Source: The Edge Malaysia

In the latest findings presented by the Real Estate and Housing Developers’ Association Malaysia (Rehda Malaysia), the pulse of Malaysia’s property industry for the first half of 2024 suggests a cautious stance among developers. The report, titled “Property Industry Survey 2H2023 and Market Outlook for 2024,” was unveiled to the media by Rehda Malaysia president Datuk N K Tong last month.

Based on the survey responses from 152 property developers across Peninsular Malaysia, the outlook for growth in the residential property sector appears balanced, with 52% expressing a neutral sentiment. Despite this, a significant portion remains optimistic (30%), while a smaller fraction is either pessimistic (15%), very optimistic (1%), or very pessimistic (2%).

However, the survey indicates a conservative approach among developers, with only 45% intending to launch projects in 1H2024. Among them, about three-quarters anticipate modest sales performance, with projections hovering around 50% or below in the first six months post-launch.

The decision to hold back on new projects stems from various factors cited by developers, including unfavorable market conditions, a dearth of suitable products, delays in approvals by authorities, operational constraints, and an accumulation of unsold inventory.

Tong underscored the escalating costs confronting developers, which have surged due to rising cross-subsidies and compliance expenses over the years. Notably, the survey revealed a unanimous consensus among respondents (91%) regarding higher building material prices in the preceding year, with notable spikes observed in cement, concrete, and sand, while only aluminum registered a decline.

In response to these challenges, developers have adopted several strategies, including adjusting property prices, narrowing profit margins, embracing cost-efficient materials, altering designs, and focusing on smaller unit sizes—a trend observed globally.

Tong emphasized that while developers adapt to market dynamics, they bear the responsibility of ensuring sufficient profit margins to withstand economic shocks and deliver homes to buyers. Nonetheless, concerns linger regarding the sustainability of reduced profit margins and the need for adequate financial buffers.

Moreover, challenges persist during the construction phase, primarily attributable to issues with building materials and labor shortages, underscoring the need for comprehensive industry-wide solutions.

On the sustainability front, the survey highlighted a growing emphasis among developers, with 85% considering it an integral aspect of their operations. Notably, 20% have undertaken up to five green-certified projects between 2014 and 2023, signaling a positive trend towards environmentally conscious development practices.

Reflecting on the industry’s performance in 2H2023, Tong noted a slight decrease in property launches compared to the preceding period. Moreover, a concerning rise in unsold completed residential units was observed, particularly within the affordable price range, suggesting challenges in meeting the housing needs of lower-income groups.

Tong proposed several measures to incentivize developers to participate in affordable housing initiatives, including reductions in development charges, lower land conversion premiums, and exemptions from utilities contribution charges.

Looking ahead, Tong advocated for the establishment of a national affordable housing trust to address mismatches in housing demand and supply, promoting market-driven solutions and enhancing urban redevelopment efforts through strategic legislative initiatives.

The TPS (Temporary Hawker Site) along Jalan Jelutong, which was ravaged by fire on January 5th, has been completed ahead of schedule and will begin its handover to vendors starting April 15th. Lim Siew Khim, for Social Development, Welfare, and Non-Islamic Religious Affairs, expressed relief that the successful completion of the project ahead of schedule would bring relief to the affected traders.

“Previously, the budget for upgrading the TPS Jalan Jelutong had already been approved. The fire incident has seemingly accelerated the renovation works, leading to its completion ahead of the initial schedule set for May 14th,” said Siew Khim during the handover ceremony earlier today.

In attendance were the Mayor of MBPP, Dato’ Ir. A. Rajendran, and members of the MBPP Council. Rajendran announced that the project cost amounted to RM500,000, highlighting that the reconstruction utilized Gender Responsive Budget and Outcome Basis Budgeting methods, involving input from vendors, council members, state assemblymen, and parliamentarians.

The redesigned TPS incorporates Green Building elements with a roof height of 3.5 meters to enhance airflow, along with LED lighting. Rajendran expressed hope that the reopening of the TPS during the month of Syawal would mark a new beginning for the traders involved, fostering economic revitalization in the area.

Lightwater Residences, formerly known as The Essence, is the second residential project at The Light City integrated development by IJM Perennial Development Sdn. Bhd. Located at the northern part of The Light City, less than 3 minutes drive to Penang bridge. It is next to the upcoming The Waterfront Shoppes.

This development consists of two 34-story towers, encompassing a total of 262 units of freehold luxury homes with private lifts. Unit sizes range from 1,324 sq.ft. up to 3,466 sq.ft. Facilities will be situated on levels 6 and 25.

Property Project : Lightwater Residences
Location : The Light City, Gelugor
Property Type : Residential
Tenure: Freehold
Built-up Sizes: 1,324 sq.ft. – 3,466 sq.ft.
Total Units : 262
Indicative Price : RM2,000,000 onwards (to be confirmed)
Developer : IJM Perennial Development Sdn. Bhd.

DISCLAIMER: This article is solely based on research done using publicly available data. This is not an advertisement. Any claim, statistic, quote or other representation about a project or service should be verified with the developer, provider or party in question.

The Juru-Sungai Dua Elevated Expressway Project and the Perak-Penang Water Project are currently at the discussion stage involving various federal government ministries, said Chief Minister Chow Kon Yeow.

He hoped both projects could be implemented due to the situation in the state and that the matter was raised at a briefing on Penang’s Development, chaired by Prime Minister Datuk Seri Anwar Ibrahim at Komtar during his one-day visit to the state yesterday.

“I am happy to say that Datuk Seri Anwar is concerned about the two projects and that they are being discussed…hopefully the discussion will yield positive results,” he told reporters after opening the 2nd World Cat Federation Penang International Cat Fiesta 2024, at Spice Arena in Bayan Lepas near here.

Chow suggested that two projects be implemented through the Private Finance Initiative (PFI) or privatisation if they could not be implemented through the federal government’s allocation.

He also thanked the prime minister for appreciating Penang’s contribution to the country’s development, especially in the economic and industrial sectors.

Source: Bernama

The urgent need to accelerate the upgrading and expansion of the Penang International Airport (PIA) has been emphasised by Prime Minister Datuk Seri Anwar Ibrahim.

“The project has been delayed for some time and it is congested.

“Additionally, the Penang Light Rail Transit (LRT) project, which holds significant importance, is progressing smoothly per our plan,” Anwar replied to journalists after attending the Penang Development Briefing 2024 in Komtar yesterday.

Anwar said several issues were highlighted during the meeting.

“The meeting convened to address both delayed projects and those slated for priority attention.

“Among the projects mentioned was the building of a clinic in Bayan Lepas, where an allocation of about RM11 million was set aside,” he added.

Anwar also stressed the collaboration between the state and Federal agencies.

“The meeting also centred on the necessity for driving growth in the industry. The remarkable success and swift implementation achieved by Penang serve as a testament to the high level of efficiency in state administration and management.

“We also stress the need to concentrate on sectors with exceptionally high capabilities, such as artificial intelligence (AI), digital technology, and microchips, where Penang has garnered international attention and recognition,” Anwar said.

Source: Buletin Mutiara