In a significant move toward urban redevelopment, the Railway Assets Corporation (RAC) has officially signed a Memorandum of Understanding (MoU) with the Penang State Housing Board (LPNPP) for the redevelopment of Kampung Manis in Perai through a collaborative effort.

The MoU was signed between RAC’s Chief Executive Officer, Dato’ Azhar Ahmad, and LPNPP’s General Manager, ‘Ainul Fadhilah Samsudi. The signing ceremony was attended by Chief Minister Y.A.B. Tuan Chow Kon Yeow and Malaysian Transport Minister Anthony Loke Siew Fook.

Chief Minister Kon Yeow emphasized the historic collaboration between RAC and the Penang State Government, aiming to develop affordable housing projects on Lot 286 in Perai, also known as Kampung Manis. He mentioned that the MoU could potentially translate into a Memorandum of Agreement (MOA) if additional needs arise after the Request for Proposal (RFP) is finalized.

The comprehensive development in this area is considered vital as LPNPP has plans to develop a nearby site on Lot 671 in Perai, spanning 9.33 acres and located 1.2 kilometers from the current project site. The holistic approach is essential to address the challenges of the unplanned residential area, lacking systematic drainage systems that contribute to flooding issues.

“The development of two projects by RAC and LPNPP in this area will transform the existing settlement into a more organized and efficient housing development for the well-being of the local community,” stated Kon Yeow during the MoU signing ceremony.

Kon Yeow further highlighted that the redevelopment of Kampung Manis could stimulate economic growth with commercial spaces generating income and employment opportunities. The planned development also promises a more organized infrastructure with smoother traffic flow.

“The synergy between the State Government and the Federal Government in developing Kampung Manis is for the benefit of the people of Penang. I hope that this pioneering redevelopment project will open up more opportunities for collaboration between RAC and the State Government in the future,” added Kon Yeow, who is also the State Assemblyman for Padang Kota and Member of Parliament for Batu Kawan.

Transport Minister Siew Fook emphasized that the MoU signing would transform three land areas owned by RAC in Kampung Manis from slum areas into modern, developed spaces equipped with various facilities, including commercial centers.

“The planned development concept on this land will not only focus on commercial aspects but will also include other components such as transportation hubs, retail spaces, educational institutions, and, most importantly, housing. All these components are crucial to creating a developing area that will directly impact socio-economic development, population mobility, and improve the overall quality of life,” stated Siew Fook.

Earlier, the State Government expressed its commitment to addressing various issues affecting over 289 families in Kampung Manis through the redevelopment plan.

Nestled in the vibrant township Bandar Cassia, Batu Kawan, Cassia Cempaka by PDC Properties Sdn. Bhd. epitomizes a harmonious blend of modern living and serene surroundings. This freehold residential development spans 28.47 acres, drawing inspiration from the Cempaka flower’s exquisite essence. Comprising two distinct residential options – Dahlia (Double Storey Terrace) and Freesia (Double Storey Semi-Detached) – Cassia Cempaka offers families a fulfilling lifestyle in a green, secure, and peaceful environment.

Cassia Cempaka offers 42 units of 2-storey terrace houses, priced between RM625,320 and RM766,810, along with 16 units of 2-storey semi-detached houses, ranging from RM870,140 to RM1,002,430. Strategically positioned along Jalan Batu Kawan, Cassia Cempaka enjoys proximity to key landmarks such as IKEA, Design Village, and the Penang Second Bridge. Additionally, it is conveniently located near the Batu Kawan Police Station and Fire & Rescue Station, ensuring safety and accessibility.

The contemporary living spaces within Cassia Cempaka offer residents a tranquil retreat while maintaining convenient access to the Penang Second Bridge and North-South Expressway. This residential gem is poised to provide families with a modern and comfortable abode in the heart of Penang’s evolving landscape.

