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Property News
- Thread starter FHBH12
- Start date
We also no 1 for being kiasi, kiasu,...can be no 1 for the wrong things and wrong reasons.
Chinese developers bet on Malaysia as investors turn cold on Hong Kong, Singapore
Published March 12, 2014
[HONG KONG] Malaysia is turning into the darling of Chinese developers as mainland investors turn their backs on market restrictions in Hong Kong and Singapore and bet billions on cheaper housing and higher returns in the Southeast Asian country.
State-backed Greenland Group announced this month a $3.3 billion deal in two residential and hotel projects in Malaysia, joining smaller peers Country Garden Holdings Co Ltd, Guangzhou R&F Properties Co Ltd and Agile Property Holdings Ltd, which have invested a combined US$2.7 billion in Malaysia in the past two years.
In 2013, Chinese institutional and retail investors invested a total of US$1.9 billion into real estate in Malaysia, exceeding the US$867 million invested in Hong Kong and US$1.8 billion invested in Singapore, according to real estate consultancy Savills. The figure also topped the US$1 billion invested in Australia, but lagged Chinese investments into Britain and the United States.
"Malaysia hosts a vast Chinese community and has policies that attract foreign buyers so it has become a new investment destination," said Greenland's group chairman, Zhang Yuliang.
He added that Malaysia's stable economic growth, large population demand in Johor Bahru, the city where the group is investing, its proximity to Malaysia's major cities and Singapore, as well as the country's established immigration policies, are reasons for the company to invest.
Greenland is due to report 2013 earnings on Wednesday. Officials with Agile and R&F could not be reached for comment. "Malaysia is the cheapest in the region in terms of capital city pricing," said Tim Murphy, chief executive of property investment consultant and underwriter IP Global. "We like Malaysia also because of the strong foreign ownership level and because you can borrow money. Lenders are friendly."
A 15 per cent stamp duty on non-resident buyers in Hong Kong and Singapore, where cash-rich mainland Chinese have been blamed for driving up prices in the past few years, has deterred many foreign buyers, Murphy added.
Luxury residences in Malaysia sell for between US$2,300 and US$5,600 per square metre, much lower than US$27,600 to US$33,700 in Singapore and US$43,700 to US$53,500 in Hong Kong, according to real estate consultancy Knight Frank.
Average rental yields are also more attractive in Malaysia at 4 to 6 per cent, compared to 3 per cent in Singapore and 2.5 per cent in Hong Kong.
Mortgage terms are also better for non-residents in Malaysia, with buyers able to borrow 70 per cent of a property's value. That's more generous than the 40 per cent to 60 per cent in Singapore and 30 per cent to 50 per cent in Hong Kong.
Country Garden President Mo Bin said Malaysia was a more attractive market for the company than China.
"Malaysia is a nice market, it has some edge over China," he told an earnings briefing after the company posted on Wednesday a 24 per cent increase in its 2013 net profit. "We don't rule out acquiring more land there."
One challenge facing Chinese developers is their ability to secure land, which is tightly controlled by local governments.
"It's difficult to find good opportunities because the good plots of land are controlled by the local government. Only local developers, family of government officials and political affiliates can have access," said an executive at a private equity fund who invests in Southeast Asian projects.
Country Garden, which focuses on high-end residential housing, has three villa projects underway in Malaysia after it entered the market in early 2012. At its latest condominium project at Iskandar, five minutes from the Singapore border, the company posted contracted sales of 7 billion yuan (US$1.14 billion) last year, topping the list of its projects.
Since the middle of last year, Country Garden has been organising subsidized tours to Malaysia for potential Chinese buyers, departing from Guangzhou, Hong Kong and Macau.
A four-day tour costs as little as 3,610 yuan, according to information on real estate agent website, house.163.com, with the property developer sponsoring 2,000 yuan for each person.
One morning is spent at Country Garden's Danga Bay villa in Iskandar.
The web page, topped with a banner that says "300,000 yuan to get residency for the whole family in a city next to Singapore", also gives details about Malaysia's immigration policies. - Reuters
http://www.businesstimes.com.sg/bre...estors-turn-cold-hong-kong-singapore-20140312
Published March 12, 2014
[HONG KONG] Malaysia is turning into the darling of Chinese developers as mainland investors turn their backs on market restrictions in Hong Kong and Singapore and bet billions on cheaper housing and higher returns in the Southeast Asian country.
