong competition in obtaining tenants, design for shop
offices in Selangor have become more convenient for shopping.
Some areas still provide the conventional shop offices especially
those located in areas with lower population density with a more
localised catchment.
Existing prime shop offices in Selangor are scattered around
Petaling Jaya, Puchong, Bangi and other town centres. Prices of
3-storey shop offices are higher in Petaling Jaya, Subang Jaya and
USJ at an average of between RM2.0 million to RM3.0 million as
compared to Kajang, where a similar type is selling at an average
of between RM1.0 million to RM2.0 million.
Rental rate of shop lots in Kelana Jaya are offered at RM2.20psf
to RM2.80psf on average.
Many upcoming offices are noted in Petaling Jaya including the
Glomac Centro in Damansara and Eve Suites in Ara Damansara
selling 2-storey shop offices at RM2.15 million and RM2.13 million
respectively. A significant project of 3-storey shops in Sunway Geo
is selling limited units at RM7.0 million. The new project will provide
a Bus Rapid Transit (BRT) service as a shuttle to the selected new
LRT station along the extended line.
In Cyberjaya, upcoming supply for shop offices are mostly 2, 3 and
4-storey shop offices. With selling prices reaching RM1.8 million
such as in Glomac Cyberjaya 2. Higher prices are set for VITA and
Galleria achieving about RM671psf and RM1,230psf.
Average rental for en-bloc shop offices in Cyberjaya range from
RM1.90psf to RM3.10psf. A newly completed retail-shop office
in Putrajaya known as Ayer 8@ Precinct 8, is currently rented out
at RM6.00 to RM8.00psf for retail and RM3.50psf to RM4.00psf
for office lots.
Having the potential of surrounding two main administrative
centers in the country, namely the Federal Territory of Putrajaya
and Kuala Lumpur, Selangor houses major offices occupied by local
and international companies.
Total supply of office space in Selangor currently has reached 33.2
million sf in 1H 2014 with an increase of 2.5% (1H 2013: 32.4
million sf).
Due to the higher rental rates of office space within the city
centre, some major companies prefer to shift towards the fringes
i.e Petaling Jaya (including Bandar Sunway, Mutiara Damansara,
Damansara Perdana, Kota Damansara) or other areas with highway
connectivity or public transport facilities i.e Subang Jaya.
Average rental rates of offices in Petaling Jaya range between
RM4.50psf to RM5.50psf with higher rental rates achievable at
RM6.00psf to RM7.00psf depending on its size, location and
type of building e.g MSC status building, Green Building Index
certification. Examples of buildings achieving the RM6.00psf rate
are First Avenue & KPMG Tower. The Pinnacle in Sunway and offices
in Subang Jaya command a slightly a lower rate of about RM3.00psf
to RM4.50psf.
The incentives for multinational companies in MSC status office
buildings should also be factored in. Average office rental within
Cyberjaya, Sepang currently is about RM2.50psf to RM3.50psf.
Notable new completions in 2015 include The Ascent, which is
part of the Paradigm Mall development and Menara Ken in TTDI.
These developments will have NLA of 350,000 sf and 220,000 sf re
New type of offices introduced are popularly received such as Small
Office Home Office (SOHO), Small Office Versatile Office (SOVO)
and Small Office Flexible Office (SOFO). Examples of upcoming
developments offering these types of offices are the SOHO in The
Square @One City, You One and Empire Remix all in USJ. SOFO
units are noted in Petaling Jaya, Puchong and Cyberjaya i.e Infinity
Tower and Atria@Damansara in Petaling Jaya, 3Elements@Puchong
South and Tamarind Suites SOFO in Cyberjaya.
The average occupancy rate for office space in Selangor reduced
slightly from about 79% in 2010 to about 75% in 2013. A good
pattern was seen in 1H 2014 whereby the average occupancy rate
of purpose built offices stabilised to about 76%.
HOTEL
Offices in Selangor (2010-1H 2014)
(mil sf)
(%)
40.00
100
30.00
80
Existing supply
(LHS)
60
20.00
40
10.00
Occupancy rate
(RHS)
20
0
2010
2011
2012
2013
1H 2014
Distribution of hotels in Selangor depends on the attraction in an
area. For example, 5-star Sunway Lagoon Resort & Spa provide
services for tourists visiting the Sunway Lagoon theme park. While
5-star One World Hotel in Bandar Utama, Petaling Jaya provides
services for tourists to shop at 1 Utama Shopping Mall as well as
providing facilities for the corporate offices.
In total, there are about 123 hotels in Selangor including budget
and star-rated hotels as at 1H 2014. 3-5 star hotels contribute
30% of the total hotels available. The total number still maintains
from year 2013.
0
(Source : JPPH)
4-star and 5-star hotels are also scattered in different locations such
as The Saujana Hotel and Holiday Villa Hotel & Suites in Subang,
27
Central Region
Selangor (2010-Q1 2014)
(no. of rooms)
(%)
16,000
100
80
15,000
Existing supply
(LHS)
60
14,000
40
13,000
Occupancy rate
(RHS)
20
12,000
2010
2011
2012
2013
Q1 2014
0
(Source : JPPH)
Mines Wellness Hotel in Seri Kembangan, Hilton Hotel in Petaling
Jaya, Cyberview Resort & Spa in Cyberjaya and Grand Blue Wave
Hotel in Shah Alam.
Hotel room rates for 5-star accommodation average at about
RM220 to RM300 per night for a standard room whilst 4-star hotels
offer an average of RM200 to RM250 per night for a standard
room.
Several upcoming hotels are in the pipeline include I-City Hotel in
Shah Alam, Icon City and Tropicana Metropark in Petaling Jaya,
D’Twist@D’Latour in Bandar Sunway and Citadines@D’Pulze
in Cyberjaya which is a serviced apartment hotel. A hotel in
Centrestage, Petaling Jaya has opened recently operated by Best
Western. Overall, average occupancy rate of 1-5 star hotels in
Selangor improved within the past 4 years from about 62% in 2010
to about 69% in 2013. Average occupancy rate for 3-5 star hotels
slightly improved from about 60% in 2010 to about 63% in 2013.
The emergence of new integrated developments including retail
and hotel such as Tropicana Metropark and Icon City, Petaling
Jaya will create more competition in the hotel market. In terms
of occupancy rate, the hotel market is expected to remain stable.
INDUSTRIAL
Total supply of industrial units in Selangor as at 1H 2014 is 35,611
units showing growth by about 1.5% from 1H 2013. About 60%
of the industrial units are located within the District of Petaling and
Klang. These districts include established main industrial spots such
as Shah Alam, Klang, Puchong, Subang Jaya and Petaling Jaya.
Total transaction of industrial units in Selangor decreased
dramatically by about 30% in 2013 from year 2011.
Some areas considered as prime industrial areas include Subang HiTech Industrial Park, Subang Jaya, Hicom-Glenmarie Industrial Park,
Temasya Industrial Park and Kota Kemuning Park in Shah Alam,
industrial area in Petaling Jaya and Port Klang Free Zone in Klang.
28
An example of prices in Petaling Jaya, (nearest area to KL city
centre) is a 2½-storey semi-detached factory in Section 51 asking
for about RM7.0 million.
The price of a 1½-storey terraced factory in Subang Hi-Tech stands
at about RM1.0 million whilst a 3-storey semi-detached factory
transacted at RM3.8 million to RM3.9 million.
In Shah Alam, a 1½-storey terraced factory in Glenmarie Industrial
Park is selling at about RM1.7 million on average whilst in Kota
Kemuning Industrial Park it is selling at about RM1.3 million to
RM1.6 million. A 3-storey semi-detached factory in Bukit Jelutong
Shah Alam is selling at a range of RM3.4 million to about RM5.0
million.
Developers are now building semi-detached and detached
factories that are designed not only for light manufacturing and
warehousing, but also for incorporating showrooms and corporate
offices. Among new projects to note are the Tangkas Arena in USJ,
Surian Industrial Park, Sunsuria Technology Center and Nouvelle
Industrial Park in Kota Damansara, and i-Parc 1, 2 and 3 in Bukit
Jelutong, Shah Alam.
With the maturing of industrial activities in Selangor coupled with
ready infrastructure such as highways, public transport and Kuala
Lumpur International Airport (KLIA), the industrial sector in Selangor
is expected to pick up slightly this year.
OUTLOOK
Selangor is currently undergoing rapid developments in terms of
infrastructure as well as new projects. More over, many areas in
the Selangor state were announced as part of the Greater Kuala
Lumpur/Klang Valley, which commands higher demand.
More projects are expected to come in the next year seeing as
many of the developers are securing land bank in the Klang
Valley area. Established developers in the northern part of the
country are also attracted to venture into areas in Selangor due
to its infrastructure, strong Federal Government-backing (through
Economic Transformation Programme) and its close distance to the
capital city of Kuala Lumpur.
For house buyers, the spike in house prices pose a limit to their
choice of houses. This is seen by the decrease in demand for houses
in 1H 2014. However, both the Federal and State Government has
introduced programmes and regulation to curb the affordability
issue i.e Perumahan Rakyat 1 Malaysia (PR1MA) and Rumah
Selangorku.
A new regulation has been endorsed in Selangor, where foreign
purchasers are only allowed to purchase a house worth RM2.0
million and above (formerly RM1.0 million and above).
NOTABLE ANNOUNCEMENTS / ACTIVITIES IN SELANGOR
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i) KL-Kuala Selangor Expressway (LATAR) : New exit to be opened at Bandar Tasik Puteri, Rawang
ii) East Klang Valley Expressway (EKVE)
iii) Damansara-Shah Alam Highway (DASH)
iv) Sungai Besi-Ulu Kelang Expressway (SUKE)
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Sdn Bhd including 619 hectares of land next to Express Lingkaran Tengah (ELITE)
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million
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NEGERI SEMBILAN
Area
6,686 km²
Population
1,081,600
Population Density
161 per km2
Capital City > Seremban
IJM Berhad has recently launched Saujana Duta phase 2 located in
S2 Heights, Seremban 2. The 76 units of 2-storey bungalow offer
built ups ranging from 5,000 – 6,500 sf. The selling price ranges
from RM2,433,800 – RM3,800,800 per unit. A 2-storey terraced
house in Seremban 3 was selling above RM400,000 and has seen
good take ups. For one of its latest launch in Bandar Ainsdale,
2-storey super-link houses known as ‘Tenang’ with 24’ x 75’ land
is selling at above RM580,000 per unit.
RESIDENTIAL
Total residential supply as at 1H 2014 for the state stands at
241,046 units where 68% are located in the District of Seremban.
As at Q2 2014, 65% of the incoming supply for the state totalling
61,239 units is located in Seremban, signifying the concentration of
growth in the state’s urban centre. Existing stock for residential units
specifically in Seremban increased by 1,300 units from 154,176
units (Q1 2014) to 165,476 units (Q2 2014).
Closer to the Selangor border, TH Properties is actively developing
Bandar Enstek near KLIA. Freehold superlink and semi-detached
units were launched at RM574,000 (built-up area: 2,268 sf) and
RM917,300 (built-up area: 3,424 sf) respectively. In Kota Seriemas,
a development by PNB Development Group, semi-detached houses
are already reaching RM1million per unit.
As one enters Seremban from Kuala Lumpur via the PLUS Highway,
it is evident that Seremban is quickly growing as an extended
conurbation of Greater Klang Valley. Seremban 2, Seremban 3,
Bandar Sri Sendayan and Bandar Ainsdale are actively developing
with house prices reaching new benchmarks in Seremban.
Scheme
Type
Price
Taman Seremban Jaya
1 storey terraced
RM130,000
Green Street Home
1-storey terraced
RM400,000
S2 Heights
1-storey terraced
RM430,000
Green Street Home
2-storey terraced
RM800,000
Awarded “Sustainable Township of the Year” in 2013 by World
Sense of Place, Matrix Concepts Holdings Berhad plans to transform
Bandar Sri Sendayan (BSS) into the “Next Damansara of Seremban”.
The integrated township, worth RM6 billion, will comprise of
residential, office, retail, industrial and education components,
covering 2,118 hectares. It is expected to be fully completed in 8
years and is now 20% ready.
Lycrica
2-storey terraced
RM450,000
City Park
RM700,000
Kemayan Country Township
2-storey detached
RM750,000
Sri Carcosa
2-storey detached
RM1.3 mil
29
Central Region
Seremban Residential Property Price Trend & House Price Index (2010 - Q2 2014)
Price ‘000 (RM)
Price Index
900
800
700
600
500
400
300
200
100
0
2010
1TH (LHS)
2011
2TH (LHS)
1SD (LHS)
2012
2013
2SD (LHS)
1D (LHS)
Q2 2014
2D (LHS)
Condominium /
Apt / S. Apt (LHS)
In Nilai, GD Development has formed a joint venture with three
China-based firms to develop its Green Beverly Hills (Phase 2). The
freehold township will consist of 68 shoplots, 180 superlink houses
and 1,000 serviced apartments in four blocks. The apartment is
priced from RM500,000 and it will be completed by 2018. Close
to Nilai, Seri Pajam Development is looking at launching a new
phase after its success in Nada Alam (2-storey terraced: RM400,000)
where prices were already recorded at RM538,000 for a 2-storey
terraced house.
The affordable homes segment is also growing in Seremban with
a number of PR1MA projects. PR1MA at Seremban Sentral sees
3,196 high rise residential units currently under construction with
an additional 2,000 units announced in the latter half of 2014. It is
expected to be completed by year 2017. PR1MA has also bought
1,000 acres of land in Labu from Sime Darby Property to develop
another 10,000 units of affordable houses. PR1MA will also build
640 affordable terraced houses in Port Dickson soon.
RETAIL
The performance of retail malls in Seremban is generally good with
an average 85% to 95% occupancy rate. Currently, there are 29
shopping malls in Seremban with a total NLA of 2.87 million sf.
There are 4 incoming retails malls with NLA of 383,647 sf.
In addition to Mydin Seremban 2 which was completed in
December 2013, there are 2 refurbished malls – namely Palm Mall
and Seremban Prima (formerly Seremban Parade) – that will add
to the vibrancy of retail offerings in Seremban. AEON (previously
known as Jusco) in Seremban 2 achieved a high occupancy rate of
95% with the rental rate of RM12.50 psf per month for a ground
floor retail lot.
