MM2H revision may lift property sector, says Avaland’s Teh

• Avaland Bhd chief executive officer Teh Heng Chong said the government’s currrent review of Malaysia My Second Home (MM2H) programme criteria could boost the sector, especially for properties priced more than RM1 million.

SUBANG JAYA (Oct 17): The rising number of foreign investors in Malaysia is likely to lift  propspects in the property sector in 2024.

Avaland Bhd chief executive officer (CEO) Teh Heng Chong said the government’s currrent review of Malaysia My Second Home (MM2H) programme criteria could boost the sector, especially for properties priced more than RM1 million.

He said there will be more launches this year and the number of completed but unsold overhang units has also decreased. The entry of more foreign investors and a review of the MM2H criteria will boost the sector.

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"It is the right time to do that," he said at the AmBank and Avaland green financing collaboration here today.

He also said developers will seek ways to maintain prices with the service tax (SST) at 8% 2024 versus the current six.

"It (prices) will slowly creep up because of the construction cost but as a developer, we have to manage it because construction cost has been going up over the years. We cannot price out the market," he added.

Avaland has partnered AmBank for a RM129.8 million green financing package for the first phase of its latest mixed development located in Subang Jaya known as Alora Residences with a gross development value (GDV) of RM552 million comprising 770 serviced apartment units and eight retail units. It has achieved a take-up rate of 56% since its August 26 launch this year.

Unit sizes range between 923 and 1,457 sq ft with prices starting from RM693,800.

The master planned mixed development project known as 2Fifth Avenue has a GDV of RM3 billion comprising  serviced apartments, retail and office components and is scheduled to be completed in phases within 10 years.

Meanwhile, AmBank Group CEO Datuk Sulaiman Tahir said the group has approved RM1.3 billion in green financing between April and August 2023 out of its targeted RM4 billion for financial year 2024 (FY24).

The group is on track to achieve its target, Sulaiman said.

"This demonstrates our commitment to promoting sustainability. In FY2023, we approved a total of RM1.9 billion in the green financing space,” he said.

Sulaiman said there is an urgency for the real estate sector to embrace environmental, social and governance (ESG) principles as property development has a significant impact on climate change.

Buildings account for about a third of global greenhouse gas emissions and consume about 40% of the world's energy, he said.

"Real estate asset owners and developers, investors and stakeholders must recognise that they have a fiduciary duty to understand and actively manage ESG and climate-related risks as a routine component of their business-thinking, practices and management processes," said Sulaiman.

Avaland Bhd​​ is a strategic partner with EdgeProp START, featuring the Sanderling, Casa Embun and Alora Residences developments.  

All Avaland Bhd​​ homebuyers also get to enjoy rewards worth up to RM3,888 and stand a chance to win a set of JBL Bar 1300 speakers worth RM7,999 when you sign up on EdgeProp START from now till Dec 31.

Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!