State-backed Greenland Group announced this month a $3.3 billion deal in two residential and hotel projects in Malaysia, joining smaller peers Country Garden Holdings Co Ltd, Guangzhou R&F Properties Co Ltd and Agile Property Holdings Ltd, which have invested a combined US$2.7 billion in Malaysia in the past two years.
In 2013, Chinese institutional and retail investors invested a total of US$1.9 billion into real estate in Malaysia, exceeding the US$867 million invested in Hong Kong and US$1.8 billion invested in Singapore, according to real estate consultancy Savills. The figure also topped the US$1 billion invested in Australia, but lagged Chinese investments into Britain and the United States.
"Malaysia hosts a vast Chinese community and has policies that attract foreign buyers so it has become a new investment destination," said Greenland's group chairman, Zhang Yuliang.
He added that Malaysia's stable economic growth, large population demand in Johor Bahru, the city where the group is investing, its proximity to Malaysia's major cities and Singapore, as well as the country's established immigration policies, are reasons for the company to invest.
Greenland is due to report 2013 earnings on Wednesday. Officials with Agile and R&F could not be reached for comment. "Malaysia is the cheapest in the region in terms of capital city pricing," said Tim Murphy, chief executive of property investment consultant and underwriter IP Global. "We like Malaysia also because of the strong foreign ownership level and because you can borrow money. Lenders are friendly."
A 15 per cent stamp duty on non-resident buyers in Hong Kong and Singapore, where cash-rich mainland Chinese have been blamed for driving up prices in the past few years, has deterred many foreign buyers, Murphy added.
Luxury residences in Malaysia sell for between US$2,300 and US$5,600 per square metre, much lower than US$27,600 to US$33,700 in Singapore and US$43,700 to US$53,500 in Hong Kong, according to real estate consultancy Knight Frank.
Average rental yields are also more attractive in Malaysia at 4 to 6 per cent, compared to 3 per cent in Singapore and 2.5 per cent in Hong Kong.
Mortgage terms are also better for non-residents in Malaysia, with buyers able to borrow 70 per cent of a property's value. That's more generous than the 40 per cent to 60 per cent in Singapore and 30 per cent to 50 per cent in Hong Kong.
Country Garden President Mo Bin said Malaysia was a more attractive market for the company than China.
"Malaysia is a nice market, it has some edge over China," he told an earnings briefing after the company posted on Wednesday a 24 per cent increase in its 2013 net profit. "We don't rule out acquiring more land there."
One challenge facing Chinese developers is their ability to secure land, which is tightly controlled by local governments.
"It's difficult to find good opportunities because the good plots of land are controlled by the local government. Only local developers, family of government officials and political affiliates can have access," said an executive at a private equity fund who invests in Southeast Asian projects.
Country Garden, which focuses on high-end residential housing, has three villa projects underway in Malaysia after it entered the market in early 2012. At its latest condominium project at Iskandar, five minutes from the Singapore border, the company posted contracted sales of 7 billion yuan (US$1.14 billion) last year, topping the list of its projects.
Since the middle of last year, Country Garden has been organising subsidized tours to Malaysia for potential Chinese buyers, departing from Guangzhou, Hong Kong and Macau.
A four-day tour costs as little as 3,610 yuan, according to information on real estate agent website, house.163.com, with the property developer sponsoring 2,000 yuan for each person.
One morning is spent at Country Garden's Danga Bay villa in Iskandar.
The web page, topped with a banner that says "300,000 yuan to get residency for the whole family in a city next to Singapore", also gives details about Malaysia's immigration policies. - Reuters
http://www.businesstimes.com.sg/bre...estors-turn-cold-hong-kong-singapore-20140312
Greenland Group finalising RM3b investment in Danga Bay
Posted on 3 March 2014 - 05:36am
[email protected]
PETALING JAYA: China's Greenland Group plans to invest RM3 billion in an integrated real estate development project in Danga Bay in Johor Baru, according to Iskandar Waterfront Holdings Sdn Bhd (IWH).
