Dissatisfaction over expensive home prices has been escalating in Malaysia in recent years, with prices now reportedly beyond the reach of an average worker in key states like Kuala Lumpur and Penang. The situation, as many have lamented, is also not helped by the government’s move towards rationalising subsidies and the introduction of the goods and services tax last year.
Malaysian Resources Corp Bhd (MRCB)’s Penang Sky Cab, a 4.8km cable car system first mooted by the state government in March last year to connect mainland Penang in Butterworth and Jelutong in Penang Island, is expected to begin construction in the first quarter of 2018 (1Q2018).
The shift of focus to affordable housing below the RM500,000 per unit range, which has been seeing more resilient demand than higher-end properties, may strain the margins of developers, especially those who are not traditionally involved in this housing category, said Kenanga Investment Bank.
The development of Kuching has helped the largest state in Malaysia earn a key position in the country’s economic growth. Sarawak only trails behind Selangor and Kuala Lumpur in term of gross domestic product.
This week, the spotlight falls on the secondary market of non-landed residences in Sentul, Kuala Lumpur. Areas covered are anchored by Jalan Sentul and include Taman Pelangi, Bandar Baru Sentul at the north and YTL Land & Development Bhd’s Sentul East redevelopment at the south.
We understand that the acquisition of Menara Shell is still in progress, and injection into MRCB-Quill REIT (MQREIT) could take place in early 2017.
Perak, which was once considered the jewel in the British colonial government’s crown, is slowly working to gain a competitive advantage with numerous industrial developments and by becoming a tourism hot spot the likes of Penang and Melaka.
Overall, capital values have grown slightly. Sutramas recorded a 23.1% y-o-y growth in average price to reach RM587 psf in the 12 months to 1Q2015. However, the average price had been skewed upwards by an unusually high sale at RM1,370 psf in October 2014.
Eco World Development Group Bhd’s (EcoWorld) 40%-owned BBCC Development Sdn Bhd ([BBCCD] and remaining stake of 40:20 held by UDA Holdings Bhd:Employees Provident Fund have entered into heads of terms agreements and memoranda of understanding (MoU) with Mitsui Fudosan (Asia) (MFA) and Zepp Hall Network for the development and leasing of a retail mall and a live concert hall respectively at its Bukit Bintang City Centre (BBCC) project.
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