Property Hunter Magazine Property Hunter Magazine Issue 54 - May 2014 | Page 63

Mega Tourism Projects: Key to Langkawi’s Bright Future The mega tourism projects in Langkawi by big ticket companies is a testament that Langkawi is capable of competing with the likes of Indonesia’s Bali and Phuket in Thailand, according to The Business Times. Major companies making a beeline for the ‘Isle of Legends’ include Khazanah Nasional, Indonesian conglomerate PT Rajawali Corp and hotel management group Starwood Hotels & Resorts. But Tradewinds Corp Bhd’s (TCB) upped the ante with its RM4 billion Perdana Quay project on the island. This mammoth development is touted as the game changer that will do more than simply put Langkawi on the map. “It will be a giant magnet pulling visitors from all over the world to its endless array of worldclass attractions and venues,” said TCB Group CEO Shaharul Farez Hassan. Targeting well-off travellers who are seeking ecological and natureoriented getaways, Perdana Quay is hailed as Langkawi’s first-ever integrated leisure, retail, residential and commercial development. The mega project also complements the Tourism Department’s ‘Naturally Langkawi’ tagline, which is being used by the government to promote the island’s many attractions such as marine parks, pristine beaches, birdwatching, jungle-trekking, mangroves teeming with wildlife and a geopark endorsed by UNESCO. In addition, one of Perdana Qua’s components is the The Burau Langkawi, a new swanky resort with a whooping price tag of RM420 million. Expected to open by end-2017, it comprises 60 luxury villas and 245 deluxe rooms. Given Tradewinds’ massive investment in Langkawi, Prime Minister Datuk Seri Najib Razak is bullish that the island will attract three million tourists each year. Apart from creating 4,200 new jobs for Malaysians, the influx of visitors is also expected to inject RM3.8 billion in the economy. Residential Property Supply to Exceed Demand in KL, Selangor, Penang and Johor Country Garden maiden project in Iskandar, showcasing 9000 units of residences The supply of residential properties in Malaysia for 2014 is expected to be more than that seen in 2013, driven by the rush to meet demand before the upcoming goods and services tax (GST) takes effect. PropertyGuru Malaysia Country manager Gerard Kho highlighted this to The Borneo Post, adding that excess supply will incure the same response in buying trend whereby buyers will rush to purchase residential properties before prices escalate beyond income growth level. “Cooling measures by Bank Negara Malaysia (BNM) is needed to avoid the aggressive rush that could affect us more. “Implementation of RM1 million threshold for foreign investor also help to push sales of high-end properties that may not affect the mass market or first-time home buyer,” Kho said He also noted that the buying power of residential properties in Malaysia will potentially slow down due to the tightening of BNM regulation on loans. “However, interest to purchase of homes is on an increasing trend due to the awareness of home pricing which may rise in line with cost of living that will impact city folks significantly,” Kho pointed out. Meanwhile, on the current buying trend of residential properties in Malaysia, the country manager commented that the buying trend is “looking good” especially in urban city centre areas such as KL, Selangor, Penang and Johor, which is in the rapidly developing Iskandar area. “We have seen consistent strong search of properties in these areas from our portal. Search of apartment/condominium and terrace/link house seem to be on the rise compared to semidetached units and other high value properties. Kho revealed that in KL, house price index rose dramatically, with nominal prices up by 14.4 per cent as an average price of a house is currently at RM650,000. This was followed by Selangor, of which house prices average at RM400,000 according to the Valuation and Property Services Department (JPPH), he explained. Kho also noted that house prices have surged in Johor (20.4 per cent), Pulau Pinang (14.3 per cent), and Negeri Sembilan (6.3 per cent). “It is obvious that midrange properties will be in demand due to the market demand from mid-income market segment,” he explained. As for house prices in Malaysia, Kho pointed out that prices are still surging, despite anti-speculation measures. “In the third quarter of 2013 (3Q13), Malaysia’s national house price index rose by 10.1 per cent year-on-year. It was only slightly lower compared with 2012 which was 11.9 per cent,” he said. www.PropertyHunter.com.my 63