30
200
180
160
140
120
100
80
60
40
20
0
Negeri Sembilan (2010-1H 2014)
(mil sf)
(%)
4.50
100
80
4.00
Existing supply
(LHS)
60
40
3.50
Occupancy rate
(RHS)
20
3.00
2010
2011
2012
2013
1H 2014
0
(Source : JPPH)
Giant Hypermarket in Senawang recorded a good rental rate
ranging from RM6.30 to RM33.00psf per month, with the premises
fully occupied. Another complex in Senawang, Plaza Angsana
(the new name for Plaza Ampangan), recorded a lower rental rate
compared to others in the area which ranged between RM1.76
to RM2.28 psf per month. The occupancy rate is also quite low
at 65%.
Most of the existing stock of shops in the state is made of the
2-storey variant, accounting for 9,280 units of the total 17,857
units (as at Q1 2014). There are another 1,554 units of 2-storey
shops that are in various stages of construction in Seremban that
makes up more than half of the total 2,779 incoming supply of
2-storey shops in Negeri Sembilan.
In terms of prices, existing 2-storey shop offices in town ranges
between RM600,000 to RM750,000 as seen along Jalan Dato
Offices in Negeri Sembilan (2010-1H 2014)
(mil sf)
(%)
5.00
100
4.00
80
3.00
60
2.00
40
1.00
20
0
2010
2011
2012
2013
1H 2014
Existing supply
(LHS)
Occupancy rate
(RHS)
0
(Source : JPPH)
Bandar Tunggal and Jalan Tunku Hassan. A 2-storey shop office
located at Uptown Avenue have higher prices that starts from
RM630,000. New launches like Senawang Expo Street are selling
their leasehold shops at RM800,000 per unit.
On the rental market, 2-storey shop offices located along Jalan
Dato Bandar Tunggal in Seremban town commanded a rental rate
of between RM2,800 to RM3,500 per month. For new areas like in
Bandar Ainsdale, a similar lot in the market would seek even higher
rental at around RM4,000 to RM4,500 per month.
Kemayan Square commercial centre, which is situated close to
Palm Mall at Jalan Sungai Ujong, recorded an appreciation in
rental rate jumping from RM1,800 to RM2,500 per month for
the 3-storey shop offices in the area. Selling prices for these units
are in the range of RM950,000 to RM1,050,000. In Senawang, a
3-storey shop office at Rahang Square with a built-up of 2,303sf
is also priced currently at RM1 million. Rasah Prima, a commercial
development situated on Jalan Rasah in Seremban, offers 53 units
of 3½-storey shop offices with an average built-up area of 1,610
sf and are priced from RM988,000 onwards.
On the office sector, rental rates in Seremban city are generally
stable with no significant changes since 2012. The Yayasan Negeri
Sembilan building, fully occupied by mostly government agencies,
sees its prime lots commanding a rental rate of RM2.00psf per
month. Meanwhile, the rental price for Wisma Perkeso is RM2.30psf
per month.
Grand Lexis Port Dickson, a 5-star resort-styled hotel that offers
317 spacious villas/rooms with private individual pools, offers its
Deluxe Pool Villa at RM710 per night while the Lexis PD (formerly
known as The Legend Water Chalet) offers RM400 per night for its
Deluxe Water Chalet units over the sea. A premium water chalet
at Avillion Hotel along the popular stretch of Jalan Pantai in Port
Dickson is charged at RM750 per night, whilst Thistle Hotel charges
its sea view rooms at RM539 per night.
In Seremban, the 4-star rated Royal Bintang Resort is priced from
RM300 per room per night, while Allson Klana Resort at RM370
per room per night.
Generally, the average occupancy rate of hotels in Seremban and
Port Dickson is between 65%-70% throughout the year and has
seen steady improvement over the past few years. Majority of the
hotels, especially in Port Dickson, still achieve 100% occupancy
during peak season, underlining the town’s popularity amongst
local tourists.
Negeri Sembilan (2010-Q1 2014)
(no. of rooms)
(%)
8,000
100
6,000
80
Existing supply
(LHS)
60
4,000
40
2,000
Occupancy rate
(RHS)
20
0
2010
2011
2012
2013
Q1 2014
0
(Source : JPPH)
INDUSTRIAL
There are a total of 4,398 existing industrial properties in Negeri
Sembilan. Terraced industrial properties dominate the existing stock,
with total of 3,562 units whereby most of them are located within
the District of Seremban. Meanwhile, semi-detached factories make
up 742 units and detached factories 701. The total incoming supply
stands at 848 units for the whole state with terraced factories
forming the majority type with 626 units.
HOTEL
There are 110 registered hotels in Negeri Sembilan with 6,086
rooms in total. There are four 5-star hotels and five 4-star hotels.
All the 5-star hotels in the state are situated in Port Dickson. Several
existing notable hotels in Port Dickson and Seremban are Avillion
(5-star), Avillion Admiral Cove (5-star), Thistle (5-star), Royal Bintang
Resort & Spa (4-star), Allson Klana Resort (4-star), Bayu Beach
Resort (3-star) and Primaland Resort PD (3-star).
Senawang Link, an integrated commercial and industrial
development located at Jalan Tampin, consists of 2-storey shop
offices, 1½-storey terraced factories, 1½-storey semi-detached
factories and industrial land plots. In Phase 2A, 17 units of
1½-storey terraced factory with 3,206sf built-up are priced at
RM367,200 per unit. A 1½-storey terraced factory in Phase 2C is
priced at RM394,300 per unit.
31
Central Region
Sendayan TechValley, located within Bandar Sri Sendayan, has
reportedly sold more than 760 acres of its industrial land with
more than RM3.8 billion in foreign direct investment attracted
since 2013. Some of the investors it has attracted includes Japan’s
Hino Motors, Akashi-Kikai and Nippon Kayaku, UK’s Weir Group,
France’s Messier-Buggatti-Dowty, Germany’s Schmidt + Clemens
and China’s Hubei Dijian Construction where currently, four of
these have commenced operations at the industrial park. In terms
of prices, a 5-acre industrial plot in Sendayan TechValley is selling
at RM5.5 million (about RM25psf).
It is expected that industrial activity in the state should improve
as land prices in Klang Valley creep up and landbanks steadily
deplete, supported by the enhancement of infrastructure and road
connectivity.
OUTLOOK
Negeri Sembilan saw rapid growth in development, particularly the
residential and commercial sectors, in recent years.
The steady growth of Seremban 2 and S2 Heights by IJM, Bandar
Sri Sendayan by Matrix Concept, Bandar Ainsdale and Nilai Impian
by Sime Darby Property have attracted more developers such as
Hatten and Mah Sing to venture into Seremban.
Seremban properties have garnered good demand by homebuyers
and investors – mainly driven by the shorter travelling time from
Klang Valley via LEKAS Highway, PLUS Highway and also the future
high speed rail. It also benefits from rising property prices in the
Klang Valley and is quickly growing into an extended conurbation
of Greater Klang Valley, alongside with Nilai.
Property prices in Seremban will continue to grow in the next five
years by 5% to 10% annually – an increase that would still result in
more affordable prices compared to those in Greater KL. Following
the development of new townships and new industrial activities in
Negeri Sembilan, the potential for further growth in the commercial
market is expected to follow suit. Currently, the retail market in
Seremban is active with a steady growth.
NOTABLE ANNOUNCEMENTS / ACTIVITIES IN NEGERI SEMBILAN
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completed in 2H 2015 but works were delayed due to an unconfirmed status on building a bridge across a rail track/link
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Yu and Gua Musang-Tumpat with Gemas station being the gateway station on the west coast alignment
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double-tracking project worth RM16 billion
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to be completed in 2016
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Seremban for RM71.5 million to be developed as Sendayan TechPark with a GDV of RM170 million
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GDV for a mixed development project planned for the site is RM7.5 billion. The company was re-evaluating the exercise after
a subsequent search discovered that a caveat had been lodged
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attraction is part of the company’s Palm Springs Resort City project in Port Dickson with an estimated GDV of RM600 million
32
Southern Region
// Melaka, Johor
MELAKA
Area
1,664 km²
Population
860,500
A 1-storey semi-detached house in Taman Bukit Cheng recorded
a selling price of RM350,000 in 2014 compared to RM320,000 in
2013. Whilst, a 2-storey semi-detached house located at Taman
Puncak Bertam, recorded a selling price of RM520,000 in 2014.
Population Density
517 per km2
Capital City > Melaka Town
Riviera Bay Resort now known as Everly Resort, located in front of
the Klebang beach, is currently selling at RM135,000 for a 925 sf
unit, a rise of 30% since the previous year.
RESIDENTIAL
The supply of residential units increased from 161,847 units in 1H
2013 to 164,410 units in 1H 2014. The total incoming supply for
the State of Malacca is 23,634 units as at 1H 2014. It has increased
by about 8% from 2H 2013.
Developers are keen to develop high-rise residential properties,
shown by its higher contribution of about 70% (1,488 units) from
total incoming supply in Melaka Town.
The upward growth in selling prices was recorded for landed
properties in Melaka, with some increasing as high as 24% from
the transacted price in 2013. For instance, a 1-storey terraced
house in Taman Bukit Rambai was selling at RM153,000 in 2013
and was then sold at RM200,000 in 2014. A 1-storey terraced
house is generally priced between RM110,000 and RM150,000
For a 1-storey terraced house located at Taman Kota Laksamana,
the price increased by 8% from RM140,000 in 2013. Taman Cheng
Perdana also recorded price appreciation for a 2-storey terraced
house, from RM219,000 in 2013 to RM280,000 in 2014.
New township and high-rise residential developments are observed
along the shoreline with the view of Melaka Straits. These include
Hatten City by Hatten Group, Cheng Ho City by Benalac Group
and Kota Laksamana by Faithview Group.
Hatten City is an integrated mixed development comprising retail,
residences, hotels, office tower, resort and a shopping complex.
The development is separated into Parcel 1 and Parcel 2. Parcel 1
includes Elements Mall and Silverscape which are currently under
construction and will be completed in Q2 and Q4 2015 respectively.
Silverscape is a 45-storey building of 760 serviced residences with 4
different designs. The smallest having a built-up area of 515sf and
the largest having a built-up area of 1,206sf. Imperio@Hatten City
is another product launched in 2013 comprising a 6-storey Imperio
Mall with 949 luxury apartments known as Imperio Residence.
Imperio Residence offers apartments from 435sf to 1,271sf and
was launched at RM343,000 onwards.
Ivory Cove (residential), Hatten Resort, Prime Tower (office),
Broadwalk (shopping mall) and Highstreet (shoplex) are the 4 main
components in Parcel 2 and is to be completed by 2019.
Melaka Residential Property Price Trend & House Price Index (2010 - Q2 2014)
Price ‘000 (RM)
Price Index
900
800
700
600
500
400
300
200
100
0
2010
1TH (LHS)
2011
2TH (LHS)
1SD (LHS)
2012
2SD (LHS)
2013
1D (LHS)
Q2 2014
2D (LHS)
175
170
165
160
155
150
145
140
135
130
125
Condominium /
Apt / S. Apt (LHS)
33
Southern Region
Apple Group, a tour company, has ventured into property
development. The Group has formed a joint venture company
with PTS Properties Sdn Bhd to undertake several property projects,
including a RM400 million integrated development in Melaka. The
development will feature a hotel, serviced apartments as well as
Soho units. The residential component, named The Apple, will
have one to three-bedroom units as well as penthouses, studio
and duplex Soho units. The units will be priced at an average of
RM600psf to RM700psf. The project will be completed by end
of 2017.
Another new player, Sanichi Technology Berhad is also expected to
launch its first maiden project known as Marina Point. The project
comprises shoplots and 352 serviced apartments with a total GDV
of RM160 million.
RETAIL
The performance of shopping malls in Melaka remained stable with
an overall occupancy rate of 80.7%. As at 1H 2014 there are 25
existing shopping complexes (NLA: 3.92 million sf) with another 5
malls (NLA: 1.24 million sf) in the incoming supply.
Average occupancy rate of established retail complexes in Melaka
e.g. Dataran Pahlawan, Hatten Square, Mahkota Parade etc. hovers
around 90%, higher than the state’s average.
Dataran Pahlawan Melaka Megamall enjoys the highest rental rates
of RM18.00 psf. The total NLA of Malacca Mega Mall is 800,000
sf and is currently 95% occupied. Prime lots in Hatten Square are
rented out between RM7.70psf to RM8.50psf, while secondary
lots are rented out around RM4.50psf. The entire 180,000 sf of
retail space are tenanted.
Mahkota Parade, the well-established retail centre in Melaka town,
recorded rental rates for primary lots at RM16.50psf to RM36.00psf
and for secondary lots between RM7.80psf to RM15.00psf
(showing an increment of 33% from 2013). The occupancy rate
is good at 97%, with a total NLA of 484,029 sf.
Melaka (2010-1H 2014)
(mil sf)
(%)
4.00
100
3.90
80
60
3.80
40
3.70
Occupancy rate
(RHS)
20
3.60
2010
34
Existing supply
(LHS)
2011
2012
2013
1H 2014
0
(Source : JPPH)
AEON Bandaraya enjoys rental rates between RM5.00 to
RM22.00psf whist lower rental rates registered for AEON Melaka
at RM2.50 to RM11.00psf.
Dataran Pahlawan is the most popular shopping centre for tourists
and it has the highest rental per square foot due to the availability
of a large number of small retail lots. AEON Bandaraya Melaka
is popular among local residents as it is located away from the
congested town centre.
A newly completed retail project known as The Shore, owned by
Kerjaya Hotel Sdn Bhd, a subsidiary of Kerjaya Prospek Group, was
officially opened in December 2014. The Shore shopping complex
is part of the integrated development. There are 300,000 sf of
retail spaces, 250 shops and stores and 2,000 car-parking bays.
Hatten Group developed Terminal Pahlawan, a new retail hub
integrated development. With a series of parcels comprising of
Dataran Pahlawan, together they form a colossal commercial
platform with approximately 2.8 million sf of total space and 1.68
million sf NLA. It was completed at the end of 2014. Another retail
mall by Hatten Group expected to be completed in Q2 2015 is the
Elements Mall@Hatten City. As part of Parcel 1, the mall will have
a total of 2.4 million sf gross area over eight floors of retail space.
Parkson Holdings will build a stand-alone mall known as “The
Malacca Mall”. The mall will have 1.2 million sf of space with a
cost of RM 900 million. The mall is planned to be built within the
next three years.
As at 1H 2014, the existing supply of shop offices stood at 18,321
units, an increase from 18,283 units in 2013. 2 and 2½-storey
shop offices dominated the market with 8,701 units in 1H 2014.
Ground floor rental of a 3-storey shop office at Plaza Seri Kubu
increased from RM1,000 (2H 2013) to RM 1,500 (1H 2014). The
rental price for a ground floor 4-storey shop office at Plaza Mahkota
is RM1,300 per month.