In a statement released on Friday (IWH) said Greenland's chairman Zhang Yuliang led a six-member high-powered delegation from its headquarters in Shanghai to finalise a land deal with IWH for the development.
Greenland, ranked 359 in the Fortune Global 500 company survey last year, IWH said is keen to acquire around 60ha of land from the company.
The high-profile Chinese developer has been on a buying spree in recent years, acquiring big real-estate projects in New York, Los Angeles, Sydney, London and South Korea.
IWH, a public-private partnership involving the State and Federal governments and local investors, is the master developer of some 1,620ha of waterfront land on the eastern and western sides of the Johor Causeway.
"Greenland's forte is in mixed commercial development, including high-end hotels and residential towers. We expect them to bring their expertise and market knowledge to help build world-class waterfront properties in Danga Bay," said IWH executive director Lim Chen Herng in the statement.
To date, Lim said 16 local and foreign investors have joined hands with IWH to develop properties with a cumulative gross development value of RM125 billion.
They include Temasek/CapitaLand, Tune Hotel, Tropicana Corp Bhd, Brunsfield Group, Nam Cheong, Skyfront Holdings, Azea Properties and Centurian Properties.
He said several other major investors from India, Japan, South Korea, the Philippines and Indonesia are also negotiating with IWH for land deals for large scale real estate developments here.
According to him, Hao Yuan Investment, which is controlled by Chinese shareholders, has also bought six-parcels of waterfront land totaling 15ha in Danga Bay for a RM1.6 billion mixed development.
Other major China developers with projects in IWH include Country Garden Holdings Co Ltd, which has commenced work on a 21ha waterfront site for a massive integrated development, including up market apartment units.
http://www.thesundaily.my/news/973008
Posted on 3 March 2014 - 05:36am
[email protected]
PETALING JAYA: China's Greenland Group plans to invest RM3 billion in an integrated real estate development project in Danga Bay in Johor Baru, according to Iskandar Waterfront Holdings Sdn Bhd (IWH).
In a statement released on Friday (IWH) said Greenland's chairman Zhang Yuliang led a six-member high-powered delegation from its headquarters in Shanghai to finalise a land deal with IWH for the development.
Greenland, ranked 359 in the Fortune Global 500 company survey last year, IWH said is keen to acquire around 60ha of land from the company.
The high-profile Chinese developer has been on a buying spree in recent years, acquiring big real-estate projects in New York, Los Angeles, Sydney, London and South Korea.
IWH, a public-private partnership involving the State and Federal governments and local investors, is the master developer of some 1,620ha of waterfront land on the eastern and western sides of the Johor Causeway.
"Greenland's forte is in mixed commercial development, including high-end hotels and residential towers. We expect them to bring their expertise and market knowledge to help build world-class waterfront properties in Danga Bay," said IWH executive director Lim Chen Herng in the statement.
To date, Lim said 16 local and foreign investors have joined hands with IWH to develop properties with a cumulative gross development value of RM125 billion.
They include Temasek/CapitaLand, Tune Hotel, Tropicana Corp Bhd, Brunsfield Group, Nam Cheong, Skyfront Holdings, Azea Properties and Centurian Properties.
He said several other major investors from India, Japan, South Korea, the Philippines and Indonesia are also negotiating with IWH for land deals for large scale real estate developments here.
According to him, Hao Yuan Investment, which is controlled by Chinese shareholders, has also bought six-parcels of waterfront land totaling 15ha in Danga Bay for a RM1.6 billion mixed development.
Other major China developers with projects in IWH include Country Garden Holdings Co Ltd, which has commenced work on a 21ha waterfront site for a massive integrated development, including up market apartment units.
http://www.thesundaily.my/news/973008
Johor tops in unsold property in Malaysia
As at end-Sept 2013, the state had 15,077 residential units unsold: Landserve
BY PAULINE NGIN KUALA LUMPUR
PUBLISHED MARCH 14, 2014
MALAYSIA'S Johor state still has the largest number of unsold residential units in the country despite it having registered a 22 per cent drop in the property overhang to 2,637 units at the end of Q3 last year, from the 3,389 units left unsold in the three months before.
