8^th June – 13^th June

Senior Works Minister Datuk Seri Fadillah Yusof assured that the government is ready to help Pan Borneo Highway contractors who are struggling with higher construction material prices and labour shortages.

Meanwhile, the implementation of all housing and infrastructure projects under the Rural Development Ministry (KPLB) is not postponed, despite the hike in raw material prices.

1) Govt ready to help struggling Pan Borneo Highway contractors

Senior Works Minister Datuk Seri Fadillah Yusof assured that the government is ready to help Pan Borneo Highway contractors who are struggling with higher construction material prices and labour shortages, following the COVID-19 pandemic.

He noted that many workers involved in the project had returned to their home countries when the pandemic hit, reported Bernama. As such, contractors for the highway project are working with reduced workforce at 70% compared to the pre-pandemic capacity.

Meanwhile, the supply of raw materials such as sand and stones had been also affected with the closure of mines and quarries.

Despite the challenges, Fadillah shared that the completion status of the Sarawak Pan Borneo Highway now stands at 83%.

And while some of the highway packages are behind schedule, they are not considered as sick projects since they can still be completed, he added.

2) No ministry project postponed despite increase in raw material prices

Despite the hike in raw material prices, the implementation of all housing and infrastructure projects under the Rural Development Ministry (KPLB) is not postponed.

The assurance was given even as the prices of raw materials rose by more than 15%, said KPLB Minister Datuk Seri Mahdzir Khalid.

He noted that projects which have already been awarded would proceed as scheduled, while the rest will have to wait until the new prices are given by the Public Works Ministry (KKR), reported Bernama.

“Now it is insufficient to build a Hardcore Poor Housing Project (PPRT) costing RM56,000 as many contractors have said they are unable to build at that price and asked for a slight price increase,” he said.

“So we are waiting for the full report and hopefully the government will increase a bit. What we need to do is to wait for the decision by KKR,” he added.

3) Phase Two of Putrajaya MRT Line to start operations in January

Phase Two of the Putrajaya Mass Rapid Transit (MRT) Line – which spans from Kampung Batu to Putrajaya Sentral – is now 98% complete.

Datuk Amiruddin Ma’aris, Project Director of Putrajaya MRT Line, expects operations for Phase Two line to start in January 2023, reported Bernama.

He shared that among the activities being carried out for Phase Two line include link roads, landscaping, architectural work as well as testing and commissioning.

The Putrajaya MRT Phase One line, on the other hand, will open to the public on 16 June.

Running from Kwasa Damansara to Kampung Batu, the 17.5km Phase One line features nine new stations as well as three stations which were initially part of the MRT Kajang Line.

4) PKNS hands over keys for 864 affordable homes

The Selangor State Development Corporation (PKNS) has handed over keys to 864 owners of Type D housing at Residensi Idaman Selangorku in Selangor Cyber Valley, Cyberjaya.

The project comprises two apartment blocks, while the new residents include single working professionals, young families, students, civil servants and golden citizens, reported the New Straits Times.

With a built-up area of 1,000 sq ft, the apartments come with three bedrooms, two bathrooms as well as two parking spaces. The units are priced at RM23,000.

Four units have been purpose-built with wheelchair-friendly platforms to cater to residents with disabilities.

PKNS CEO Datuk Mahmud Abbas said Residensi Idaman Selangorku went beyond brick and mortar to help the state’s B40 community settle into their own homes.

“With over 58 years of experience in developing quality residential developments, we are confident that Residensi Idaman Selangorku will be a benchmark for affordable housing in Selangor,” he said.

5) Kelantan allocates RM55.38mil for people’s housing

Kelantan Menteri Besar Datuk Ahmad Yakob said the state has allocated RM55.38 million for the construction of people’s housing this year, including for the dhuafa or less fortunate within the state.

Of this, RM22.35 million was set aside for the construction of 270 housing units for the asnaf group, he said. He revealed that each elected representative can give out up to six houses to the needy, reported Bernama.

The construction cost for each house – which comes with three rooms – is RM55,000, said Ahmad.

“In fact, the allocation can also be used to repair damaged houses at RM10,000 each,” he added.

“To qualify for this housing assistance, applicants must have their own land or land they inherited from their parents or relatives.”

6) Central i-City transforms rooftop space into eco-friendly urban farm

Central i-City has partnered with CityFarm Malaysia to transform the mall’s vacant roof space into an eco-friendly urban farm.

The move is aimed at encouraging city dwellers to explore sustainable farming solutions and to grow plants locally from anywhere, reported the New Straits Times.

For its initial phase, City Rooftop Farm houses the country’s first rooftop premium melon farm. The decision to have premium melon as the farm’s primary crop aligns with the strategy of the Selangor state government to cultivate high-value farm-fresh produce.

Central i-City COO Anthony Dylan said the initiative serves as a catalyst, helping local small businesses create a pathway for everyone to be more involved in sustainable farming starting with the Urban Farming Festival 2022.

“We take pride in being a driving force in the urban farming scene, specialising in affordable hydroponics systems and now, rooftop farming,” said Dylan.

7) Malay contractors hesitant to take on construction tenders

Malaysian Malay Contractors Association said Malay contractors have been hesitant to participate in construction tenders, including those for government projects, due to fears of facing high losses amid the rising cost of iron and cement.

In fact, a total of 49,606 of the association’s members have failed to renew their Construction Industry Development Board (CIDB) license since 2018, reported Free Malaysia Today citing Utusan Malaysia.

PropertyGuru, Malaysia’s No. 1 property website, announced that its latest Malaysia Property Market Index (MPMI) report registered a downtrend in overall asking prices by 0.84% QoQ and 1.79% YoY – to 87.86 index points – in the first quarter of 2021.

This dip may be attributed to buyers’ apprehension as they take a wait-and-see approach due to the resurging COVID-19 infections and the imposition of a second Movement Control Order (MCO 2.0) which impacted commercial activity.

“With the backdrop of pandemic-related economic uncertainties, we believe that the market sentiment will remain cautious as the property market is expected to see fluctuating price trends in the coming months. However, the increased rate of vaccinations across Malaysian society is expected to bring more stability and improve consumer sentiment as the year progresses,” said Sheldon Fernandez, Country Manager of PropertyGuru Malaysia.

Want to find out more about the PropertyGuru Malaysia Property Market Index (MPMI) report? Read the full report here!

He added that the government’s plan to extend the Home Ownership Campaign (HOC) till the end of 2021 is also a welcomed boon to the market, as it will continue to play an important role in spurring buyer interest as economic conditions begin to improve across the year.

“The HOC has proven to be an effective stimulus to the economy and it has undoubtedly helped to reduce the burden of house buyers during this difficult time. If the government does decide to extend the duration of the HOC until this year end, we encourage home seekers to take advantage of the available incentives, current low prices, and conducive interest rates,” added Sheldon.

Price corrections observed in Kuala Lumpur, Johor, Penang

In Kuala Lumpur, Johor, and Penang, the overall asking prices dropped by 0.66%, 0.29%, and 1.36% respectively QoQ, while Selangor sees asking prices remain in the positive territory at 0.01%.

In Q1 2021, Kuala Lumpur’s YoY asking price dropped by 5.00%, the highest recorded dip since PropertyGuru launched its market index in 2016. This more than two-year downtrend is now being accelerated by the pandemic and can be seen as a price correction trend that began following a challenging economic period and highly-priced mismatched property offerings.

This similar downward trend in asking prices is observed in Penang and Johor as well, both of which have witnessed a long trend of downward price movement since Q1 2019 and Q4 2017 respectively.

“The property prices in these key markets are stabilising and adjusting to a more affordable range, and the continuous decline in asking price makes this a buyer’s market now. The price corrections across KL, Johor, and Penang represent strong opportunities for the investment and purchase of properties,” said Sheldon.

He added, “Despite the current challenges, Johor has strong potential for the future due to its symbiotic relationship with Singapore and the geographic advantage it offers in terms of lower-priced properties. Meanwhile, Penang is often seen as the place for retirement for Malaysians and foreigners alike. It was recently ranked by Travel Awaits as the third best island in the world and first in Asia to retire in 2021.”

According to MyPropertyData, Malaysia’s largest online property data company under PropertyGuru, investors make up 79% of the property transaction in Malaysia last year, an increase of 38% from previous year. The price correction trend observed in KL, Johor, and Penang may continue to spur this growth.

On the other hand, Selangor’s resilience in the current crisis environment is boosting confidence in development activity in the state. This comes after a sharp decline in the number of total residential property transactions in Selangor between 2019 and 2020, as reported by MyProperty Data. The total number of transactions in 2020 for various property types in Selangor such as terraced houses, condominiums/apartments, flats, semi-detached houses, and serviced apartments have decreased between 41.18% and 61.67%, as compared to 2019. This is a common trend across most markets in Malaysia due to the uncertainty brought about by COVID-19.

Selangor’s resilience and stability amidst this crisis can be attributed to its robust population growth as well as its position as the most economically vibrant region in the country.

Property supply not hampered by COVID-19

While the overall asking prices in Malaysia have dropped both on a QoQ and YoY-basis, in contrast, the MPMI found that the overall supply listings tracked on PropertyGuru saw a growth of 2.71% QoQ. It also recorded a spike of 15.85% YoY in Q1 2021, the highest growth since Q1 2020, indicating an upward trend. In Penang specifically, the state recorded the highest spike in yearly supply volume, registering a 34.17% YoY increase, and a 1.19% QoQ gain – a positive growth for the third consecutive quarter.

The robust turnaround of supply volume in key regions in Malaysia is likely due to the government’s decision to allow the construction and property development industry – along with other vital sectors – to continue operating during recent periods of heightened movement restrictions. This indicates that developers are confident that recovery is on the horizon.

Sheldon said, “While the current environment of once-again eased restrictions offers room for improvement in Q2 2021, the property market is expected to put in a mixed performance for the duration of the year due to persistent uncertainties. However, we believe that consumer confidence in the property sector will regain as we progress through 2021, supported by a strong vaccination programme and favourable government incentives.”

Have a question about the property market? Post them on AskGuru and let our experts help you!

PropertyGuru’s Malaysia Property Market Index Q1 2021 (MPMI) report has registered steady asking prices at 88.60 index points in Q3 and Q4 of 2020.

Although the index has remained unchanged, asking prices for properties in Malaysia have seen a drop quarter-on-quarter (QoQ) with Kuala Lumpur, Johor and Penang registering a drop of 1.80%, 0.83% and 0.78% respectively. Selangor is the only market with a slight increase of 0.84%.

With subdued asking prices coupled with favourable government incentives, this has resulted in more affordable options for purchasing property, states PropertyGuru, Malaysia’s No. 1 property website.

The National Property Information Centre (NAPIC) also revealed that 50.5% of the new residential launches are properties priced below RM300,000, while those priced between RM300,001 to RM500,000 account for 24.7%.

Landed properties dominated the new residential launches with 3,127 units launched in the quarter in review. This would be an addition to the existing overhang units in Johor at 20.4%, Selangor at 15.2% and KL at 10.1%.

“Despite the pandemic, the intent to purchase property is still there with 1 in 3 Malaysians likely to purchase property in 2021, according to our latest Consumer Sentiment Study H1 2021. These potential homebuyers are likely to be younger Malaysians who are keen to take advantage of the current market climate.

“Younger buyers are now keen to capitalise on the current low prices, conducive interest rates and current incentives – especially before the clock runs out on Home Ownership Campaign (HOC) enticements in May this year.

“Those looking to make a buy will be happy to note that the government has extended the stamp duty exemption on instruments of transfer and loan agreement for first-time home buyers, for properties up to RM500,000 per unit until Dec 31, 2025,” said Sheldon Fernandez, Country Manager of PropertyGuru Malaysia

With the added opportunity of low interest rates, where Bank Negara Malaysia has decided to maintain the Overnight Policy Rate at 1.75%, the current market may see an early spike in transactional activity in 2021.

Recovering Regions and Bright Spots

Selected bright spots within key regions are bucking the downward trend by registering positive gains due to increased demand. In Kuala Lumpur, prices in the Ampang Hilir district are moving against the grain with a 10.96% gain, bringing the median asking price to RM975.82psf.

Neighbouring Selangor saw upward trends in Damansara Uptown at 4.35% increase with a median price of RM958.85 psf, Sungai Buloh (Sierra Mas) with a 5.56% increase to RM633.33 psf and Petaling Jaya (Tropicana Indah) with a 14.28% increase at RM636.36 psf.

Up north in Penang, within Georgetown, prices rose in Jalan Scotland at 12.23% chalking a median of RM728.27 psf whilst Gurney Drive registered a 4.4% increase to RM785.71 psf.

Despite being the state with the biggest decline in asking prices, bright spots in Johor were recorded for Johor Bahru (Bandar Dato Onn) with a 3.31% increase at RM389.61 psf and Kulai (Senai) with a 7.93% increase at RM306.67 psf.

“These bright spots are registering positive gains with younger professionals previously priced out of the market and upgraders who have found good bargains in this climate to make lifestyle enhancements and upgrades.

“Overall, it is likely the property market will recover at a slower rate than the overall economy, as improved financial confidence must first occur to spur consumer demand,” Sheldon added.

Have a question about the property market? Post them on AskGuru and let our experts help you!

The property market is displaying signs of resilience, with the latest PropertyGuru Malaysia Property Market Index (MPMI) report registering no changes in overall asking prices for the final quarter of 2020, staying at 88.60 points in Q3 and Q4 last year.

This respite may be due to Prime Minister Tan Sri Muhyiddin Yassin’s impending vaccination programme that rolled out on February 24^th, despite the current fluctuating but high number of COVID-19 cases and extended Movement Control Order (MCO 2.0) until March 4th, 2021.

“It is prudent to note that these aren’t “typical” times, and any worsening of the COVID-19 situation would translate negatively on all sectors of the economy,” said Sheldon Fernandez, Country Manager of PropertyGuru Malaysia.

Sheldon said that overall the property market is expected to improve considerably in 2021, specifically in the second half of the year. He added that an anticipated 5.1% economic growth forecast and Bank Negara Malaysia’s decision to maintain the overnight policy rate (OPR) at 1.75%, with a possibility that it will be cut even further, lends further weight to this view.

Based on supply listings tracked on PropertyGuru, Malaysia’s No.1 property website, the MPMI found that the overall yearly supply continues to move upwards by 0.98% YoY. Despite disruptions brought on by the pandemic, this indicates the supply of property stock is gradually making its way back into the market.

“It is important to note that quarterly fluctuation or inconsistencies in supply volume during the current pandemic climate are reflective of commercial activity limitations.

This is caused by the tightening and loosening of movement control regulations, rather than fundamental demand-supply factors that typically define the market movement,” said Sheldon.

Selangor on a Positive Trajectory While Other Key Markets Are On A Downward Trend

Asking prices in Selangor has seen a slight increase of 0.84% QoQ, indicating a potential swing back for asking prices into positive territory in 2021.

Despite economic uncertainty that will continue to hamper buyer behaviour in the upcoming months, Selangor is in a strong position to remain resilient. Many will flock to the country’s most economically vibrant and populous state to seek out job employment.

Asking prices in Kuala Lumpur dropped by 1.80% QoQ, as many upmarket properties in the metropolitan area continue to face downward pressure with lack of international interest.

The emphasis towards affordable properties is a welcomed move with the KL City Hall (DBKL) focus on introducing more affordable housing in their Urban Renewal Programme, creating healthier and more sustainable local demand in the future. At the same time, investment opportunists will seek prime city centre properties at current lowered prices.

In other key markets such as Penang, asking prices inched downwards by 0.78% QoQ. It is important to note that despite pandemic-related disruptions and slight declines in asking prices, the state has been relatively stable.

With minimal price changes that have rarely breached the 2% YoY mark in the last two years, Penang is likely to be among the first key market to move back into positive price territory once the economy turns the corner.
Down south, asking prices in Johor dropped by 0.83% QoQ. The state continues to deal with its large overhang of mismatched properties, which were initially built to target international buyers under Iskandar Malaysia’s plan.

Much of this stock continues to be either beyond the price range of local buyers, which market analysts classify as a long-term issue that may take years to resolve. Going forward, a cooling off of incoming supply will help better stabilise property values in Johor’s diluted market.

Further to this, asking prices in Johor registered the largest drop among the four key regions from a yearly perspective, falling by 4.92% YoY.
“Overall, the property market will be defined by “movers” and “waiters” in the coming year, with some bullishly moving into the market to take advantage of prevailing favourable conditions, while others wait for further price drops or more stable financial situations.

“We also expect an early spike in transactional activity in 2021, as buyers rush to take advantage of the HOC initiatives that end on May 31, 2021, while the current low price and low-interest rate prevail,” added Sheldon.

Have a question about the property market? Post them on AskGuru and let our experts help you!

The sharp surge of COVID-19 cases has caused the country’s healthcare system to be at a breaking point. This has led the Government to announce a movement control order (MCO) nationwide until February 18, 2021.

‘With prospects of a mass vaccination program slated to be rolled out early this year, it could be an antidote to the uncertainties that we currently face as Malaysians brave through the third wave of infections.

“Nevertheless, a sense of acceptance of the new normal and the incentives that are currently in place have reflected a slightly improved sentiment in our recent Consumer Sentiment Study H1 2021 findings,” said Sheldon Fernandez, Country Manager, PropertyGuru Malaysia.

PropertyGuru, the country’s No. 1 Property Website has revealed an increase within its property sentiment index, from 39 points (H2 2020) to 42 points (H1 2021). Contributing factors include: current real estate satisfaction, positive outlook on property climate, favorable interest rate environment, positive government efforts and favourable price outlook.

Although with a slight uptick in sentiment, Malaysians are still realistic but cautious about property purchase, with 42% adopting a wait-and-see approach in anticipation for a better deal in the future.

“Many are expecting that housing prices will go down further as developers have adjusted their pricing strategy to launch more affordable homes. According to Kenanga Research, over 50% of the new launches in Q3 2020 were priced below RM300,000.

With more affordably-priced properties available in the market, property owners who are desperate to let go of properties have no choice but to reduce the asking price, thus price trends of properties in the secondary market will be fairly linear,” added Sheldon.

On the other hand, a total of 35% of the respondents (mostly aged between 22 – 29 years old) have expressed interest in owning a property as they see opportunities in the current favourable environment, and spurred by historically low-interest rates, incentives from the extended Home Ownership Campaign (HOC), as well as attractive prices and packages offered by developers.

Homeownership Challenges

The COVID-19 pandemic has also jeopardised the financial strength and job security of Malaysians, which in turn affects property buying decisions.

Entrepreneur and Cooperative Development Minister Datuk Seri Wan Junaidi Tuanku Jaafar revealed that over 30,000 businesses have shut down last year since the start of the pandemic.

99,696 workers were also laid off between January and November 27, 2020, due to the spread of COVID-19. For those who are able to keep their jobs, many are seeing salary cuts due to the challenging market environment.

52% of the respondents said the difficulties in forking out the down payment for the property purchase remains the main barrier that stops them from applying for a home loan.

Meanwhile, job instability (46%), unfamiliarity with paperwork (33%), poor credit history (27%) and lack of supporting documents (25%) are the top five barriers in taking a home loan.

2021 Market Outlook

In reviving the country’s economy, the Malaysian government had allocated the largest national budget at RM322.5 billion to spur economic growth. Over 500,000 new jobs for Malaysians is also expected to be created within the next two years.

Despite the short-term pain during times of uncertainties, it is believed that after the mass vaccination program is underway, Malaysia’s economy will be on the mend with forecasted improvements within the property sector in H2 2021.

“The property market is poised for a gradual recovery in 2021, driven by a better economic outlook and historically low-interest-rate environment.

“This is reflected by Bank Negara Malaysia’s (BNM) latest decision to maintain the overnight policy rate (OPR) at 1.75%, as the central bank sees continued recovery in the global economy.

However, downside risks remain amid uncertainties surrounding the COVID-19 pandemic.

“The property market will also likely be seeing increased sales in the first half of 2021 as the Home Ownership Campaign (HOC) ends on May 31, 2021,” added Sheldon.

Make confident property decisions with the expert opinions, guides and insights on PropertyGuru, Malaysia’s No.1 property website.

2020 has been a challenging year for the Malaysia property market, as the country’s economy has been significantly impacted by the COVID-19 pandemic.

Malaysia’s Gross Domestic Product (GDP), which fell by a record low of 17.1% in the second quarter, declined by 2.7% in the third quarter. Bank Negara Malaysia (BNM), in its statement dated August 2020, has forecasted that GDP for the year to decline within the range of 3.5% and 5.5% in 2020.

The year 2020 also saw a significant decline in property transactions. According to Bank Negara Malaysia (BNM) Financial Stability Review 1H 2020, property transactions posted a decline of at least 25% for both volume and value. Nevertheless, the property market continued to show signs of resilience, as the transaction declines were less-than-anticipated, partly driven by various measures and initiatives from the government.

These measures and initiatives include the reintroduction of the Home Ownership Campaign (HOC), which includes Real Property Gains Tax (RPGT) exemption, stamp duty exemption, and the removal of the 70% margin of financing limit. Additionally, a six-month loan repayment moratorium that began in April has helped keep the lid on default rates.

PropertyGuru Malaysia, the country’s largest property website, in its recent Property Market Outlook 2021 Report opines that Malaysia’s economy will gradually improve next year. The property market is set to benefit from the economic recovery, albeit at a slower pace in the new normal.

“The property market is expected to improve in the second half of 2021, partly driven by an improved economic and public health climate.

“Strong existing demand for homeownership will likely be unlocked and we will see healthy growth in property transactional activity. However, the recovery is expected to be gradual as we acclimatise to a post-COVID reality,” said Sheldon Fernandez, Country Manager, PropertyGuru Malaysia.

He added that the promise of a vaccine being made to the public during the course of the year will bring welcome relief on this front which will further determine buyer behaviour in 2021.

2021: A Buyer’s Market

The current market condition with a historically low-interest rate, property developers’ aggressive promotions, heightened competition among property sellers and incentives under the HOC programme – makes it a favourable timing for homebuyers to look for bargain deals.

However, the prevailing economic climate continues to suggest that caution should be a prime factor in any decision-making process, specifically due to job and income uncertainties.

“Purchasers must not only consider the cost of owning a property but also whether they can afford it while managing other expenses.

“Overall, a buy is advisable for those who are on sound financial footing and are confident about the future security of income. Those in this position will find themselves spoilt for choice in the current buyer’s market,” added Fernandez.

Five Trends that Will Drive the Property Market in 2021

According to the PropertyGuru Malaysia Consumer Sentiment Study, 57% of respondents expressed their intention to own a home by the end of 2021, while 1 in 6 respondents plan to postpone their purchasing plans indefinitely.

“With many Malaysians aspiring to own their own home next year, we have identified 5 key trends that will help facilitate the uptake. They range from incentives to enhance the macroeconomic environment, measures by the government and property developers as well as uptake of digitalisation within the property industry,” said Fernandez.

