5 / 5
G
ENERALLY
, things have
been chugging along as
usual one could say but
look harder and youwill
notice that retailers, property
developers included, have been
coming upwith all sorts of clever
bargains and promotions to spur
consumer spending. The economy
is sluggish some say, andwhy not
especiallywithmany receiving the
golden handshake sooner than
expected and some being laid off.
According to a recent report
from theMalaysian statistics
department, Malaysia’s Leading
Index (LI), whichmonitors the
country’s economic performance in
advance, showed a decrease. It also
stated that our Coincident Index
(CI), whichmeasures current
economic activity, also declined.
Overall, Malaysia’s Consumer Price
Index (CPI) has risen by 1.5%. Prices
of most things have shot up – the
people are cautious, hence, the
economic growth inQ4 is expected
to trudge along at an even slower
pace. With that, we explore how the
upcoming sloth-like scene will
affect the property and real estate
market, if it hasn’t already.
VIEWS AND COMMENTS
According to the grapevine on the
property scene, interest will remain
high, but there will be doubts when
it comes to the actual buying. The
propertymarket in
Kuala Lumpur is
anticipated to be
subdued. One website
stated that although the
numbers are holding up,
there is not much action,
transaction-wise.
Apparently, buyers with
intention to sell claim
they have not much
choice as prices inwell-
connected areas are not
attractive, unless they
sell andmove out of KL.
TheQ4outlook
> Local property landscape andwhat to expect
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26
theSun ON FRIDAY
|
SEPTEMBER 30, 2016
agents need to get familiar with
cross-border property investment
knowledge and embrace
globalisation. In this light, we take a
look at some developers who have
actually taken it in their stride to
develop projects andmarket their
developments abroad.
FOREIGN INTEREST
Many developers are seen to be
reaching out to foreign buyers and
consumers of the higher-income
bracket. An example is Sunsuria
Berhadwhich teamed upwith
Taiwan-basedWelcome Global
Co Ltd. The partnershipwill see
the rise of a Korean-themed
integrated project being developed
on an 8.48-acre plot in Sepang,
Selangor. Called Sunsuria Provence
Village in Sunsuria City, the project
will offer serviced apartments, a
wedding house with a themed
garden, a Korean-inspired shopping
mall and a boutique hotel. There is
also I-Bhd, the developer of
8KiaPeng
@
KLCCwhich reports
that a large percentage of its buyers
are foreigners fromChina, Hong
Kong and Singapore.
Similarly, another developer
which has managed to attract
foreign investors and high-end
property buyers is the developer of
The Ritz-Carlton Residences,
located in Jalan Sultan Ismail. Its
developerWangsa Tegap Sdn Bhd,
a wholly-owned subsidiary of
Berjaya Corporation Berhad,
recently held amedia sneak preview
of its luxury suites that come in
three design concepts under the
globally renowned and award-
winning Peter Silling&Associates
label.
The soon-to-be launched
residences have already received a
30% take-up by Taiwanese buyers.
According toWangsa Tegap
director Datuk Francis Ng, the
company hopes for a 50/50 take-up
of foreign and local buyers.
Structure-wise, the project is
already completed. Minor interior
touch ups and systems are being
addressed as this article is written.
In the southern regions of the
country, it makes sense for
Singaporeans to invest in property.
An online website also reported that
themainland Chinese are huge
investors of Malaysian property,
followed by Indonesians and Indian
nationals.
CONCLUSION
No doubt, times may require
Malaysians to tighten their belts.
However, for the foreigner whose
local currency is strong, the cost of
living inMalaysia is awfully cheap.
However, overall, an online
property research portal claimed
that growth in the country’s
construction sector is set to
moderate over the coming years,
decelerating into 2017. But like all
things that go upmust come down
and vice versa, the transport
segment will bring hope and drive
overall growth, while the non-
residential segment will leverage on
this growth.