Nearly four in five or 2,102 of the completed units are located in the district of Johor Baru, and most of them (2,089) have been in the market for more than two years, according to property consultancy Landserve Sdn Bhd.
With the special economic zone of Iskandar Malaysia driving growth, particularly in real estate, the southern state saw 7,100 units launched in the first nine months of 2013, more than in any other state. The bulk of the units were unveiled in the first six months of last year, Landserve noted in its January/February report.
It attributed the quicker pace of take-up in unsold properties in Q3 to competitive mortgage rates and the deferred financing Developer Interest Bearing Scheme (Dibs). Since the October Malaysian budget however, Dibs has been banned and real property gains taxes have been made more punitive, dampening sentiment. The minimum floor price for foreigners has also been raised to RM1 million (S$386,510) from RM500,000 although key interest rates remain unchanged.
In terms of unsold units under construction, the state saw a 14.3 per cent drop from 10,769 units in Q2 to 9,225 in Q3. Its unsold units not constructed also improved by 9.4 per cent over the same period to 3,215 units. Landserve said that in Malaysia, Johor leads with the highest number of unsold units not constructed. The 9,000-unit Country Garden in Danga Bay, the mega integrated project of China-based developer Country Garden, is said to have contributed partly to it, with only some two-thirds sold.
Landserve observed Country Garden grabbed the headlines last year as "the most talked-about development", but smaller property players had also piled into the market in the past two years, eager to strike while demand was hot.
In all, Landserve calculated that as at end September, Johor had a total of 15,077 units unsold that have either been completed, under construction or not constructed yet.
Across the country, there are a total of 73,684 such units. A total of 48,239 units fall under the "not constructed" (but launched) category. The main portion of unsold units under construction is in Selangor, Johor and Kuala Lumpur while the majority of the launched but not constructed units are sited in Johor, Negeri Sembilan and Selangor.
Landserve observed that 93.3 per cent or 11,607 units of the overhang or completed units had been in the market for more than two years. Nearly 60 per cent of them were priced at below RM200,000 "signifying gross demand-supply mismatch in terms of location and property type".
In the Klang Valley, it advised investors to look at completed houses and strata homes in established schemes "because its secondary market has not been influenced by undue speculation".
Schemes it is partial towards are those that are near any of the 31 MRT stations on the Sungei Buloh-Kajang MRT line that is under construction.
http://www.businesstimes.com.sg/premium/malaysia/johor-tops-unsold-property-malaysia-20140314
As at end-Sept 2013, the state had 15,077 residential units unsold: Landserve
BY PAULINE NGIN KUALA LUMPUR
PUBLISHED MARCH 14, 2014
MALAYSIA'S Johor state still has the largest number of unsold residential units in the country despite it having registered a 22 per cent drop in the property overhang to 2,637 units at the end of Q3 last year, from the 3,389 units left unsold in the three months before.
Nearly four in five or 2,102 of the completed units are located in the district of Johor Baru, and most of them (2,089) have been in the market for more than two years, according to property consultancy Landserve Sdn Bhd.
With the special economic zone of Iskandar Malaysia driving growth, particularly in real estate, the southern state saw 7,100 units launched in the first nine months of 2013, more than in any other state. The bulk of the units were unveiled in the first six months of last year, Landserve noted in its January/February report.
It attributed the quicker pace of take-up in unsold properties in Q3 to competitive mortgage rates and the deferred financing Developer Interest Bearing Scheme (Dibs). Since the October Malaysian budget however, Dibs has been banned and real property gains taxes have been made more punitive, dampening sentiment. The minimum floor price for foreigners has also been raised to RM1 million (S$386,510) from RM500,000 although key interest rates remain unchanged.
In terms of unsold units under construction, the state saw a 14.3 per cent drop from 10,769 units in Q2 to 9,225 in Q3. Its unsold units not constructed also improved by 9.4 per cent over the same period to 3,215 units. Landserve said that in Malaysia, Johor leads with the highest number of unsold units not constructed. The 9,000-unit Country Garden in Danga Bay, the mega integrated project of China-based developer Country Garden, is said to have contributed partly to it, with only some two-thirds sold.