PropertyGuru has earmarked these key trends as driving forces for the property market. They are:

1) Conducive interest rates to encourage homeownership

The Monetary Policy Committee (MPC) of BNM kept the Overnight Policy Rate (OPR) at 1.75% in its most recent review in November, citing significant improvement in economic activity during Q3 2020.

Lower OPR allows buyers to lock in lower interest rates favourable to current financial standings, especially those finding it difficult to fork out higher monthly loan repayments.

2) Continuation of mega infrastructure developments to create multiplier effects

The Budget 2021, which was tabled at Parliament in November, has seen the Government allocated RM15 billion to revive and ensure the continuity of several mega projects, such as the Mass Rapid Transit Line 3 (MRT3) in Klang Valley, Rapid Transit System from Johor Bahru to Woodlands as well as Pan Borneo Highway across Sabah and Sarawak.

Additionally, the development for Kwasa Damansara, a massive township bordering Kota Damansara and Sungai Buloh with a gross development value of RM50 billion, will create more than 100,000 jobs and have about 10,000 affordable houses.

3) HOC continues to spur buyers’ interest

The reintroduction of the government-initiated campaign has proved to be an effective measure to boost the market, which offers a number of incentives to homebuyers, and is expected to remain in play for much of the first half of 2021.

4) Property Technology On the Rise

One positive outcome of a pandemic-challenged property industry is increased innovation and a greater focus on digital solutions. Key property players have accelerated the efforts to market products and engage with buyers through online initiatives. This bodes well with millennials who are well versed with e-commerce habits and make up a large segment of the house buying market.

PropertyGuru hosted the region’s first largest multi-country virtual property expo which brought together 300 developers over 10 countries on one platform.

Other game-changers include data solutions, whereby easy access to real-time property transaction data would help create greater transparency within the property ecosystem – for buyers, sellers, agents, developers and financiers. PropertyGuru leads the fore with the recent acquisition of MyPropertyData.

5) Affordable housing for the B40 segment

The Budget 2021 revealed that the government will be focussing on affordable housing in the coming year, announcing several measures that will incentivise homeownership among the lower-income (B40) segment of the populace.

This measure will allow private developers to focus more on free-market housing while allowing the government to take the responsibility to provide more cohesive housing for the rakyat.

Check out the complete PropertyGuru Property Market Outlook 2021 and our helpful Guides to learn all about the various property buying, selling and renting tips!

When pandemic COVID-19 hit home ground early this year that resulted in a nationwide Movement Control Order (MCO), an inevitable downfall in economy and businesses was on the rise. But the overall property market stood strong and braced through the first quarter with a marginal increase in asking prices in Malaysia.  

The Malaysia Property Market Index Q2 2020 report saw the overall property market index showing a marginal improvement in the first quarter, increasing 0.63% from 88.90 in Q4 2019 to 89.46 in Q1 2020.

The shutdown of commercial activities due to MCO impacted construction, listings and viewing activities in Malaysia saw a substantial drop in the incoming supply of 10.47% over the same period, representing the steepest quarterly decline in three years.

The increase in overall asking prices was improving gradually prior to the outbreak of COVID-19 and continued to tick upwards, clearly suggesting that Malaysian consumers are viewing property as a preferred fallback for preserving wealth in times of crisis.

Read the full report here! 

“As necessary measures to stem the spread of the pandemic were put into effect towards the end of the first quarter of this year, the property market expectedly saw a sharp drop in activity across the board,” says Sheldon Fernandez, Country Manager, PropertyGuru Malaysia.

“However, the moderation of price growth, as well as transaction volumes and values in recent years, may have had a buffering impact on the market. An upswing in asking prices in major metropolitan areas can also be seen in the first quarter, pointing towards a rise in interest in these areas as Malaysia takes a ‘soft-landing’ approach post-MCO.”

The key property market Selangor witnessed the highest rise in asking prices, rising 1.94% from 91.43 in Q4 2019 to 93.20 in Q1 2020, followed by Kuala Lumpur with a 1.81% increase from 94.90 to 96.62 over the same period.

This concurs the strong interest in the central region is in line with increased investor activity for high-rise projects closer to metropolitan areas during crisis years.

This is further reflected in PropertyGuru Malaysia web traffic, with high-rises and condominiums ranging from RM900,000 to RM2 million accounting for the majority of searches on the portal up to March and early April.

Meanwhile, Penang saw asking price downtrends continuing from recent years and has inched its way down steadily without a history of sharp drops. In this quarter, declines were at 0.13% as the index fell from 95.39 in Q4 2019 to 95.27 in Q1 2020, indicating stability in prices over time.

Johor on the other hand, saw the largest decrease across major markets, from 99.59 to 99.00 over the same period. However, as prices are readjusting, this indicates that a steady stream of demand still exists for the Johor market.

Healthy price movements in central areas were accompanied by steep drops in incoming supply, declining in Kuala Lumpur and Selangor by 11.53% and 10.19% respectively. These decreasing patterns were also seen in other major markets to lesser degrees, with supply dropping by 0.55% in Johor and 0.12% in Penang.

While this timeframe coincides with the onset of the COVID-19 outbreak and MCO in March, the full effects of the pandemic is likely to see steeper asking price drops in subsequent quarters.

Check out these latest project reviews today! Or read our helpful Guides to learn all about the various property buying, selling and renting tips!

As the nation endures its third week under the extended Movement Control Order (MCO), the impact of the MCO amid the ongoing Covid-19 outbreak on the Malaysian economy has yet to be fully realised.

In line with its commitment to being the nation’s property advisor, PropertyGuru Malaysia anticipates corresponding effects on home seeker sentiment to be short-lived, with prospects for recovery in the near term.

Sheldon Fernandez, Country Manager, PropertyGuru Malaysia notes that income and employment have been adversely affected by the closure of non-essential businesses during the MCO, and many Malaysians are prioritising bread-and-butter issues.

“This dampened sentiment is likely to persist through to H2 2020, though measures such as the government’s Economic Stimulus Package (ESP) announcements and Bank Negara Malaysia’s (BNM’S) six-month moratorium on financing payments are laying the foundation for the market to bounce back.”

Sentiment among home seekers was already in decline at the start of the year, with the PropertyGuru Malaysia Consumer Sentiment Study H1 2020 reporting a drop in the Property Sentiment Index to 42 points, down from 44 points in the corresponding period last year.

Meanwhile, research by property data analytics and solutions provider MyProperty Data Sdn Bhd highlights the property market’s resilience in the face of prior economic downturns and viral outbreaks, notably the severe acute respiratory syndrome (SARS) epidemic of 2002.

The Resilience Of Property

In recent events, property transaction volumes and values have remained strong throughout periods of uncertainty (see Chart A).

Chart A: Property Transaction Volume vs Value Growth (Source: MyProperty Data, NAPIC data)

According to the National Property Information Centre (NAPIC), the national house price index has not exhibited an overall decline since 1999, though its growth moderated to a low of 1.1% in 2001.

Fernandez explained that during the 1998 recession, in conjunction with the outbreak of the Nipah virus, volumes and values declined by 32.3% and 47.6% respectively, showing the largest downturn in recent decades.

“However, the industry still moved forward, with 186,000 transactions worth RM27.9 bil. In addition, house prices as a whole have only continued to grow over the past few decades, highlighting the merits of property as an asset class.”

Similar recoveries are seen in national house price growth in the years following 2001, 2006 and 2009. “Price growth, as well as transaction volumes and values, have slowed down in recent years, with measures in place to address the residential overhang. This may cushion potential impacts on the market as it rolls with the blow,” says Fernandez.

“Moving forward, investors tend to restructure their portfolios in uncertain times to manage risk, with property as a potentially lucrative venture. This, along with natural corrective forces as the market regains equilibrium, may account for the sharp recoveries seen in domestic property following crisis years.”

In terms of property types, high rises exhibited the most volatility in prices from 1999-2009, from a high of 15.1% growth in 2003 to a low of –5.9% the previous year (see Chart B).

Chart B: Malaysian House Price Index Growth (2000-2009) (Source: PropertyGuru Analytics, NAPIC data)

As such, terrace homes will likely be a key focus for property seekers moving forward. This is supported by the PropertyGuru Malaysia Consumer Sentiment Study H1 2020 report, which found that terrace homes are the residence of choice (39%) among Malaysians.

This is in line with MyProperty Data’s research which shows that terrace homes emerged as the clear favourite in Greater Klang Valley from 1999 to 2004, in terms of transaction volumes.

Joe Hock Thor, CEO, MyProperty Data, explained that median prices went from about RM220,000 in 1999 to up to RM400,000 by 2004. Around which time, demand similarly progressed to Setia Alam, Klang and other outlying areas towards 2012.

“Developers such as Sime Darby, SP Setia, Gamuda Land and IOI caught the wave perfectly, building larger homes within master planned townships at prices found closer to the city. High-rise popularity in Kuala Lumpur over this period picked up post-2003; this may have been due to cashed-up investors taking the opportunity to pick up glossy headline properties at discount prices.”

This resulted in substantial price appreciation, with median high-rise prices rising from RM350,000 in 4Q 2003 to RM765,000 in 4Q 2009.

Moving forward MCO and Covid-19

BNM’s reduction of the Statutory Reserve Requirement Ratio to 3.00%, moratorium on financing payments, OPR revision as well as revised voluntary EPF contribution guidelines in the government’s earlier ESP announcement are some initiatives contributing towards significant domestic liquidity moving forward.

“For those struggling to make ends meet, these measures help address costs of living while presenting an opportunity to rebuild savings. For those with leverage, it may be a good time to invest,” says Fernandez.

“There have already been calls from some quarters for revised loan-to-value ratio caps for third home purchases. This would accommodate demand from property seekers with leverage, driven by developer initiatives to add value for purchasers amid the changing property landscape.”

GuruCares Reaches Out To Property Agents

PropertyGuru acknowledges the potential impact of the MCO and other recent events on industry stakeholders, particularly property agents, who are often overlooked amid the larger national housing agenda.

Therefore, PropertyGuru has announced the launch of a suite of GuruCares initiatives, aimed at easing the burden on agent partners. Read more about GuruCares initiatives here!

Check out these latest project reviews today! Or explore these useful tips on how to stay sane during these trying times! 

Malaysians are embracing sustainability features when planning for future home purchases, according to the Malaysia Consumer Sentiment Study H1 2020 by PropertyGuru, Asia’s leading property technology company.

“The majority (63%) of Malaysians are thinking ahead and prioritising environmentally sustainable features, with solar panels (70%), smart cooling systems (59%) and pollution-absorbing interiors (40%) highest in demand,” says Sheldon Fernandez, Country Manager, PropertyGuru Malaysia.

“These desires underscore rising costs of living in the country, along with growing quality of life concerns, particularly in urban areas. They also align with the government’s current green initiatives, including a 20% renewable energy mix in its 2025 generation targets.” 

Going Green – What’s Hot and What’s Not

While energy-saving solutions were the sustainability features highest in demand among home seekers, water and waste management were also considerations, with rainwater harvesting (37%), water recycling (31%) and food waste composter systems (22%) cited as desirable.

However, farming and electric vehicle support were low in appeal. Indoor and rooftop farming features accounted for just 17% and 15% of demand respectively, while only 10% of respondents said they were interested in electric vehicle charging points.

“These preferences point towards areas where developers and industry stakeholders can focus or streamline their efforts for future developments, in line with our goal of helping Malaysians make confident property decisions,” says Fernandez.

“Features such as solar and cooling solutions also topped the list in Singapore. However, water recycling is higher in demand there (36%), reflecting that nation’s status as a water importer.”

High-income respondents in Malaysia were more likely to be interested in solar panels and smart cooling systems, with 76% and 63% of such home seekers citing interest in such features. Meanwhile, 43% of less affluent home seekers prioritised water recycling solutions – higher than other demographics.

While generally low in demand, indoor farming and food waste composter systems were more popular among female home seekers, 28% of whom reported interest in such features, compared to only 18% of males.

Safety, Security & Flexible Living Spaces Top of Mind for Malaysians

Aside from sustainability, advanced security systems and flexible spaces are priorities for 61% and 37% of Malaysians respectively when planning for the future.

“These desires highlight ongoing concerns for home seekers in urban areas, particularly safety, which was a consideration for respondents across the board regardless of age, income and gender,” says Fernandez.

“Flexible spaces and modular layouts are also useful in maximising value for home seekers as developers build smaller, more agile units for investors and owner-occupiers alike. Moving forward, industry players must work towards delivering what consumers want and need, throughout their home ownership journey.”

By building with consumer needs in mind, developers can not only ensure they remain relevant, but align their efforts with reducing the national residential overhang as well.

They can also ease the plight of Malaysians faced by supply-demand imbalances, affordability challenges and frequent loan rejections, with corresponding impacts on sentiment.

Consumers Less Optimistic About Property Climate

More Malaysians may be worried about the future due to this uptick of unfavourable sentiment in the short-term. This is seen in the Property Sentiment Index, which dipped two points from 44 in H1 2019 to 42 points early this year.

The decrease came from dissatisfaction with the country’s property climate. While 41% of Malaysians were optimistic about Malaysia’s real estate, affordability and overall property outlook in H1 2019, only 35% felt the same way in H1 2020.

“This decline is likely due to the close of the Home Ownership Campaign, as well as no strong property provisions in Budget 2020. Macroeconomic headwinds, including trade tensions at the time and slowing global growth, may have played a part as well. As we move further into 2020, socio-political uncertainty may take its toll on sentiment as well,” says Fernandez.

“However, the outlook on interest rates has improved. Only 15% of Malaysians saw interest rates as ‘too high,’ in H1 2020, with 29% of respondents calling them ‘reasonable’ or ‘fair’. This may improve further with Bank Negara Malaysia’s recent cut of its Overnight Policy Rate.”

PropertyGuru Malaysia Consumer Sentiment Study – Methodology

The PropertyGuru Malaysia Consumer Sentiment Study polls 1,108 respondents on property and property-related issues via online questionnaires. Launched in 2009 as the PropertyGuru Consumer Sentiment Survey, it has been implemented in collaboration with Intuit Research Consultants, an international research agency, since 2016.

The study’s respondents primarily comprise professionals, managers, executives and businessmen (44%) in the mid to high-income segment (86%). The majority of these reside in Klang Valley (51%), Johor (8%) and Penang (7%), with 6% distributed in the northern states (Perak, Kedah and Perlis).

Check out our previous survey results here! 

The ongoing oversupply of residential properties in Malaysia is seeing projects in the primary market losing their lustre, according to the PropertyGuru Consumer Sentiment Survey H1 2019.

While more than half of respondents shared that they intend to purchase a property in the next six months, the report highlighted a year-on-year drop in exclusive interest in the primary market from 53% in H1 2018 to just 37% in the first half of this year.

This was accompanied by a rise in overall interest in subsale properties from 47% to 62% of respondents over the same timeframe. This figure includes purchasers interested in both secondary and primary market properties, which comprised 48% of respondents in H1 2019.

Source: PropertyGuru Consumer Sentiment Survey H1 2019

Changing consumer preferences

“Malaysians are becoming more flexible in terms of the kind of properties they are looking for. Just a year ago, new launches were the clear favourite, accounting for the majority of interest, with just 14% of home seekers willing to consider the secondary market as well,” said Sheldon Fernandez, Country Manager, PropertyGuru Malaysia.

“Today, 48% of Malaysians are looking for both new and subsale properties, with 14% exclusively targeting properties in the secondary market. This may underscore the growing disparity between new project launches and actual demand, whether in terms of pricing, location or other considerations.”

Source: PropertyGuru Consumer Sentiment Survey H1 2019

The introduction of the national Home Ownership Campaign (HOC) earlier this year – and its extension to 31 December – is not seen as a direct contributing factor, as its incentives and exemptions are designed to ease the country’s residential overhang in the primary market.

As such, there have been calls by industry watchdogs such as the Malaysian Institute of Estate Agents (MIEA) for the extension of the HOC to subsale properties. According to National Property Information Centre (Napic) data, the secondary market accounts for 80% of all property transactions in the country.

“This shift in preferences for subsale properties predates the HOC, with exclusive interest in the primary market among PropertyGuru Consumer Sentiment Survey respondents falling to 39% in H2 2018,” said Fernandez.

“It’s possible that location is the driving factor behind these changes, with purchasers prioritising older projects in central, more mature townships. Another factor which may play a role is immediacy, as subsale properties are available for home seekers to move into right away.”

Silver linings for demand

While consumer preferences may have shifted from the primary to the secondary market, purchasing patterns remain steady, with established suburbs and satellite townships surrounding city centres continuing to account for the majority of demand. 

“We look into two areas of interest: current residence and intention to purchase. In both respects, Klang Valley and its associated neighbourhoods ranked at the top of the list for Consumer Sentiment Survey respondents,” said Fernandez.

In terms of current residence, most (52%) respondents are located in Klang Valley. Of these, 12% reside in Petaling Jaya, with Shah Alam and Subang Jaya (both 10%), the Kuala Lumpur city centre (8%), Cheras and Puchong (both 7%), Ampang (6%) and Damansara (5%) popular among respondents as well.

These patterns are reflected in purchasing intentions, with 62% of respondents targeting properties in Klang Valley. These respondents placed the following areas and townships highest in terms of buying interest:

1. Petaling Jaya
2. Subang Jaya
3. Damansara
4. Shah Alam
5. Cheras
6. Kuala Lumpur City Centre
7. Puchong
8. Bangsar
9. Ampang
10. Mont Kiara

In addition, the Consumer Sentiment Survey H1 2019 findings highlighted the differences in purchasing behaviours between younger and older home seekers.

Source: PropertyGuru Consumer Sentiment Survey H1 2019

For the age group from 22 years to 39 years old, financial eligibility and price per square foot were core factors in decision-making, as reported by approximately 23% and 37% of respondents in the demographic respectively. 

However, for those from 40 to 69 years old, security and safety were the key concerns, as cited by approximately 42% of respondents in the group. Location was a primary consideration across the board, with about 82% of respondents in both demographics reporting it as a priority.

Locational preferences varied markedly by age as well. Younger purchasers desired homes close to their workplaces and families, while older home seekers looked for projects near public transport, shopping centres and dining outlets.

Source: PropertyGuru Consumer Sentiment Survey H1 2019

“Savvy developers are offering home seekers more options when it comes to the types of units available, as well as their features. We’ve seen a lot more granularity there as industry players cater for different segments of the market, and of course unit sizes have been shrinking to lower barriers to entry for younger purchasers,” said Fernandez.

“In terms of financial eligibility, numerous home ownership initiatives have been launched to assist home buyers in overcoming these hurdles. These include our very own PropertyGuru Home Loan Pre-Approval, which allows users to know their home loan eligibility ahead of time, avoiding the pitfalls of loan rejection.”

Market sentiment on the mend 

Looking at broader market direction, the recent PropertyGuru survey found that sentiment had improved year-on-year, with the Property Sentiment Index rising from 39 in H1 2018 to 44 in H1 2019. 

Source: PropertyGuru Consumer Sentiment Survey H1 2019

“We attribute the increase in performance to incremental improvements in terms of sentiments on affordability, as well as outlook on the current real estate climate. In particular, more home seekers are considering purchasing domestic properties, following a downturn since the latter half of 2017,” said Fernandez.

Source: PropertyGuru Consumer Sentiment Survey H1 2019

The percentage of respondents interested in buying locally declined from 57% in H2 2017 to 48% in H2 2018, with a possible correlation to the uncertainty surrounding Malaysia’s 14th general election in May that year. It has since returned to pre-election levels of 54%. 

Source: PropertyGuru Consumer Sentiment Survey H1 2019

In addition, overall positive perceptions of the real estate climate in the country have steadily risen in the past few years, from a low of 25% in H1 2015 to 43% in H2 2018. This year, satisfaction declined marginally to 41%, though the long-term trendline is still on the upswing. 

Source: PropertyGuru Consumer Sentiment Survey H1 2019

“As a whole, with the introduction of initiatives such as the HOC, which has already been extended to 31 December this year with proposals to broaden its purview to next year, as well as to the secondary market and even international purchasers, sentiment is on the mend,” said Fernandez.

“However, danger points such as pricing and financing should be addressed for the market to achieve sustainability in the long term, rather than relying on interventions such as the HOC.”

The PropertyGuru Consumer Sentiment Survey H1 2019 was based on a sample group of 958 respondents, responding to online questionnaires. Conducted since 2009 and implemented in collaboration with international research agency Intuit Research Consultants, the survey’s respondents primarily comprised professionals, managers, executives and businessmen (47%) in the mid to high-income segment (86%).

Check out these new properties in town! Start your search today and check how much the banks will loan you using our Malaysia Home Loan Tools And Calculators.

The home-share economy, as exemplified by Airbnb, HomeAway and similar solutions in Malaysia, has come under increasing scrutiny by industry players, users and authorities alike amid wider oversupply concerns in the residential rental market.

The country comprised Airbnb’s fastest-growing market in Southeast Asia last year, welcoming more than two million guests through over 44,000 listings. However, the rapid growth of such solutions has drawn concern from some quarters, with 54% of PropertyGuru Consumer Sentiment Survey H2 2018 respondents calling for regulations to be put in place to manage the industry.

Figures given are in % (Source: PropertyGuru Consumer Sentiment Survey H2 2018)

Checks and Balances for Home-Sharing

“This isn’t to say that Malaysians are against home-sharing, as the survey found that many (49%) agree with such solutions, while 57% are personally interested in exploring home-sharing solutions themselves,” said Sheldon Fernandez, Country Manager, PropertyGuru Malaysia.

“However, as with many emerging or disruptive technologies and businesses, there is room to improve in terms of regulation. This was acknowledged by research commissioned by a prominent home-sharing player earlier this year, which highlighted the need for home-sharing guidelines, whether they are at the national, state, community or building level.”

Recent efforts in February include calls for home-sharing operators to register with the Tourism, Arts and Culture Ministry. In addition, the Malaysia Productivity Corporation is outlining a framework to manage short-term accommodations in the country.

However, the lack of national guidelines has seen the proliferation of differing approaches to home-sharing depending on area. This has led to the current calls for regulation, while hospitality associations link the practice to declining hotel occupancy rates amid wider challenges in the residential rental segment.

Tenants’ Market for Residential Rentals

The PropertyGuru Consumer Sentiment Survey H2 2018 underscored prevailing attitudes among Malaysians towards renting, with nine out of 10 preferring to buy their own homes and nearly seven out of 10 (68%) currently staying in their own properties.

“These attitudes likely reflect traditional views on property as symbols of status, as well as investments. However, this may change as ‘Generation Rent’ – younger demographics such as millennials and later cohorts – finds properties priced increasingly out of their reach,” said Sheldon.

An oversupply of high-rise residential projects nationwide has seen tenants spoilt for choice for rental accommodations, exerting downward pressure on rental rates. In some areas, such as Johor, much of this incoming supply was designed with home-sharing applications in mind.