Existing stock for purpose built offices in Melaka town is 4.29
million sf with 81.4% occupancy rate (1H 2014) and a majority of
supply is located within Melaka Tengah.
Rental for PBO is mostly stable with a slight change since 2013.
Rental for Bangunan Graha Maju, Jalan Hang Tuah remained at
RM1.84psf. As for Bangunan Menara Tun Sri Lanang, the rental
rate is between RM2.40 to RM2.60psf. Bangunan Graha Peladang
at Jalan Hang Tuah commanded a rental of RM1.75 psf per month.
Offices in Melaka (2010-1H 2014)
(mil sf)
(%)
6.00
100
80
4.00
Existing supply
(LHS)
60
40
2.00
Occupancy rate
(RHS)
20
0
2010
2011
2012
2013
1H 2014
Upcoming Serviced Apartment in Melaka
Location
Built-up Area
Pricing
Completion
Date
The Atlantis
Residence
689sf -1,275sf
RM298,000 –
RM1.3mil
2017
The Wave
Residence
645sf -1,125sf
RM385,000
onwards
2016
PAVANA
Residence
398sf - 807sf
RM230,000 –
RM572,000
2017
The Apple
474sf -2,088sf
RM 509,000
onwards
2017
0
(Source : JPPH)
Melaka (2010-Q1 2014)
(no. of rooms)
(%)
15,000
100
80
10,000
The Terminal Pahlawan Suites Hotel is a boutique hotel with 280
rooms and is expected to start operation in March 2015. This hotel
forms part of an integrated development with hotels and retail.
INDUSTRIAL
Existing supply
(LHS)
60
40
5,000
Occupancy rate
(RHS)
20
0
2010
2011
2012
2013
Q1 2014
0
(Source : JPPH)
HOTEL
Existing hotels are generally clustered in Bandar Hilir where most
of the tourist attractions are situated. Currently there are a total
of 141 hotels with 11,230 rooms. Existing hotels are mainly
dominated by 4-star hotels (3,151 rooms), followed by 3-star hotels
(2,980 rooms). 5-star hotels are mainly located in Melaka town.
Currently, there are only 2 of them, which are Equatorial Hotel
and Renaissance Hotel.
There are 13 incoming hotels with a total supply of 3,233 rooms
and are of 4 to 5-star rating.
Generally, hotels in this tourist popular destination are registering
good occupancy rates. Both 4 and 5-star hotels recorded an average
occupancy rate above 70%.
The industrial sector is less active in Melaka compared to the
residential, retail and hotel sectors. The total supply remains
unchanged at 4,140 units since 2012 with terraced factories
dominating at 34% (1,406 units).
Generally, price movement of industrial properties in Malacca are
stable. A 1-storey terraced factory located at Taman Datuk Tamby
Chik Karim is asking around RM205,000 and a detached factory
located in Perindustrian Cheng is priced at RM1.75 million for a
built-up area of 11,948 sf. A detached lot at Perindustrian Krubong
Jaya with a land area of 22,000 sf is asking for RM36 psf.
OUTLOOK
As a popular tourist destination in the country, Melaka will continue
to benefit from the tourism sector and the spill over effect will
help increase investments in the market. Thus in 2015, hotel
developments are expected to increase to meet the demand.
Developers are seen to be more keen to develop integrated
development consisting of retail, hotel, serviced
residences, serviced apartments etc. under one roof. The view of
Melaka Straits has also become a common key selling point for
developments.
Room rates for Equatorial Hotel (5-star) is RM450 for a deluxe room
and has an occupancy rate of 80%. Renaissance Hotel charges
RM380 for a standard room and has an occupancy rate of 85%.
The Swiss Garden Hotel is a newly completed hotel (4-star hotel)
and started operation at the end of 2014. There are 306 hotel
rooms and 484 serviced apartment units.
For Notable Announcements / Activities in Melaka, please see the
following page.
35
Southern Region
NOTABLE ANNOUNCEMENTS / ACTIVITIES IN MELAKA
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of RM2 billion and will take 4 years to complete.
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–Jasin road.
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in 2015. Melaka Gateway boasts 15 km scenic waterfront addresses for mainly high rise luxury condominium and exclusive
marina villas with private jetties. Currently the development on the ground is sluggish.
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park will be on a 12.1 hectare land and contribute RM48 million to Melaka’s gross development product.
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items. The development of premier outlet will be in three phases and the first phase will start in April 2015. The new outlet
will include some 120 retailers from all over the world and will also feature a good number of F&B outlets.
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JOHOR
Area
19,210 km²
Population
3,532,800
Population Density
183 per km2
Capital City > Johor Bahru
RESIDENTIAL
Johor registered an average growth of 1.3% per annum in
residential supply from 2010 to 1H 2014. As at 1H 2014, total
existing residential supply in Johor reached 710,324 units, showing
an increase of 0.6% compared to 2013 (2013: 705,929 units).
Almost 50% of supply is from Johor Bahru with 2 to 3-storey
terraced houses dominating 30%.
High-rise residential property saw a higher growth in supply of
about 2% to 4%, which spurred a lot of debate last year.
In 1H 2014, a total of 18,714 residential properties were transacted,
with Johor Bahru contributing about 57%. The most popular
transacted property was 2-storey terraced houses, forming about
48% of total transaction volume.
The transacted prices for 1-storey terraced houses in Johor Bahru
range from RM180,000 to RM260,000 whilst 2-storey terraced
houses were transacted between RM400,000 and RM530,000.
2-storey semi-detached houses and 2-storey detached houses of
36
selected housing schemes are selling above RM1 million and RM1.6
million respectively.
Prices for bungalow lots increased significantly by about 20% to
40% in selected schemes. Selling prices of high-rise residential
properties recorded an average increase of 8%. The selling prices
range from RM300psf to RM470psf.
2-storey terraced houses in Bandar Putra Senai-Kulai, an integrated
township, are currently selling from RM480,510 with minimum
built-up area of 2,418sf. The township is expected to be completed
in 2015.
There seems to be an oversupply of incoming high-rise residential
properties due to the developments by overseas developers
especially in Danga Bay and Nusajaya-Medini. A few massive high
rise developments by China-based developers include Danga Bay by
Country Garden, Princess Cove by R&F Properties and Jade Palace
by The Greenland Group.
Despite the concern of oversupply, some developers have launched
their products in 2014 and gained good response from the market.
For example, EcoWorld launched its first phase of EcoSummer
and EcoSpring in June last year. The take-up rate was reported
at 85% on launch day. EcoSummer, consists of terraced houses,
were priced above RM650,000. EcoSpring offers clusters and semidetached houses, with selling prices starting from RM1.1 million.
It is expected to be completed in 2017.
Johor Bahru Residential Property Price Trend & House Price Index (2010 - Q2 2014)
Price ‘000 (RM)
Price Index
1,800
160
1,600
140
1,400
120
1,200
100
1,000
80
800
60
600
400
40
200
20
0
2010
1TH (LHS)
2011
2TH (LHS)
1SD (LHS)
2012
2013
2SD (LHS)
2D (LHS)
Q2 2014
0
Condominium /
Apt / S. Apt (LHS)
High rise developments launched in 2014 are Bora Residences,
Havona at Mount Austin, Laguna Heights and Southkey Mosaic.
Johor (2010-1H 2014)
Bora Residences at Tropicana Danga Bay offers 369 units with
a minimum built-up of 694sf and a selling price of RM700,000
onwards. It is expected to be completed in 2017. Havona, a
luxury apartment which claims to be the tallest building in Mount
Austin, offers 1,148 units with a built-up starting from 953sf and
a selling price that starts from RM460,000. Completion date is in
2019. Laguna Heights in Taman Laguna, Johor Bahru was recently
launched and offers 77 units with a built-up of 2,750sf. The selling
price is reported above RM600psf. It is slated for completion in
2018.
(mil sf)
(%)
19.00
100
Southkey Mosaic is a township development comprising boutique
pods, 4-storey shop offices and 2 towers of serviced residences.
The 584 serviced residences, with a built-up starting from 676sf,
was launched above RM606,250. The serviced residence will be
completed in 2017.
201 PR1MA houses located within Nusantara Prima are in the
pipeline and are to be completed in 2016. The selling price starts
from RM199,000 for a 2-storey terraced house with a built-up of
1,384sf.
RETAIL
The total retail space of 138 retail complexes in Johor stands at
17.39 million sf. Majority being situated in Johor Bahru, with a
total NLA of 7.82 million sf (34 retail complexes).
Rental rates of retail space are generally stable with upward
movements recorded in KSL City, Danga City Mall, JB City Square
and AEON Tebrau City due to rental review.
80
18.00
Existing supply
(LHS)
60
17.00
40
16.00
Occupancy rate
(RHS)
20
0
15.00
2010
2011
2012
2013
1H 2014
(Source : JPPH)
Highest rental rate was recorded by JB City Square at RM50.00psf.
Other retail complexes in Johor Bahru fetch an average rental rate
of RM15.00psf to RM25.00psf.
The average occupancy rate of shopping malls in Johor for 1H 2014
was at 74.1%. Selected shopping malls such as Danga City Mall and
JB City Square are able to achieve almost 100% occupancy rate.
Capital 21 @ Capital City, a themed retail development located
within Iskandar Malaysia is offering 1,200 retail units with a built-up
ranging from 120sf to 5,000sf. Selling prices reportedly start from
RM2,000 psf. It is expected to be completed in 2018.
Total supply of shop offices in Johor has accumulated to 64,523
units, with 43% from Johor Bahru. In Johor, 2-storey shop offices
contribute the most at 60%.
37
Southern Region
Offices in Johor (2010-1H 2014)
Johor (2010-Q1 2014)
(mil sf)
(no. of rooms)
(%)
25,000
100
20,000
80
(%)
11.50
100
80
11.00
Existing supply
(LHS)
60
40
10.50
Occupancy rate
(RHS)
20
10.00
2010
2011
2012
2013
1H 2014
60
15,000
40
10,000
2010
(Source : JPPH)
2,053 transactions of shop offices were recorded in 1H 2014, 52%
contributed by Johor Bahru. 2-storey shop offices are the most
transacted in Johor at about 60%.
2-storey shop offices in Taman Perling and Taman Molek are selling
around RM850,000. Higher selling prices were recorded for 2-storey
shop offices in Taman Bukit Indah 2, Nusajaya at RM1.2 million
and Taman Century at RM1.45 million.
The selling price for 3-storey shop offices in Johor Bahru is in the
range of RM650,000 to RM2.5 million. 3-storey shop offices selling
at the highest price of RM2.5 million are those located in Taman
Bukit Indah, Nusajaya.
Oasis 2 at Tropicana Danga Cove offers 178 units of 3 and 4-storey
shop offices with a selling price of RM1.389 million onwards. The
built-up area ranges from 5,040sf to 10,080sf. It is expected to
be completed in 2016.
There are a total of 209 purpose-built offices in Johor with total
space of 11.27 million sf. Johor Bahru has 96 purpose-built offices
with a total space of 8.43 million sf.
The rental rates of office space in Johor Bahru are between
RM2.00psf to RM2.80psf. Menara MSC Cyberport fetches the
highest rental rate of RM2.80psf per month whilst Komtar JB and
Menara Ansar both fetch at RM2.50psf.
Generally, purpose built offices in Johor state achieved 76%
occupancy rate.
D’Pristine Tower, a Grade A office suite with silver rated GBI,
located in Nusajaya, is currently being constructed. The office
tower offers sizes of 901sf to 1,671sf with a selling price from
RM720,800. Office suites with a built-up area above 20,000sf are
selling at RM13 million onwards. Expected completion date for the
development is in 2018.
38
Occupancy rate
(RHS)
20
5,000
0
Existing supply
(LHS)
2011
2012
2013
Q1 2014
0
(Source : JPPH)
HOTEL
As at Q1 2014, there were 370 hotels in Johor, with 21,553 rooms.
Johor Bahru has 29 star-rated hotels with a total of 6,867 rooms.
Average occupancy rate of hotels in Johor was at 47.1% in Q1
2014. In the same quarter, hotels in Johor Bahru recorded an
average occupancy rate of 70%. A few hotels are able to achieve
almost 100% during peak season i.e. Hyatt Regency JB, Puteri
Pacific Hotel and Granada Hotel.
Hyatt Regency JB, Puteri Pacific Hotel and Granada Hotel are
offering room rates from RM399 per night, RM550 per night and
RM238 per night respectively.
Legoland Hotel began operation in 1H 2014, with room rates
starting from RM1,100 to RM2,330 per night for a family suite.
Traders Hotel at Puteri Harbour is offering room rates from RM650
per night.
Renaissance Hotel, Johor Bahru was completed in 2014, offering
313 rooms with room rates starting from RM440 per night.
INDUSTRIAL
The total supply of industrial units in 1H 2014 was about 13,996
units for Johor, with about 65% from Johor Bahru. Terraced
factories made up 54% from the total supply in Johor. There are
5,096 units for future industrial supply in Johor.
The total number of transactions for industrial units in Johor for 1H
2014 was 548 units, with 44% from Johor Bahru. Terraced factories
seem to be the preferred choice as seen from the transaction trend.
1-storey terraced factories in Taman Mount Austin, Johor Bahru is
selling at RM650,000 whilst in Senai Industrial Park, Kulai is selling
at RM315,000.
A 3-storey detached factory in Pandan Industrial area, Johor Bahru
is asking for RM4.58 million with a built-up of 18,750sf. The asking
price for industrial land in Johor Bahru at Perindustrian Gembira
is at RM30psf while JB Plus Industrial Park Pandan is at RM25psf.
Industrial land within The Southern Industrial and Logistics Clusters
(SiLC), Nusajaya is selling between RM35psf and RM41psf. Prices
for industrial land in Pasir Gudang is selling around RM50psf.
The newly completed Setia Business Park, a 183-acres development,
consists of semi-detached and detached factories with sizes above
7,750sf. The selling price starts from RM2.5million . Setia Business
Park II has cluster and semi-detached factories. The cluster factory
has land sizes of 60’x130’ and 72’x160’, with a built-up of 4,746sf
and 7,488sf respectively. Semi-detached factories have land sizes
of 80’x180’ and 80’x200’, with a built-up of 8,570sf and 9,802sf
respectively. The selling price for cluster factories start from RM2.18
million while semi-detached factories start from RM4.05 million.
Both cluster and semi-detached factories are expected to be fully
completed in 2015.
It is interesting to note that The Hershey Company will invest
RM816 million in a state-of-the-art facility, producing the Hershey’s
Kisses, Reese’s Peanut Butter Cups and Hershey’s bars, on a 40
hectare site adjacent to the Senai Hi Tech Park. This will be their
second largest plant outside the USA.