Landserve observed Country Garden grabbed the headlines last year as "the most talked-about development", but smaller property players had also piled into the market in the past two years, eager to strike while demand was hot.
In all, Landserve calculated that as at end September, Johor had a total of 15,077 units unsold that have either been completed, under construction or not constructed yet.
Across the country, there are a total of 73,684 such units. A total of 48,239 units fall under the "not constructed" (but launched) category. The main portion of unsold units under construction is in Selangor, Johor and Kuala Lumpur while the majority of the launched but not constructed units are sited in Johor, Negeri Sembilan and Selangor.
Landserve observed that 93.3 per cent or 11,607 units of the overhang or completed units had been in the market for more than two years. Nearly 60 per cent of them were priced at below RM200,000 "signifying gross demand-supply mismatch in terms of location and property type".
In the Klang Valley, it advised investors to look at completed houses and strata homes in established schemes "because its secondary market has not been influenced by undue speculation".
Schemes it is partial towards are those that are near any of the 31 MRT stations on the Sungei Buloh-Kajang MRT line that is under construction.
http://www.businesstimes.com.sg/premium/malaysia/johor-tops-unsold-property-malaysia-20140314
this is the part i like best. everyone complains about "not enough cheap housing" and "house price escalated too high", when in actual fact, as I knew all along, it's a question of envy (i.e buay song). there are lots of cheap housing. just that nobody wants them.
Similar to KL and Penang; JB properties is now divided into 2 segment. 1. Locals zone and 2. investors zone.
Locals zone will always remain cheap and stagnant as the tenants and owners in those area are refer to "least preferred" neighbourhood.
And there will be a segment that can have price 10 times higher call the "investors" segment where rich locals; investors and foreigners buy into.
Penang millionaires road is Gurney drive.
KL millionaires properties swamp around KLCC.
This is the place you want to look out for in JB. So far this area is not being identified as on going development and transportation have yet to be finalised.
What one can do is to eliminate the area you think "cannot make it" and soon you will find a list of around 3 areas that have such potential.
One of them is of course JBCC.....
Cheers guys.
Locals zone will always remain cheap and stagnant as the tenants and owners in those area are refer to "least preferred" neighbourhood.
And there will be a segment that can have price 10 times higher call the "investors" segment where rich locals; investors and foreigners buy into.
Penang millionaires road is Gurney drive.
KL millionaires properties swamp around KLCC.
This is the place you want to look out for in JB. So far this area is not being identified as on going development and transportation have yet to be finalised.
What one can do is to eliminate the area you think "cannot make it" and soon you will find a list of around 3 areas that have such potential.
One of them is of course JBCC.....
Cheers guys.
Last edited:
I see the PH in the 3 horses race....
I concur.....
CEA launches online guide to buying foreign property
Move follows issuance of practice guidelines for estate agents, salespeople
By Lee U-Wen
[email protected]
Published March 18, 2014
THE Council for Estate Agencies (CEA) has published a new guide to help consumers in Singapore who are interested in buying overseas properties.
The aim of this latest guide, titled Consumer Tips for Buying Foreign Properties, is to help consumers and the industry make "informed and appropriate" decisions when buying and marketing foreign properties.
The guide was first announced by National Development Minister Khaw Boon Wan during the Committee of Supply debate in Parliament last week.
All property transactions handled by estate agents in Singapore, including those involving foreign properties, are regulated by CEA under the Estate Agents Act.
Foreign estate agents must be licensed with CEA before they can market foreign properties in Singapore.
Foreign property developers may also appoint a local licensed estate agent to market their foreign properties in Singapore.
"As buying a foreign property can be complex and risky, consumers should understand their needs and not rush into such purchases," said the CEA, a statutory board under the Ministry of National Development.
"Before making any purchase decision, they are also advised to understand the total costs and financial commitments, and should ensure that the sales agent and representative conducting the transaction are registered with the CEA," it added in a statement yesterday.
The CEA also announced that it had issued a set of practice guidelines for estate agents and salespeople marketing foreign properties last Friday.