In Kuala Lumpur alone, owners adjusted asking rentals downwards by as much as 10% in 2018. This was also driven by obsolescence, as older projects competed with newer launches.

Among survey respondents looking to rent, 60% of these shared that their rental budget was RM1,100 or less. Rental rates from RM800 to RM1,100 were the “sweet spot,” with 19% of respondents saying they were seeking rentals in this range.

Figures given are in % (Source: PropertyGuru Consumer Sentiment Survey H2 2018)

The majority (82%) were in the market for a whole unit to accommodate their families, with just 18% seeking smaller arrangements such as a room. Condominiums and serviced apartments were the preferred residential rental property type (63%), followed by terrace houses (23%), SoHo units (7%), townhouses (3%) and bungalows (3%).

Generation Rent – The Facts About Families 

“While many may prefer buying to renting, younger Malaysians may have no choice but to resort to long-term rental accommodations in the face of financing and property pricing concerns,” said Fernandez.

“The good news is that the long-standing perception of millennials as dependent on their families for living arrangements is outdated, with only 23% of the demographic surveyed currently staying with their parents.” 

Millennials were less hopeful about owning property than older demographics, with only about half (51%) of those planning to move out of family homes in the next year, sharing that they were planning to purchase a property within six months.

In addition, the PropertyGuru Consumer Sentiment Survey H2 2018 found that more Malaysians are deferring moving out to later in life. Of those who are still living with their parents, 87% shared that they planned to move out by the time they were 28 years old or older, with 34% citing 35 years or more as the appropriate age to make the leap.

Source: PropertyGuru Consumer Sentiment Survey H2 2018

“In practice, though, our research found that most Malaysians (89%) who move out will have done so by the age of 30. With this in mind, ‘property procrastination’ may hurt the chances of Malaysians ever owning their own property at all,” said Fernandez.

“This likely reflects the long-term planning and financial commitment needed to invest in property assets, making them unsuitable for the unprepared. As such, PropertyGuru has introduced initiatives such as our Home Loan Pre-Approval solution, to assist Malaysians in this and other aspects of home ownership.”

Marriage was seen as the primary consideration for millennials who chose to continue staying with family, with 58% reporting they were delaying moving out until they tied the knot. Other factors included the need to take care of parents (55%) and lack of savings (52%).

Source: PropertyGuru Consumer Sentiment Survey H2 2018

Evolving with the Industry 

In addressing the needs of Malaysians keen to own property but faced with financing challenges and other issues, PropertyGuru has continuously refined the Home Loan Pre-Approval following its launch earlier this year, leveraging on its role as Southeast Asia’s largest property technology company.

A fintech solution developed in partnership with domestic financial institutions, Home Loan Pre-Approval allows home seekers to know their home loan eligibility amount with 99% accuracy prior to application.

This allows home seekers to avoid the financial black marks associated with loan rejections, while matching them with more than 450,000 listings on the PropertyGuru marketplace along with preferential rates and services from panel banks. 

The solution has seen more than 1,000 completions to date. The vast majority (94%) of these are from home seekers with debt-service ratios of less than 70%, indicating healthy borrowing habits on the part of end-users.

Moving forward, the group is exploring the expansion of panel bank partners for the solution, among other areas. Home Loan Pre-Approval has already received accolades from industry authorities in both the property and fintech segments.

“I think that initiatives such as Home Loan Pre-Approval underscore the positive impact fintech can have in ‘real-world’ terms. There is a certain tendency to relegate fintech to certain circles or specialist interests, due to its sometimes technical nature,” said FIRST (Fourth Industrial Revolution Structural Transformation) President Aaron Ting.

“However, when it’s changing the way people live and work on a day-to-day basis, or even the way they buy their homes, then that’s something people can relate to. For FIRST, our priority is making sure that usage of fintech and blockchain applications goes hand-in-hand with a clear awareness and understanding of what they entail.”

The PropertyGuru Consumer Sentiment Survey H2 2018 was based on a sample group of 944 participants, responding to online questionnaires. The majority (42%) of respondents comprised those in the 30–39 year age bracket, with those between 21–29 years and 40–49 years making up 23% and 21% of the sample population respectively. Most respondents were from middle-income backgrounds (50%), with 31% in the high-income demographic.

Check out these new properties in town! Start your search today and check how much the banks will loan you using our ‘Home Loan Pre-Approval’, with a 99.9% accuracy! Click here.

63% of Malaysians think the government could do more to make housing affordable. Discover these key stats and more in our PropertyGuru Sentiment Survey H2 2018 findings below.

While Malaysians are satisfied overall with government approaches to bring affordable property to the people, the majority still feel that a more targeted approach could be taken to address this pressing gap in the property market, according to the PropertyGuru Consumer Sentiment Survey H2 2018.

The sentiment comes amid widespread perceptions that property prices remain high in the country, with unfavourable market timing, and lack of capital and good financial options also cited as challenges by property seekers.

Figures given are in % (Source: PropertyGuru Consumer Sentiment Survey H2 2018)

Satisfaction with Public Sector Initiatives on the Rise

“In 1Q 2013, 93% of participants in the PropertyGuru Consumer Sentiment Survey expressed dissatisfaction with housing initiatives available at the time.

“This has decreased to 63% in the recent H2 2018 survey, with satisfaction rising from 7% to 22% over a similar timeframe.

Figures given are in % (Source: PropertyGuru Consumer Sentiment Survey H2 2018)

“These movements reflect increasing confidence in public sector initiatives over the past few years, with Malaysians wanting the government to up the ante in their initiatives to provide more affordable national housing for the masses,” said Sheldon Fernandez, Country Manager, PropertyGuru Malaysia.

Low Uptake of Existing Affordable Housing Programmes

According to the survey, actual uptake of national affordable housing programmes is low, despite demand for such initiatives. Only 19% of survey participants applied for the 1Malaysia People’s Housing (PR1MA) scheme, for example.

Participation rates ranged from 4%–9% for other initiatives such as Rumah Selangorku, the Federal Territories Affordable Housing Project, My First Home Scheme, 1Malaysia Civil Servants Housing and MyHome.

In fact, 41% of respondents reflected that they were not qualified to apply for such national housing initiatives.

“A large segment of home seekers is either not qualified, or unaware about existing affordable housing initiatives. That has deterred them from applying for or even considering these options.

“Another challenge is the lack of consensus on what exactly constitutes affordable housing itself. Baseline prices vary from location to location.

“That being said, the majority (nearly eight out of 10) of respondents considered properties in the RM300,000 to RM500,000 range to be on the affordable spectrum,” added Fernandez.

Financing Challenges for Young Malaysians

At the heart of the affordability debate are property prices which have rocketed skywards in recent years, with 76% of Malaysians anticipating continued price increases in the next six months, indicating prevailing negative price sentiment in the market.

Regardless of price movements, household income in Malaysia has failed to rise commensurate with costs. This has caused many to cite unfavourable timing and market conditions as a factor in their property decisions.

“Our survey found that more than half (51%) of respondents had resorted to withdrawing their Employees Provident Fund savings at least once to purchase properties.

“67% of Malaysians have a budget of RM500,000 or less for property purchases,” mentioned Fernandez.

This is supported by recent Bank Negara Malaysia reports, which found that 61% of loans approved in 2018 were undertaken for properties below RM500,000. In total, banks distributed RM133 billion in home financing to some 350,000 borrowers during that year.

Given income stagnation in the country, the younger generation has been particularly hard hit by property financing issues. More than 70% of home seekers under 29 years of age, for example, see prevailing interest rates in Malaysia as excessively high.

Further challenges for home buyers seeking financing include unfamiliarity with the paperwork involved, unfavourable credit histories, unstable sources of income and other outstanding debts that contribute towards high debt-service ratios in the country, such as car loans, personal loans and outstanding credit card debts.

Figures given are in % (Source: PropertyGuru Consumer Sentiment Survey H2 2018)

Primary Markets as a Silver Lining of Growth

“Looking at the bigger picture in terms of market appetite, we continue to see Johor, Penang, Kuala Lumpur and Selangor as primary contributors to transactions in 2018, with 75% of loans approved undertaken for properties in these areas,” commented Fernandez.

Asking prices generally trended downwards or sideways in Q1 2019, as the market adjusts to larger economic tides. However, the Johor, Penang and Kuala Lumpur markets registered marginal quarter-on-quarter increases of up to 0.5%, in line with their role as key focuses of national development.
Location-wise, the PropertyGuru Market Index Q1 2019 report found areas of high demand for affordable properties in Klang and Shah Alam. This demand is catalysed by the upcoming Light Rail Transit (LRT) Line 3 alignment linking these areas to the city centre.

In addition, the emergence of townships such as Bandar Rimbayu, Eco Sanctuary, Tropicana Aman and Setia Eco Hills sustains increasing demand for landed properties in Selangor. These hotspots also point towards fresh avenues for developers and authorities to explore in terms of affordable housing initiatives.

In terms of property types, more Malaysians cited interest in landed, semi-detached and mixed-use projects, with home seekers expressing fewer intentions to buy terrace, condominium, flat/apartment and bungalow properties.

Positive Sentiments Moving Forward

“With recent economic trends and a new government, we are also seeing positive developments and a stable employment market.

“Nevertheless, home ownership is still a far cry for many as there is still a demand-and-supply mismatch. This is reflected by the overall trendline decline of the PropertyGuru Market Index,” said Fernandez.

Source: PropertyGuru Analytics

In the first quarter of the year, the PropertyGuru Market Index was reported at 85.4, down from 85.6 in Q4 2018. This indicates dampened sentiment on the part of sellers, with asking prices moving downward in the mid term and sideways in the short term.

Government initiatives such as the Home Ownership Campaign are expected to stimulate buying appetite in the short to mid-term. This is seen in the increase in the Property Sentiment Index to 44 in H2 2018 from 39 in H1 2018, as well as the increase in asking prices for Kuala Lumpur in the same time period.

About the Reports

The PropertyGuru Consumer Sentiment Survey H2 2018 was based on a sample group of 944 participants, responding to online questionnaires. The majority of respondents comprised 30 to 39 year olds from the PMEB (professionals, managers, executives and businessmen) working demographic and medium to high-income households in Klang Valley.

The Property Sentiment Index is a benchmark of overall satisfaction with the real estate climate in Malaysia, based on consumer perceptions of market conditions, external realities and long-term potential growth. Finally, the PropertyGuru Market Index is an aggregate of seller sentiment based on 450,000 property listings on PropertyGuru.com.my.

After a 3-year steady but gradual decline in property prices, will 2019 see the property sector bottoming out – sparking hopes for a long-awaited recovery which market players are hoping for?

Despite improving consumer sentiment and proactive government policies announced in the Budget 2019, 2019 is likely to see a continued price downtrend for at least the first half of the year. With the inflation stabilising and various affordable housing schemes coming into play, first time home buyers may soon be able to afford a property.

Between October 2017 and October 2018, the Malaysia Consumer Price Index (CPI) increased by 0.6%. As compared to the increment in CPI of 4.3% between September 2016 and September 2017, the comparatively slight change between 2017 and 2018 is further indication that inflation is indeed stabilising.

Another indicative factor of an improving economy is the low unemployment rate of 3.3% in Sept 2018, which shows a decline of 0.1% as compared to Sept 2017 (3.4%).

PropertyGuru Market Index 2018

The PropertyGuru Market Index (an analysis of over 250,000 property listings aggregated and indexed) shows that asking prices of homes in Malaysia continue to drop nationwide as well as the key property epicentres of Kuala Lumpur, Selangor, Johor and Penang, signifying a price correction.

The downward trend of asking prices is reflected in both quarterly and annual price movements despite improved consumer sentiment of 42% and 53% of Malaysians respectively, wishing to buy a home by the end of 2018.

In the third quarter of 2018, the PropertyGuru Market Index showed that asking prices by real estate developers, property agents and individual owners nationwide had dipped by 2% from the preceding quarter. Year-on-year, prices show a 2.3% drop.

Kuala Lumpur

The Kuala Lumpur trend line shows slow but steady downward movement, with asking prices declining by 1.4% year-on-year, from Q3 2017 to Q3 2018. As compared to Selangor and Penang, the comparatively slower decline in Kuala Lumpur is an indication that property prices within the city centre are close to bottoming out.

According to the PropertyGuru Rental Price Index, the rental prices for residential properties in Kuala Lumpur is also on a declining trend, with a reduction of 2.2% between Q2 2018 and Q3 2018.

While there has been a dip in asking prices, the demand for property in Kuala Lumpur is still strong with the most popular and highly searched areas being Bangsar, Mont Kiara and Cheras. Property types that are most searched in these 3 areas are condominiums, followed by apartments and townhouses. The reason for high-rises being the most preferred property type in Kuala Lumpur may be due to their more affordable entry price points.

Selangor

Selangor has seen one of the sharpest decline in prices as compared to Johor, Kuala Lumpur, and Penang. The Selangor market index saw a decline of 0.8% in Q1 2018, followed by an incline of 2.8% in Q2 2018. The index then dropped again by 1.3% in Q3 2018.

The rental prices of residential properties in Selangor has also begun to decline since the beginning of 2018. While it enjoyed steady and even increasing rental rates from Q4 2016 to Q4 2017, it began to decline by 4.2% in Q1 2018, 0.7% in Q2 2018 and 2.2% in Q3 2018.

The demand for properties in Selangor continues to be high, with properties in Petaling Jaya, Shah Alam, and Subang Jaya topping the list in this order. Properties that are most searched for in these areas are condominiums, followed by apartments, and terrace houses.

Penang

The prices for Penang properties have been on a steady decline. While the index saw an improvement of 0.6% in Q1 and Q2 of 2018, they declined again by 1.5% in Q3 of 2018.

As opposed to Kuala Lumpur, Selangor, and Johor which saw a dip in their rental prices, Penang has had a very stable price trend, which saw an appreciation of 1.7% in both Q2 2018 and Q3 2018.

The most popular residential areas within Penang are Georgetown, Bayan Lepas, and Tanjung Tokong, with the common factors of all four locations being their centrality to either the city centre or the Penang International Airport. Apartments and condominiums are the most desired types of residential properties in this area, followed by townhouses.

Johor

As of Q3 2018, Johor has seen a decline in its prices for the second time in 2018. While there was a dip of 0.8% between Q4 2017 and Q1 2018, the prices for properties in Johor increased by 2.1% again between Q1 2018 and Q2 2018. This was then followed by stronger dip of 3.1% in Q3 2018, Johor’s strongest decline yet since Q4 2016.

As compared to Kuala Lumpur, Selangor, and Penang which has been facing a downtrend since 2016, Johor was the only state that was experiencing an uptrend. The fact that its prices is beginning to dip shows that the property prices in Johor may finally be correcting.

Similar to its asking prices which saw a decline, the rental prices in Johor have also begun to see a dip. For the first time since Q4 2016, the asking rental prices for residential properties in Johor dropped by 3.5% between Q2 2018 and Q3 2018.

The most popular locations within Johor that property buyers are looking at are Johor Bahru, Nusajaya, and Bukit Indah. And unlike the other states where property buyers were most interested in high rises, in Johor the demand is highest for landed properties, especially terrace houses.

Here’s how you can take opportunity of the market condition

Given that budgets are tight and there is plenty of supply, many may choose to look around for the first six months before making a purchase decision later in the year.

Others may adopt a wait-and-see approach, hoping to benefit from the various home affordability schemes by the government and even the annual PropertyGuru GuruDeals during which Malaysians can get the steepest discount deals exclusively and only for a limited time.

The initial optimism expressed post GE14 is beginning to wear off as buyers are adopting a more cautious approach. Property buyers should expect the property market downtrend to continue in the first half of 2019, with a chance of market recovery post the third or fourth quarter of 2019.

A continued but stable price downtrend is not necessarily a negative development as shown over the past 2-3 years. Present market conditions have compelled developers and private sellers to be more competitive in terms of quality, design ideas, ownership packages as well as pricing.

It’s a healthy situation – there is plenty of supply for both purchase and rental for Malaysians to choose from and the sluggish conditions are also encouraging greater innovation and ideas to come to the fore, especially with regards to build and design, spatial use, technology and more.

We still see many positives and we hope the prevailing issue of unaffordability and lack of financing can be overcome. In fact, this is the best time for Malaysians to consider owning their own homes. Here at PropertyGuru, we take home ownership very seriously. Case in point, the PropertyGuru “Own Your Home” programme was recently launched to empower Malaysians to become homeowners.

A key component is the PropertyGuru Mortgage Pre-Qualifier. It is the first and only product in Southeast Asia that enables Malaysians to find out for sure how much of a bank loan they will be approved for, accurate by 99.5%. This tremendously improves chances of securing a home loan as Malaysians would be able to make more confident property decisions.

Here Is Our GuruView For The Year Of 2019:

1) Increased Public Transport Ridership to Boost Demand for Transit-oriented Development (TOD) Properties

With the various incentives offered to boost public transport ridership under the Budget 2019, there is expected to be a strong upswing in demand for properties strategically located or directly connected to the MRT and LRT lines.

However, the impact may be felt more in rental demand as most of those using public transport are typically younger, from the working class, or middle-income Malaysians who may not be able to afford a home due to the gap between income levels and property prices.

Properties with direct access to public transport will continue to see strong demand and though emerging supply may have a dampening effect, rental rates for properties are likely to hold.

Beyond location, there are other factors that impact demand for a particular property such as, “Is it maintained well? Is it a new or old development? What facilities are provided? All factors must be considered, which is why there are always exceptions to the rule with some still seeing price appreciation while others may see price decline that exceeds the benchmark, despite the general downtrend for property price.

2) Smaller Units with Bigger Lifestyle Possibilities

Given unaffordability issues and scarcity of space in the city centre and key urban areas, developers will continue to build smaller, high-rise units – 450 to 840 square feet, which offer flexible spatial layouts to cater for varying demographic segments (single adults, young couples, 2+1 families, newly-weds, senior citizens or empty-nesters, etc.) These units will offer space-saving furniture to allow for greater space utility.

Dual key units are likely to be popular to those who wish to work and live at the same place. These smaller sized units will be built closer to public transportation and will come with more facilities. The latter will be a key determining factor for developers to win over buyers.

Buyers are accepting smaller homes as part of the reality of urban living. We have seen this trend since 2016. But they will not compromise on lifestyle. Hence, facilities and retail experiences, as well as seamless connectivity will be key determinants in winning over home buyers, especially Gen-Y and millennial.

3) Buyers Market but High Prices Remain a Challenge for Most

Despite the many positive initiatives announced for Budget 2019, the case of absolute high price of homes when compared to median income of most Malaysians is expected to remain the biggest stumbling block to home ownership, followed by lack of financing visibility.

The truth is home unaffordability is a difficult problem to resolve. Recent initiatives to aggressively manipulate market forces by bringing down home prices will lead to dissatisfaction among existing home owners, as they would potentially lose out on the equity and wealth they’ve built over the years.

A smarter move would be to look into the average annual capital appreciation of homes. This would be more sustainable in the long-term to ensure that prices stabilise over time for wealth preservation potential, while ensuring that aspiring homeowners can still afford to come onboard.

While pent-up demand for homes remains strong and is expected to continue increasing in 2019, the growing desire to own a home may not necessarily translate into completed transactions and upward price movements yet due to the various market dampening factors.

To keep up to date with the Malaysian property market, visit the PropertyGuru Market Index

 
With the potential interest rate hike of 25 basis points and political uncertainties serving as key deterrents to property demand, RHB Research Institute expects developers and consumers to take a “wait and see” stance, reported The Edge.

Much like the last round of elections, buyers are expected to delay their acquisitions, while developers hold back their launches.

“We think the potential rate hike may hit consumer sentiment, as interest costs on mortgages are likely to be more expensive. A strong interest rate environment is generally unfavourable for real estate prices as well,” said the research house in a report.

In fact, the developers’ sales performance for Q4 2017 reflected the slow momentum as they failed to achieve the targeted sales results for the final quarter, while the total new property sales for 2017 only increased 0.3 percent year-on-year.

The downturn has affected small developers the most, given the intense competition as well as their lack of financial muscle to roll out new launches and indulge in marketing campaigns.

RHB Research expects the margin compression trend to continue as developers are left with no choice but to join the trend of offering rebates and discounts as well as invest more in landscape designs to attract buyers.

It noted that the aggressive discounts offered by developers over the last two to three years to spur sales have actually corrected some property prices in the primary market, possibly by 10 to 20 percent, particularly high-end unsold properties.
 
This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email editorialteam@propertyguru.com.my
 

For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit the New Launches or Project Reviews page.

Khaltmaa Battulga plans to take on China and the sluggish economy

By Al Gerard de la Cruz

Three years ago, the Mongolian economy hit a soaring high. The vast landlocked nation was enjoying gross domestic product (GDP) growth of around 8 percent, propelled by a boom in commodities, a prolific mining sector, and a bustling real estate scene. It was as if the country, previously more famous for its endless steppes and nomadic culture than its potential for investment, was channelling the spirit of ancient conquistador Genghis Khan as it reasserted itself on the global stage.

The economic situation, however, has since deteriorated considerably. Having had its credit rating downgraded multiple times, the country obtained salvation courtesy of a USD5.5 billion bailout package, approved by the International Monetary Fund in May 2017.

Desperate times call for desperate measures. And with the election of new president Khaltmaa Battulga – who was sworn into office in July – Mongolian voters have turned to a man who isn’t one to shirk a fight. In fact, Battulga, a former martial arts star, gave notice of his pugilistic style in a bitterly fought campaign against his political opponents in the run up to his election and in vows to wean the country off reliance on trade deals with China.

Battulga will need every ounce of his battling energy to fix Mongolia’s problems. The global downturn in commodity prices came as a hammer-blow to the mineral-rich country’s undiversified, mining-reliant economy. The country’s sovereign debt soared from USD11.7 billion in 2012 to USD23 billion in 2015, twice the GDP. Foreign investments sank to USD195 million in 2016, down from USD4.7 billion in 2011, World Bank data shows.

As a housing market, Mongolia is now East Asia’s weakest, with the Ulaanbaatar housing price index plunging by 3.34 percent year-on-year in March 2017. Abandoned construction sites dot the Mongolian capital.

Such is the desolate legacy inherited by Battulga. But many feel that the president, who as a serial entrepreneur has invested in everything from real estate, hotels and breweries to meat factories, has the business chops and savvy to breathe life into the economy.

“Battulga is a successful property man, but more than that, he’s a successful businessman,” says Lee Cashell, chief executive of Asia Pacific Investment Partners (APIP), the firm behind some of Ulaanbaatar’s most luxurious residential properties. “I would be surprised if he didn’t appreciate the integral role real estate plays in developing this city and this country. I’m encouraged by his obvious understanding of the sector, and his acquaintance with some of the issues and challenges we face as we try to improve the urban environment.”