OUTLOOK
In 2014, Johor property market saw participation of overseas
developers, especially in high-rise developments. The participation
however has raised concern of oversupply of incoming high-rise
developments, which may cause a slowdown in demand.
For 2015, local developers may change focus to townships, business
parks and land sales or move their development plans to Kulai and
Senai to meet the strong demands for affordable housing.
NOTABLE ANNOUNCEMENTS / ACTIVITIES IN JOHOR
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being in Johor, namely in Muar, Batu Pahat and Nusajaya as announced in 2014.
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Malaysia formed a MoU to commemorate the completion of UMLand’s purchase of phase two, three and four of the lease
was acquired through its subsidiary, Lextrend Sdn Bhd in the Business District (Zone B) of Medini Iskandar Malaysia for RM790
million.
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site within EduCity in Iskandar Malaysia is expected to be ready by May 2016.
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Johor to offer the Canadian (Ontario) curriculum – rated as one of the world’s best school systems.
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end-2015.
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gross development value (GDV) of RM20 billion as announced in early 2014. Both companies have plans for mixed property
developments on 1,012ha and 202ha in Kulai Jaya and Johor Bahru respectively.
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components for phase one of the township will include 500 units of landed double-storey link houses with estimated built-up
ranging from 1,800 sq. ft., 2,400 sq. ft. and 2,600 sq. ft. indicatively priced from below RM400,000.
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Employees Provident Fund (EPF) for RM71.82 million.
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new landbank in Kulaijaya, Johor, which was acquired in October 2014.
39
East Coast Region
// Pahang, Terengganu, Kelantan
PAHANG
Area
36,137 km²
Population
1,584,500
Examples are 1-storey terraced house along Jalan Bukit Sekilau,
Kuantan (RM230,000) and Taman 1Malaysia, Temerloh
(RM230,000).
Population Density
43 per km2
Existing 1-storey terraced houses in Kuantan are selling at a range
of RM175,000 to RM230,000. Whereas in Temerloh, the range
is within RM150,000 to RM230,000, in notable schemes such as
Taman Bahagia Makmur, Taman Chengal and Taman Rimba Permai.
Capital City > Kuantan
RESIDENTIAL
Pahang has seen an average of 2% growth in residential supply
from 2010 to 1H 2014.
In 1H 2014, the total existing residential supply in Pahang stood
at 226,334 units (43% in Kuantan; 11% in Temerloh). Detached
houses make up about 28% of the total residential supply in
Pahang while in Kuantan and Temerloh, 1-storey terraced houses
is the main type of residential dwelling.
In 1H 2014, the total number of residential transactions in Pahang
is 5,313 units, with 39% of transactions from Kuantan. 1-storey
terraced has the highest number of transactions in Pahang, making
up 29%.
Existing housing schemes in Kuantan with a higher band of selling
prices are in Bandar Indera Mahkota, Air Putih, Pelindung and
Alor Akar. Bandar Indera Mahkota is a new township that offers
housing, as well as administrative and government centres.
In Temerloh, notable existing housing schemes are in Taman
Bahagia Makmur, Taman Mentakab, Taman Bahagia Permai and
Bandar Temerloh.
There are few existing high rise developments in Pahang. In
Kuantan, Tembeling Resort is selling for RM268psf with a built-up
of 1,044 sf whilst Sejahtera Condominium is selling for RM210psf
with built-up of 1,410 sf. In Temerloh, Swee Lee Apartment is
selling for RM113psf with a built-up of 1,130 sf.
Bandar Putra is a new integrated township in Tanjung Lumpur,
Kuantan and has a land size of 417.5 acres. Currently, it is selling
2½-storey terraced houses at RM478,621 and 2-storey semidetached houses at RM579,000. Full completion of the township
is expected in 2015.
Some high rise developments in Kuantan are Swiss-Garden
Resort Residences at Sungai Karang and a proposed serviced
apartment project at Bandar Indera Mahkota.The first phase of
Swiss-Garden Resort Residences, Sand Series boasts 264 units of
serviced apartment and has started operating in December 2014.
The second phase, Pearl Series was launched in 2014, with sizes
from 445 sf to 1,082 sf. Its selling price starts from RM247,000
and completion is expected at the end of 2016.
The proposed serviced apartment project in Bandar Indera Mahkota
is the second phase of Sinaran Mahkota and is expected to launch
in 2015.
Kuantan Residential Property Price Trend & House Price Index (2010 - Q2 2014)
Price ‘000 (RM)
Price Index
800
300
700
250
600
500
200
400
150
300
100
200
50
100
0
2010
1TH (LHS)
40
2011
2TH (LHS)
1SD (LHS)
2012
2SD (LHS)
2013
1D (LHS)
Q2 2014
0
Condominium /
Apt / S. Apt (LHS)
A PR1MA project occupying 21.8 hectares of land at KM23
along Jalan Kuantan-Gambang will be developed with 308 units
of 1-storey terraced houses. The proposed starting price is from
RM150,000. The project is expected to be fully completed by 2017.
Another PR1MA project is proposed in Bera, Pahang on 16.567
hectares of land.
Offices in Pahang (2010-1H 2014)
(mil sf)
(%)
6.00
100
80
RETAIL
4.00
There are a total of 27 retail complexes in Pahang with a total
space of 2.79 million sf. Kuantan has 12 retail complexes, with
10 shopping centres (NLA: 1.73mil sf), one arcade and one
hypermarket.
There are 5 retail complexes in Temerloh with a total space of
242,144 sf, with 3 shopping centres (NLA: 226,107 sf) and 2
arcades.
Existing supply
(LHS)
60
40
2.00
Occupancy rate
(RHS)
20
0
2010
2011
2012
2013
1H 2014
0
(Source : JPPH)
Rental for shopping complexes in Kuantan range from RM6.00
to RM26.00psf, with East Coast Mall rent at RM26.00psf for its
prime lots.
In 1H 2014, the total existing supply of shop offices in Pahang is
16,426 units, with about 41% in Kuantan. 2-storey shop offices
contribute the most at 57%, followed by 3-storey shop offices
(26%).
Rentals are on the rise as the market saw 10%-50% increase in rent
for selected shopping complexes in Kuantan i.e. East Coast Mall,
Berjaya Megamall and Kuantan Parade. East Coast Mall underwent
a major refurbishment and reopened in 2014 commanding an
increase in rental rates. Furthermore the quality of new tenants
has further enhanced the appeal of the mall.
The total number of transactions in Pahang for 1H 2014 is 369
units, with 2 and 2½-storey shop offices contributing the most
at about 58% of total transactions. About 38% is in Kuantan
with 2-storey shop offices being the most common transaction
at 87 units. 2-storey shop offices are also the most transacted in
Temerloh, making up 67% of the total 45 units transacted.
In Temerloh, rental rates in Temerloh Mall is within the range of
RM3.80 to RM8.70psf.
Existing 2-storey shop offices with higher selling prices are
located along Jalan Wong Ah Jang (RM750,000), Jalan Air Putih
(RM750,000) and Jalan Haji Ahmad (RM710,000).
The occupancy rate of shopping malls in Pahang for 1H 2014 is
slightly higher than last year at 79.3% (2013: 77.7%).
Pahang (2010-1H 2014)
(mil sf)
(%)
3.00
100
2.80
80
2.60
60
2.40
40
2.20
20
2.00
2010
2011
2012
2013
1H 2014
Existing supply
(LHS)
Notable existing 3-storey shop offices are along Jalan Beserah
(RM1.25 million), Jalan Tun Ismail (RM1.15 million), Jalan Wong Ah
Jang (RM790,000) and Bandar Indera Mahkota (RM700,000). The
selling prices in other areas range from RM700,000 to RM950,000.
Proposed 2-storey and 3-storey shop offices at Sinaran Mahkota
will have 121 units, with built-up from 2,078 sf and selling prices
from RM567,910.
Occupancy rate
(RHS)
In Pahang, purpose-built offices are mostly concentrated in Kuantan
and occupied by government offices (54%). There are a total of 152
purpose built offices in Pahang as at 1H 2014, with 61 buildings in
Kuantan (2.83 million sf) and 18 buildings in Temerloh (308,117sf).
(Source : JPPH)
For 1H 2014, the rental rates of purpose built offices in Kuantan
are between RM1.50 to RM2.30 psf with average occupancy rate
at 82%. Menara Zenith has sizes of 741sf-18,700sf and is renting
out at a range of RM2.70 to RM3.00psf.
0
41
East Coast Region
In Temerloh, rental rates are between RM0.80 to RM2.30 psf with
an average occupancy rate of 91%.
The Inland Revenue Board of Malaysia (LHDN) State Director’s Office
in Pahang, Kuantan Branch and Kuantan Investigation Branch were
relocated to the completed office building along Jalan Tanah Putih,
named Menara CDO. It is fully occupied by LHDN.
The total supply of industrial units in 1H 2014 is 2,955 units with
terraced factories making up 69%. About 60% of the industrial
units are located in Kuantan, in areas such as Gebeng, Semambu,
Bandar Indera Mahkota and Tanah Putih.
Temerloh contributes about 18% of the total supply of industrial
units in Pahang.
A new purpose-built office along Jalan Tanah Putih will be occupied
by the Kuantan Municipal Council, next to the existing MPK
building. It is expected to be completed in 2015.
In 1H 2014, the total number of transactions for industrial units
in Pahang is 114 units, with 44% from Kuantan and 31% from
Temerloh.
HOTEL
1-storey terraced factory in Bandar Indera Mahkota Industrial is
currently selling at RM225,000, while 2-storey terraced factory in
Temerloh Sang Setia Park is selling at RM400,000. 1-storey detached
factory in Temerloh Industrial Park is selling at RM650,000.
There are 279 hotels in Pahang as at Q1 2014, with 14% of being 3
to 5-star hotels category. There are 29 star-rated hotels in Kuantan
with a total of 3,572 rooms.
There are two 5-star hotels in Kuantan, namely The Zenith Hotel
and Hyatt Regency, offering room rates at RM235 per night and
RM405 per night respectively. 4-star hotels in Kuantan are offering
room rates between RM190 to RM546 per night for deluxe rooms.
The average occupancy rate of hotels in Pahang is 79.7% in Q1
2014. In Kuantan, the average occupancy rate is 80%. Hotels
in selected areas of Kuantan are able to achieve almost 100%
occupancy during peak seasons fuelled by demand from seasonal
tourists for local attractions including Gambang Water Theme Park
and the beaches along Kuantan.
Pahang (2010-Q1 2014)
(no. of rooms)
100
20,000
80
15,000
60
10,000
40
5,000
20
0
2010
2011
2012
2013
Q1 2014
Existing supply
(LHS)
Occupancy rate
(RHS)
0
(Source : JPPH)
INDUSTRIAL
In the East Coast Economic Region (ECER), key industrial parks
in Pahang are Gambang Halal Park, Pekan Automotive Park and
Kuantan Integrated Biopark. Malaysia-China Kuantan Industrial
Park (MCKIP) and Palm Oil Industrial Cluster (POIC) are located
within Gebeng Industrial Estate.
42
A 1.2-hectare plot in Kuantan Integrated Biopark is allocated for
for the setting up of a non-methylation extraction process plant
to produce Tocotrienols (Vitamin E).
OUTLOOK
In 2014, new residential developments are mostly concentrating
on landed houses in small schemes. Bigger schemes of housing
developments are seen in Bandar Indera Mahkota and Bandar Putra.
In 2015, the second phase of Sinaran Mahkota, a serviced
apartment will be launched. In the hotel sector, the Royale Chulan
Hotel in Cherating is expected to be completed in 2015.
(%)
25,000
Alliance Steel (M) Sdn Bhd, the first investor of Malaysia-China
Kuantan Industrial Park (MCKIP) is expected to begin operations
of its steel mill project by the end of 2015.
International School of Kuantan (ISK) will be opened at Bandar
Indera Mahkota 7, with a new campus with a capacity of 400
students. Expected completion is in 2015.
Overall, the property market in Kuantan is gradually moving
upwards in price. Demand is seen to be sustainable as the main
drivers are local purchasers, with less influence by speculators as
compared to other regions in the country.
NOTABLE ANNOUNCEMENTS / ACTIVITIES IN PAHANG
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2015 as announced in the 2015 Budget
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agriculture projects in Pahang are made, namely The Holstein Milk Company Sdn Bhd and CSC Integrated Herbal Farm Sdn
Bhd. The Holstein Milk Co. will invest RM30 million to operate and manage the Muadzam Shah cattle research and innovation
centre.CSC Integrated Herbal Farm Sdn. Bhd. will invest RM20 million by 2020 to operate and manage ECER’s Herbal Integrated
Cluster Development in Chegar Perah, Pahang and cultivate various herbal plants
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It will replace the outdoor theme park while Resorts World Genting’s indoor theme park remains in operation. It is expected
to be completed in 2016. Other projects under GITP are development of new hotel properties, infrastructures and amenities
as well as the refurbishment, upgrading and modernisation of the existing Genting Grand, Maxims, Resort Hotel, Theme Park
Hotel and First World Hotel
TERENGGANU
Area
13,035 km²
Population
1,123,800
Population Density
86 per km2
Capital City > Kuala Terengganu
RESIDENTIAL
is an average increase of 6%-14% for 1-storey and 2-storey
semi-detached houses in selected areas within Kuala Terengganu,
Dungun and Kemaman.
A new 25-storey condominium, Icon Residence along Jalan Sultan
Omar, offering 144 units, will be the first luxury high rise in Kuala
Terengganu. Built-up area ranges from 797sf to 1,236sf, with selling
prices starting at RM383,000 and RM497,000 respectively. Sales
have been good with 80% sold and is expected to be completed
in 2016.
The total existing supply of residential properties in 1H 2014 is
84,951 units, an increase of about 2.5% from 2013. Supply in
Kuala Terengganu makes up about 49% of the total in the state,
followed by Kemaman (17%) and Dungun (13%).
There are plans for PR1MA housing schemes in Terengganu,
particularly in Marang, Kemaman, Dungun and Besut. The project
however, has yet to be finalised.
Detached houses seem to make up the majority of landed houses
in Kuala Terengganu (50%) and Dungun (26%) whilst 1-storey
terraced houses make up the highest number of existing residential
supply in Kemaman (36%).
The Kuala Terengganu City Centre (KTCC) project recognized under
the East Coast Economic Region (ECER) will attract more interests
into Terengganu. Thus, it is foreseen that there will be an increase
in population and a rise in demand for housing developments.
