WEST MALAYSIA PROPERTY NEWS
Knight Frank Releases Latest Malaysia
Real Estate Report
K
night Frank Malaysia, the
global property consultancy,
has launched its report
Knight Frank Malaysia
Real Estate Highlights 2H 2014.
The report looks into the market
performance across the various
property mix – Residential, Office,
Retail and Industry; and highlights
the trends and outlook in the four
key markets in Malaysia, including
Kuala Lumpur, Klang Valley, Penang,
Johor Bahru and Kota Kinabalu.
WEST MALAYSIA
PROPERTY NEWS
Market drivers impacting the real
estate sector
Sharing news and information about various issues
related to the property industry from Peninsular Malaysia.
P
It is due to higher transaction
numbers were recorded in the first
half of 2014 which rebounded after
a slowdown in 2013 compared with
corresponding period a year earlier.
The Executive Chairman of the
company, Tan Sri Abdul Rahim
Abdul Rahman explained that first
half of 2014 saw a 3.3 percent
growth compared to the same
period in 2013, with transaction
value of 82 billion ringgit which
increased about 19.3 percent.
The double-digit increase in
value, as opposed to a less than 5
percent growth in the number of
transactions, indicates that average
prices are still increasing. The pace
of growth would be “slower” in
2015, he pointed.
Their research also showed that
slower growth and demand for
high-rise condominiums has
resulted in an oversupply. The
current consolidation of completed
units is expected to give rise to
more foreclosures going forward.
However, the Managing Director,
Robert Ang stated that strong
liquidity will be able to absorb the
circumstance.
REHDA President Datuk Seri Fateh
Iskandar Mohamed Mansor
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He said that it was largely due to
the various completed schemes
entering the property market few
year s back where small down
payments were expected.
2015 MARKET OUTLOOK
•
The Government has revised
its deficit target and GDP
growth following the recent
sharp decline in oil prices.
•
Pro-active measures to
sustain development and
economic growth include free
visa for tourists from China
amongst others and increased
frequency and duration of
mega sales nationwide.
Mr Sarkunan Subramaniam,
Managing Director, Research and
Consultancy, Knight Frank Malaysia
HIGHLIGHTS FOR 2H2014
RESIDENTIAL
The recent plunge in crude oil prices
and lower trade surplus could
undermine Malaysia’s economy and
its property market especially if they
are prolonged.
Judy Ong, Research and Consultancy,
Knight Frank Malaysia, says, “Amid
the gloomy economic outlook and
plummeting crude oil prices, the
slowdown in the Malaysian property
market continues.
Property Market To Face Consolidation
roperty prices in Malaysia
are said to be expected
to consolidate this year,
according to property
consultant, Rahim and Co.
sector with the impending
completion of several retail
properties in 1H2015.
Buyers may not be able to flip with
the high margins they had expected
earlier and they may not want to go
ahead with the mortgage payments.
The rentals may not be able to
cover mortgage payments. This may
result in the weaker ones falling on
the wayside.
He said a number of
foreclosures in a popular
location in the Klang
Valley were taken up very
speedily – despite built-up
areas of 2,000 sq ft and
above – which indicates
high liquidity.
Buyers’ and investors’ sentiments
have turned cautious with many
adopting the ‘wait-and-see’
approach while more developers
are turning their focus on the
affordable housing segment.
“Selected property subsectors (and locations)
may undergo a period of
consolidation in terms of
slower market activities,
pricing and rentals; impacted
by the series of cooling
measures, uncertainties
surrounding the impending
GST implementation, and
a slowdown in the Oil &
Gas sector and its related
industries amongst others.”
•
The series of macro-prudential
measures have succeeded
in cooling the residential
property market.
•
Slowdown in residential
property market with
noticeably fewer launches
across the board.
OFFICE
•
Despite mismatch in supply
and demand, the Kuala
Lumpur office market remains
resilient with both rental and
occupancy rates holding firm.
RETAIL
•
•
•
Prime and established
shopping centres in Klang
Valley and Penang continue to
enjoy high occupancy in excess
of 90%; and in Johor Bahru and
Kota Kinabalu, more than 80%
occupancy.
Malaysia, which continues to
be on the radar of overseas
retailers, sees more new
entrants, especially in the F&B
segment as well as rapid store
expansion of existing brands
and outlets, both local and
international.
In Kota Kinabalu, a very exciting
time is expected for the retail
•
•
More developers expected to
launch their projects ahead
of the GST, which is slated
for implementation in April
2015, while widening their
target catchment by marketing
overseas.
Continuous efforts by
government authorities /
agencies such as MIDA and
InvestKL are expected to
produce positive results and
cushion the impact of a slowing
economy and property market.
Ananda
Krishnan To
Lend RM2 Billion
To 1MDB
M
alaysia’s second richest
man, Ananda Krishnan
was reported to lend
as much as 2 billion ringgit to
the strategic investment fund,
1Malaysia Development Berhad
(1MDB) to help settling its
mounting debts.
The interim loan was said to aid
1MDB to settle its loan from two
local banks, Malayan Banking
Berhad (Maybank) and RHB Bank
Berhad. Reportedly, 1MDB has
already missed twice payments
despite of given a two one-month
extension on the facility.
According to The Malaysian Insider,
an unnamed source revealed that
the plain loan from the billionaire
was their final option as the due
date for the both banks’ repayment
is approaching, yet they haven’t
seen any other credible solution.
It was understood that both 1MDB
and advisers to Ananda have been
working to look at various options
to break the deadlock before the
decision was taken.
They have to do whatever they can
so that the banks get paid and it is
not yet a done deal as the terms of
the loan have yet to be agreed on,
said the source.
The company, which is wholly
owned by the Ministry of Finance
was entangled in a piling debt aftertax losses of 665.4 million ringgit.
The recent company’s annual
report showed that the sovereign
wealth fund’s long-term borrowings
had ballooned to 33.5 billion from
only 26.3 billion ringgit in the
previous year.1MDB had short-term
borrowings of RM8.3 billion.
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