Experts, including Cashell, believe Battulga could begin by advocating for additional funding for the low-income mortgage program. Saddled with debt, the previous government led by the Mongolian People’s Party (MPP), had been forced to hike interest rates and roll out austerity measures.
“Mongolian banks impose tremendously high-interest rates of up to 24 percent,” explains Bayar Budragchaa, managing partner at Mongolian law firm ELC LLC. “Eight to 10 percent is considered the lowest rate currently available for mortgages.”

Battulga is known for his frequently voiced antipathy towards Mongolia’s chief trading partner China. The new president, who once sold electronics and jeans in eastern Europe during the era of the Soviet Union, mulls more trading opportunities with Russia.

“He wants Mongolia to be less dependent on one trading partner and that’s good news,” adds Cashell. “He wants the country to develop and for economic gains to be more widely distributed.”

Many, however, are more cynical about Battulga’s prospects of turning things around for his country. Mongolia conflates a western-style presidential democracy with a parliamentary system, which almost always results in cohabitation. The MPP is likely to retain control of parliament and constitutionally keep Battulga’s power in check.

“The president has a limited role in government,” Budragchaa says. “In Mongolia, the parliament has the most power and all the right to make a decision. The president is just symbolic. What he’s doing does not really impact the economic prospects of Mongolia.”

Also problematic is Battulga’s reputation for being not exactly squeaky clean. As minister of industry and agriculture between 2012 and 2014, Battulga was associated with an aborted industrial park and railroad project largely financed by government borrowings.

“Politicians in Mongolia are famously corrupt. So that’s nothing new,” says real estate agent Tuvshinzaya Bayarmandakh of Mongolia-Properties.com.

“The most important thing is to completely eliminate corruption,” adds Budragchaa. “We should do everything to reduce this behaviour by government officials as it’s another factor that is hampering the economy.”

Analysts say that a brighter future for the country – and its real estate investment climate – lies in the diversification of its economy. Such advances, however, are no simple thing for a country reliant on its mineral resources for so long. Possible money-spinners include solar power production (the country enjoys more sunny days per year than anywhere else on the planet) and luxury fabric exports (Tengri is selling Mongolian yak fibres in Harrods and Selfridges in London). “All of this business activity, benefits the real estate, and we are closely monitoring the potential to move into infrastructure investment,” says Cashell.

Promising for Battulgla are certain indications of life returning to the economy. In January and February 2017, the country saw a 689 percent year-on-year boom in the value of coal and gold exports, with industrial output increasing over 40 percent in H1 2017.

“The effect of this, in terms of real estate, is multi-faceted and important,” Cashell says, adding that brand new, prime buildings could likely offer yields of 9 percent to 12 percent.

“The top end of the residential market will be the real winner if the economy is turned around,” he adds. “Investors will be keen to purchase completed, high-quality units as they recognise they will be in short supply taken by expats with large housing allowances.”

The legend of Genghis Khan still looms large over Mongolia. Indeed, Battulga’s real estate company funded a USD4.1million, 40-metre statue of the ancient hero in the capital. And, just as in days of old when the Mongol Empire was the largest contiguous empire in history, the country is likely to obtain its gains by expanding into unfamiliar new territories.

This article was originally published on Property-Report.com. For more stories from Asia’s most trusted and enduring luxury real estate, architecture and design publication, visit Property-Report.com

 
These disruptive technologies are set to reshape the real estate industry

Asia Pacific is now the world’s largest testing ground for real estate technology. It is home to 179 proptech start-ups, which have raised around USD4.8 billion in funding since 2013, according to the recent “Clicks and Mortar: The Growing Influence of PropTech” report commissioned by Jones Lang LaSalle (JLL). By 2020, funding in the region’s proptech sector will have reached USD4.5 billion a year.

Disruptive technologies weighed heavily on the minds of real estate and construction stakeholders gathered at the first PropertyGuru Asia Real Estate Summit, which was held earlier this month at Sands Expo and Convention Centre in Singapore.

“The reason why we’re so committed to innovation is that we see the numbers,” said summit speaker Dr. John Leslie Millar, chief strategic development officer at Ananda Development, the award-winning Thai developer whose UrbanTech innovation strategy has met widespread acclaim. “The average age of a Fortune 500 company in 1936 was 90 years; now it’s fallen to less than 15 years. Fifty percent of the companies that were on the Fortune 500 list in the year 2000 no longer exist.”

Real estate leaders will need to capitulate to these paradigm shifts — and fast, Millar cautioned. “Whether you adapt to disruption, whether you adopt innovation or not, it doesn’t matter. Disruption is happening. Either you will be the one doing the disrupting or you will be disrupted.”
Here are seven of the technologies you cannot afford to ignore in this changing landscape:

1. Blockchain

One of the more disruptive technologies to enter the real estate sector in 2017, blockchain revolutionises real estate transactions in that it keeps a binding, completely unbreakable ledger of transactions, which does away with third parties altogether. The groundbreaking tech is indeed a good fit for a sector in a region with high levels of opaqueness. “Blockchain will add liquidity to the property market,” said Jack Fitzgerald, founder of Disrupt Property. “It will enable us to transact property in a different way across markets with much less regulation.” Blockchain’s ability to imbue transparency into real estate transactions portends new structures in real estate in terms of relative ownership, according to Darvin Kurniawan, CEO of Singapore-based blockchain startup REIDAO. “We want to create a new model where the community as a group would be actually able to own properties and will be able to share the utilisation of these properties among themselves,” he said. “If we are friends, we can stay in each other’s properties because we trust each other. What if we bring that structure through the blockchain, remove the trust, and we allow the sharing of the properties?”

2. Cryptocurrencies

Part and parcel of the blockchain revolution will be the growing adoption of cryptocurrencies. Dubai’s land registry has just announced its own cryptocurrency, while Singapore is tokenising its dollar under the game-changing Project Ubin – the Monetary Authority of Singapore’s ongoing distributed ledger technology trial. Powered by blockchain, cryptocurrency payments are rendered automatic. “Cryptocurrencies are obviously one of the hottest spaces in real estate right now,” said Julian Kwan, founder of InvestaCrowd. “We’re watching it very closely.” By paying in Bitcoin, Ethereum, or any of the other cryptocurrencies that have recently gained popularity, property buyers do away with lawyers, notary requirements, and other middlemen, vastly expediting asset transfers. Since cryptocurrencies are not bound by country-specific interest rates and transaction charges, it also makes it easier to conduct cross-border transactions.
 

 
3. Internet of Things (IoT)

Developers in Asia are increasingly furnishing properties with smart home appliances and devices, especially those that allow access control, i.e. control of their units from mobile interfaces anywhere in the world. “Internet of Things is just another term for sensors,” Fitzgerald said. For inspiration, developers are turning their attention to The Edge, the world’s smartest building. The 15-storey structure in Amsterdam is equipped with a whopping 28,000 sensors, allowing it to detect and respond to changes in room temperatures, humidity, lighting, ventilation, and other variables. The Edge is also a net-zero energy building, producing 102 percent of its energy needs and making it a darling among sustainability advocates worldwide. “I love The Edge Building,” Chungha Cha, founder of the nonprofit Re-Imagining Cities. “If we have a lot of these buildings, which connect the physical layer, the bricks and mortars, to a digital layer, you can enjoy additional income as a real estate developer.”

4. Geolocation

“Location, location, location” rings truer than ever for the real estate sector as mapping technologies become increasingly advanced. Maps are no longer just maps. Addresses now come with a list of data attributes, such as building types, sale values, natural hazard risks, and points of interest. Ananda is, for example, exploiting the treasure trove of data that comes with Bangkok having more Facebook users than any other city on earth. The developer is using points-of-interest (POI) data generated by social media users and linking them, via algorithms, to publicly available consumer spending data. The upshot of these lets developers make more accurate valuations and predictions as to how much revenue they can derive from a particular plot of land. “Either we can pay more because we understand the value of a plot of land better than competitors or the competitor locks up their capital in land that they can’t sell,” Millar said. That’s an example of how data gives us a competitive advantage.”
 

 
5. Drones

A significant part of product strategy going forward for real estate developers and property portals is the application of drones for photography. PropertyGuru, for instance, uses unmanned aerial vehicles to capture 360-degree images from various building heights, giving property purchasers unvarnished views that they can expect from their future apartments. The Asia based proptech firm also sends out UAVs to film videos of up-and-coming neighbourhoods or those poised for major infrastructural upgrades. “Most developers today are smart enough to create great visualisations,” said Hari Krishnan, CEO of PropertyGuru. “From a consumer’s perspective, they know exactly what the view is; it’s not just a visualisation. In the end, they care that they are looking at better-looking photographs and videos. They don’t care about the kind of technology that we’re using.”

6. Augmented and virtual reality

Augmented and virtual reality illustrates the full extent with which technology can execute and broker transactions in global real estate investment. The wide variety of VR headsets on offer has empowered discerning property seekers to be transfigured in the properties of their dreams—even in some cases before they exist. “Imagine a buyer in Hong Kong looking at a London property,” Shailesh Rao, Google and Twitter alumni and current board director at JLL, said at the Summit. “Here is what I think is an amazing opportunity for augmented reality to mitigate the risk of that review process and potential purchase online.”

7. Big data

With big data, companies can see the profiles that make up buyers and their interests and make more informed decisions on approaching potential clientele. Marketplace technologies, not unlike Netflix or Uber, will be able to arbitrate and connect buyers and sellers in the real estate market based on such affluence of data. One Silicon Valley startup, Opendoor, has been disrupting American real estate since its launch last year based on this principle. A property seeker goes into the Opendoor site and puts in their address; the site returns with a binding offer the home within 24 hours. “This process is all based on the integrity of Opendoor’s data,” said Fitzgerald. “That’s the kind of innovative thing that big data allows companies to do.”

This article was originally published on Property-Report.com. For more stories from Asia’s most trusted and enduring luxury real estate, architecture and design publication, visit Property-Report.com

 
Consumer Sentiment Survey revealed that improving sentiment may persist going into 2018, as consumers react positively to issues of oversupply in the market, improved assistance from the government for affordable home ownership and macro-economic factors.

The sentiment is further supported by the stable price perception for all property types in Malaysia and consumer satisfaction has improved with a greater number of buyers looking to transact in the next six months.
 

For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit the New Launches or Project Reviews page.

 
PropertyGuru Malaysia’s recent Consumer Sentiment Survey revealed that improving sentiment may persist going into 2018, as consumers react positively to issues of oversupply in the market, improved assistance from the government for affordable home ownership and macro-economic factors.

The sentiment is further supported by the stable price perception for all property types in Malaysia and consumer satisfaction has improved with a greater number of buyers looking to transact in the next six months.

PropertyGuru Malaysia Country Manager, Sheldon Fernandez who shared the analysis in 2017 showing that the market has been moderating with prices generally declining.

However, with the better than expected economic performance, consumers are gaining confidence again.

Malaysians Believe The Market is Oversupplied

As Malaysian believe the market is oversupplied, 57 percent to transact in the first half of 2018
coupled with the oversupply issue which may see prices drop further in 2018 for certain property types, consumers now are expressing improved satisfaction.

The Consumer Sentiment Survey showed that three out of four Malaysians believe the market is oversupplied which may see prices drop further in 2018 for certain property types. This has driven the desire to purchase in the next six months with consumers looking at both primary and secondary properties to optimise their choices.

Property Seekers Prefer Affordable Priced Properties

The Consumer Sentiment Survey noted that about 1/3 of respondents are looking for properties priced between RM300,000-RM500,000. Those looking for properties priced RM300,000 and below have increased by 5 percent to reach 31 percent from the previous six-month’s 26 percent.
Consumers’ criteria when purchasing a home remain unchanged with location, security and safety and unit size being the top three factors for consideration when making a purchase decision.
 

Long-Term Consumer Sentiment – Capital Appreciation of 10 Percent and More Expected

Consumers voiced their intention to capitalise on declining prices as most believe that the long-term wealth preservation capability of real estate will remain intact. This was further supported with PropertyGuru’s data showing that majority of Malaysians believe that property prices will appreciate over a 5-year period across all property types.
First-time home buyers or those intending to purchase a home in the near future as well as investors and upgraders formed the segments of consumers for the survey.
 

To read the full report, read the PropertyGuru Consumer Sentiment Survey report

Why is rental a burning issue now?

It’s the same old argument that we have been having for the past years. The sighing and complaints of prices of properties, which are off the roof. This has become alarming to most Malaysians who just can’t afford a house to be called a home, especially in places like Kuala Lumpur, the nation’s capital city, the pulse of the country where many have migrated to work and settle down.

If buying is a no go, can rent solve the dilemma of unattainable properties in Kuala Lumpur?

If you cant buy one, perhaps rent one… (Image sourced from MIC)

The country’s recent tabling of Budget 2018’s has shed a light upon the issue as the federal government is taking note that rentals are the next best thing in solving housing unaffordability in the country. This included 50% tax exemption for rental income RM2,000 and below, per-residential home per month.

Tell me as it is, no holding back!

But can rental be the salvation of a dire unaffordability issue? The rule of thumb when renting is to rent a minimum of 30% of your take-home salary. But let’s digest the reality in considering the feasibility of renting 30% from one’s salary if he or she is living in the heart of Kuala Lumpur.

Among the prime areas in Kuala Lumpur, Bangsar’s rental price is simply staggering (Image sourced from Inseasia)

The monthly expenditure in the city for a 4-person family could cost an average of RM7,162.65, which exclude rental. Meanwhile, the monthly expenditure for an individual is RM2,002.55, which also exclude rental. And the average income of folks in the city after deductions is RM4,170.

That is pretty staggering amount especially for mid to low income families to fork out expenditure and subsistence that city living requires. It is no wonder why Kuala Lumpur is ranked 9th most expensive city in Asia with price index of 88, behind the likes of Beijing, Taipei and Bangkok.

How did we come to this point where the median house price is 4.4 times median annual household income?

Kuala Lumpur is blessed with ample of residential and mixed developments. In fact, there is an overhang of properties worth approximated RM35.5 billion. These unsold properties also included 130,690 residential properties with the value over RM20 billion. But only a small fraction of these developments is in the affordability bracket.

Average rental for a one-bedroom apartment in the city is RM2,271.15. Meanwhile, the average rental of a 3-bedroom apartment is RM4,244.06. But we are very aware that central locations like KLCC, Bangsar and even Ampang Hilir could skyrocket to tens of thousands of ringgit due to prime location and extravagant facilities.

If you are thinking of saving up by ditching the car and start commuting by train, then think again. The closer the residential or mixed complexes within the city centre are to any popular form of public transportations like LRT or MRT, the higher the rental gets.

There will be an unprecedented hike between 10% to 15%. In fact, the capital appreciation is said to be the highest for properties within a 500-metre radius of the train stations. Look at areas like KLCC, Jalan Jelatek and service apartments around Jalan Bukit Bintang. Rental could easily start at RM2.56 psf.

‘Outsourcing’ rental homes

What are other optional areas that can compensate Kuala Lumpur’s expensive rental properties? There is an abundance of areas that could be the next best thing in terms of renting while saving up for a home.  Here are some suggestions for areas that might be feasible in replacing Kuala Lumpur as home.

Source: Numbeo

Bear in mind that most of these areas are within or more than 30 km radius from the city centre along with its transportation conveniences. The stated mode of transportations are the ones that are currently active and in use. MRT 2 & 3, as well as LRT 3, are not included due to its later date of completion.

Now, would it make the move worth it taking time, cost of petrol and toll into consideration?

Source: Google Maps

So, what’s next?

It is highly speculated that 2018 will see an increase of people moving outbound of Kuala Lumpur in search of cheaper properties, and this includes renters. With the rise of MRT 2 and 3 as well as LRT 3 penetrating through distanced suburban areas, buyers and renters might sweat lesser than before.

These train alignments are also projected to have multi-purpose facilities, which include Park and Ride and Feeder Busses that will ease commuters’ hardship.

To survive the rising cost of living, residing in somewhat remote suburban areas might slightly mend the hole in our pockets.

The government, on the other hand, need to start a regulatory mechanism in controlling the rental market that seems to be a free market, dictated conveniently by investors and property owners.

Giving tax rebates as encouragement is hardly enough to make residential property owners to lower down the rents. Renters are still left out in the cold without any protection or tax relief from the current system and even Budget 2018.

If rental is the best next thing or a short-term solution to housing unaffordability, then there are many issues that need to be ironed out immediately to mitigate the rental market.

Hence, the government needs to get down and dirty in making renting within the city centre as a viable option once again among the people, especially for folks from both B40 and M40 or at risk of having KL’s city centre high and dry from local tenants. 

Featured image sourced from The Star 

For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit the New Launches or Project Reviews page.

 
They say you should never meet your heroes. However, it was an initial encounter in 2005 with legendary resort architect Bill Bensley, which put Clint Nagata on the path of founding BLINK, one of Asia’s most distinctive hotel and resort design firms.

Nagata, who at that time was working as a corporate designer for US firm Wimberly, Allison, Tong & Goo, contacted Bensley while traveling Thailand on the off-chance that he could secure a meeting with the designer, who was already famous for turning out some of the most whimsical, flamboyant, highly personal five-star resort designs in the region.

He first encountered Bensley’s work through the American’s book, Paradise by Design, and had become enamoured with his escapist language and uncompromising approach to resort design, directing everything from planting schemes to table settings.

He recalls his first visit to Bensley’s studios vividly. “I remember going into the basement and seeing a bunch of artists at work,” says Nagata. “The whole thing was just so creative. For someone working in the States, where we don’t have such bespoke design, it was very inspirational. The process, the sheer talent, I was taken in.”

The pair became good friends and Bensley lent Nagata some back offices so that the 36-year-old Japanese-American, born and raised on the Hawaiian island of Oahu, could establish his own firm in Southeast Asia. Today, his acclaimed design practice employs some 85 people at offices in Bangkok, Singapore, New Delhi and Shanghai.

BLINK’s footprint stretches from the burgeoning cities of China to the pristine island shores of the Maldives, from mixed-use developments in Nairobi to boutique retreats in Istanbul. Its work for the Regent Phuket Cape Panwa saw the property pick up a Silver Award in the Hotel Space category at the 2013 Asia Pacific Interior Design Awards, while the classic lines of the Conrad Sanya Haitang Bay won the Hospitality Design Awards in 2012.

The breadth of clients and environments with which Nagata’s firm now works means that a signature BLINK style might seem elusive. But it is there in the strong sense of place retained for each project, in the utilisation of local materials, in daring to custom design that which can’t be found on the shelf, and in always using the local culture as a project’s starting point for design.

“I was taught that a sense of place is critical in creating successful projects,” says Nagata. “I find myself still to this day saying those words only with a different spin. Our role is to bring out the best in a location, but also to think about the brand and the owner. Often our clients are individuals with aspirations of opening hotels, personal projects, so we like to instil their tastes and likes into our design.”

One of those individuals is Wang Jianlin, owner of the world’s biggest private property group, Wanda, and China’s richest man. Jianlin provided BLINK with an early break when he commissioned the studio to work on the Conrad Sanya Haitang Bay in 2006, an opulent coastal resort which kick-started a fruitful relationship between BLINK and Chinese clients.

“Throughout my career, I’ve always believed it’s not only about talent but timing, being in the right place at the right time,” he says. “And I’ve always felt like I’ve had that behind me.”

BLINK now has 10 projects across China including a palatial Hilton amid the natural surroundings of Fengxian outside of Shanghai, a Renaissance in Hailing which takes inspiration from the white sails of a traditional Chinese junk and others which are still under construction.

Nagata is now also looking to open a BLINK office in Berlin – the company is currently working on several projects in Germany – where he hopes to establish a stronger foothold in European markets. Asia, though, remains where he believes the world’s leading hotel projects are being carried out.

“Asia is pioneering,” he says. “We’ve been fortunate that the market has been quite strong. Designers from all over the world are doing fresh projects here, which you now see reflected in other parts of the world.”

The Asian resorts which form most of BLINK’s portfolio are a far cry from Nagata’s roots. The son of fourth-generation Japanese American parents, he was brought up in Hawaii on Oahu’s North Shore, an area which during the 1980s was a byword for remoteness.

“Being surrounded by so much beauty made me see things the way I do now,” he explains. “I look for simple forms and translate that.” For a resort he is currently working on in Vietnam, for example, Nagata has taken a humble type of black stone used locally for outdoor flooring, and brought it indoors in favour of the luxury finish you’d get from importing Italian marble.

His reason is simple: “There has been so much excess in the world that people are trying to do less.”

This trend he feels is being reflected not just in materials, but also in the architecture of modern hotels and resorts, with clients increasingly preferring smaller spaces that can economically be furnished with custom fittings. “It’s not about creating the biggest room, but asking what that room is about, how it flows,” he explains. “With developers concerned about their bottom line, reducing the size and maintaining quality has been well received.”

Today, Nagata bases himself out of his Bangkok offices, where he says the quantity of skilled designers exceeds anywhere else in the region.

“If you were to go to Singapore or even China you would see that a lot of the design staff are Thai,” he says, adding that Thailand’s largest city is also a convenient geographic base for someone whose work takes him to upwards of 30 cities around the world each year.

His 1,000-square-meter penthouse offices on the 30th floor of the prestigious Bangkok City Tower is a far cry from the operation which Nagata set up in Bill Bensley’s back rooms 12 years ago. “I started the firm with really not much of a goal except to create really nice resorts and hotels,” Nagata explains. “I had no idea we would do as well as we have.”

This article originally appeared in Issue No. 142 of PropertyGuru Property Report Magazine

Images sourced from Property Report.

For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit the New Launches or Project Reviews page.

 
What is the worst thing that could possibly happen to you? Disasters differ from case-to-case, but losing your home and/or your belongings is usually the highest on most people’s list. Many are unprepared for the worst, resulting in frustration and distress. Below are just some of the stories of how the unwary have been hit.

Case Study 1

The most notorious case so far in 2017 was the recent floods in Penang, which have been hailed as the worst in its history. Even Gurney Drive which had never been flooded before was badly hit, proving that anyone can get hit by a disaster when they least expect it.

Thousands of people were affected, millions of ringgit in losses were caused, and some homes were so badly damaged that their occupants became afraid to live there. The Penang government gave RM400 to each family affected by the floods, but the amount is hardly enough to cover the cost of repairs or replacements for what was lost.

This highlights the importance of Houseowner and Householder insurance. The Houseowner plan would allow policyholders to claim for the structural damages on their homes from unfortunate and unexpected events like floods. The Householder plan would allow policyholders to claim back monies to replace home belongings which have been lost or damaged in such events.

Case Study 2

The Penang floods highlight the extent of damage that can be caused by water. However, most people don’t realize that even when their homes are far away from large bodies of water or positioned on high ground, they are still at risk of their homes being flooded. In the event of a burst pipe, serious cases would ruin nearby home belongings, compromise the wiring and even affect the building’s structure in the long run.