About 6,885 residential units in Terengganu was transacted in 1H
2014. Kuala Terengganu and Kemaman both contributed about
25% to the total number of transactions.
RETAIL
In Terengganu, existing 1-storey and 2-storey terraced houses
recorded an average increase in prices between 5%-10%. There
In 1H 2014, there are a total of 35 shopping malls with a total
space of 1.15 million sf. Kuala Terengganu has 14 shopping malls
with total space of 691,430 sf. Kemaman has 8 shopping malls
with total space of 331,560 sf.
43
East Coast Region
Kuala Terengganu Residential Property Price Trend & House Price Index (2010 - Q2 2014)
Price ‘000 (RM)
Price Index
600
300
500
250
400
200
300
150
200
100
100
50
0
0
2010
1TH (LHS)
2011
2TH (LHS)
2012
1SD (LHS)
2SD (LHS)
2013
1D (LHS)
Q2 2014
2D (LHS)
The occupancy rate for Kuala Terengganu and Kemaman stands
at 70% and 85% respectively. Rental rates of shopping malls in
Kuala Terengganu are in the range of RM6.00 to RM28.00psf whilst
Kemaman is in the range of RM7.00 to RM15.00psf.
There are 4 shopping centres in Kuala Terengganu with a total space
of 287,945 sf, 7 arcades (88,318 sf) and 3 hypermarkets (315,167
sf). Mydin Mall Kuala Terengganu is located on Jalan Sultan
Mohamad, fetching rental rates between RM6.00 to RM26.00psf
and RM3.00 to RM6.50psf, whilst the Giant Hypermarket in Bukit
Besar is renting ground floor spaces in the range of RM13.00 to
RM28.00psf and RM7.40 to RM18.00psf for the first floor.
The new Mydin Gong Badak in Kuala Nerus which was opened in
November 2014 will spur more business activities in the northern
parts of the Kuala Terengganu District - playing its role as a
neighbourhood shopping hub.
Terengganu (2010-1H 2014)
(mil sf)
(%)
1.50
100
80
1.00
Existing supply
(LHS)
60
40
0.50
Occupancy rate
(RHS)
20
0
2010
2011
2012
2013
1H 2014
0
(Source : JPPH)
44
There is a total of 5,075 shop offices in Terengganu, with 34% in
Kuala Terengganu, followed by Kemaman (26%). 2-storey shop
offices is the preferred choice in Terengganu making up 58% of
total supply.
Selling prices for existing 2-storey shop offices in Terengganu for
selected areas recorded an average increase of 3%-9% i.e. Jalan
Syed Hussin, Kuala Terengganu (RM1 million), Jalan Baru Pak Sabah,
Dungun (RM480,000) and Bandar Putra, Kemaman (RM482,500).
Existing 3-storey shop offices recorded an average price increase of
between 4%-8% such as Taman Permint Jaya, Kuala Terengganu
(RM1.2 million), Sura Gate, Dungun (RM650,000) and Bandar
Putra, Kemaman (RM640,800).
As at 1H 2014, there are a total of 117 purpose built offices in
Terengganu, with a total space of 3.55 million sf. Kuala Terengganu
has 51 purpose built offices with a total space of 2.71 million sf
whilst Kemaman has 12 purpose built offices with a total space of
231,714 sf. The occupancy rate in Kuala Terengganu and Kemaman
is 98% and 93% respectively.
The monthly rental rates for purpose built offices remained stable in
the ranges of RM0.70 to RM2.30psf. Occupancy rate is maintained
between 95%-100%.
In Kuala Terengganu, rental rates at Wisma Maidam and Bangunan
Yayasan Islam Terengganu are both at RM2.30psf whilst Wisma
Perkeso is renting out at RM2.10psf. Bangunan UMNO in Kemaman
has a monthly rental rate of RM1.90psf.
Offices in Terengganu (2010-1H 2014)
(mil sf)
(%)
3.60
100
80
3.40
Existing supply
(LHS)
60
40
3.20
Occupancy rate
(RHS)
20
3.00
2010
2011
2012
2013
1H 2014
0
(Source : JPPH)
Terengganu (2010-Q1 2014)
(no. of rooms)
(%)
7,600
100
7,400
80
7,200
40
6,800
Existing supply
(LHS)
Occupancy rate
(RHS)
20
6,600
6,400
2010
2011
2012
2013
Q1 2014
The total existing supply of industrial units in Terengganu is
753 units for 1H 2014, 41% in Kuala Terengganu and 37% in
Kemaman. Terraced factory units accounts for 41% of the total
supply in the state, as well as in Kemaman at 48%.
In Kuala Terengganu and Dungun, semi-detached factory unit is
preferred with 42% and 48% respectively.
There is a recorded drop in the total number of transactions for
industrial units in Terengganu. 26 industrial units were transacted
in 1H 2014, with terraced factory units making up 27%. Kemaman
contributed to 35% of total number of transactions, followed by
Dungun (31%).
Detached industrial lots are selling in the range of RM12.00 to
RM19.00psf i.e. Gong Badak Industrial Area, Kuala Terengganu
(RM19.00psf) and Taman Teknologi Paka, Dungun (RM12.80psf).
60
7,000
INDUSTRIAL
0
(Source : JPPH)
HOTEL
There are 154 hotels in Terengganu with a total of 7,469 rooms.
Kuala Terengganu has 17 star-rated hotels with a total of 1,856
rooms.
Arkema and CJ Cheil Jedang will begin operations at Kertih
Biopolymer Park in 2015. This is expected to create more job
opportunities in the area.
OUTLOOK
In 2014, residential prices in Kuala Terengganu increased with an
average of 5%-14%, especially for semi-detached houses. The first
condominium development in Kuala Terengganu has recorded a
good sales record of 80%. This may indicate a demand for high rise
developments in Terengganu (Kuala Terengganu Medical Centre
(KTMC), the second private hospital started operating in 2014).
In 2015, residential developments are expected to increase to
meet the demand for housing of industrial workers. Movenpick
Hotel and Resort in Pantai Pandak, Cendering is expected to be
completed in 2015.
The average occupancy rate of hotels in Terengganu for Q1 2014
is 46.7%. However, hotels in Kuala Terengganu has an average
occupancy rate of 50%.
In Kuala Terengganu, Ri-Yaz Heritage Marina Resort and Spa (5
star) offers rooms starting from RM1,000-RM1,200 per night whilst
Primula Beach Hotel (4 star) offers rooms starting from RM460
per night.
In Kemaman, Resorts World Kijal Hotel (5-star hotel) is offering
rooms starting from RM292 per night whilst in Dungun, Ulek Beach
Resort is offering rooms starting from RM249 per night.
The second phase of KTCC development will see Novotel Hotel and
business suites slated for completion in 2016. Another new hotel
is the Movenpick Hotel and Resort in Pantai Pandak, Cendering.
It will consist of 210 hotel rooms, 20 condominiums and nine
pavilion-type rooms and is expected to be completed in 2015.
For Notable Announcements / Activities in Terengganu, please see
the following page.
45
East Coast Region
NOTABLE ANNOUNCEMENTS / ACTIVITIES IN TERENGGANU
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from other major cities
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iconic landmark of Kuala Terengganu
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in Kuala Terengganu and is expected to be completed in 2016
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private hospital after Kuala Terengganu Specialist (KTS) at Jalan Kamarudin
KELANTAN
Area
15,099 km²
Population
1,707,000
Population Density
133 per km2
Capital City > Kota Bahru
In the past year, there is a surge of interests in high rise serviced
apartments in Kota Bharu. These units have seen good take up
rates and prices have increased by 7%.
Viana Court serviced apartments was completed in early 2014.
With prices recorded from RM171,000 (studio), 1 bedroom from
RM201,000 with built-up area of 348 sf and RM280,000 for
2-bedroom with built-up area of 774 sf.
RESIDENTIAL
Total residential supply available currently are 60,901 units (1H
2014) and is being dominated by 1-storey terraced houses which
make up 34% of the total supply.
The total incoming supply for Kelantan is estimated at 15,619
units (1H 2014). The incoming supply for 1-storey terraced houses
is 43% of the total supply. Followed by detached homes which is
18% from total supply.
The selling price for a 1-storey terraced house located in Taman
Tengku Ahmad Panglima is RM180,000. A 2-storey terraced house
at Bandar Baru Kubang Kerrian is selling at RM380,000 (2014).
The existing supply for serviced apartments is less than 200 units
(1H 2014). The number of incoming supply for serviced apartment
is estimated at 1,753 units (1H 2014).
The upcoming serviced apartments within Kota Bharu is Sky
Riverfront, City View Condominium, D’ Perdana Sri Cemerlang
and KBCC Serviced Apartment.
Bandar Baru Tunjong is an area that has been earmarked as a
hotspot centre in Kota Bharu. Plans for the area include a hotel,
a shopping mall and mixed commercial developments. There are
also serviced apartments and condominiums planned in the area.
RETAIL
Selling prices in Padang Bongor for a 1-storey semi-detached house
is at RM310,000, and in Wakaf Che Yeh, 2-storey semi-detached
houses are sold at RM430,000.
A 1-storey detached house at Kok Lanas (Macang Timur) is sold at
RM370,000 and a 2-storey detached house located at Taman Uda
Murni is sold at price of RM450,000.
Out of the existing condominiums in Kota Bharu, Kota Sri Mutiara
is currently selling at RM350,000 (1,280 sf) and a unit in Kelantan
Trade Centre is priced at RM220,000 (882 sf).
46
As at 1H 2014, the supply of retail complexes in Kelantan stood at
23 buildings with total NLA of 2.39 million sf. Most of the existing
supply are located in Kota Bharu.
Meanwhile, there is 1 mall incoming located at Pasir Mas, offering
total retail space of 63,679 sf (1H 2014).
Rental of prime retail lots in Tesco Hypermarket recorded a rate
of RM14.20psf. For secondary lots the rental rate is RM8.70psf.
NLA for Tesco is 300,000 sf. Tesco recorded a good occupancy
rate of 95%.
Kota Bharu Residential Property Price Trend & House Price Index (2010 - Q2 2014)
Price ‘000 (RM)
500
450
400
350
300
250
200
150
100
50
0
Price Index
250
200
150
100
50
2010
1TH (LHS)
2011
2TH (LHS)
2012
1SD (LHS)
2013
2SD (LHS)
0
Q2 2014
1D (LHS)
2D (LHS)
Condominium /
Apt / S. Apt (LHS)
Kelantan (2010-1H 2014)
in 2015), Che Siti Village (NLA :490,000 sf) and Aeon Jusco (NLA
: 656,792 sf)
(mil sf)
(%)
2.42
100
2.40
80
2.38
60
2.36
40
2.34
20
2.32
0
2010
2011
2012
2013
Occupancy rate
(RHS)
In 2014, there were 280 existing purpose built offices with total
NLA of 4.07 million sf. As the administration centre of Kelantan,
purpose built office supply are primarily located in the capital town
of Kota Bharu. Another 5 buildings is expected to enter the market
offering NLA of 66,424 sf.
(Source : JPPH)
Samples of office rental rates in Kota Bharu are Menara Perbadanan
at RM1.80psf, Bangunan PKNK at RM1.70psf, Wisma Yakin at
RM1.00psf and Wisma Ilmu at RM1.60psf.
Existing supply
(LHS)
1H 2014
KB Mall is the leading mall in Kota Bharu with NLA of 440,000 sf.
The rental rates for prime lots are at RM18psf whilst secondary
lots command rates of up to RM8psf. The occupancy rate for this
mall is commendable at 95%. Currently, KB Mall is undergoing
an expansion to include a cinema located on the top floor which
is eagerly awaited by the market.
Kota Bharu Trade Centre (Primary lots : RM10.96 to RM 15.00psf),
Arked Perbadanan (RM1.53psf), Pasar Siti Khadijah (Primary lots
: RM3.13psf), Bazaar Buluh Kubu (Primary lots : RM2.50psf), and
well known Bazaar Wakaf Che Yeh (Primary lots : RM2.26psf) are
among the many shopping malls located in Kota Bharu town.
Bangunan AIA on Jalan Pintu Pong registered a rental rate of
RM2.26psf, while the rental rate for Wisma ABRAR located on
Offices in Kelantan (2010-1H 2014)
(mil sf)
(%)
4.10
100
4.00
80
3.90
60
3.80
40
3.70
Mydin in Bandar Baru Tunjong was previously announced to be
developed although on-site progress is seen to be sluggish.
New upcoming retail malls in Kota Bharu include The Galleria (NLA
: 500,000 sf-1 million sf), Kota Bharu City Centre (to be completed
Occupancy rate
(RHS)
20
3.60
3.50
Existing supply
(LHS)
2010
2011
2012
2013
1H 2014
0
(Source : JPPH)
47
East Coast Region
Jalan Kebun Sultan is at RM2.30psf. The average occupancy rate
for purpose built offices in Kelantan is 97.3%.
Upcoming Serviced Apartment in Kota Bharu
Location
The ground floor of a 2-storey shop office located an Jalan Sultanah
Zainab is currently fetching a rental rate of RM2,500 per month.
Rental rates for ground floor space of a 3-storey shop office located
along Jalan Pintu Pong is RM5,500 per month.
HOTEL
The state of Kelantan Darul Naim is blessed with cultural and nature
based tourism resources. There are 85 hotels in Kelantan with total
rooms of 4,094 units, (1H 2014). There are two 5 star hotel, two
4-star hotels and six 3-star hotels. The rest are unrated hotels.
Renaissance Hotel (5 star) offers its deluxe room from RM330 per
night. The occupancy rate for Renaissance Hotel is 70%. In 2014,
Perdana Hotel was upgraded from a 4-star rated to 5-star rated
hotel offering its standard room rate from RM315 per night with
75% occupancy rate.
Built-up Area
Pricing
Completion
Date
Sky Riverfront
470sf -805sf
From RM 168,000
2016
KBCC Service
Apartment
410sf-776sf
From RM 217,000
2015
D’Perdana Sri
Cemerlang
412sf-1,506 sf
From RM167,000
2015
Battuta Ville
430sf-600sf
From RM 160,000
2015
Embunuri @
Sireh
554sf -3,793 sf
From RM 200,000
2015
All upcoming hotel developments will be 5-star hotels mainly due to
low competition in this group and rising demand from the market.
Competitive room rates offered by hoteliers are expected to remain.
The occupancy rate is fair but room rates are having sluggish
growth due to the age of existing rooms.
INDUSTRIAL
The room rate at Grand Riverview (4-star) for a premier room is
RM798 per night and for Tuk Aman Bali Beach (4-star), the room
rate is RM298 per night for a deluxe room.
