2 / 5
Local market
A
CCORDING
to the CBRE /
WTW2017 Real Estate
Market Outlook report,
the propertymarket
dipped further inQ3 2016. It
revealed that transaction activity
dropped; agricultural land
remained the secondmost active,
after residential properties; the
commercial sector fell to third
place; followed by development
land. Citywise, Selangor made it as
themost active, followed by Johor.
Additionally, the National Property
Information Centre (Napic)
reported that 57%of residential
property transactions inQ3 2016
were priced belowRM250,000
while 43%were recorded between
RM250,001 and RM1 million.
Here is the gist of the property
scene inmajor sectors across
Malaysia.
KLANG VALLEY
On the whole, the 2016 property
market performance was reported
as “subdued”. No signs of
improvement is forecast for 2017.
With new supply of various
property types that include offices,
retail, hotels and condominiums
nearing completion in significant
quantities within the next year, in
contrast to the slowdown in
economic growth, there are
concerns of a largemarket supply
situation across property sectors.
However, as travelling becomes
more affordable and the
momentumpicks up on tourist
arrivals, themarket sentiments
remain buoyant. Moreover, 2017
expects to see landed residential
prices stabilising withminimal
growth andmore new
developments within the
“affordable” housing category.
A press conference by JLL
recently also hinted on InvestKL’s
plans to attract multi-national
corporations and foreign
companies to invest in Kuala
Lumpur’s appealing officemarket –
especially looking at the exciting
infrastructure developments that
will be opening up new areas in and
around KL.
Similarly, in the industrial
sector, there is keen interest
reported from foreign investors for
our local industrial projects,
especially our industrial parks.
This has led developers to take
notice of the stable industrial
property demand, whichwill
consequently lead to employment
opportunities and spin-off to
more housing and commercial
property demand.
PENANG
Likewise, the propertymarket in
Penang last year was also reported
to be subdued. Overall, market
activity showed a downtrend
compared to that in 2015. According
toNapic’s report, property
transactions dropped across
residential, commercial and
industrial sectors, but in terms of
value, the industrial sector
recorded a hike. Reasons for the
glummarket – high loan application
rejections, smaller growth in
CONTINUEDON
NEXT PAGE
X
outlook
> Propertymarket overview in Klang Valley,
Penang, IskandarMalaysia, Sabah and Sarawak
PHOTO: TRENDSIDEAS.COM
income, rising living costs,
dampened business and consumer
sentiments after the announcement
of Budget 2017, the depreciation of
the ringgit against major currencies
and other global political
occurrences.
However, themarket slowdown
was not applicable across the board
as landed property in prime
locations maintained, and some,
appreciatedmarginally in value. For
major events involving land and
property developments in Penang
for 2016, refer to the CBRE/WTW
Real EstateMarket Outlook 2017
report.
Projects and proposals that may
aid in amore positive outlook in
2017 include:
more affordable housing
developments priced at
RM300,000 and below;
amemorandumof understanding
was signed for urban renewal
works (which preserve heritage
values) that will take place in
four areas around Butterworth;
and
the “GurneyWharf” master plan.
JOHOR
IskandarMalaysia’s comprehensive
development plan is already in its
second half of its 20-year framework
X
X
X
PHOTO: TRENDSIDEAS.COM
PHOTO: WMAPROPERTY.COM
PHOTO: WWW.PROPERTYGURU.COM.MY
Klang Valley
Penang
Johor
21
theSun ON FRIDAY
|
FEBRUARY 10, 2017