The cost of repairing these varies from case-to-case but one thing is clear, the sooner you get the burst pipe fixed, the better. And that’s just one of many cases in which a timely fix can prevent heartbreak. Wiring problems should be fixed before a fire breaks out. Roofing problems should be fixed before the rain soaks through. Here’s why Allianz’s HomeFix insurance can help, not only does it cover burst pipe repairs, it also covers other home repairs and services (e.g. air-con servicing, painting, roofing, wiring, etc) offered by Allianz partners. On top of that, there’s also a domestic help allowance to clean up the place after a big mess or even just to tidy up before a big event.

Case Study 3

While not as large scale as a natural disaster, it’s no less heart wrenching to hear about cases when a major misfortune befalls the breadwinner of the family. On top of mourning their beloved, the family also has to suffer anxiety on what to do about their home mortgage instalments. Where would they get the money to pay for it?

It’ll take some time for the family to find their footing and the bank will not take death or total permanent disablement as an excuse for missing payments. Mortgage Loan Instalment Protection would cover your home in situations like these, providing peace of mind in times of pain and loss, insurance plans such as the from Allianz provides coverage against such contingencies. This plan will cover the victim against banks foreclosing against their homes for up to 6 months.

Case Study 4

Finally, one of the most painful cases is when landlords that get appalling tenants. On top of facing losses when they’re only trying to earn a livelihood, the landlord will have to fork out money for damage on the property and the legal costs if they decide to go after the tenant.

Fortunately, taking into account current events, Allianz has created a Landlord Insurance which covers damage to the property caused by tenants. In addition, policyholders able to claim for certain legal fees (Letter of Demand) twice a year if their tenant refuses to pay rent, not to mention they’re also covered if their tenant runs away.

Insurance programs are sadly often deemed as unnecessary, but they are in fact very important. As such, Allianz has an innovative product designed to give its customers the power to choose what they need. It’s a modular home insurance, which means customers get to personally adjust the plan according to their needs, where the price will be based on how much the customer wishes to be insured for.

Not only will the services rendered to the customer be better than if they were to approach a third party such as a bank, but they also get bigger discounts as they are purchasing the insurance directly from the source itself.

For more information about Allianz and the packages they offer, visit them at Allianz Malaysia.

Image sourced from Malay Mail.

For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit the New Launches or Project Reviews page.

 
Everyday, cities across the world are seeing an influx of over 180,000 inhabitants. It has never been more important to build smart, sustainable cities that can rise to the occasion and be safe, healthy places to live for years to come.

Singapore, which placed second on this year’s ranking of Smart Cities worldwide, was the fitting venue for the first PropertyGuru Asia Real Estate Summit. The conference, held 7-8 November at the Sands Expo & Convention Centre, convened some of the brightest pundits in the smartening of the world’s urban agglomerations.

Here are the key takeaways from the summit in the ongoing saga toward eco-friendly, human-centric, technocratic cities:

1. Climate realities are sinking in

“Part of the reason for the global trend of cities wanting to become smarter and more sustainable is to address the global needs for climate action on the built environment and reduce greenhouse gases,” explained Chungha Cha, co-founder of the South Korea-based Re-Imagining Cities Foundation. Cities emit a whopping 80 percent of the world’s carbon emissions, but the grim statistics somehow have an undercurrent of hope. Sixty percent of the buildings that will make up the world’s fastest-growing cities by 2050 have not been built yet. “That’s a very good opportunity for us to get the buildings correct,” Cha said.

2. Leading from the top is a must

Seen through the lens of the “three Ps” — people, planet, profit — smart cities hinge on an eight-pillar framework, namely smart government; green building; smart energy; eco-mobility; smart infrastructure; smart economy; smart citizen & community; and convergence technology in real estate. Of these, smart government must take precedence. The Singaporean government is a global exemplar in this case, propagating some of their best practices in would-be smart cities around Asia. “I’m from Korea. When we look at Singapore from the outside, it seems to be leading on the smart, sustainable cities front,” says Cha.
 

 
3. Going green is rewarding…

It is no secret that green building has strong business case, a fact made apparent to leading Singaporean developer City Developments Limited (CDL) as early as 1995 when it started its sustainability journey. “When I came to Singapore 20 years ago, I could really see the wisdom of the clean & green city model,” recounted Esther An, chief sustainability officer at CDL. “It has proven to be a major selling point for Singapore, attracting businesses and investment. The same applies to property companies like us. It can enhance our branding and differentiate our product.”

4.… yet some developers are still hesitant

Most developers will find that they can achieve payback from their initial investment within five years or so of building green. However, many companies still cling to traditional building methods — despite the Singapore government’s best propositions. “Some developers and vendors still resist the idea of sustainability, so we have to offer some incentives to encourage green standards” said Ang Kian Seng, group director of environmental sustainability at Singapore’s Building and Construction Authority.

5. The future is in prefab technology

Construction labour can be very cost-prohibitive, especially for cities like Singapore, which are highly reliant on foreign workers. CDL has begun using prefabricated prefinished volumetric construction (PPVC) in the development of a large-scale residential project. The 636-unit project, an executive condominium on Canberra Drive in Singapore, was practically assembled like Lego blocks, with 4,600 building modules “stitched together,” according to An. The use of prefabricated modules saved the company 55,000 man days and raised productivity by as much as 40 percent. “It’s really a game-changing technology that makes the building industry a lot cleaner and smarter,” said An. “Most importantly, it enhances the safety of the people because there is less major building work required onsite.”
 

6. Democratisation of sensors is a good thing

Sensors are the building blocks of any great smart city: They essentially power the Internet of Things (IoT) networks that typify smart homes around the world. Adoption of sensors could be approaching critical mass very soon. “As the cost of sensors and bandwidth processors go down; you have more and more start-ups in the space of IoT and AI,” noted Vicknesh Pillay, founding partner at TNB Ventures. A single new sensor was able to reduce overall energy consumption in six buildings in Singapore’s Fusionopolis district by 15 percent year-on-year while decreasing its dependency on chilled water by 13 percent. “For the first time you’re able to use digital technologies to keep track of exactly what each piece of equipment is doing,” said Ani Bhalekar, IoT & Mobility Practice Lead for Southeast Asia at Accenture, which installed the sensor with property developer JTC. “Through this conditions-based monitoring, you’re basically giving your crew the ability to do what they do best but work on different schedules. You’re basically saying only fix the machines that need fixing.”

7. More freedom of information is necessary

A smart city is one that pushes out information on its buildings for the greater good of the community. For instance, the Building and Construction Authority is currently persuading Singaporean landlords to share energy summation data with the public domain. “Surprisingly, 76 percent of them are willing to do so,” said Ang Kian Seng. “We are trying to put in legislation to make the data disclosure mandatory for all buildings, so that information would then be available for industry, for landlords to pull some benchmarking.”

8. Green financiers should focus on the numbers, not PR stunts

The challenge today for developers in green financing and impact investing lies in the disclosure of more quantitative data, coupled with more transparency, in sustainability reporting. Developers must somehow square green efforts with financial impact. “We are all living in a transparent world,” said An. “Analysts make investment decisions based on your performance. It can’t just be like a PR report. Analysts and investors look at the numbers. You have to really present environmental, social and governance research through a financial lens.”
 

This story originally appeared in Property Report.
 

For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit the New Launches or Project Reviews page.

 
Just a couple of years ago, few people could have pointed to Bangsaray on a map of Thailand’s Eastern Seaboard. Even those well acquainted with its much noisier neighbour, Pattaya, would have struggled to locate the sleepy coastal town situated only 20 kilometres south of the country’s liveliest beach resort.

While Pattaya – itself nothing more than a backwater fisherman’s village 40 years ago – is now one of Thailand’s most in-demand tourist and real estate investment destinations, Bangsaray has largely been overlooked. This, however, is gradually beginning to change.

Bangsaray’s blossoming appeal primarily hinges on its natural attractions and lifestyle amenities. The area is home to dozens of golf courses, 20 of which rank among the top PGA courses in Thailand. The calm waters around Bangsaray, meanwhile, are a rolling invitation to engage in sailing and various watersports. Biking, running and hiking routes also abound in the area.

“As a destination, Bangsaray is mostly unspoilt by high-rise buildings and large hotels; it retains a unique quaintness and fishing village charm, with great beaches and seafood restaurants,” says Chris Delaney, managing director of Sunplay Asia, the property developer behind the 28-hectare (175 rai) Sunplay Bangsaray project.

Part of the kingdom’s 20-year national strategy, the Eastern Economic Corridor (EEC), Thailand’s biggest economic zone to date, will strengthen Bangsaray’s links to the larger world. Around THB1.5 trillion (USD43 billion) in infrastructure projects are slated for the zone, including the expansion of the U-Tapao International Airport and the construction of a high-speed railway between Bangkok and nearby Rayong, hailed Asia’s “Small City of the Future” by the Financial Times’ FDI Intelligence unit.
 

 
Set to become Thailand’s third largest airport, U-Tapao will reduce the area’s dependence on Bangkok’s Suvarnabhumi. Early projections claim passenger arrivals could surpass 3 million in the next few years.

“Given the planned infrastructure improvements around Bangsaray, there is no doubt that land prices will climb, most probably at a higher rate than many other areas in the kingdom,” says Tim Skevington, founder and CEO of Landscope Thailand, an affiliate of Christie’s International Real Estate.

Beachfront land in Bangsaray has increased by as much as 225 percent over the last 15 years, according to Clayton Wade, managing director of Pattaya-based real estate agency Premier Homes. A 3-rai beachfront parcel now lists at about THB30 million baht per rai, compared with THB7 to THB8 million in 2002.

“This is one of the most positive aspects of Bangsaray’s rise as a boutique resort hot spot,” Wade says. “Land prices in Pattaya, Jomtien and Na Jomtien went up even higher over the same period but Bangsaray hung in there with some very attractive land price increases.”

Skevington believes the high-end residential property segment will find its niche first in Bangsaray. Sunplay Asia’s expansive Sunplay Bangsaray project is a prime example of a new development already piquing the interest of local and overseas investors.

Sunplay The Heights, the 12,500-square-metre complex of condominiums that makes up the first phase of the Sunplay Bangsaray project, is already on the market with unit prices ranging from THB9 million to THB35 million (USD270,000-1m).

“As a high-end development, and an environmentally friendly, low-rise community, Sunplay will undoubtedly have a positive effect on land prices in the Bangsaray area,” Skevington adds.

The project includes The Sunplay Club, a multi-purpose private facility that includes an expansive pool, fine-dining restaurant, bar, deli, and café. Sunplay The Heights Bangsaray is expected to be completed by 2018, while a private gated community of pool villas is due for a 2020 finish.

“Judging by current demand, partially due to the developing EEC zone, we expect investors to see returns of 4 percent for the first three years until stabilisation, rising up to 6 percent thereafter,” Delaney says.

While it is built ideally for property seekers of a certain age, Sunplay Bangsaray is actively courting those who lead active lifestyles, with a wide range of amenities including a fitness centre, yoga studio, and a network of jogging paths. “Today’s over 50s are more active and adventurous than ever before; they won’t simply settle for a quiet retirement – they want to maximise their new-found leisure time, meet like-minded people and learn new skills,” Delaney adds.
 

 
Thailand is one of the ripest markets for retirement living. By 2040, the kingdom will be home to 17 million people aged 65 years or older, one of the highest ratios of elderly inhabitants to the general populace in Asia, according to the World Bank. Bangsaray has been luring a “large and growing” retirement market from Europe, Delaney says.

Even though demographic upheavals have led to an uptick in the development of retirement communities in Thailand’s resort areas, Sunplay Bangsaray remains a standout, according to Skevington.

“Many such communities are located further away from Bangkok, and from the international airport, and therefore not as easily accessible as Sunplay Bangsaray,” he says.

Longer-term visas for expatriates make Bangsaray even more appealing to international property purchasers. The Thai government this year made foreigners from 14 countries eligible for a 10-year retirement visa. Better access to healthcare also makes Bangsaray a sensible retirement destination, the area is home to a growing list of hospitals and clinics.

“It will be retirees whom investors will eventually want to sell or rent their Bangsaray properties to,” Wade says.

“I predicted in 2007 that Bangsaray would evolve from a sleepy fishing village image to a top Thailand boutique resort in 10 years. Well, it’s been 10 years and we haven’t quite gotten there yet but Bangsaray is well on its way.”

Even though Bangsaray is a long way from reaching Pattaya levels of brand recall, emerging infrastructural connections between the towns, as well as nearby Rayong, look set to fast-track this once overlooked enclave on the Eastern Seaboard to become an internationally renowned resort destination.

With all roads literally leading to it, the future looks bright for Bangsaray.

 
This story originally appeared in Property Report.

 
For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit the New Launches or Project Reviews page.

The property market in Malaysia is anticipated to pick up slightly in the year 2018 given the various influences that might affect the economy in the coming year.

However, there are views that asking prices will significantly reduce and transactions to experience a decline, there are factors that might be show signs for the market to be more vibrant in 2018.

The rule of thumb for 2018 is that properties are expected to remain unaffordable at 4.4 times the median income in Malaysia. The number would be even higher in key urban locations such as Kuala Lumpur and Penang.

Whether you are a first-time buyer, upgrader or investor, it is important to make confident property decisions, therefore, find out more and gain vital research insights on how the property market will fare in 2018.

The PropertyGuru Property Outlook Report 2018 provides comprehensive findings of the property market performance in 2017 including price movements, supply of properties over the past 12 months as well as emerging trends for 2018 and potential developments in the year ahead that Malaysians should be aware of.

Within this report is also a brief on the PropertyGuru Propert Market Index (PMI)—a comprehensive, insightful quarterly overview of home pricing trends at national level, as well as the key property markets of Kuala Lumpur, Selangor, Johor and Penang.

It will come in handy for those looking for understandings for price comparison and transparency. The PMI tracks price movements on a quarterly basis and considers supply volume of properties from both the primary and resale markets.

Based on the PMI from 2015 to 2017, the long-term movement has been on a decline and property seekers will continue to see a further decline in asking prices trendline next year due to several unresolved issues such as home unaffordability, oversupply of luxury properties, high cost of living and inflation.

To learn more about the how the property market in Malaysia will fare next year, you can now download the Property Outlook Report 2018 below.

Click here to read the full report

Kajang has been a popular choice for those looking for spacious landed homes and of course, good satay.

It became more appealing after the opening of the Kajang-Sungai Buloh Mass Rapid Transit (MRT) Line in July 2017 and industry experts were optimistic for prices to soar once the MRT line began operating, however, the PropertyGuru Property Market Index (PMI) data shows a consistent quarterly downward trend in 2017 for asking prices.

In Q2 2017, asking prices dropped 0.8 percent and plummeted to 1.2 percent in Q3 2017, indicating prices are beginning to stabilise after the sudden surge between Q4 2015 and Q1 2016.

As quoted in other news reports, this situation did not mean that property owners are throwing down prices below the market value.

“Properties in this category are old and within established housing estates. Some owners have likely either paid off their housing loans or have only minimal outstanding loans and most of them are selling because they see cash-out opportunities due to capital appreciation over the years.

Additionally, due to stricter lending rules, asking prices could have also been capped and bank valuations of a landed home may not correspond to a seller’s intention to offer for sale at a higher price,” it said. 

House owners in this area are beginning to get more realistic and flexible on pricing as the market has softened.

It was also stated that there are a handful of new residential project launches which were more appealing to buyers for featuring modern designs in well-planned townships with clubhouse facilities, verdant landscaping as well as security features which drove sellers to lower down asking prices.

Thus, older properties here are ideal for those seeking landed properties but are on a tight budget.

Spacious and affordable  

Landed properties in Kajang are abundant. Relatively cheaper properties such as double-storey terrace houses with land areas of 22ft by 80ft and built-ups of 2,830sq ft can be priced from RM488,999 onwards. These units come with four bedrooms and four bathrooms.

Hence, home seekers will be looking at forking out RM2,005 monthly repayments for the next 30 years.

Nadayu 92’s completed units are now going from RM650,000. This translates to a monthly repayment of RM2,666 over 30 years. Units here come with four bedrooms and three bathrooms in a 2,150sq ft house.

Completed double-storey link houses at Taman Bukit Permai are priced from RM499,000. This 1,400sq ft house with four bedrooms and three bathrooms will only cost a monthly repayment of RM2,046 over 30 years.

Nevertheless, properties that come with ample of lifestyle offerings such as OnePark, Ridgefield Residences, Mutiara Heights, as well as Saujana Impian are amongst the latest residential offerings for the to-be Kajangites.

 Image sourced from PR1MA

For those looking at even more affordable homes can even register for PR1MA housing. On offer are 3,139 units across four projects that are being offered in Kajang itself. These include PR1MA @ Bandar Bukit Mahkota, PR1MA @ Bandar Teknologi Kajang, PR1MA @ Kajang Utama and PR1MA @ Kajang.

All projects comprise of freehold apartments that are priced from RM250,000 onwards and prices vary based on built-ups and types.

Further but well-connected

Despite Kajang being located about 21km from Kuala Lumpur city centre, there are several highways that have opened within the area over the past few years, much to the benefit of Kajangites.

These include the Kajang Dispersal Link Expressway (SILK), the Cheras-Kajang Highway, the North-South Expressway, the new South Klang Valley Expressway (SKVE) and the Kajang-Seremban Highway (LEKAS).

One major milestone for Kajang is that its public transportation has improved since the MRT began operating and now Kajangites can travel to other parts of the city centre easily.

In encouraging users to use the rail to commute, there is also a park-and-ride facility located at the MRT station which is connected to the Kajang KTM Komuter Station, which is an interchange station to the Seremban KTM line.

What type of lifestyle to expect in Kajang today?

Over the past 40 years, the town played host to a growing population of people migrating to the big city but looking for an affordable place to stay outside of Kuala Lumpur.

The conventional butter-and-bread housing comprising single and double-storey terrace houses mushroomed across Kajang in the 60s. However, the town needed more than just housing and great infrastructure.

In the early 2010s, there was a strong influx of high-end developments that emphasised on lifestyle living. More gated-and-guarded developments were being launched that pushed property prices higher up to 30 to 40 percent.

Developers started introducing facility-rich projects that came with central parks and clubhouses for those seeking affordable lifestyle properties.

Kajang is also seen as the upcoming educational hub for several esteemed educational institutions in the vicinity including Universiti Kebangsaan Malaysia, Universiti Putra Malaysia, the Nottingham University campus, Universiti Tenaga Malaysia, the German Malaysia Institute and the Australia International School. There are reputable government, international and private schools in the vicinity.

Today, many developments that are on par with city-centre developments that focus on the quality of life, tailored for upgraders and urbanites.

Adding zest to Kajang

Noteworthy developers that changed the housing landscape in Kajang were MKH Bhd (formerly known as Metro Kajang Holdings Bhd, Tropicana Corp Bhd, Naza TTDI Sdn Bhd, Protasco Bhd and Mutiara Goodyear (Nadayu Properties Sdn Bhd).

Recently, Sunway Properties earned its mark by introducing a transit-oriented development offering a retail podium/commercial lots and serviced apartments/ small office-home office, among others. 

Hence, Kajang will see a further boost in the commercial and retail sector as it is already showing signs of urbanisation.

For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit the New Launches or Project Reviews page.

The most important national announcement to be made by Prime Minister Datuk Seri Najib Tun Razak will take place tomorrow. Budget 2018 will determine the country’s direction in tackling various socioeconomic issues that can lead to profound impact on us, the rakyat.

Most observers believed that Budget 2018 would not be a populist budget as hoped due to the constraints that the government is facing, which include weak Ringgit and the rising debt-to-gross domestic product ratio. Hence, leading it to be a rather prudent spending.

Nevertheless, the people’s voice matters. It wouldn’t be a surprise if our very own Gurus  have a wish or two for the upcoming Budget 2018’s announcement. Here are among some on their wish lists:

“I don’t own a property because they are just too expensive! And affordable housing schemes aren’t reliable. I tried applying for RUMAWIP recently. We were told that purchasing will be done through balloting. I even submitted my application two weeks earlier than the given deadline. To my surprise, a DBKL officer informed me that all of units were taken. The project was fully booked! They allowed applicants to pay the 10% booking fees to the developer directly despite implementing the balloting system. What happened? There should be a standard practice to regulate these affordable housing schemes. I also hope that property prices would drop. But that would be more of a wishful thinking.”
Shakirah, 28

“I would like the government to improve policies on public housing especially PR1MA. Perhaps there should be a need for more transparency when it comes to facts coming from all agencies related to the housing sector. There are just too many figures out there; different bodies with different information. They should be more aligned. Hence, only then solutions can be carried out and problems can be addressed faster.”
Pav, 31

“Rental has been a nagging issue for me throughout my working years. The Second Finance Minister, Datuk Seri Johari Abdul Ghani is even urging us to rent longer. The concern rises when the rental market is not regulated at all. I was considering renting a flat near a LRT station, but I was shocked to learn that the rental for a unit with two rooms was RM1,200. The flat only had the bare necessities, which included limited parking and no security. Government should assist in controlling these rental rates by limiting price per square foot according to wages. Government might want to consider offering incentives to property owners renting to low-income folks. In return, property owners wouldn’t charge the renters absurdly. And don’t get me started on affordable homes in Kuala Lumpur because they aren’t affordable!”
Murni, 34

“There should be more houses that people are able to buy, besides the ones under PR1MA. There is a disparity in our income. And developers’ pricing is hard to control. I hope that the government could give more incentives especially among first-time homebuyers. There should also be incentives or discounts for upgraders as well. Take Singapore for an instance. Big families are encouraged to move to bigger HDB units. In fact, the government would handpick these families to purchase units with 4-5 rooms. This regulation applies to families with three generations  living in the same household. Such similar concept should be introduced here to ensure our families will have better quality of life.”
Dani, 28

“I don’t really earn much now as a newly graduated student. I think we need to work right up to a certain age for us to get comfortable when it comes to repaying our loans. Education loan is a handful. It would take at least 30% of my salary to pay monthly. Plus, millennials like me don’t save much because there’s hardly anything to save at the end of the day. I hope that the government would take the initiative to introduce financial planning or schemes among fresh graduates like me. Help us to plan our finances and save for the future. We tend to suffer ‘culture shock’ upon entering the working world. Don’t lure us with credit cards that would eventually end us up in bad debts. The bankruptcy rates among millennials are alarming. Both government and financial institutions should step up in deterring matters like this from happening rather than giving BRIMs or monetary handouts that wouldn’t benefit us in the long run.”
Ananth, 24

“Living cost is just off the roof. They are high, and government should put in the effort to make things cheaper. I am even planning to buy a property at the age of 35, not any sooner than that. Renting is currently the best option now as we (Ridha and wife) need to stabilize ourselves, financially. You can’t really find houses below RM150,000 in KL. Most of them are within RM300,000 or more, with at least RM1,800 monthly repayment. Even though I can pay for such amount, but I choose not to. Public transportation is another aspect that the government should consider. LRT’s fares are costly. I’d rather ride my motorcycle to work than using the train. Commuting to and from work by train would cost me RM8 a day. Meanwhile, fuel consumption is merely RM8 weekly.”
Ridha, 26

“I think the government should emphasize more on providing basic knowledge among first time homebuyers, which include in-depth information on how to get loans or legal consultation: basically, a step-by-step guide in buying a home. Government should also clarify the price range of properties that suits various income groups. There is a lack of clarity when it comes to this issue. Define what is affordable in accordance to the socioeconomic brackets. I think we need better directions especially for those within M40 bracket, educate them on how to purchase the right property. They have better purchasing power that would eventually help our economy.”
Samuel, 29
 

The takeaway? Obviously, affordability is still a lingering issue on everybody’s mind. Who wouldn’t want to buy a ‘permanent’ roof over their heads? Most single Gurus are also hoping that there will be some initiatives to create incentives for first time homebuyers who are not married and relying on a single income to purchase a property.