The above is not the best piece
of news yet still, property investors
long in the industrywill tell you the
coming periodmakes good a time to
However, according to Knight
Frank, Malaysia, theMalaysian
market offers the best market value
for global real estate investors. It
records the highest yields and the
least volatility across themarkets in
the Asia Pacific. The global real
estate consultancy firm’sMalaysian
officemanaging director Sarkunan
Subramaniam suggested that buyers
and sellers look at the step up on the
local transport infrastructure
development which increases
mobility and improves connectivity
throughout Greater KL. While
Sarkunan viewed this development
as giving the city an edge, many
expect the newMRT and LRT
stations to transformarea dynamics
andmore.
Malaysia Property Incorporated
general manager Veena Loh,
however, felt that local real estate
Precast constructionprojectwins award
SETIA
Precast Sdn Bhd, a
subsidiary under S P Setia
Berhad, recently received a
special award under
Industrialised Building System
for the construction of its Seri
Jati affordable apartments in
Setia Alam. The awardwas
presented at theMalaysia
Construction Industry
Excellence Award (MCIEA)
2016 organised by the
Construction Industry
Development Board (CIDB) at
the GrandHyatt Kuala Lumpur.
The award is presented to
developers who deliver quality
workmanship that scores high in
the area of industrialised
building systems, innovative
constructionmanagement with
minimised constructionwaste,
cleanliness and high safety
levels, efficient usage of
materials and labour, and
completionwithin schedule.
At the ceremony to receive
the awardwas S P Setia Berhad
executive vice-president Kow
ChoongMing, who accepted the
accolade from theWorks
Ministry secretary-general
Datuk Sri Zohari Akob. “We are
greatly honoured to receive this
award asMCIEA is themost
credible and respected award in
the construction industry. For us to
win in the IBS category for our
affordable apartment project speaks
volumes. It articulates our
commitment towards excellence in
delivering quality products, even in
the affordable category,” said Kow.
Affordable apartments in S P
Setia’s Setia Alamand Setia EcoHill
developments are constructed using
the precast construction system.
Upon completion, the system is
found to deliver lesser defects thus
reduces rectification costs and
inconveniences. The systemalso
requires less labour as most of the
structural components can be
prefabricated off-site.
TeamSetia alongwith Kow (holding the award) and its consultants gather
for a group shot to celebrate its win at MCIEA 2016.
buy. What more with news reports
claiming foreign investors have
returned to Bursa.
While unaffordability remains an
issue for majority of the locals,
prices have somewhat moderated
slowly but surely. People are also
starting to look at property again
and looking at it withmore realistic
expectation plus with a fine-toothed
comb. Developers are said to have
begun to put inmore effort in
listening towhat the people want,
adding value towhat is on the table.
The situation has also led people to
becomemore acceptable to living
further from the city for the sake of
lower housing prices, or living in
smaller built-up living spaces.
On the whole, while some
developers tap into the foreign
market to attract buyers, others
delve into providingmore
affordable homes and some offer
more attractive rebates and
promotions. Overall, themarket is
still expected to be sluggish.
PHOTO: SUNSURIALISTEDCOMPANY.COM
The Ritz-Carlton Residences.
SOME SOCIO-ECONOMIC ADVANTAGES THAT MAKE
MALAYSIA ATTRACTIVE TO FOREIGNHOUSE PURCHASERS.
1. Relatively low living costs
compared to other developed
countries.
2. Tourist friendly environment
that is welcoming to all
nationalities.
3. English is widely used in
communication in general.
4. Infrastructure, transportation
and global connectivity is
relatively good.
5. Peaceful and safe place to live in.
6. Free fromnatural disasters.
7. Healthcare and hospitals
providemodern and up-to-date
services.
8. Variety of food caters to global
tastes.
9. Availability of international and
private schools and higher
education institutions.
10. Housing and property
ownership schemes open to
foreigners.
Sunsuria City.
LRT station.