These guidelines provide details on the responsibilities of estate agents and the preparatory activities they are required to undertake when they market foreign properties.
"With an increasing number of foreign properties being marketed in Singapore, these serve to guide consumers and the industry to make informed and appropriate decisions in buying and marketing foreign properties," said the CEA.
Both the consumer guide and the set of practice guidelines are available on the CEA's website at www.cea.gov.sg.
http://www.businesstimes.com.sg/pre...online-guide-buying-foreign-property-20140318
Move follows issuance of practice guidelines for estate agents, salespeople
By Lee U-Wen
[email protected]
Published March 18, 2014
THE Council for Estate Agencies (CEA) has published a new guide to help consumers in Singapore who are interested in buying overseas properties.
The aim of this latest guide, titled Consumer Tips for Buying Foreign Properties, is to help consumers and the industry make "informed and appropriate" decisions when buying and marketing foreign properties.
The guide was first announced by National Development Minister Khaw Boon Wan during the Committee of Supply debate in Parliament last week.
All property transactions handled by estate agents in Singapore, including those involving foreign properties, are regulated by CEA under the Estate Agents Act.
Foreign estate agents must be licensed with CEA before they can market foreign properties in Singapore.
Foreign property developers may also appoint a local licensed estate agent to market their foreign properties in Singapore.
"As buying a foreign property can be complex and risky, consumers should understand their needs and not rush into such purchases," said the CEA, a statutory board under the Ministry of National Development.
"Before making any purchase decision, they are also advised to understand the total costs and financial commitments, and should ensure that the sales agent and representative conducting the transaction are registered with the CEA," it added in a statement yesterday.
The CEA also announced that it had issued a set of practice guidelines for estate agents and salespeople marketing foreign properties last Friday.
These guidelines provide details on the responsibilities of estate agents and the preparatory activities they are required to undertake when they market foreign properties.
"With an increasing number of foreign properties being marketed in Singapore, these serve to guide consumers and the industry to make informed and appropriate decisions in buying and marketing foreign properties," said the CEA.
Both the consumer guide and the set of practice guidelines are available on the CEA's website at www.cea.gov.sg.
http://www.businesstimes.com.sg/pre...online-guide-buying-foreign-property-20140318
""CEA website is currently under maintenance. We seek your kind understanding.""
M'sia industrial land prices seen rising by 10%
Growth in manufacturing activity, supply shortage cited
By pauline ng in Kuala Lumpur
Published March 19, 2014
AMID a supply shortage, prices of industrial land in Malaysia are expected to rise by double digits this year on the back of an expansion in manufacturing activity.
In major towns and cities, rents are forecast to rise by a 10th.
Foo Gee Jen, managing director of C H Williams Talhar & Wong, yesterday projected prices for industrial land to rise by 10-15 per cent this year, and other property segments, by just below 10 per cent.
Underscoring the strong demand for industrial premises but slow pipeline of supply, occupancy in the Klang Valley is at nearly 100 per cent.
C H Williams' Property Outlook 2014 report noted a drastic decline in industrial unit overhang last year, which pushed it to the lowest level in six years and points to supply constraints ahead.
Indeed, in some places, industrial rents have caught up with office rates.
Mr Foo, speaking at a briefing in Kuala Lumpur, said that this is the case in Puchong, a sprawling township in the Klang Valley; tenants in both segments are forking out around RM2.50 (S$0.96) per square foot.
In general, rents for Klang Valley industrial premises rose marginally last year, although in in-demand areas such as Shah Alam, Selangor's capital city, the rise was more significant, climbing from RM1.30 to RM2.75 psf.
Manufacturing investments in the populated Klang Valley last year amounted to a robust RM2.3 billion in 102 projects, and this is expected to lead to a further tightening in industrial land supply this year.
C H Williams said this is likely to push up rents this year, especially in industrial parks with infrastructure, facilities and services capable of supporting high technology and capital-intensive manufacturing outfits.
Spiralling land prices in the Klang Valley, particularly in areas closer to the city centre, have led manufacturers to seek land further afield.
Industrial land in Nilai, in Negri Sembilan, at RM25 psf, costs less than a quarter of the RM110 psf which vendors are asking for in Bukit Raja near the port town of Klang; some areas in the Klang Valley have scaled to RM300 psf.