Surprisingly, rentals are even considered as a distressing issue. There is a strong call for the government to ease the burden of renting, not just purchasing.

Some Gurus feel that financial assistance in the form of BR1Ms should be reduced even among millennials or youngsters. Its allocation should be used for things that are more dire and important. On the irony side of life, we heard that the government might increase these giveaways from RM6.8 billion in 2017 to RM7.5 billion in 2018.

Whatever our expectations are, let’s hope that Budget 2018 will reduce the people’s burden instead of adding on to it.

For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit the New Launches or Project Reviews page.

It may be of some surprise to you to learn that the internet has become an integral part of our lives. I kid, of course you know this already. Statistics in Malaysia show that in 2016, 67% of the population have access to the internet in their homes, with an average speed of 6.4Mbps. (Yay for the internet!)

So I’m sure all of us will know the feeling of waiting on a HD quality video on YouTube to buffer so we can get on with watching dogs, otters, and cats do backflips all at the same time.
But there are other reasons why selecting a good ISP for your home can make a difference and here’s why.

1. Dog Videos Are Important

Bad day at work? Teacher getting on your case in class? When you get home, you want to load up your favourite TV series straight away. You don’t want to deal with a load bar, buffering halfway through and the ensuing frustration. Nah, who needs that after a long day? You want a great connection to get back to your dog videos.

2. Gaming is HUGE in Malaysia, And You Don’t Want To Be The Noob Who Lags

Want to hear something interesting? In 2015, a survey found that more women than men played PC games on a desktop in Malaysia. Meaning if you get fragged online in Overwatch, chances are a girl just mopped the floor with you. (Yes, that’s right. Girl power!)

According to Steamspy, the top 3 most popular games in Malaysia are Dota 2, CSGO and the insanely popular PUBG. Oh and let’s not discount Blizzard’s Overwatch, another hugely popular game.

Want to know what all these games have in common? They are online competitive games. Trust me, you don’t want to lag in these games. Even a one second delay can mean the difference between victory or having to listen to a kid screaming his high pitched victory cry.

3. You Hate The Buffer Screen On YouTube and Other Websites

With a better internet connection, browsing the web just becomes more fun. If you have a slow connection, sites you visit can take ages to load up.

A fast connection makes it speedier and just more fun to browse. Sites load in seconds, opening a new tab is instant, videos load rapidly and you can open as many tabs as you desire.

And that very educational music video you’re watching? You can watch that. It won’t lag.

4. Multiple Users Slow You Down, And You Like To Live The Fast Life

Don’t you just HATE it when your sibling gets home and opens 373 tabs in their browser, streams netflix while having a video call all at once? And no matter how much you reason, they claim that they “need it” but come on, who needs 373 tabs open? Who leaves tabs open? But all that bandwidth hogging does means that your internet speed gets tanked to nothing.

5. Bidding On Ebay For That Limited Edition Pair Of Sneakers Is Faster

A fast internet will even allow you to shop online faster to beat out the competition. This is especially during sales where you load the page faster than others may mean the difference between scoring that last item or seeing an out of stock notice.

(Plus: Paying bills, transferring money and making online transactions are much safer and worry free with a stable, fast internet connection.)

6. Uploading Your Projects Won’t Take A Year

Have you ever done any work in the office or at school only to have it all wiped out by a power trip or a dog with the zoomies ripping out your power cord? Because that has happened to me when our internet speed was terrible.

With more work being done online on shared online drives such as Google Drive, those problems are a thing of the past. A fast and stable connection will allow you to upload and download files quicker and without the possibility of corrupted files due to sketchy internet stability.
Though that might mean you get lesser excuses to slack off.

7. Streaming Your Favourite Gamer Live? Don’t Need To See Them Freeze

Twitch has grown into a massively popular live streaming platform mostly
used by people who wish to stream themselves playing games to an audience.

If you are an aspiring streamer or content creator on YouTube, then you definitely need a stable and powerful internet connection to maintain a decent stream quality and so YouTube videos don’t take forever to upload.

8. Looking For Memes To Troll People Online Is Easier

No longer do you need to wait 10 years for a GIF to load so you can send it to your friends for laughs. You can browse for your favourite mgag memes and more with a better internet connection.
How fast do I need my internet speed to be?

It all depends on how heavily used the connection will be.

If have a family with several siblings, and mom wants to stream Korean dramas while you and your siblings want to play online games all at once, you’d need a pretty hefty and powerful connection of at least 100Mbps or more to be safer.

If all you are an average user who just streams on Netflix, YouTube and casually game, a 50Mbps connection would be more than sufficient.

For the home offices and small businesses, 100Mbps is your best bet. You’d want a stable connection so conference video calls don’t lag, disconnect or outright drop. Unstable internet can absolutely kill productivity so it’s arguable that stability is more important than speed here.

For streamers and content creators, you need the big guns here 500Mbps for sure. Streaming uses a huge amount of bandwidth and if you have a slow internet connection, uploading videos to YouTube can take ages.

So What Internet Service Provider (ISP) Should I Pick?

After careful research, some of the best rated ISPs in Malaysia which offer affordable plans for good, stable internet backed by great customer support are the following.

Maxis – Maxis offers great coverage in Malaysia and comes with bonuses such as an Astro discount, free iflix subscription and they carry an array of different broadband speeds to accommodate different users.

TIME – Time Fibre broadband prices their packages aggressively than other service providers which is very attractive to a lot of people. This is one of the best value for many ISPs in Malaysia and to sweeten the pot, they offer a good quality, high-speed router to new subscribers for good Wi-Fi coverage in your house. However, their coverage isn’t great and you may find yourself living outside of their coverage area.

TM Unifi – Unifi is very well known across Malaysia as their coverage area is massive. Due to their massive user base, any outage or disruption in service can result in a pretty massive backlash but while any outage is awful, it’s important to remember that these situations happen in a vacuum and for the most part, their internet is stable, fast and reliable.

Get Those Internet Packages For Cheaper On ShopBack

ShopBack offers some great internet plans and packages. From great deals such as a month off and 9% cashback for new TM Unifi, Streamyx and Maxis plans, to RM15 cashback for Webe, making a decision to upgrade or purchase a new connection for your new home should be pretty easy.

For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit the New Launches or Project Reviews page.

As buyers, we are often feel overwhelmed with the staggering price tags on homes these days. We wonder why does owning a home remains as a far fetch dream for many in a country with a wealth of land, cheap labour and resources?

Turning our heads and attention towards smaller home seems to be a laughable notion for many. Why would a family of four live in a 650 sq ft apartment unit?

Wouldn’t that be crazy. But let’s understand the three contributing factors on why moving into smaller homes should be done seamlessly as a coping mechanism in today’s property market.

Market trend dictates home-buying patterns. There is a RM8.56 billion property overhang occurring right now as many expensive and big residential properties are left unsold.

Realising that the matter won’t just disappear overnight, developers are slowly slotting in more smaller units in their latest projects to get people to buy at a reasonable price.

Embrace the shift. Pockets of opportunities like this are rare especially in main cities like Kuala Lumpur and Georgetown.

Mindset is another common element that buyers should start tweaking. Most buyers are still in denial when it comes to the reality of property. Bigger properties within the affordable range is unattainable and impossible especially in the city center.

The most expensive houses in Malaysia can be found in Kuala Lumpur, where houses here are priced at an average RM772,126.

Meanwhile, Kedah had the highest annual price increase with an 8.8% increase during the year to end-Q3 2016. This is followed by Selangor (7.5%), Negeri Sembilan (6.8%), Johor (5.5%), Melaka (5.5%), and Kuala Lumpur (5.1%). In fact, the average rental for a 3-room apartment in the city is RM2,698. 

In order to make life sustainable in the city center, the time has come for us to seriously consider buying or even renting smaller properties. 

Money constraint has been a nagging headache for most buyers. The nation is continually arguing on why Malaysians still can’t afford to buy a home and even questioned why is the percentage of rejected loans high?

Buyers are prone to buy properties that are not within their financial capacity, in return forcing most banks to reject their loans due to high liability. Buyers must come to terms that downsizing in terms of size can lead to genuinely purchasing a home within their means, not beyond.

Hoarding living in tiny living space can be a nightmare (Image sourced from Telegraph UK)

But how do we make tiny living possible? Smart living can be the way to go. Work around these limited spaces by utilising savvy furniture and appliances.

Being Malaysians, we are prone to hoarding, buying unnecessarily as well as cluttering every single living area in the house. These negative attributes need to go in making small space works. Remember, tiny living must prioritise needs over wants.

Check out these videos. Look at how simple touches and cheap materials work wonders in making tiny living possible:

Solo and loving it!

Be it single or with a partner, smaller units fit the bill. Eliminate the need for big luscious bedroom and opt for a Murphy bed, a bed that is built in a closet, instead. You will have ample of space to entertain family and friends for any social gatherings.

Meanwhile, store your things or junk at the top of your cupboard in colourful and nicely decorated boxes. It wont be an eye sore! In fact, top open shelves are the best solution and these multi-functional storage units can be found at IKEA.

Surviving one bathroom? It is possible!

Imagine surviving a townhouse of 1,000 sq ft with 4 kids? This townhouse has some magic done with a wall of storage, a standing work station and a practical small living/dining room.

Its savvy furniture and electronic appliances located in the living area have been morphed into storage units. Creativity even goes further by using screen projector instead of a television.

In a small unit like this, rooms are sized at 65 sq ft. Work around with what you have. For instance, build a loft within these tiny rooms to store toys and to serve as an area for the kids to play in the room. Create a walk-in closet, which also caters as functioning room for the kids to do their homework or study.

The attic can be converted into a bedroom for parents as it provides the much needed privacy, away from the kids. But bear in mind that all ‘hommies’ must utilize the one and only bathroom, smartly! Perhaps parents can regulate timing for all family members!

Squeezing in a 700 sq ft. home with two kids

Quirky bedroom entrance? This is what you might come up with if you are living in a 700 sq ft apartment in the city with a family of four!

Most parents who work in the city opt to remain in the city to spend more time with the family rather than using those precious hours commuting between home and work daily.

For parents who still need their privacy, a bedroom loft provides a hidden gateway from the kids. Create a bunk bed that could also provide space beneath it, which can be used as a closet, storage area and even a working space.

A big tip in making small spaces work is to get an open floor plan unit with no designated barriers. You could come up with your own plan to allocate the rooms and living or functioning areas.

Tiny home for three

City living is a choice for most young people and couples. Imagine having an additional member to the family in a home of 645 sq ft. In this circumstances, the young couple had to sacrifice their only  bedroom and made it into a baby room.

Due to limited space, they also turned the wall into a walk-in closet and storage room with a sliding door. They also included a practical changing station located on the baby cot in order to save space. To make a small room look less cluttered, the couple lit the room up with bright and colourful hues.

Meanwhile, the living area is partially changed into the couple’s room. The bed is customized by incorporating a set of sofa below the bunk bed.

Meanwhile, the house’s open shelves are used for better storage system. An item like a portable ladder is not only used to reach for the storage boxes placed on top of the cupboard but it could also be a place to hang dirty clothes!

Given ideas and practical ways of doing it, tiny living in Malaysia can be a good option given the variables in life that often deter us from getting our dream home.

In fact, some developers are showing signs of complying to the notion of bringing more smaller units into the market, especially in the main cities. Hence, such move is making it possible to live in the city with less financial burden but in smaller spaces.

YouTube videos sourced from Bl33D Hui and GoDownsize . Featured image sourced from Telegraph UK.

For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit the New Launches or Project Reviews page.

The plethora of new developments are just astounding. Residential developments are now challenging the norms, seeking for better and extraordinary ways to make their residential projects appealing to buyers. The baits are extreme and they come with a heavy price tag.

Here are 8 latest features trending in the property market, both locally and internationally:

Bringing Paradise Closer to Home

The island wonder is no longer a far fetch idea, especially for folks living in the big city. Developers are now aggressive in reclaiming land to create these man-made wonders. The fascination of living in a paradise is a great marketing agenda to sell especially to those high-flying individuals who can get too consumed with work as well as extremely rich urban folks.

Dubai is leading the way globally with astounding man-made islands like Palm Islands and Jumeirah Island to name a few, while Malaysia is witnessing states like Penang, Melaka and Johor reclaiming land for both commercial and residential purposes.

Why venture far and beyond for a slice of heaven when you can have it right at home, in the city.

Jumeirah Island, Deira Island

Image sourced from Propsearch AE

Forest City

Image sourced from Forest City

Live Among the Clouds

The higher, the better. Developers can’t resist in building the biggest, the tallest and the highest residential infrastructures that would literally blow potential buyers’ mind. Who wouldn’t want to live 150 storeys up high in the sky, while defying gravity. Imagine the breath-taking view of living among the clouds.

Malaysia is constructing Warisan Merdeka, which is  the third tallest tower in the world.  Meanwhile, Dubai’s The Kingdom Tower is said to have an outrageous daring open-air sky terrace at level 157. It won’t get any better than this killer view! 

Kingdom Tower, Jeddah

Image sourced from Salam Construction

Warisan Merdeka

Image sourced from Husband Retail

Posh Cars, Posh Pads

Yes, even cars need a pad to swag. Car fanatics and collectors would be the core to this latest craze of residential developments. If you have gorgeous cars, why wouldn’t you showcase them to the rest of the neighborhood. Glass garages are customized to accentuate these million dollars rides to set pride alight.

Avid collectors and owners wouldn’t mind spending the cash to purchase a unit with built in car-elevator to hoist up these priced processions to their pads. In fact, developers in Miami are even building apartments for these posh cars to live in!

On the local front, 51 Gurney would be the first of its kind in Malaysia. The project has been around for a few years but works on the development haven’t begun yet. Will 51 Gurney see the light of day?

Auto House, Miami

Image sourced from The Real Deal

51 Gurney, Keramat

Image sourced from 51 Gurney

Are You a Tom Brady or a Serena Williams?

Fitness is among the most famous selling points in many high to mid-ranged developments. But let’s go a step further. Let’s bring the real deal to the residents. New developments are now introducing sports simulators that are able to replicate sports ambiance to the users.

New high-rise developments in the States are pretty big with American football and tennis simulators as part of their facilities. In fact, New York’s Gramercy Square’s sports simulator has a wide range of sports to choose from that include football, baseball and even rugby. Meanwhile, M City, Ampang opts for golf simulators as part of its wide-ranging facilities. 

Gramercy Square, New York

Image sourced from Forbes

M City, Ampang

For illustration purposes only. Image sourced from Pinterest.

It’s in the Name

Name sells.

Renowned designers are known to be a market bait to lure enthusiastic property aficionados to buy. In the United States, these names are widened to Hollywood stars, who would ‘lend’ their names and star power to established developers to promote new developments. Assuming they did design the developments, the value of their endorsed properties are said to surge 20% more than  ‘nameless’ developments.

1Sound Lounge, Kent in New York is designed by Lenny Kravitz 

Le Nouvel KLCC is designed by Pritzker Prize-winning architect Jean Nouvel

Image sourced from Architecture List

Crazy Facilities 

Conveniences are a huge deal to buyers and developers are well aware of it. Buyers are constantly thinking on how to make life easier given how hectic work and daily routines are. Latest residential developments are banking on such needs by providing mind blowing facilities.

Dog parks? Feng Shui Gardens? What about Spa and Saloon, exclusively for residents only. Or a water theme-park right at your doorsteps? Developers are even throwing in open theaters where residents are able to watch movies underneath the stars. Well, this crazy list just goes on!

The Grand at Sky View Parc, Queens

Image sourced from Street Easy

Wangsa 9, Wangsa Maju

Image sourced from Wangsa 9

Smart People, Smart Homes

A voice activation? Controlling your home through a simple touch on your phone? Or having an Artificial Intelligence (AI), voiced by the dashing Morgan Freeman, predicting every single step that you would do in your house? Things are getting easier to manage thanks to the evolution of technology.

Smart home is massive in the US and Dubai, and it is aggressively creeping into our backyards. Most developers are incorporating technology with the comfort of a home. Major Silicon Valley players are pushing smart home living as a necessity, which include Mark Zuckerberg’s Jarvis (A.I) and Apple’s latest HomeKit. Competition is stiff, hence do expect mind blowing home applications in the near future!

Verdi Eco-dominium, Cyberjaya 

Image sourced from Verdi Eco-dominium

The Finer Things in Life

This feature is tailor-made to a niche and elite pool of buyers who have an exquisite and fine taste in life. The cigar and wine tasting room is made for cigar aficionados and wine connoisseurs in mind. This element is added with wine cellars to store these vintage priced possessions along with ample of space to have guests over for drinks.

It’s like having Napa Valley right in the comfort of your own home!

One Rover Point, Miami 

Illustration purposes only. Image sourced from The Decoist

Ritz Carlton Residences, KL

Image source from Ritz

All GIFs sourced from Giphy. 

For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit the New Launches or Project Reviews page.

The rising property prices have been limiting many housebuyers from being able to buy properties. However, that is about to change when cost-saving initiatives and construction methodologies become compulsory by 2020.

The call to implement the Industrialised Building System (IBS) technology for the construction of public and private developments will effectively reduce building costs and eventually control property prices from escalating unreasonably.

Once all new developments have fully adopted the IBS method, the mismatch between affordable housing and supply will be eased, and in turn, create more opportunities for low and middle-income earners to purchase properties.

However, to fully-kick off and implement it, there are various hurdles faced and the government needs to step into lower down taxes and reduce compliance costs to enable all industry players to buck the trend.

In anticipation for that, budding housebuyers should play a role in understanding IBS and its advantages before it becomes compulsory.

What is IBS?

In simpler terms, IBS or prefabrication as it is known worldwide is to mass produce the components required in constructing a building, either off-site or on-site, usually in a controlled environment.

Video sourced from Iris Corporation

What Types of Pre-Fab Are Available?

There are five types produced in Malaysia currently:

Precast concrete system
Columns, beams, slabs, walls, “3-D” components (e.g. balconies, staircases, toilets, lift
chambers, refuse chambers), lightweight precast concrete, and permanent concrete formwork.

Steel Formwork system
Tunnel form”, the “lilt-up” beam system, “moulding form” columns and a permanent steel mould.

Steel Framing System
Steel trusses, beams and a column portal frame system.

Prefabricated timber framing systems
Wood truss beams and columns.

Block work systems
Interlocking concrete masonry units and lightweight concrete blocks.

Image sourced from Gardennibs

How Can IBS Control Property Prices?

Studies have shown that IBS is able to reduce costs which could lead to controlled house prices.

Firstly, there will be a reduction in the number of workers such as concreter, carpenters, bar benders, plasterer, among others, for only certain skilled workers will be required to work with the complex machineries.

This will minimise the requirement of foreign unskilled labour and will lead to savings in terms of labour costs of up to 46 percent.

Secondly, cost savings are also conceivable with the reduced usage of building materials during construction, for example, the usage of steel where it is currently priced at RM2,400 a tonne.

Additionally, cleaner and more efficient waste management at construction sites is implemented which will reduce clearing up costs, wastage. It is also touted to be environmentally friendly.

Moreover, IBS offers improvements on quality, productivity and efficiency due to the components being factory-produced.

This could also reduce the possibilities of poor workmanship and lack of quality control.

The plus point of using IBS technology would be faster completion of up to 50 percent without compromising the quality, which could match the demand for affordable housing.

Image sourced from Brandt.us

Where to Find IBS Built Projects?

With a handful of developers constructing their properties using IBS technology, nevertheless, it has been proven that quality homes can be reasonably priced with the use of IBS, even offering a wide range of facilities.

Here are some developers who are on the forefront:

Gamuda Bhd owns an automated robotic IBS facility in Sepang that has the capacity to produce 3,000 apartment units per year.

It is also building a second IBS factory in Banting, which is expected to be ready by end-2018 and both plants will have a combined workforce of 500 and the capacity to produce 8,000 units per year by end-2018.

ML Global Bhd has partnered China’s Sany Construction for a RM40 million IBS plant in Nilai with a capacity of 2,000 units per year.

The developer of the Forest City project, Country Garden Pacific View Sdn Bhd, has an IBS facility in Johor with the capacity to produce up to one million square metres of built-up area.

Other developers bucking the trend are SP Setia Bhd, Hua Yang Bhd, Sunway Properties, among others.

Image sourced from Asiabina Holdings

Meanwhile, PR1MA houses are also constructed using the IBS technology. According to PR1MA, 90 percent of the construction process will be done at the plant, while the remaining 10 percent will be completed at the construction site and houses are usually built between 30 to 60 days.

Numerous mega-projects were also built using IBS such as the Petronas Twin Towers, Bukit Jalil Sports Complex and the Malaysian Light Rail Transit project.

Image sourced from Vanmaercke

For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit the New Launches or Project Reviews page.

 
There are two types of growth for every property, which can be categorised into:-

1. Direct
2. Indirect

How do we get direct growth and indirect growth if we buy from developers in Malaysia? First we have to understand:-

1. Direct growth is earned by buying with rebates offered from the day you buy it, you get immediate equity once you sell it. It is considered the hidden paper gain value.

2. Indirect growth is earned by buying something and doing nothing in a transition period to the future. It is automatic through the market sentiment and increases in property value when the area is growing and getting more demand.

So, how to look for growth properties?

● Transition Zone
● Pond Effect
● Fundamental Analysis
● Adverse Market Perception
● Media Attention
● Emerging Economies
● Prime Location
● Rise In Renovations and New Construction
● Phase One of New Development with Big Budget

○ Transition Zone happens when development of new projects make an area become matured, convenient and popular. This in turn makes the surrounding properties increase in prices tremendously.

○ Pond Effect creates price ripple effects to the surrounding properties. In short, the more expensive houses pull the prices of cheaper houses up – also because of the price lag.

○ Fundamental Analysis, it can be as simple as the increase of population because of the nearby MNC for job opportunities and leisure area for shopping. This indirectly increases the demand for houses for rental, sale and a place to spend the money at. Increase in demand translates to an increase in property prices.