The State of Kelantan is famous for light industry especially in
producing batik and other local handicrafts.
There are upcoming 5-star hotels in Kelantan. Lagenda Tunjong
International Hotel is one of the components of a mixed
development located in the fringes of Kota Bharu, i.e in Bandar
Baru Tunjong. The project will consist of 200 rooms and will be
completed in 2015. Hotel Madinaturraudah located in the city
centre will consist of 144 rooms worth RM185 million.
The majority of existing industrial stock in Kelantan, are terraced
factories accounting for 38% of the total 477 units of industrial
properties. mostly located in Kota Bharu district.
A hotel project under ECER, will be built by Syarikat Usahasama
Seri Cemerlang worth RM300 million. It is proposed to be a 5-star
hotel in Kota Bharu.
The selling price for a 2-storey terraced factory located in Pengkalan
Chepa is RM800,000 with a built up area of 10,000 sf. Detached
lots located in Kawasan Perindustrian Apam commands prices of
RM2.76psf for a space 21,710 sf of land.
Kelantan (2010-Q1 2014)
(no. of rooms)
(%)
4,200
100
4,000
80
3,800
OUTLOOK
Existing supply
(LHS)
60
3,600
40
3,400
Occupancy rate
(RHS)
20
3,200
3,000
2010
2011
2012
2013
Q1 2014
Total incoming supply for industrial property is 70 units, mostly
made up of terraced factories to be built in Kuala Krai (87%).
0
Residential is seen to garner a healthy demand with prices
increasing. The interest to own high rise property together with
its facilities has been attracting new developers to cater to this
demand mostly from the younger buyers in Kelantan. Most new
developments are in the Kota Bharu area.
With the number of incoming supply of high rise residences in
Kota Bharu, it is expected that the price growth would reconcile
as demand from actual occupiers would dictate future prospects
of this market segment.
(Source : JPPH)
The joint venture project between Sara–Timur, Perbadanan Menteri
Besar Kelantan (PMBK) and Tunjong Development Corporation
(TDC). Lagenda Tunjong is the main focus in Kota Bharu at present.
48
This enormous development recently received incentives from ECER
which would definitely put Kelantan in a new level and will be
able to attract investors into Kelantan. The property buyers are
beginning to adopt a wait and see attitude due to rising prices
as well as considering the after effect of new regulation to be
imposed (GST).
NOTABLE ANNOUNCEMENTS / TRANSACTIONS IN KELANTAN
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iiÌÊ`ÕÃÌÀiÃÊ-`Ê`Ê>`Ê- Ê
iiÌÊÌÊLÕ`Ê«ÀÛ>ÌiÊVi}iÊÊ>VÊ>`ÊÌ>Ê>ÀÕÊÜ>ÃÊ
announced
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for a condominium development for university students’ hostel facilities in Kota Bharu was announced worth RM6.67 million
by AUEI Teras Holdings Sdn Bhd
49
East Malaysia Region
// Sarawak, Sabah
SARAWAK
Area
124,450 km²
Population
2,633,100
A total of 2,578 residential units were transacted in Kuching as at 1H
2014, representing an increase of 16.65% from the corresponding
period in the previous year. 20.17% of these transactions were
within the RM250,000 - RM500,000 price bracket.
Population Density
21 per km2
Capital City > Kuching
Despite the rising concerns on affordability, there are a number of
notable new developments and launches observed last year. This
includes TT2 Mellow 2, Stutong Heights 2, The Park Residence,
Riverine–Diamond, The Royalle and The Ryegates 3.
RESIDENTIAL
The supply for residential stands at 88,839 units in Kuching. This
number grew at 1.64% within the past 5 years. About 80.94%
are made of landed residential and 19.06% are made of high-rise
residential. Landed residential saw numbers of terraced and semidetached houses as the majority in Kuching with 41.05% and
14.73% respectively.
Popular residential locations in Kuching include the “Tabuan/BDC”
and Hui Sing areas, with schemes such as Tabuan Heights, Tabuan
Jaya, Taman Satria Jaya (BDC), Heights Drive, Taman Woodlands,
Taman Centurion, Stutong Avenue, Tabuan Tranquility and many
others in the locality.
2-storey intermediate terraced houses in these areas are transacted
between RM450,000 and RM600,000; whilst 2-storey semidetached houses are noted to be transacted between RM750,000
and RM1,000,000.
Some of the major condominiums in the area include DeSummit
Condominium, Village Groove Condominium, Tribecca, The Tropics,
D’Infinia, Ryegates and The Jewels. These condominiums are
changing hands between RM320 psf and RM480 psf.
Following the success of its launches and 100% take up last year
on TT2 Mellow and Stutong Heights, Ibraco Bhd launched TT2
Mellow 2, Stutong Heights 2 and The Park Residence.
TT2 Mellow 2 offers 83 units of 2-storey terraced residential
located in Tabuan/Stutong area. Stutong Heights 2 comprises 272
apartment units with a selling price from RM269,000 and above.
The Park Residence offers 178 units.
Riverine-Diamond, the last two condominium towers in Kuching
Riverine Resort development (after Riverine-Emerald and RiverineSapphire), has been launched in Q4 2014 at an average price of
RM600psf by IJM Land Bhd. These two 22-storey blocks offer 312
units of various layouts – studio, 1-bedroom and 2-bedroom units
– with parcel sizes ranging from 500 sf to 1,200 sf.
Sarawak’s prominent developer, Lee Onn Construction Co’s has
showcased its developments, The Royalle and The Ryegates 3, in
2014. The Royalle is an upscale project, located at Stampin Road,
consists of 76 apartment units. The project is slated for completion
in 2 years whilst The Ryegates 3, that was launched later in the year,
has reported a take-up rate of 70%. The 9-storey development
Kuching Residential Property Price Trend & House Price Index (2010 - Q2 2014)
Price ‘000 (RM)
Price Index
600
250
500
200
400
150
300
100
200
50
100
0
2010
1TH (LHS)
2011
2TH (LHS)
1SD (LHS)
2012
2SD (LHS)
2013
2D (LHS)
Q2 2014
Condominium /
Apt / S. Apt (LHS)
0
50
offers 130 apartment units sized from 1,200 sf to 1,600 sf at a
selling price of RM485,000 onwards.
In the affordable housing segment, PR1MA has made its appearance
in Kuching. A project with 63.1 acres in Demak is being planned
for apartment development, with unit size ranging from 914 sf
to 1,237 sf. The selling price is proposed at RM235,000. Another
PR1MA project, PR1MA Matang is going to be developed with
1,560 units of various built-up sizes of 800 sf, 1,000 sf and 1,200
sf. The selling price is proposed at RM198,000.
RETAIL
The retail sector in Kuching has shown a prolific growth in previous
years. The cumulative supply for retail was recorded at 4.23 million
sf with 34 retail buildings as at 1H 2014. This number has grown
at 24.72% in terms of total space and 9.10% growth for number
of retail buildings within the past 5 years.
Even with the increased supply, the retail sector saw a slight
escalation in the overall occupancy of shopping complexes from
71.6% (1H 2013) to 74.2% (1H 2014).
Some malls in Kuching were newly completed such as Eastern Mall,
ST3 Shopping Mall and Kompleks Islam Sarawak. Three major retail
malls, City One Mall (750,000 sf), The Spring Mall (350,000 sf) and
Boulevard Mall (300,000 sf) have set a new benchmark for other
retail developments with a vibrant tenant mix and larger NLA of
above 300,000 sf.
The massive development of retail sector in 2014 has seen a
re-opening of an established brand name. Everrise at BDC and
Penrissen Point shopping malls re-opened their stores with fresh
facelifts and features to be more competitive within the Kuching
retail scene this year.
Sarawak (2010-1H 2014)
(mil sf)
(%)
8.00
100
6.00
80
Existing supply
(LHS)
40
2.00
2010
2011
2012
2013
1H 2014
It is noted in recent years, that a number of hypermarkets have
emerged due to the changing lifestyle and shopping preferences
of consumers. Some of the existing hypermarkets include Emart at
Matang, Boulevard Hypermarket at Jalan Datuk Tawi Sli and Giant
Hypermarket at Kota Padawan and Stutong.
Q3 2014 saw the opening of one of the largest 24-hour
hypermarkets, Emart, in Batu Kawa. The 2-storey hypermarket
mall offers 180 retail lots for lease with 2 anchor tenants, Emart
and a 40-lane bowling alley. It is reportedly 80% leased. Other
hypermarkets coming to Kuching include Mydin Hypermarket at
Bandar Semariang; Mydin Hypermarket at The Isthmus; Mydin
Hypermarket at Vista Tunku, Petra Jaya; Boulevard Supermarket
and Department Store at Metro City, Matang; Parkwell/ Servay
Hypermarket, King Centre and Giant at Semariang.
Developments of shop offices in sub-centres are getting popular
and gaining momentum in recent years. Such centres consist of
mainly 3-storey shop offices.
Prices of shop offices have been on an uptrend, with 4-storey shop
offices in prime location changing hands for up to RM2,200,000
while 3-storey shop offices commanding a price tag of RM1,500,000
onwards.
On the rental front, ground floor shops in prime locations are
commanding rentals of between RM3,000 and RM4,500 per lot per
month, while first floor spaces in prime areas are fetching a rental of
between RM1,500 and RM2,200 per lot per month. Asking rentals
of upper floor spaces are between RM600 and RM800 per month.
Occupancy rate
(RHS)
(Source : JPPH)
These developments are slated for completion by end of 2016. The
towers will house two central headquarters for SEDC and LCDA
comprising an 11-storey building with a floor area of 118,403 sf
20
o
Another major retail development presently under construction is
Viva City, located at Jalan Wan Alwi, which is due for completion
in the third quarter of 2015. The expected anchor tenants are
Everrise and TGV Cinemas.
As at 1H 2014, the total office supply in Kuching remains stagnant
with NLA of 4.51 million sf and 58 purpose-built offices. Gateway
Towers and Isthmus Commercial Showrooms within The Isthmus
development have started construction.
60
4.00
Parkwell Mall King’s Centre seized an opportunity through the
acquisition of a 4-storey mall, King’s Centre. The mall will see Servay
Hypermarket on level 1 and Parkwell Departmental Store on level
2 as its anchor tenants.
0
51
Offices in Sarawak (2010-1H 2014)
(mil sf)
(%)
6.50
100
80
6.40
Existing supply
(LHS)
60
6.30
40
6.20
Occupancy rate
(RHS)
20
6.10
2010
2011
2012
2013
1H 2014
Sarawak (2010-Q1 2014)
(no. of rooms)
(%)
17,000
100
16,000
80
60
15,000
40
14,000
Occupancy rate
(RHS)
20
13,000
0
Existing supply
(LHS)
2010
2011
2012
2013
Q1 2014
0
(Source : JPPH)
(Source : JPPH)
each, whilst the Isthmus Commercial Showrooms will consist of
14 semi-detached units and 1 detached lot.
maintained occupancy rate of 55% to 65%, suggesting that hotel
occupancy performance varies according to facilities, services and
brand offering.
Prime purpose-built offices in Kuching are located at the central
location of Kuching City and include Wisma Hasil, Wisma Bukit
Mata, Tun Jugah Tower, Gateway Kuching and Menara Zecon.
Office rentals in the city range between RM2.50psf and RM3.20psf
per month. The occupancy rates remained at 94% as the sector
has been stable over the years.
HOTEL
The hotel sector continues to grow in Sarawak. There are
approximately 16,765 number of rooms with 346 hotels throughout
the state. A growth of 6.42% has been recorded for the hotel
sector over the past 5 years. Kuching itself registered about 5,374
rooms (58 hotels) with 1,159 rooms (4 hotels) being 5-star rated,
1,143 rooms (4 hotels) 4-star rated and 1,565 rooms (12 hotels)
under the 3-star category.
Notable 5-star hotels in Kuching are Kuching Hilton (RM315 per
night), Riverside Majestic Hotel (RM200 per night) and Pullman
Hotel & Resort (RM292 per night). Examples of 4-star hotels are
Grand Magherita Hotel (RM200 per night), Four-Point By Sheraton
(RM180 per night), Imperial Hotel (RM160 per night) and Grand
Continental Hotel (RM160 per night); whereas 3-star hotel include
Harbour View Hotel (RM130 per night) and M-Hotel (previously
known as 360 Hotel) (RM99 per night).
There are also a number of notable hotels worth mentioning which
do not fall into star rating category. They are The Ranee Boutique
Hotel, Batik Hotel, Lime Tree Hotel, Abell Hotel and Dorset Boutique
Hotel to name a few.
The average occupancy rate in Sarawak has been stable between
the years 2011 to 2013, hovering around 48%. In Q1 2014
however, official data published showed occupancy rate dropped
to 34.50% as it adjusts to the new supply injection over the past
2 years. Nevertheless, some established hotels in Kuching have
52
The hospitality sector remains promising with the expansion of
Kuching International Airport and the proposed Dragon Air flights
from Kuching to Hong Kong.
Moreover, a few International events held in Kuching such as the
yearly Rainforest Festival and Sarawak Regatta has attracted tourists
from all over the globe – fuelling the state’s tourism sector.
International conferences following the completion of Borneo
Convention Centre Kuching (BCKK) are also actively being
organized by the Sarawak Tourism Board to host national and
international speakers and participants.
Notable hotel developments in the pipeline are TH Hotel,
Majestic Tower Hotel and 360 Waterfront Hotel located along
the waterfront. The TH Hotel will be located in front of Kuching
International Airport.
INDUSTRIAL
The industrial sector in Sarawak showed resilient growth over the
past few years.
Some of the major industrial projects initiated under the Sarawak
Corridor of Renewable Energy (SCORE) are steadily being rolled out
such as the Samalaju Industrial Park in Bintulu and the Halal Hub
in Tanjung Manis. The Samalaju project has attracted international
players such as Press Metal, Tokuyama Corporation, Pertama
Asia Minerals Limited, OM Holdings Limited and Asia Advanced
Materials.
The first half of 2014 saw an increase in industrial supply with 54
new units completed. This growth is driven by robust port activities
and the flow of FDI into Sarawak Corridor of Renewable Energy
(SCORE).
Semi-detached units are selling between RM750,000 and
RM1,200,000 per unit depending on land sizes, while detached
industrial lots are fetching between RM15 to RM35psf.
The industrial sector is expected to remain bullish in this coming
year as the number of incoming projects that have been kicked
off will see more intensified promotions for the sector. To date,
total supply of industrial units in Kuching is 4,599 which accounts
for approximately 35% of the total industrial supply in Sarawak.