Not surprisingly, more industrial premises are coming up in Negri Sembilan.
Among the RM1.5 billion in deals concluded by C H Williams last year was one for Techpark@enstek in Seremban worth RM30 million.
Mr Foo said the shortage of industrial premises is also evident in Penang and Iskandar Malaysia.
C H Williams' bigger transactions last year included two in Johor, although these were for mixed-property or township development.
The larger deal, worth RM518 million, involved the sale of Lee Pineapple Co Pte Ltd land in Pulai to listed developer Tropicana; the other transaction was a RM105 million land sale in Kluang.
http://www.businesstimes.com.sg/premium/malaysia/msia-industrial-land-prices-seen-rising-10-20140319
Growth in manufacturing activity, supply shortage cited
By pauline ng in Kuala Lumpur
Published March 19, 2014
AMID a supply shortage, prices of industrial land in Malaysia are expected to rise by double digits this year on the back of an expansion in manufacturing activity.
In major towns and cities, rents are forecast to rise by a 10th.
Foo Gee Jen, managing director of C H Williams Talhar & Wong, yesterday projected prices for industrial land to rise by 10-15 per cent this year, and other property segments, by just below 10 per cent.
Underscoring the strong demand for industrial premises but slow pipeline of supply, occupancy in the Klang Valley is at nearly 100 per cent.
C H Williams' Property Outlook 2014 report noted a drastic decline in industrial unit overhang last year, which pushed it to the lowest level in six years and points to supply constraints ahead.
Indeed, in some places, industrial rents have caught up with office rates.
Mr Foo, speaking at a briefing in Kuala Lumpur, said that this is the case in Puchong, a sprawling township in the Klang Valley; tenants in both segments are forking out around RM2.50 (S$0.96) per square foot.
In general, rents for Klang Valley industrial premises rose marginally last year, although in in-demand areas such as Shah Alam, Selangor's capital city, the rise was more significant, climbing from RM1.30 to RM2.75 psf.
Manufacturing investments in the populated Klang Valley last year amounted to a robust RM2.3 billion in 102 projects, and this is expected to lead to a further tightening in industrial land supply this year.
C H Williams said this is likely to push up rents this year, especially in industrial parks with infrastructure, facilities and services capable of supporting high technology and capital-intensive manufacturing outfits.
Spiralling land prices in the Klang Valley, particularly in areas closer to the city centre, have led manufacturers to seek land further afield.
Industrial land in Nilai, in Negri Sembilan, at RM25 psf, costs less than a quarter of the RM110 psf which vendors are asking for in Bukit Raja near the port town of Klang; some areas in the Klang Valley have scaled to RM300 psf.
Not surprisingly, more industrial premises are coming up in Negri Sembilan.
Among the RM1.5 billion in deals concluded by C H Williams last year was one for Techpark@enstek in Seremban worth RM30 million.
Mr Foo said the shortage of industrial premises is also evident in Penang and Iskandar Malaysia.
C H Williams' bigger transactions last year included two in Johor, although these were for mixed-property or township development.
The larger deal, worth RM518 million, involved the sale of Lee Pineapple Co Pte Ltd land in Pulai to listed developer Tropicana; the other transaction was a RM105 million land sale in Kluang.
http://www.businesstimes.com.sg/premium/malaysia/msia-industrial-land-prices-seen-rising-10-20140319
plans are getting more and more ridiculous. johor not enough land meh, must reclaim thousands of acres near the 2nd link? orrr.. must be cos developer can charge sky high for "sea view". and won't this project remove some of sunway iskandar sea view?
http://www.thestar.com.my/Business/...ive-reclamation-development-for-luxury-homes/
http://www.thestar.com.my/Business/...ive-reclamation-development-for-luxury-homes/
Interesting. The graphics shows what looks like an island UNDER the 2nd link bridge. Why not just reclaim some other stretch by joining Sg to Johor and create a new third link ... kill 2 birds with one stone!
yeah that's right. UNDER the bridge. why not reclaim the WHOLE STRAITS, then no need bridges anymore, it will be land crossing. halleluja!
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