○ Adverse Market Perception, it happens because of a negative mindset. Most people are pessimists during the market downturn and are biased against certain residential areas. For example, during the market downturn most people will abstain from purchasing properties but investors will still buy anyhow. Thus, the prices will still increase in the end.

○ Media Attention, it can be good or bad but most news in the papers and government initiatives are always reliable for the direction of a city’s future. It is free awareness and marketing by the media to get hints of future development in an area.

○ Emerging Economies in a well-planned and self-sustaining township by government. If it is an ecosystem complete with Education, Leisure, Business and Medical then it will be a good area to analyse and focus. Because, what do all expensive cities have in common? All those four items.

○ Prime Location like water, views and proximity to amenities always sell first. Have you ever noticed, most luxury properties are located near the sea? That the most expensive properties are also located near shopping malls?

○ Rise in Renovation and New Construction when you see there is a vast development in an area and mostly under construction. You have to analyse the area as it might be the next township which you might overlook or become a ghost town. You can just ride the wave of the development capital appreciation if it fulfils every criteria of a complete township. People are afraid when they can’t see or touch, but what if you can see and touch it? It is already an expensive and matured area.

○ Phase One of New Township Development, this is the easiest to recognise. You just have to have a piece of phase one of the township project. The keyword here is Phase One, as later phases will bring the prices up when it is launched. I believe you wouldn’t ever buy in phase 6 or last phase of the development for investment? Early stage purchasers have already made their money.

○ Big Budget if you happen to buy from a developer with a big budget. Then you are basically riding on the back of their budget as they will force the market and effort in the process. You do not need market your house as the developer will market it for you. That is why some investors only buy from well known developers.

For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit the New Launches or Project Reviews page.

“Goodbye cubicles and mundane office!”

The uprising of co-working space marks the change on the traditional desk job. The idea of borderless space that creates a blurred line between working and leisure space seems to be tempting to many non-conformists.

Credit should be given to the men who made decades long rhetoric concept of balancing life and work into reality: Architect, Miguel McKelvey and ex-navy officer in the Israeli military, Adam Neumann.

Putting failed business ventures behind them, both men took upon themselves to put a half vacant floor in a building where they worked into good use.

Started off as Green Desk in 2008, the evolution saw rapid rise to fame and popularity among young and budding entrepreneurs and millennials who opted to work outside of a cliché office environment.

The groundbreaking start-up company later changed its name to WeWork in 2010. Its maiden 38,000 sq.ft. New York office is equipped with coffee lounge, conference rooms with video conferencing support, glass offices, laser printers and even office managers, along with countless borderless desks and lounges to work and chill.

It is now the fastest-growing lessee of new office space in New York and it is said to be a USD17 billion company. WeWork has also extended its reach even further to London, Amsterdam, Tel Aviv, China and Mumbai.

What’s with the rise?

It’s plain and simple. It is relevant to the needs of the people, globally.

People are morphing away from ‘desk jobs’, embarking on entrepreneurship through advancement of technology. The rise of self-employment has been astounding so is the figure of start-up companies that are trail blazing through the innovation economy.

Co-working space also creates a community with people from various companies, ventures and projects sitting side by side in one location.

If you are coming up your first webpage for your business, you might be lucky enough to be seated next to a web designer in a co-working space. Strike a conversation with him and perhaps you can get free consultation.

Plus, co-working space comes at a fraction of the price from a regular office rent, suitable for freelancers and new entrepreneurs.

Even those who are attached to mega organisations and companies opt for co-working space. These employees believe that they have more job control working in such environment, without having the wandering eyes of their ‘employer’ scrutinising their every single move.

Some even noted that they don’t need to come up with a work persona to be accepted, nor deal with internal politics that often pull employees down.

Even bigger organisations are jumping on the bandwagon, hoping to minimise cost and space. Employees are even encouraged to work remotely especially in co-working spaces knowing that there will be office facilities like mailing address, meeting rooms and great connectivity available at one’s finger tips.

The Colony’s lounge

Can co-working space be sustained?

Many have argued that the profit margin of such businesses is pretty low. In fact, it is considered as the riskiest business to operate as it leads to low margin, low volume.

With minimal start-up to begin, most co-working space owners could not risk charging premium price for any of their hot desks or permanent desks if the venue is run on basic office necessities.

What makes matter harder is the pool of customers utilising co-working space are among those from start-up companies and even freelancers, who are financially tight.

What can be done to survive? Diversity. Branching out beyond than just co-working space is the way to do it. Get other business partners like operators from the F&B industry to sell. Hungry entrepreneurs would definitely appreciate having a juice bar or a sandwich deli within their immediate reach.

WeWork has also branched out further into retail in the form of WeWork Services Store (selling office related tools and services) and now has expanded into co-sharing living space as WeLive to back its sustainability better.

Co-working space is located above the restaurant

Future looks good in Malaysia

Yes, things are looking bright for co-working space in Malaysia. There is a surge of entrepreneurship in the country; they need short term rental that could accommodate to their needs, especially among the Millennials.

C03’s co-working space in Puchong. (Picture sourced from Reuters)

In fact, this could be a solution to the country’s current office overhang by converting a fraction of these office spaces into a co-working space. Numerous commercial office developers have taken up such direction by appointing property management companies like Regus to run the show.

Below are Klang Valley’s existing co-working spaces:

• The Colony @ KLCC (6, Jalan Kia Peng)
• AirSpace (Sri Petaling)
• The Entrepreneur’s Lab (23-23A, The Oval , Bukit Kiara)
• JetPack Co-Working (Plaza Damas, Sri Hartamas)
• Nook (8, Jalan Riong, Bangsar)
• The Lower Penthouse (1 Jalan Hang Lekir)
• C7 Co-Working Space (Bukit Tunku)
• CEO Suite (Menara Maxis Menara Maxis KLCC)
• Common Ground (Changkat Semantan, Wisma UOA)
• Impact Hub (D7@Sentul East Design Center, Sentul East)
• The Co. Bangsar (8 Lengkok Abdullah)
• The Co. Row (42-48 Jalan Doraisamy)
• The Boutique Office (6-11 Jalan Esplanade, Bukit Jalil)
• WORQ (Glo Damansara)
• Whitespace Bangsar (Menara BRDB, Jalan Maarof)
• CEO Suite Axiata (9 Jalan Stesen Sentral 5)
• CEO Suite Q Sentral (2A Jalan Stesen Sentral 2)
• BMGS Pudu (30-1 Lorong Thambi 2)
• ServCorp NU Tower 2 (NU Tower 2, Jalan Tun Sambanthan)
• Uppercase Bangsar (29-07 Jalan Riong)
• The Success Factory (7-A Jalan SS15/4B Subang Jaya)
• START Co-Working Space (Bangunan Yayasan Syed Kechik)
• The Thinking Loft (7 Jalan PJU 1a/21)
• Regus KL Sentral  (1 Sentral , Jalan Stesen Sentral 5)
• H Space Bandar Utama (KPMG Tower , Bandar Utama)
• Paper+Toast (179 Changkat Bukit Bintang)
• TedBoy Express @ Menara Standard Chartered (Menara Standard Chartered, Jalan Sultan Ismail)
• H Space Kota Damansara (Menara Mitraland, Kota Damansara
• Meja4U (Jalan PJU1a/4)
• Kiasu Lab (66&68 Jalan SS22/21 Damansara Jaya)
• The StartUp (7A Jalan Ceongsam Seksyen 10/11)
• C03 (Bandar Puchong Jaya)

Personalized office at The Colony

In the end of the day, co-working space is a breath of fresh air in how we operate from a day-to-day basis. It gives people more fluidity to work by breaking the norms of how an office should be.

For a consumer point of view, you will have cheaper rental space with shorter leasing period. As for those owning unoccupied office space, this could be a potential game changer in tackling the critical commercial office glut and of course, getting some returns in one’s investment.

If we can embrace advancement of technology seamlessly, we could definitely embrace the changes in the way we work!

Featured picture sourced from Telegraph. All GIFs sourced from Giphy. 

For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit the New Launches or Project Reviews page.

Properties in established areas like Petaling Jaya, Cheras, Bangsar or Puchong are increasing in price but growing smaller in size— causing buyers to seek for second-tier locales for bigger and sounder purchases.

This was clearly exemplified in the recent PropertyGuru Sentiment Survey H1 2017 where 27 percent respondents were looking at buying properties in the outskirts of Selangor.

PropertyGuru Malaysia Country Manager Sheldon Fernandez said buyers are flocking to the suburbs in search of property as noticed in 2016 and 2017.

“This indicates the emergence of new property hotspots in the suburban areas of Selangor, which are between 20 to 40km from the city centre,” he elaborates.

No doubt Klang Valley still dominates the preference with 69 percent, but the trend to buy further from the city is becoming more prevalent and industry peers in support of this are voicing the idea for buyers to consider buying further from the city centre as they are relatively cheaper.

Image sourced from Sime Darby

The Rise of New Areas
Persatuan Perunding Hartanah Muslim Malaysia vice-president Aziz Ahmad quoted in the New Straits Times said secondary properties in suburban areas and new developments in the southern Greater Kuala Lumpur, such as Semenyih, Nilai and Salak Tinggi are still affordable.

Aziz shared that you can still buy a landed property, such as a double-storey terrace house measuring 20ft by 70ft, for below RM500,000. The same property in Kuala Lumpur will cost more than RM600,000.

“If you are buying to stay, you can also consider Bangi, Rawang, Puncak Alam or Ijok,” he said.

Aziz hinted that there were three mega government projects to look out for which would boost the property sector such as the KLIA Aeropolis, Malaysia Vision Valley (covering Seremban, Nilai, Port Dickson) and Cyberjaya City Centre.

Therefore, those looking to own affordable properties in the outskirts of the city, these are some options to consider:
 

Image sourced from Static.panoramio

Bigger and Inexpensive Houses for Families

Putra Heights in the district of Subang appeals to families and upgraders for being a conducive and family-oriented township. Moreover, there are ample of amenities from the surrounding matured neighbourhoods such as Subang Jaya and USJ.

Putra Heights boasts excellent connectivity via Elite Highway, Damansara-Puchong Highway, SKVE, NKVE and Kesas Highway.

Public transportation was enhanced with an LRT terminal station for Sri Petaling Line and Kelana Jaya Line offering cross-platform transfer between both dedicated lines.

Also with reputable educational institutions such as Kingsley International School, it is an advantage to reside in Putra Heights for having relatively cheaper and wider landed properties compared to its neighbours.

According to the PropertyGuru Property Market Index (PMI), property prices here have dipped 0.9 percent year-on-year (Q3 2016 to Q3 2017).

Sellers are beginning to lower down prices as there has been a quarter-on-quarter (Q2 2017 to Q3 2017) decline of 2.2 percent in asking prices.

Therefore, those seeking double storey terrace homes can consider houses with land areas of 22ft by 75ft and built-ups of 1,600sq ft to be pegged from RM600,000 onwards. These units come with four bedrooms and three bathrooms.

Hence, home seekers will be looking at forking out RM2,584 monthly repayments for the next 30 years.

Image sourced from Newskaki

Ideal Houses for Buyers Wanting to Live Near the City

First-time homebuyers should consider Selayang for its affordable properties that are close to the Kuala Lumpur City Centre with easy access via Jalan Ipoh, Jalan Kuching, Middle Ring Road 2, Lebuhraya Damansara Puchong and Kepong-Selayang Highway.

Located in the district of Gombak, properties in Selayang are witnessing value appreciations resulting from the ongoing rampant developments such as Selayang Star City and the iconic Selayang 18. Not to mention, studies to link Selayang via Mass Rapid Transit to the city are ongoing.

Moreover, the newer Bandar Baru Selayang township is giving Selayang a new facelift with contemporary lifestyle offerings; a break away from conventional housing areas.

Ample of natural attractions such as the Forest Research Institute Malaysia and matured amenities like Pasar Borong Selayang, Hospital Selayang, among others are already pushing values up as the PMI recorded a year-to-year growth (Q3 2016-Q3 2017) of 1.4 percent.

Additionally, the PMI showed a quarter-on-quarter appreciation as the index rose from 1 percent from Q2 2017 to Q3 2017 — indicating a slow but progressive growth and demand.

In the rise of modernisation, Selayang landed properties sized 22ft by 75ft and built-ups of 2,100sq ft are already fetching RM750,000. These units come with four bedrooms and three bathrooms and will cost monthly repayments of RM3,076 for the next 30 years.

Meanwhile, those looking for high-rise developments can expect newer properties to cost from a minimum of RM400,000 onwards. For instance, a 950sq ft unit with 3 bedrooms and 2 bathrooms will only cost RM1,681 monthly for repayments over the next 30 years.

Image sourced from Gamuda Land

Cheaper Landed Housing For All Walks of Life

Rawang also in the district of Gombak is booming with housing areas such as Bandar Country Homes, Bandar Tasik Puteri, Emerald West and Anggun Rawang, among others for first-time buyers or middle-income earners.

New upscale gated-and-guarded neighbourhoods also have emerged in recent years, with guard houses and perimeter fencing for added security and privacy tailored for upgraders or those looking for affordable lifestyle living.

Connectivity is no issue as infrastructure has been upgraded with the completion of the Guthrie Corridor Expressway, LATAR highway and the upcoming Rawang–Serendah bypass.

Furthermore, amenities are ample and conducive as Rawang is receiving a commercial and retail upgrade via The Two development, the largest mall in Malaysia.

Therefore, property seekers looking for affordable prices will benefit from the inexpensive pricing in Rawang as asking prices have been reducing recently.

According to the PMI, the index dropped 3.5 percent year-on-year (Q3 2016 to Q3 2017). Additionally, there has been a 1.3 percent reduction quarter on quarter, indicating sellers are lowering prices, making prices more inexpensive.

For instance, a two-storey terrace house sized 65ft by 70ft and built-ups of 1,885sq ft is priced at RM470,000. These units come with three bedrooms and two bathrooms and will cost monthly repayments of RM1,928 for the next 30 years.

Additionally, a three-storey property in an exclusive gated and guarded development with land sizes of 24ft by 80ft and built-ups of 1,540sq ft is priced at RM850,000. These units come with six bedrooms and five bathrooms and will cost monthly repayments of RM3,486 over the next 30 years.

Image sourced from Duke

For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit the New Launches or Project Reviews page.

From an Olympic-standard stadium in Mongolia to a Hainan wellness centre, eco-conscious engineer Armelle Le Bihan has harnessed natural resources to elevate projects across Asia.

Armelle Le Bihan may be able to reel off climate change statistics as easily as most of us recite the alphabet. But the Bangkok-based engineer is a far cry from clichéd images of a dreadlocked, patchouli-oil-scented eco warrior.

“Green building is not a tree hugger’s trend,” she says as she outlines her practical vision for a more environmentally aware real estate sector. “Not only do such building practices respond positively to environmental issues, they also make business sense.”

Having started her company Green Building Consulting and Engineering just two and a half years ago, she’s already carved out a stellar reputation for herself.

Projects across the region have benefited from her expertise and she has already been rewarded with prestigious industry gongs. Her latest commission is also one of her most ambitious: the construction of a state-of-the-art stadium in Ulaanbaatar, the pollution-ridden capital of Mongolia.

While travelling around Asia to preach the gospel of green engineering can be a challenge, Le Bihan is passionate about what she does. “It’s all about community,” she says.

How would you best describe green buildings?

To put it simply, green buildings use fewer resources. They are also designed to foster a positive impact on the environment and enhance comfort, wellbeing and health. This is really important when we consider that the average person spends 90 percent of their time indoors.

Green buildings generally have 14 percent lower operational costs, 30 percent higher occupant satisfaction and typically have 7 percent increased asset value compared to non-green buildings. This is amazing when you consider they only cost 1-2 percent more to build.

Why is it so important for real estate developers to start going green?

Buildings are responsible for 40 percent of the energy we use and 30 percent of greenhouse gas emissions. These are not renewable resources, so they are directly responsible for climate change. In very dense areas such as Bangkok where the temperature is already high, buildings create an urban heat island effect – they increase the temperature even further.

This is largely due to the thermal effects of concrete which traps heat from the sun and can raise the mercury by as much as 4-5 °C. If we build green, we have a direct solution to mitigate climate change. If we don’t, it’s going to get increasingly worse. Those who will pay the highest price for climate change are often the ones who have played the least part in the use of fossil fuels.

What can be done to incentivise and encourage both developers and homeowners to act now?

Doing good by the planet is great, but when there is a financial incentive it increases the willingness of those involved. If a developer is building a residential project, the tenants benefit from significantly lower utility costs.

You can’t underestimate the marketing power that comes from being able to tell prospective investors they can save up to 14 percent on operational costs, 50 percent on energy and 40 percent on water. Units in a green building typically sell for and can be rented at 30 percent higher as compared to a conventional building.

A study conducted by Jones Lang LaSalle found that 60 percent of commercial real estate buyers are now willing to pay more for green buildings, because they understand that building green directly links to employee productivity and reduced sick leave. It’s also been seen that schools display higher test results and hospital patients recover faster in green buildings.

All these benefits come about because we’re creating a healthier environment inside – the air is cleaner, there are less pollutants and particles, and we’re careful about the kinds of paints, sealants and filters used. There’s also better natural light, which incalculable studies have cited as a solution to depression.

Do you think attitudes towards green buildings vary across Asia?

Asia is making great efforts in terms of green buildings and sustainability as a whole, but there is a lot of disparity between the countries.

Singapore is considered as a green model but it also wastes an incredible amount of energy. China now has the second highest number of green buildings in the world after the US because pollution is such a big problem.

In Thailand the number of certified green buildings has more than doubled annually since 2007, so it’s really promising, but there’s still a lot to do. Thai project developers typically want to see return on investment within about two years – but generally they will see their returns before seven.

My stadium project in Mongolia was interesting in that there are absolutely no green building codes, however people are incredibly open to it because of their extreme weather. They understand how important it is to regulate the climate indoors.

Tell more about the GEM Olympic Stadium in Ulaanbaatar

I’ve been working alongside Archetype Mongolia. We’ve finished the conceptual stage, which means that we know how it’s going to look and the green features it will have.

Mongolia has this extraordinary blue sky year-round, so there’s huge solar potential especially for passive heating and energy generation. We orientated the building and its shape so that it could capture most of the passive heat in the winter. By using big south-facing windows, you can heat spaces very easily, and by using triple glazing to keep the warmth in, the heat can’t be wasted.

We’ve also orientated the building in a way to protect it from very cold winds – so it’s out of the way of the strong wind corridors.

Construction in Mongolia is complicated, because during the winter everything is frozen, (temperatures drop to -30 °C) so they can only build for six months of the year. This means everything has to be planned very carefully.

When it’s finished it will be one of the first green Olympic stadiums in the world, which is hugely exciting for me personally.

How do you see green development evolving in Asia over the coming decade?

Emerging countries in Asia have a unique opportunity to start building green now while their major population centres are still growing fast. If they do this now they will truly be cities of the future.
Currently Europe is quite a long way ahead of Asia in terms of green development.

This is partly because building codes are aligned with green standards, but also because people have simply realized it’s a better way to build. Attitudes in Asia are changing fast, and I’m confident that developers will increasingly take this into account.

Pictures sourced from Wixstatic and Mygola. This story originally appeared in Issue No. 141 of PropertyGuru Property Report Magazine.

 
For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit the New Launches or Project Reviews page.

The Asian real estate marketplace is an exciting place to operate in today- with the numerous changes, varying local market nuances and a population that is young and growing in affluence.

As the Chief Business Officer of PropertyGuru Group, Asia’s foremost online property company, I had the opportunity to present my thoughts around the trends in the sector in front of an audience of over 600 Real estate professionals from across Asia a few days ago.

The audience had gathered to participate in ARENA- an annual conference which was hosted by the Malaysian Institute of Estate Agents this year in Kuala Lumpur from 25th to 27th August, 2017.

Before we set about understanding the trends in the space, let’s look at how important the online medium is in the region. In SEA today we have 53% internet penetration, to put it in perspective this is above the global average of 50% (Source- Hootsuite June 2017). So very likely, the trends that we see unfolding in the more mature real estate markets will unfold and soon enough will impact business and the way we function in the region.

One base reality, that we appreciate at PropertyGuru is that we serve an empowered customer who have access to devices, tools and knowledge beyond their own market. Winning the trust of this empowered customer is critical for any brand and Transparency, Speed and Relevance are the key elements to build up this trust, which carry over to the real estate sector as well.

And as we move into an era where Transparency, Speed and Relevance have become highly critical to the audience, let’s look at the upcoming trends in the market which can help real estate professionals build up trust with property seekers, their audience-

1. Digitization will shape a new future

Once upon a time there existed a clear line between what products people thought would go digital, and those that won’t. Today that line is blurring and blurring rapidly. Digitization in the Real estate industry has already started, albeit in a small way- where instead of in-person tours, prospective buyers experience property through Virtual Reality.

Going forward we will be faced with a reality where in some places automation steps in to simplify the rent or purchase experience. The possibilities can go even further beyond making property bookings to other aspects of the purchase process including simplifying loan applications- reducing process and removing paperwork by a large degree, or convenyancing, contract signing to even property inspection reports, tenancy agreement between parties.

In Australia is one such company looking specifically in to the Convenyancing process is PEXA- The digital exchange has the capacity to replace most Australian paper-based property title transfers, reduce conveyancing times and costs, and bring property buyers and sellers, conveyancers, banks and title registry offices on to a single unified system.

2. Artificial Intelligence and Machine Learning

We’re already living with Artificial Intelligence all around us, every single day. Whether it’s the Amazon Alexa you ask about the weather or the text bot you write to when you’re shopping online, AI is already here, and there’s no reason to be afraid of it.

There are many possibilities which speak to how AI can play out in the real estate field- Smart Home and the Internet of Things and voice based AI are a few of them.

In certain cases, real estate agents could be empowered with better, smarter data which provide personalised and intuitive suggestions to clients, build up agents credibility and add more value to conversations. The way to look at it as per Russ Cofano’s view that “cognitive computing” not as a threat to labor, but an asset to the baseline of real estate’s agent intelligence.

At PropertyGuru, Artificial Intelligence is something which we are really excited about. For us it is important that we look at integrating technology – AI or otherwise, through the lens of the consumer- the property seeker. We always keep in mind property seeker needs, and what will provide a faster, more qualitative property search experience to enable making the right choice / property decision.

To that end, we believe that agents, play a critical role in shaping the information on our platform that property seekers consume and leverage to make decisions.

3. Payments processes and systems will be redefined

This is a specific area that we see area which is being redefined by technology at a rapid pace for our industry. High trust in online payments, advent and accepatability of Blockchain based technology, push for transparency will being more payments related processes online.

Already we have seen higher- consideration products like mobile subscription (in the case of Circles Life), investments, insurance- both health and life, mortgages (for example MoneySmart) moving to online based models.