One of the launches observed is the Genesis Light Industrial Park
located at Jalan Matang-Batu Kawa. The project will offer 99
showroom units, 58 units of terraced factory and 26 warehouse
units.
OUTLOOK
Purpose built offices has remained sluggish while the retail market
sees opportunity with more retail chains coming in. Existing retail
complexes saw fresher facelifts and undergone refurbishment
works to reposition themselves in the market. Shophouses are
gaining momentum as many chic concept cafes are making their
way to the industry.
Meanwhile for the hotel market, stand-alone concepts are still
in favour. International operators such as the Accor Group and
Starwood Hotel & Resort have strengthened their positions within
the hotel industry in Sarawak, whilst Tabung Haji is to have their
own TH Hotel in Kuching in a few years.
The industrial sector is expected to maintain development trends
within industrial zones in the suburban areas, although many are
hoping more significant progress can be seen especially for major
SCORE projects.
The scarcity of land in Kuching pushes new residential developments
to expand towards suburban areas. Semariang, Matang, Batu Kawa
and Pending have seen more developments within the area, while
the city centre has more high-rise being developed.
NOTABLE ANNOUNCEMENTS / ACTIVITIES IN SARAWAK
UÊ Ê ÃVÕÃÃÊÃÊÃÌÊ}}ÊÊÌiÊ«ÀÛiiÌÊ«ÀiVÌÃÊÀi>Ì}ÊÌÊÌiÊÌiiVÕV>ÌÊvÀ>ÃÌÀÕVÌÕÀiÊÊÌiÊÃÌ>ÌiÊLiÌÜiiÊ
the state government and Telekom Malaysia’s top management. The project is expected to provide a high-speed internet access
in order to enhance communication links to coastal areas which would enable growth in coastal tourism
UÊ Ê/iÊ,£ÓäÊÊÀiìÛi«iÌÊ«ÀiVÌÊvÊÌÀ>`Ì>Ê>>ÞÊ>«Õ}ÃÊ>ÀÕÊ>>ÊiÛi«iÌ®Ê>}ÊÌiÊ->À>Ü>ÊÀÛiÀÊ
will provide new opportunities with the enhancement of roads, infrastructure and amenities in the vicinity. The development
area has increased to 721 acres and is expected to be completed in 10 to 15 years
UÊ Ê,xÊÊÀiÊVÞ>À`½ÃÊ>ÀÌiÊÕÃiÕÊ«ÀiVÌÊÜÊViViÊÕìÀÊÌiÊ££ÌÊ>>ÞÃ>Ê*>ÊÌÊ«ÀiÃiÀÛiÊÌiÊiÀÌ>}iÊ
site at the dockyards. The project is reported to complement the extension of the waterfront walkways whilst promoting the
use of riverine transport
UÊ Ê>Ê*ÕÀÊ`}ÃÊiÀ>`Ê>ÃÊLiiÊ>Ü>Àì`Ê>Ê,Ó{Ç°n{ÊÊVÌÀ>VÌÊÊi>ÀÞÊÓä£{ÊÌÊLÕ`ÊÊwÃiÀÞÊV«iÝÊÊ
Kuching. The complex is expected to create a buoyant fishery industry for the state as it is projected to attract fishermen from
the western coastal region at Bintawa where vessel movement is restrictive. The development is slated for completion in 36
months
UÊ Ê/iÊ,Ó°nÊLÊiÜÊ
iÌÀ>ÊÕÃiÃÃÊÃÌÀVÌÊ«ÀiVÌ]ÊÜÊ>ÃÊ/iÊÃÌÕÃ]ÊÃÊLi}ÊìÛi«i`ÊÊ«>ÃiÃÊ>`ÊÃ>Ìi`ÊvÀÊ
completion in 2020. The project’s latest launches are Gateway Towers and Isthmus Commercial Showrooms.
UÊ ÊLÀ>VÊ`Ê>`Ê>ÕVi`ÊÌiÊ`Ã«Ã>ÊvÊÓÊ«>ÀViÃÊvÊÛ>V>ÌÊ>`ÊÊÕ>À>Ê/iL>ÃÊ>`ÊÃÌÀVÌÊÌÊ>ÊÀi>Ìi`ÊV«>ÞÊvÀÊ>Ê
combined value of about RM3.62 million. The two parcels measuring approximately 1.2 and 2.4 acres were disposed mainly
to help the company to restructure its landbanks.
53
SABAH
Area
73,631 km²
Population
3,540,300
@ Sodomon is selling at RM430,000 for unit sizes of 955 sf to
1,182 sf.
Population Density
48 per km2
A notable project launched is The Residences at Sutera Avenue by
Mah Sing Group. The Residences at Sutera Avenue are serviced
apartments offering units ranging from 726 sf to 1,220 sf with
selling prices starting from RM605,000.
Capital City > Kota Kinabalu
RESIDENTIAL
The supply for residential properties stands at 55,451 units in 1H
2014 with a 1,495 unit increase from 1H 2013. A portion of the
increase came from the recently completed landed residential
homes (2-storey terraced: 144 units & 2-storey semi-detached: 44
units) and mostly from highrise developments (condominiums &
apartments: 1,307 units).
Notable residential units selling at the higher price band are
2-storey terraced houses in Golden Hill Garden (RM620,000) and
Luyang Perdana (RM510,000). Condominiums such as The Peak
Condominium sold at RM500,000 (973 sf) and Marina Court at
RM700,000 (1,216 sf), command selling prices at RM514psf to
RM576psf.
Notable future projects expected to be officially launched by a
well-known local player Kinsabina Group of Companies this year
are Riverside Residence @ Sodomon in Penampang, Unicorn Tower
@ Bundusan and Casablanca Residence @ Off Jalan Kolombong.
Unicorn Tower @ Bundusan is currently selling at RM428,000
for unit sizes of 1,000 sf to 1,200 sf and Riverside Residence
Symphony Life Berhad is expected to kick-off its proposed three
towers of luxury condominiums and 42 units of 3-storey landed
luxury villas in Signal Hill in 2H 2015. The project’s GDV is reportedly
RM570 million.
Skycity, a mixed-use development, will be launched in Q2 2015
by a joint venture between the Ministry of Local Government and
Housing Sabah (KKTP) and Homesign Network Sdn Bhd. The RM2.5
billion project will be situated on a former abandoned housing
project site in Karamunsing. It will feature serviced apartments and
boutique apartments over two 28-storey towers with sizes ranging
from 709 sf to 902 sf and 776 sf to 1,908 sf respectively. The
serviced apartments will be priced from RM850,000 (RM1,200psf).
The Loft, a condominium in KK Times Square, has been completed
recently with selling prices from RM502,000 per unit.
A 29-storey condominium known as Ashton Tower by SCP Inanam
2 Sdn Bhd is said to be the tallest residential building in Kolombong.
It was launched in early 2014 with a built up range of 872 sf to 947
sf. The selling price starts at RM402,000. The project is expected
to be completed in 2017.
Kota Kinabalu Residential Property Price Trend & House Price Index (2010 - Q2 2014)
Price ‘000 (RM)
Price Index
1,600
350
1,400
300
1,200
250
1,000
200
800
150
600
400
100
200
50
0
2010
1TH (LHS)
2011
2TH (LHS)
2012
1SD (LHS)
2SD (LHS)
2013
2D (LHS)
Q2 2014
0
54
Overall, limited new landed property projects are seen in the Kota
Kinabalu area. Selling prices for 2-storey terraced houses in average
range from RM600,000 to RM900,000 with a consistent steady
increase seen over the past 3 years.
Imago Mall at KK Times Square, is the much-talked about largest
non-strata, fully-leased shopping mall in Kota Kinabalu, which
will also be the first lifestyle luxury mall in East Malaysia. The mall
will offer more than 300 outlets and has secured labels such as
Burtons, Kate Spade, Michael Kors, Swarovski and many others.
In the affordable housing segment, PR1MA has planned to build
affordable houses in Kota Kinabalu on a 35.4-acre land. A 2- to
3-bedroom apartment with a built-up of 800 sf to 1,200 sf will be
developed at Desa Impian, Inanam.
Riverson Walk, with NLA of 114,000 sf caters for 247 retail outlets.
The mall will include the Gleneagles Medical Centre within the
development.
RETAIL
The supply of retail space stands at 4.59 million sf with 17 retail
buildings as at 1H 2014. The supply remained stagnant when
compared against 1H 2013. The average occupancy rate for this
sector increased from 88.5% in 1H 2013 to 91% in 1H 2014.
Cumulative supply for purpose built office remained stagnant at
64 buildings in 1H 2014. The average occupancy rate for the office
sector is around 91% in 1H 2014 and is expected to be compressed
in the coming years with new supply entering the market.
Retail buildings within Kota Kinabalu such as Suria Sabah and
Wisma Merdeka demand rental rates from RM10.00psf to
RM25.00psf for prime lots whilst secondary rental rates range
from RM5.00psf to RM18.00psf per month.
Notable purpose built office buildings within Kota Kinabalu
include the Centre Point and Wisma Merdeka with rentals fetching
RM3.00psf to RM5.00psf, while others range typically from
RM2.00psf to RM3.00psf.
Notable upcoming retail developments include the Lifestyle Mall at
Jesselton Mall with NLA of 73,613 sf and Pacific Parade with NLA
of 628,000 sf, slated for completion in 2015 and 2016 respectively.
In 1H 2014, 6 incoming purpose-built offices with a combined
NLA of 1.94 million sf were reported. They include Sabah State
Administrative Complex, Menara Akal Megah, Aeropod @ Tanjung
Aru, Sutera Avenue, Menara Hap Seng and Riverson Suites. Most of
these projects are slated for completion in 2015, except for Sutera
Avenue which is expected to be completed in 2016.
The review period saw the opening of Oceanus Waterfront Mall in
Q4 2014. The 4-tier green technology mall with NLA of 260,000
sf offers more than 200 retail outlets targeting restaurants and
designer boutiques. Hard Rock Café is one of its finest attraction.
In 1H 2015, two malls with a combined NLA of more than 800,000
sf are due for completion. They are the Imago Mall at KK Times
Square and Riverson Walk.
The Sabah State Administrative Complex will be the main purpose
built office project developed in Kota Kinabalu. The project entails
(NLA 882,000 sf) a 30-storey office tower and two blocks of
9-storey buildings. The development has been awarded to Bina
Puri by the Sabah State Government.
Sabah (2010-1H 2014)
Offices in Sabah (2010-1H 2014)
(mil sf)
(%)
5.78
100
5.76
80
5.74
5.72
60
5.70
40
5.68
(%)
7.27
100
80
7.26
Occupancy rate
(RHS)
2010
2011
2012
2013
1H 2014
Existing supply
(LHS)
60
40
7.25
Occupancy rate
(RHS)
20
20
5.66
5.64
Existing supply
(LHS)
(mil sf)
7.24
0
(Source : JPPH)
2010
2011
2012
2013
1H 2014
0
(Source : JPPH)
55
The ventures of well-known developers such as SP Setia and Mah
Sing Group to develop the Aeropod @ Tanjung Aru and Sutera
Avenue respectively, are expected to spur economic growth in the
state capital. The Aeropod @ Tanjung Aru will consist of 8-storey
retail offices with NLA of 288,000 sf, whilst Sutera Avenue will
consist of 8- to 10-storey blocks with NLA of 233,544 sf.
Menara Akal Megah and Menara Hap Seng, on the other hand,
consists of 10-storey and 14-storey office buildings respectively.
Both are owned and developed by Hap Seng Consolidated. Menara
Hap Seng is reported to be the first Grade A purpose built office
building in Kota Kinabalu.
Riverson, an integrated development, will also embark on its
business suites development with NLA of 118,541 sf. It will consist
of 152 versatile business units.
Overall, the developments accumulate to more than 1.7 million
square feet of space. With the entry of new purpose built offices
in Kota Kinabalu, although rentals are expected to hold, occupancy
rates may be slightly compressed.
Sabah (2010-Q1 2014)
(no. of rooms)
(%)
17,000
100
16,000
80
15,000
60
14,000
40
13,000
20
12,000
2010
2011
2012
2013
Q1 2014
Existing supply
(LHS)
Occupancy rate
(RHS)
0
(Source : JPPH)
integrated Skycity project in Karamunsing. Reportedly, it is to be
managed by New World Hotel & Resort, the umbrella of Rosewood
Hotel Group and slated for completion in 2018.
Proposed future developments in Tanjung Aru would also contribute
to more international players’ interests in the hotel and tourism
sector in Kota Kinabalu.
HOTEL
INDUSTRIAL
The hotel sector continues to grow in Sabah. There are 15,968
rooms with 288 hotels in Q1 2014 (Q1 2013: 14,453 room, 269
hotels).
Notable 5-star hotels in Kota Kinabalu are the Gayana Eco Resort
(RM905 per night) and Hyatt Regency Kinabalu (RM480 per night).
Room rate at a 4-star hotel like the Horizon Hotel averages RM340
per night, whilst 3-star hotels such as Gaya Centre Hotel would
range between RM195 to RM350 per night. Hotels that do not fall
into star rating category such as Hotel Sixty3 and Dreamtel Kota
Kinabalu typically charge RM150 to RM200 per room per night.
In Q1 2014, average occupancy rate was recorded at 52.90%. It
has showed a modest increase of 1.3% compared to Q1 2013.
During the review period, Shangri-La Hotel, a 3-star hotel comprising
121 rooms located at Bandaran Berjaya Kota Kinabalu, has entered
into a sale and purchase agreement for a total consideration of
RM34 million.
The Accor Group has shown strong interest in Sabah with its second
brand (after Novotel), Mercure Kota Kinabalu Eton opening in 1H
2015. The new Mercure hotel consists of 195 rooms and is located
within Kota Kinabalu’s CBD.
Notable prime hotel developments in the pipeline are Kota
Kinabalu Marriott Hotel and Hilton Kota Kinabalu that are slated
for completion in 2015, adding some 800 rooms to the market.
Another upcoming hotel is New World Kota Kinabalu. This hotel
will feature 350 guestrooms and suites to be located within the
56
The supply for the industrial sector showed a modest growth in
Kota Kinabalu. 1H 2014 saw an increase in supply with 28 new
units adding up to 1,416 units of industrial buildings.
The industrial sector will still be active albeit at a slower rate at
least in this coming year, as 251 units from incoming projects will
be completed in the near future. A total of 53 industrial units were
transacted in 1H 2014, a drop of 16.98% compared to previous
year.
Notable selling price for 1-storey terraced industrial building includes
for Inanam Jaya at RM1.2 million and Kolombong Industrial Centre
at RM1.3 million.
National oil and gas giant PETRONAS’ Sabah Ammonia and Urea
(Samur) project was seen to have stirred a lot of interest in the state.