In fact, there are a few exciting start-ups in this and associated spaces which are picking up traction- Home equity platform Point in the US enables homeowners to unlock the value of real estate they own by selling equity to investors rather than accruing debt by refinancing their homes. Cadre is another company that provides a marketplace of investment opportunities for real estate investors.

As the Chief Business Officer at PropertyGuru Group, I often interact with real estate professionals and leaders across the region who sometimes look toward the next few years with trepidation. While there is no silver bullet to the question of how can real estate professionals manage the changes that are coming,

I believe that customer relationships based on trust and the three tenets of transparency, speed and relevance will go a long way in helping real estate agents in the region not just survive but succeed in the age of Digital and Technological disruption.

This article was written by Chief Business Officer at PropertyGuru Group, Lewis Ng.

For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit the New Launches or Project Reviews page.

You don’t get to hear much about Sungai Buloh. Due to its limited accessibility and lack of lustre back then, Sungai Buloh wasn’t quite the place for people to purchase or even rent residential properties.

Sungai Buloh is mostly known for its catastrophes rather than a place where all the white picket fences are at. Most would recall Sungai Buloh as a settlement for those infected by leprosy back in the 1920’s as well as the explosion of Bright Sparkles Firework factory in 1991. There is now a great attempt to revive Sungai Buloh as a lifestyle destination and most importantly, as home.

The area does provide a cheaper alternative to properties located in KL, Damansara and PJ. According to PropertyGuru Market Index, price has been dipping from Q4 2016 to Q1 2017 i.e. from RM333.33 to RM328.70. But Q2 2017 shows an increase of 1.7% from the previous quarter.

Picture sourced from Selangor Dredging Bhd

SqWhere by Selangor Dredging Bhd is among the many developments rising in Sungai Buloh, tapping into an area with great potential in catering to the residential needs.

The residential project is a 35-storey serviced apartment that embodies an earthquake-resistant building design in a 4.8-acre mixed development, which includes SOVO and retail offices on Jalan Sungai Buloh in Kampung Baru Sungai Buloh. The average per sq ft price of its two- to four-bedroom units is approximately RM750.

The facilities here are spread across two levels on level 8 and 8A. Elevated 8 floors from the ground, these facilities are accompanied by a 1.7-acre forest deck with innovative facilities for SOVO and Serviced Apartment owners. This is called Garden SqWhere. Facilities include a floating gym, hydrotherapy pool, children’s pool, and secret passage garden.

Picture sourced from The Star Online

What makes the development appealing is its proximity to the Kampung Selamat MRT Station, which is located right across the development. Quicker commute is now at one’s doorsteps by residing at SqWhere.

Get to the station and residents could easily commute to hot-spots like One Utama, Nu Sentral, The Curve / Ikano and even KLCC via transit on the LRT Kelana Jaya line. Those who work in the city centre will find this development rather attractive, given the fact that they can leave their cars at home and hop on the train to work, fuss free from the dreadful KL jam. Well, we are all aware that it would take at least 40 minutes to drive from Sungai Buloh to the city center!

It doesn’t sound that bad now, does it? Remember, Sungai Buloh is going through massive urban transformation that would entice a new breed of residents. Urban folks with families and generations that are seeking for a home that could complement the latest lifestyle, on a budget are more than welcome here!

(Featured image sourced from Tan&Tan)

For more information on new top homes, check out PropertyGuru’s New Property Launches and Project Reviews

PropertyGuru Malaysia’s recent Consumer Sentiment Survey revealed that confidence towards the Malaysian property sector remains stable despite deep seated concerns regarding overall economic conditions and other macro factors.

The sentiment is further supported by stable price perception for all property types in Malaysia.

Consumers prefer stable and steady capital appreciation

The key factor cited by consumers for overall satisfaction was the gradual but stable appreciation of property prices in 2017, particularly for landed residential properties in the key urban epicentres of Kuala Lumpur, Penang and Johor. This is a marked contrast to the price hikes of previous years where flipping activity by speculators contributed to market over-heating and over-supply for certain property classes.

According to PropertyGuru Malaysia Country Manager, Sheldon Fernandez, the property market now primarily consists of owner-occupiers or longer-term investors. Landed properties purchased largely by families or newly-weds using joint income affordability are providing the momentum for sales and purchase transactions.

Homes are being bought further away from the city centre and this has emerged as a trend for 2016 and 2017.

Concerns and dissatisfaction amidst market stability

Despite consumer sentiment showing overall stability, dissatisfaction still remains a considerable factor. The top two concerns impacting their overall property decisions in 2017 are the expensive prices of properties, while many respondents felt that the country’s economy is underperforming.

“Malaysians have accepted the market reality and are more willing to transact but their efforts are potentially being hampered by rising living costs, concerns on job security and more. Yet they remain resilient. Many are opting for joint loan applications to finance purchases,” said Fernandez.

Suburbia – The new urban utopia

On a separate note the Consumer Sentiment Survey continues to show a trend of buyers flocking to the suburbs in search of property. This indicates the emergence of new property hotspots in the suburban areas of Selangor, which is between 20 to 40km from the city centre. 27 percent of buyers expressed their desire to buy in these outskirts areas.

The 3 key factors that remain the top consideration for property purchases are location, safety and the size of the units. The budget conditions for most buyers stand at between RM300,001 and RM500,000. The majority of buyers require a bank loan for the purchase of their property.

To read the full report, read the PropertyGuru Consumer Sentiment Survey report

At Bogyoke Market in the centre of Yangon, commerce proceeds very much as it has since the times of British colonialism. Across the road, Junction City Mall is home to designer brands including Hugo Boss and Versace while its giant Cineplex shows the latest Hollywood hits.

But if retail is thriving – and evolving – it is a very different situation when it comes to residential developments. In the little more than 12 months since Myanmar’s first civilian government in five decades finally took up the reins of parliament, the initial rays of promise for the residential market have been obscured by clouds of uncertainty and disillusionment.

The current situation is “challenging” at best, according to Richard Emerson, managing director of Yangon-based property consultancy Emerson Real Estate. “Things are difficult,” he says. “The residential market is effectively at a standstill because of a range of fundamental issues.”

These include economic uncertainty, unclear legislation, over-supply of high-end properties, a lack of mortgage provision, high land prices and property sales tax which can hit 30 percent at the top level.

According to a Colliers International snapshot report in February on the condominium market in Yangon, 2016 saw a total of just five new projects amounting to 1,673 units – a “significant” 41 percent year-on-year decline.

When former US president Barack Obama signed an order in October 2016 lifting almost all sanctions against Myanmar, after two decades of restrictions, and did away with the Specially Designated Nationals List (SDN) – a register of around 100 individuals and companies with whom anyone in the US were barred from doing business with – it was expected foreign investment would increase significantly.

Yet such optimism appears to have been premature.

State Counsellor Aung San Suu Kyi keeps a tight rein over the ministries under her control, and her intense focus on the beleaguered peace process in the country appears to have allowed other issues to slip. A year into power and her government has still to produce a detailed economic policy for the nation.

“Real estate does not react well when there is any degree of uncertainty,” Emerson adds. “If there is negative news people hold off making decisions.”

Among those has been a glut of high-end properties which now sit either unfinished or empty as the envisioned influx of wealthy foreigners expected to rent them has failed to materialise due to ongoing concerns about the wider economy and a lack of effective investment legislation.

The Colliers report notes that the total completed condominium stock is estimated to have exceeded 6,000 units at the end of 2016 with more than 10,000 units in the pipeline.

However, the report warns that “inadequate sales take-up along with the rising number of defaults from buyers could mean delays in completion or even the possibility of project cancellation”.

Ben Hickson, a consultant with South Asia Law, says the biggest barrier to widespread provision of housing finance is that there is no mortgage register, which means there is little security if borrowers default. He adds that colonial era laws and the 2012 Foreign Investment laws both have provisions relating to mortgages, so, in theory, it should be possible for international investors to get a mortgage. In practice, however, concerns about security mean that is not happening.

“It is not so much an inadequacy in the legislation that is the problem, but the fact there isn’t the infrastructure to support that legislation,” Hickson says.

A significant blow to investor faith occurred in May 2016, just one month after the new government took over. In what was apparently a well-intentioned bid to tackle head on the corruption that was running rife in the sector, a halt was ordered on the construction of more than 200 high-rise buildings in Yangon to ensure they were compliant with regulations and urban development plans.

Cranes and huge construction sites highlight the rapid pace of change in Myanmar’s biggest city, Yangon

After months of negotiations, almost all projects were given permission to restart work, but by that time the market had already considerably cooled down.

Moreover, the Colliers report states that there were no new condominium launches in the second half of 2016 sending “some developers back to the drawing board”.

Despite stalled developments, slow sales, and a drop in rental incomes for those who have already invested, hope remains that 2017 will bring some positive legislative changes to boost the sector.

“Although there are no new launches, a number of significant projects [in Yangon]such as Golden City and GEMS Garden have completed their first phases and now handing over to the owners and being occupied,” Dan Davies, managing director of Colliers International Myanmar, says. “This has provided a spark of optimism in the market and both projects are busy with leasing activity.

“What the lull in the market last year has exposed is those developers who have cash and those who are relying solely on sales to fund the build.”

Yet even if international investors were to overcome their nerves about the fickle climate, the legislation to allow foreigners to invest in residential real estate is still not fully established.

The much-heralded condominium law has been approved by parliament, but the Ministry for Construction has not implemented necessary by-laws for it to be introduced.

“The reality is that Myanmar requires foreign investment on all fronts – including real estate – in order to get the economy going again,” adds Davies.

According to Emerson, “not one foreign investor” has been able to find an affordable housing project suitable for investment, due to a combination of high land prices and low sales rates, with units set to retail at between USD8,000 and USD25,000.

The reduction in rental fees will bring long-term benefits to the city and help drive down the cost of living, making it a more attractive base for foreign residents, according to David Ney, managing partner at York Road Realty in Yangon.

“If you have more inexpensive property on the market, more international companies will see opportunities because they can get more for their dollar and as more open up the overall the cost of living will go down, and that is good,” he says, adding that high-end rents have fallen by around a third. “Properties that were renting for USD5,000 per month are now going for USD3,000 or even USD2,000.”

In the long term the sector does hold promise. Analysts say that the slow progression of laws should mean that legislation is effective and useful rather than rushed through laws which could cause problems in future.

“Overall, you are looking at units under construction or sold and the total is just 23,000,” Emerson says. “In a city of 7 million people that is not a lot. In the grand scheme of things there is a long way to go in terms of potential.”

Potential has long been a word that is juxtaposed with Myanmar. If basic factors including booming prices, a virgin market and a giant supply gap that needs filled sound attractive to real estate developers and investors, that’s because they are. Many will therefore be hoping that the coming period is as fluid as the last 12 months have been stagnant.

Coastal Cravings

Myanmar may not be renowned as a beach destination, but the country boasts miles of undeveloped coastline and pristine white sands, which are beginning to draw interest from investors. New projects include residential units as well as hotels.

According to Dan Davies, managing director of Colliers International, Ngapali beach in southern Rakhine State and Ngwe Saung, a five-hour drive from Yangon, top the lists for coastal development projects. Recently there has been more speculation for investment in the country’s south, which is only beginning to develop a tourism sector, particularly in Dawei and Myeik on the Andaman Ocean.

Foreigners wishing to invest in seaside properties face many of the same issues as those looking at urban developments. However, the promise of unspoiled beaches mean those looking for a buy to let investment in an emerging beach tourism market will be keeping a close eye on suitable development opportunities.

Mall or Nothing

If any development encapsulates Myanmar’s rapid modernisation and opening to foreign investment it’s the opening of shiny new malls in Yangon. Traditionalists may bemoan a certain loss of atmosphere and character to the city, but local shoppers clearly appreciate a shopping experience which offers air-conditioning, shelter during the long rainy season, clean toilet facilities and often many food options in a small space. The latest and slickest on the block is Junction City, which is located opposite the historic Bogyoke (formerly Scott) Market in the centre of downtown. The new mall, a development by Shwe Taung Group, is home to more than 240 fashion, beauty, technology, food and lifestyle outlets, with designer names including Versace and Moschino. It also boasts the largest food court and Cineplex in Myanmar.

Bogyoke Market is one of Southeast Asia’s classic shopping experiences

For more information on new homes, check out PropertyGuru’s New Property Launches and Project Reviews.

Subang Jaya folks, this is how your turf reigns supreme in this part of Klang Valley.

Thousands have grown and raised in an area that has become the preferred postcode to be called home for decades long. The socioeconomic landscape truly captures the essence of Malaysia’s multi layers community that we all grew accustomed to. Its great community, food and ambiance have led it morphed into a wholesome neighborhood for many.

Food has been a staple in this part of town. There are the ‘legendary’ eateries that one must have to be called a true Subangnite. And yes, the artsy and flamboyant restaurants/cafés are also making their presence felt with contemporary and modern minimalist approach to food. These include FIQ’s Gastronomy, Jibby&Co. (no pun intended, politically) and 95 Degré s Art Café KL. The list just goes on! Subang Jaya is blessed with abundance of delectable choices that would make you go mad and perhaps gaining a couple of pounds along the way.

Public transportation here was once a headache! The closest LRT back then was Kelana Jaya Station while Subang Jaya’s commuter station was never a favourite among commuters. Thankfully, folks now have access to Kelana Jaya Line via the extended rail that takes commuters all the way up to Putra Heights. It is a huge sigh of relief as the long-awaited line is finally here in Subang Jaya!

In coping with the vivacious vibe, new residential properties are made and curated to live up to Subang Jaya’s both commercial and residential success. The latest developments here are hip and ultra-sleek. These projects hope to capture a wholesome lifestyle by providing top notch structural quality to complement the existing and well-known amenities here.

According to PropertyGuru Market Index, there has been an increase from Q4 2016 to Q1 2017 from 112.4 to 114.3. Nevertheless, it dropped in Q2 2017 to 111.2, with a dip of 3.1%. The current indicative psf. is at RM 539, which can be seen as encouraging especially among potential and genuine home-buyers to explore the latest offerings here.

Among developments to look out for in Subang Jaya are:

Images sourced from http://www.simedarbyproperty.com/thesuave

The Suave Residences

Suave Residences is yet another prestigious project undertaken by Sime Darby Property in the heart of Subang Jaya City Centre (SJCC). Spanning across approximately 2 acres of land, The Suave Residences boasts a 2-block, 30-storeys and 361 units only at an indicative price of RM 1,000-RM 1,200 psf.

This will be a high-rise, low-density development with only 361 units tucked within 2 towers of 30-storeys high. The built-up will range from 624 – 1001 sq.ft. with maximum of three rooms. The development will fall in the freehold category with commercial title, reason being there will some commercial retail stores below the condominium.

Facilities include infinity edge lap pool, Jacuzzi, landscaped garden, spill-out deck and multi-purpose hall.

The Edge Residen

The Edge Residen is the latest high-rise property project by Dergahayu Sdn Bhd to be developed in the last remaining land in USJ1, which means that this will be the final peace of residential development there. Set to be completed by the second quarter of 2018, The Edge Residen will be a single tower serviced apartments comprising of 447 units in total offering 2-3 bedrooms units with build-up sizes ranging from 647 sq.ft. to 1,008 sq.ft.

The indicative price starts from RM 400,000. All units come with kitchenette items that include cooking hood and hob and kitchen cabinets.

Facilities include children’s playground, landscaped area, nursery and retail outlets.

Images sourced from http://www.tropicanametropark.com.my

Paisley@Tropicana Metropark

Paisley is among Tropicana Metropark’s many residential developments in this complete and state-of-the art integrated development, on 88 acres of land. Ambitious, perhaps but given Tropicana Corporation’s portfolio, nothing seems to be impossible for them! Units here ranging 601 sq ft. to 1,491 sq ft. with rooms ranging from studio to 3+1 bedrooms.

The smaller units indicatively priced at RM 496,000 right and the price goes all the way up to the million-ringgit mark. It is estimated to done by 2020. Among all the high-rise residences in Tropicana Metropark, Paisley Serviced Residences has the most central location, right across from the biggest highlight of this development – the 9.2-acre park and lake. It has the widest view of this park and lake as well, with connection to water and greenery.

Its Tower A is surrounded by the more than 40 facilities available at Paisley Serviced Residences. Among the greatest highlights of its facilities are the 3-storey sky gym and its three sky terraces.

Images sourced from http://www.tropicanametropark.com.my

Paloma Serviced Residences@Tropicana Metropark

Another Tropicana Metropark’s residential project rising through the mammoth integrated development. This serviced residential project consists of two towers with 571 units as well as 16 exclusive duplex courtyard villas.

Most of the residential properties here are encircling the Central Park. This gives all tenants and owners fair access to the massive green marvel here. The development’s environment is enhanced further with the Stone Gardens, Fragrant Spa Gardens, Lifestyle Pavilion Sanctuary Pool and of course, the infinity pool.

Sizes ranging from 609 sq ft. to 1,309 sq ft. as layouts consist of studio as well as units with two to three bedrooms. Indicative selling price starts at RM 662,400 with an average of RM 364 to RM 1,070 psf. Facilities here include rooftop sky gym, bubble tub, children’s playground, basketball court and multi-purpose hall.

Images sourced from http://www.tropicanametropark.com.my

Pandora@Tropicana Metropark

Pandora @ Tropicana Metropark a 23-storey serviced apartment development built on freehold land, along with its sister projects Paisley and Paloma. There are 627 units with built-up areas of 596 to 4,000 sq ft.

This is also the first residential project to have a specially crafted greenscape as outdoor greenery and leisure facilities are extended to the indoors. Metropark’s main attraction, Central Park is merely minutes away for residents to unwind and relax after a hard day of work. The units here come from 579 sq ft. to 1,588 sq ft. with indicative price starts at RM 390,000. There is a variation of layouts here that include studios to units with three bedrooms.

Meanwhile, residents here will enjoy an array of facilities that include covered parking space, infinity pool, Jacuzzi, yoga deck, barbecue area, sanctuary pool, sky gymnasium, rooftop garden, basketball court and more. This property is also gated and guarded with 24-hour security.

Featured image sourced from The Star

For more information on new top homes, check out PropertyGuru’s New Property Launches and Project Reviews

By Radin Ghazali

Despite land being scarce, Northeast Penang District is still the preferred destination for new developments in the next four to five years’ time. It’s mature socioeconomic landscape backed by its capital city George Town, the area has been the state’s anchoring district for decades.

However, there is a strong movement of developments heading towards the suburbs of the Northeast district. Such movement hopes to capture potential market boom poised by these suburbs while banking on to their close proximity to the city center.

Properties that are still in the pipelines or waiting for approval from the city council can be seen brewing in areas like Paya Terubong and Bandar Air Item. Based on the recently launched PropertyGuru Market Index, both areas are considered cheaper in comparison to George Town and the coastal line areas.

There has been a continuous price dip in Paya Terubong from Q4 2016 right up to Q1 2017 from 106.5 to 102.4 with a 3.8% decrease. This downward trend was further notice in Q2 2017 as the index reduced to 99.6. The indicative price towards the end of 2016 was at RM 450psf., making it attractive to developers in banking on the district’s mature landscape.

The same phenomenon is also occurring at Bandar Air Item as the dip continues from Q4 2016 at 113.4 to Q1 2017 at 112.8 with 0.6% decline. Its current psf. is estimated to be at RM 475, in which making the area enticing for developers to tap into within four to five years’ time.

Picture sourced from LinkedIn

High concentration still exists along coastal areas like Tanjung Bungah for more upscale developments due to the demand and value of properties located here. The area is a goldmine due to its idyllic ambiance of having both the sea and the greens, embedding the entire coastline.

Tanjung Bungah shows a consistent increase from quarter to quarter. Q1 2017 showed a spike up from the previous quarter with 4% and Q2 saw a stable growth from 153.1 to 153.3. The projected average psf. to date is RM 652 and is among the highest psf. in Penang. Nonetheless, the land off the coastal line are depleting greatly and this has led the area turning into a highly saturated location.

Hence, a shift can be seen among newer developments here as they are moving to its hilly terrains that include Tanjung Tokong and Mount Erskine. These hills are slowly morphing into construction sites as latest developments are being pushed away from the beach lines.

It’s either go big or go home for these developers in Tanjung Bungah due to the competitiveness of the market here. Capitalising on the picturesque view of the coast and its extremely strategic location seem to the tipping point of why these properties are scaling on the expensive side of the market.

Among the latest developments that are in the pipelines, subject to changes and approval, in the Northeast Penang District are:

• The Prime Residence, Paya Terubong- Project by Universal Class Sdn Bhd with a total of 76 units per tower. This low-density apartment will house four units at every floor. Its location is right along Jalan Paya Terubong, making areas like Balik Pulau, Penang Bridge and Penang Second Bridge accessible in less than 15 minutes.

(Picture sourced from PLB Homes)

• The Stone is a massive mixed development taking place in Paya Terubong by Pasifit Construction Sdn Bhd. Its 22-storey residential tower has 205 affordable units sized at 850 sq ft. along with other various mid to high ranged units.

• Imperial Grande of Jalan Paya Terubong belongs to Modular Platinum Sdn Bhd. This mixed development consists of 37 units of 3-storey bungalows and six units of 3-storey semi-detached. It also has two 46-storeys residential towers with 938 units and 65 commercial units.

• Ohm Group’s will be building a strata development within Hye Keat Estate in Bandar Air Item. The development consists of refined and exclusive six bungalow units along with a 31-storey condominium with only 88 units. This high-end project is expected to be launched soon.

• JPK Sdn Bhd’s low cost flats will be making its way in Balik Pulau. The development has 204 units as starting price starts at RM 60,000. Don’t hope for spacious units as the average size is 750 sq ft.

(Picture sourced from Apartment Penang)

• HH Residences by Aspen Group is a mixed development project with two blocks of residential towers with 606 units in Tanjung Bungah. The developer is also planning to build four floors of commercial and retail units called HH Galeria to complement its residential projects.

• Biopolis Global’s low density development is yet another premium development, capitalising on the exclusiveness of Tanjung Bungah. It is said to have four low rise towers with 27 units per block. It is strategically located along Jalan Chan Siew Teong, giving an edge to the development while overlooking the entire coastal line.

(Picture Sourced from Kobytech)

• Kobaytech Bhd. will be going all out along Tanjung Bungah. The company is slated to have two high-rise developments called Mirage Beach Front Mixed Development and 35-storey Blossom Hill Side, a fellow mixed development.

Nevertheless, there are a handful of ongoing projects that  are taking place in the Northeast district. These developments are nearing to completion and some are even done. Among them are:

Alila, Tanjung Bungah

The Cove, Tanjung Bungah

Skyridge Garden, Tanjung Tokong

Eco Terraces, Paya Terubong

Featured picture sourced from Malaysia Outlook

For more information on new top homes in Penang, check out PropertyGuru’s New Property Launches and Project Reviews