It was reported in the press that it is currently facing a 6-month
delay due to a fire on board a vessel carrying critical equipments.
It is expected that upon the project being operational, the southwestern coastal areas of Sabah will organically grow.
OUTLOOK
SEDIA intervention in enhancing various infrastructures in
Kota Kinabalu has nurtured investors’ confidence and positive
anticipation from local and well-known developers to come and
develop Kota Kinabalu. Of late, signature offices with compliance
to Green Building Index (GBI) have started to penetrate the market
scene.
The residential market consists mostly of high-rise buildings, as land
is scarce within the city centre. Prices have grown healthily over the
past few years – and despite concerns of market reconciliation, sales
of new residential launches have still maintained its momentum.
Looking forward though, there could be a momentary slow down as
GST and global oil prices could adversely influence Kota Kinabalu’s
market sentiment. At present, Kota Kinabalu still remains as one
of the hot spots in the Malaysian property arena.
NOTABLE ANNOUNCEMENTS / TRANSACTIONS IN SABAH
UÊ Ê ìÀâ}ÊÌ>Ê>L>ÕÊVÌÞ]ÊLÃÌ}ÊÌÕÀÃÊ>ÌÌÀ>VÌÃ]Ê«ÀÛ}ÊLÌÞÊ>`ÊÌÀ>ÛiÊ>`Êi>ÌÊÌÕÀÃÊ>ÀiÊ>}ÊiÞÊ
developments highlighted by SEDIA in Kota Kinabalu.
UÊ ÊiÃÃiÌÊ7>ÌiÀvÀÌÊiÛi«iÌ]ÊiÀ«`]Ê->L>ÊÌiÀ>Ì>Ê
ÛiÌÊ
iÌÀiÊ-
®Ê>`ÊÌ>Ê>L>ÕÊÌiÀ>Ì>Ê
cruise terminal at Jesselton are among the projects to modernize Kota Kinabalu city.
UÊ Ê}ÊÌiÊìÛi«iÌÃÊÌÊLÃÌÊÌ>Ê>L>ÕÊÌÕÀÃÊ>ÀiÊ`>Ê>ÌÊL}ÊÃÕLÃÌ>Ì]Ê*i>«>}]Ê>À>LÕ>Ê
integrated Resort and development of Kokol Hill.
UÊ Ê/À>Ã«ÀÌ>ÌÊ«ÀÛiiÌÃÊÜÊÃiiÊÃÞÃÌi>ÌVÊÌÀâi`ÊÌÀ>vwVÊÀÕÌiÊÌÊV«iÌÊiÝÃÌ}ÊÀ>`ÊiÌÜÀÊ>`Ê,/ÊÃÞÃÌi°Ê
A bus terminal will be built within the CBD, northern and southern Kota Kinabalu with a rapid transit system.
UÊ Êi>ÌÊÌÕÀÃÊÜÌÊìÛi«iÌÊvÊÃ«iV>ÃÌÊÃ«Ì>ÃÊÃÕVÊ>ÃÊi>i>}iÃÊ>`Ê*ÊÊÌ>À}iÌ}ÊV>ÃÊ>`ÊvÀi}iÀÃÊVÕ`}Ê
tourists and expatriates is also one of the key developments in Kota Kinabalu. Development of these hospitals, will not only
put confidence in Malaysian healthcare, but also may increase GNI forthe Healthcare sector.
UÊ Ê-Ê>ÊÀÕ«Ê`½ÃÊ-®Ê>ÃÊ>ìÊÌÃÊ>ìÊÛiÌÕÀiÊLÞÊ>VµÕÀ}ÊÈ°ÓxÊ>VÀiÃÊvÊi>Ãi`Ê>`Ê>}Ê>>ÊÕÌÊiìÀ>Ê
in Kota Kinabalu for RM72.5mil or RM266psf.
UÊ Ê-ÕÌiÀ>Ê>ÀLÕÀÊ>ÃÊiÌÊÜÌÊÌÃÊiÜÊÜiÀ]Ê>ÃÊ-Ê
À«ÊÌ`°Ê/iÊ-}>«Ài>Ê«ÕLVÃÌi`Ê«À«iÀÌÞÊìÛi«iÀÊ>VµÕÀi`ÊÇÇ°x¯Ê
stake in Sutera Harbour Group Sdn Bhd earlier in 2014.
UÊ ÊiÀÌ>Ê>ViÊ`Ê>VµÕÀi`ÊÓ°Çx>VÀiÊ«>ÀViÊvÊ>`ÊÜVÊV>iÊÜÌÊÕiÝ«Ài`Êi>ÃiÊÌiÕÀiÊvÊnÇÊÞi>ÀÃÊÜÌÊ>ÊÓÃÌÀiÞÊ
detached house presently erected on the land in Taman Luyang Kota Kinabalu for RM41.5million. The land is proposed for
development of 18-storey apartment block totalling 220 units with an estimated development cost of RM216million.
UÊ Ê«iÀ>ÃÊ*iÀ`>>Êi`>Ê*®Ê>ÃÊ>LÀÌi`ÊÌÃÊ«À«Ãi`Ê>VµÕÃÌÊvÊ>ÊÞ«iÀ>ÀiÌVÕÀiÌ>ÊViÌÀiÊÊÌ>Ê>L>ÕÊvÀÊ
RM260mil from Pemaju Industries Bhd on December 9, 2014.
57
THE YEAR AHEAD
Malaysia has managed to weather through several major recessions
and economic downturns such as the 1985/86 recession, the 1998
Asian Financial Crisis, the 2001 Dotcom bust and the 2009 Global
Financial Crisis. The Malaysian economy demonstrated resilience
against the ever challenging external environments. The latest
Eurozone Crisis had its repercussions felt even in the Asian region,
but amongst the challenges it posed to the country’s economy,
one positive impact it had for Malaysia was the shift of global
investment interest to Asia and Malaysia.
Over the past 4 years, property prices were fuelled by the nation’s
development plans e.g. ETP and GTP, investment concentration in
Asian countries and also the rapid growth in Iskandar Malaysia.
The cautious market sentiment echoes the state of the property
market in reaching its plateau and reconciliation period is expected
in the near future.
Transaction activities in the residential sector are expected to soften
due to the implementation of the Goods & Services Tax (GST),
lower crude oil prices and weakened currency. However, market
interest along main transport and infrastructure corridors remains
robust spurring new transit-oriented-developments and townships,
particularly in Klang Valley. Highway projects such SUKE, DASH,
WCE and EKVE, and rail-transit system extensions such as MRT
Line 2 and LRT 3 have already stirred interests in and around Klang
Valley. The Klang Valley Mass Rapid Transit (KVMRT) Sg. BulohKajang Line has already seen a number of new projects along the
alignment and in areas nearby the stations – and some are selling
at new area benchmark prices.
The office sector is expected to remain challenging especially for
smaller offices and older office buildings in Klang Valley as supply
continues to overtake demand. The commencement of major
projects such as TRX, Warisan Merdeka, Tradewinds Centre etc
is also expected to fuel greater competition and rental pressure.
58
The retail market has seen many international players increasing
their presence in Malaysia. The retail sector will see the completion
of refurbishment works to Sunway Putra Mall under Sunway REIT
this year after seeing East Coast Mall (Capital Malls Malaysia Trust)
and Quill City Mall operational this year.
The hotel market saw a mushrooming of branded residences
built with top hotel chains or upscale luxury brands which allow
residents to use hotel-like services at their multi-million ringgit
luxury apartments. In addition, the tourism industry continues to
fuel growth in the hospitality/hotel sector as many new high-end
luxury hotels have announced their set up in the country; e.g.
the likes of Kempinski Hotel, W-Hotel, Harrods Hotel and Four
Seasons Hotel.
It is interesting to note that Malaysia has improved her global
ranking in business competitiveness. A good start for the industrial
sector, Belgium is one of the countries that is eyeing Malaysia
for manufacturing, R&D and distribution. Among the Belgian
companies who plan so are Oleon NV and Lhoist Group and etc.
We believe the industrial sector will grow at a healthier pace spurred
by continuous foreign and domestic investments as Malaysia still
has strong comparative advantage.
Generally, the property market is expected to stabilise and show
signs of slower but steady growth this year. Prices are still expected
to rise but at a more gentle curve. The market will be more cautious
in bracing themselves for the impact of GST on 1st April this year.
Though it is expected to be a challenging year, there are – as
always – good investment opportunities to those who prudently
invest through informed decisions.
Glossary
For the purposes of this publication, except where the context otherwise requires, the following words and abbreviations shall have
the following meaning:
1TH
Single storey terraced house
2TH
Double storey terraced house
IHRM
Indeks Harga Rumah Malaysia / Malaysia House
Price Index
1SD
Single storey semi-detached house
JPPH
Jabatan Penilaian & Perkhidmatan Harta, Kementerian Kewangan Malaysia
2SD
Double storey semi-detached house
1D
Single storey detached house
Km²
Square kilometre
LHS
2D
Double storey detached house
Left hand scale
1TF
Single storey terraced factory
Mil
Million
2TF
Double storey terraced factory
NLA
Net lettable area
1SF
Single storey semi-detached factory
PBO
Purpose built office
Pop
2SF
Double storey semi-detached factory
Population
1DF
Single storey detached factory
Psf
Per square foot
2DF
Double storey detached factory
Q1/1Q
First quarter
1H/H1
First half
Q2/2Q
Second quarter
Q3/3Q
2H/H2
Second half
Third quarter
Q4/4Q
All House
Price
Index
All House Price Index as published by JPPH in
their publication entitled Indeks Harga Rumah
Malaysia
Fourth quarter
RHS
Right hand scale
RM
Ringgit Malaysia
Apt
BNM
Apartment
S.Apt
Serviced apartment
Bank Negara Malaysia
sf
Square feet
Condo
Condominium
SOFO
Small office flexible office
CPI
Consumer Price Index
SOHO
Small office home office
DOSM
Department of Statistics Malaysia
SOVO
Small office versatile office
FDI
Foreign Direct Investment
Sty
Storey
GDP
Gross Domestic Product
EXPLANATORY NOTE :
#1 : The “Average Terraced House Price To Annual Household Income Ratio” is calculated based on JPPH’s All Terraced House Price (i.e.
average prices for the category) as at Q2 2014 against the estimated state average annual household income for 2014. This estimated
income figure is based on average monthly household income published by DOSM for 2012 that has been adjusted and annualised
for this calculation purposes.
59
DIRECTORY OF OFFICES
Rahim & Co Head Office
KUALA LUMPUR
Level 17, Menara Uni.Asia
1008 Jalan Sultan Ismail
50250 Kuala Lumpur
T (603) 2691 9922
F (603) 2691 9992
E [email protected]
ALOR SETAR
1st Floor, 1546 Jalan Sultan Badlishah
05000 Alor Setar, Kedah
T (604) 732 0177
F (604) 732 0185
E [email protected]
CHERAS
No. 118-1, Jalan Cerdas
Taman Connaught
56000 Cheras, Kuala Lumpur
T (603) 9100 5007
F (603) 9100 5008
E [email protected]
IPOH
18, Persiaran Greenhill
30450 Ipoh, Perak
T (605) 249 5586
F (605) 249 5585
E [email protected]
JOHOR BAHRU
Unit 19A, Level 19 Metropolis Tower
Jalan Dato’ Abdullah Tahir
80300 Johor Bahru, Johor
T (607) 333 7166
F (607) 331 7201
E [email protected]
KEMAMAN
KCP 52 Level 1
Centre Point Fasa 2
Jalan Lebai Saras, 24000 Cukai
Kemaman, Terengganu
T (609) 859 3887
F (609) 859 6887
E [email protected]
60
KLANG
12A-2, 2nd Floor
Jalan Tiara 2A/KU 1
Pusat Perniagaan BBK
Bandar Baru Klang
41150 Klang, Selangor
T (603) 3344 7579
F (603) 3344 7578
E [email protected]
KOTA BHARU
3486-J/A, 1st Floor
Jalan Sultan Ibrahim
15050 Kota Bharu, Kelantan
T (609) 748 1252
F (609) 748 5824
E [email protected]
KOTA KINABALU
Unit B-02-17, 2nd Floor Block B
Warisan Square
Jalan Tun Fuad Stephens
88000 Kota Kinabalu, Sabah
T (6088) 484 995
F (6088) 484 997
E [email protected]
KUALA TERENGGANU
104, 1st Floor
Jalan Sultan Ismail
20200 Kuala Terengganu, Terengganu
T (609) 622 7508
F (609) 623 5126
E [email protected]
KUANTAN
B60, Lorong Tun Ismail 8
Sri Dagangan 2
25000 Kuantan, Pahang
T (609) 513 6633
F (609) 513 1575
E [email protected]
KUCHING
2nd Floor, 14 Jalan Kulas 1
Lot 373, Section 11
93400 Kuching, Sarawak
T (6082) 235 998
F (6082) 237 998
E [email protected]
MELAKA
326A Jalan Melaka Raya 1
Taman Melaka Raya
75000 Melaka
T (606) 284 8237
F (606) 283 0134
E [email protected]
PENANG
Lot 10.01, Level 10
Menara KWSP
38, Jalan Sultan Ahmah Shah
10050 Penang
T (604) 229 9913
F (604) 227 3326
E [email protected]
PETALING JAYA
36A, 1st Floor
Jalan Yong Shook Lin, Seksyen 52
46200 Petaling Jaya, Selangor
T (603) 7957 9528
F (603) 7956 5386
E [email protected]
SEREMBAN
124, 1st Floor
Jalan Dato’ Bandar Tunggal
70000 Seremban, Negeri Sembilan
T (606) 763 2492
F (606) 762 0796
E [email protected]
SUNGAI PETANI
108C, Jalan Pengkalan
Taman Pekan Baru
08000 Sungai Petani, Kedah
T (604) 422 1619
F (604) 422 1718
E [email protected]
TEMERLOH
19, 1st Floor, Jalan Ahmad Shah
Bandar Sri Semantan
28000 Temerloh, Pahang
T (609) 296 5044
F (609) 296 5642
E [email protected]
This document is prepared by Rahim & Co Research for information only. Whilst reasonable care has been exercised in preparing this document, it is
subject to change. Interested parties should not rely on the statements or representations of fact but must satisfy themselves by inspection or
otherwise as to the accuracy. This publication highlights only selected projects to provide general property market condition. This publication may not
be reproduced in any form or in any manner, in part or as a whole without written permission of the publisher, Rahim & Co Research. The publisher
accepts no responsibility or liability as to its accuracy.

Rahim-CoPMRJan2015.

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