For further enquiries, please contact PDC Properties at 04-240 1999 or

Visit the sales gallery at:
PDC Properties Sdn. Bhd. 
Level 1, Tun Dr. Lim Chong Eu Building,
No. 1 Persiaran Mahsuri, Bandar Bayan Baru,
11909, Bayan Lepas, Penang

Selected areas and segments of the property market in Malaysia are expected to perform well in 2024, but elsewhere there are areas of concern.

Industry experts expect to see sales improve as the people’s spending power recovers and the government’s efforts to attract foreign direct investment (FDIs) bears fruit.

However, this will mostly be confined to the more developed states of Selangor, Penang and Johor as well as the federal territory of Kuala Lumpur.

The smaller and less developed states will still be left behind.

Klang Valley likely to take the lead

A survey by Juwai IQI, an international real estate property transaction group, shows that the buy-to-rent ratio for 2024 is 91.1% for buy and 8.9% for rent, indicating a strong confidence in the real estate market.

Yields are also expected to rise. Group CEO of Juwai IQI Kashif Ansari said prices and rental rates are likely to see an increase of about 10%.

AmBank Research has also expressed optimism for the new year, forecasting an average earnings growth of about 27%.

But most of these transactions will be in Kuala Lumpur and Selangor, with Penang and Johor competing for second spot.

Tang Chee Meng of property management company Henry Butcher said the improved mobility that comes with major infrastructure projects will attract more people to these states, leading to an increase in demand for housing.

Malaysia’s attractiveness as an investment destination for foreign companies seeking to expand in this region will also lead to growth in the industrial property sector, analysts said.

According to JLL Malaysia, demand for real estate for data centres will see strong growth in 2024 given the expected increase in capacity to 750MW from only 200MW today.

Managing director of the real estate services company Jamie Tan said Malaysia is still a small player in the data centre business compared with Singapore and Hong Kong.

“However, the usage of data by individuals and corporations is high, indicating a high potential demand for future data centre projects,” Tan added.

Residential properties, especially those priced below RM500,000 are also expected to sell, but only in Selangor, Kuala Lumpur and Penang.

“(Currently,) about three out of every five transactions are residential purchases and affordable housing is the most popular segment in the market,” Kashif said.

Those priced below RM250,000 and properties in the RM250,000 to RM500,000 category are the most sought after, he said.

Not so hot in smaller and less developed states

However, conditions are not as rosy elsewhere. In Johor, for instance, a large overhang of residential property remains, according to Rahim and Co International Property Consultant CEO Siva Shanker.

It is the same in the small states such as Perlis, Melaka and Negeri Sembilan as well as the less developed states such as Kelantan. These states are likely to register lower property sales in 2024.

In fact, Siva said, the northern and east coasts states are lagging behind in their sales performances.

Analysts also do not expect the commercial segment to do well, even in urban centres such as Kuala Lumpur.

For instance, Tang said, the commercial property segment is likely to be over-saturated in 2024 given the completion of mega projects such as Merdeka 118.

Tan and Tang agreed that apart from an oversupply of new office space, the weak demand for office buildings aged 10 years and above also poses a challenge.

Siva said there is also an oversupply of serviced apartments.

“Many had been built without consideration for actual market demand,” he said.

According to JLL Malaysia, only 24% of residential properties launched in Kuala Lumpur in 2023 have been sold, and all of them are condominiums and serviced apartments.

What can be done

However, there are ways to turn the market around.

For instance, Siva said, the move to convert Forest City into a special finance zone and the establishment of the Johor-Singapore special economic zone (JSSEZ) is a step in the right direction.

In Kuala Lumpur, he said, older office buildings could be upgraded to meet the requirements of current tenants.

Tan and Tang suggested that the government directs FDIs to the less developed states to make it an incentive to urbanise and to raise income levels.

Source: FMT Online

About Savana @ Utropolis

This is the fourth phase of Paramount Property’s Utropolis development at Batu Kawan. Located along Jalan Cassia Barat 2, adjacent to Sensasi and Sinaran Residences. It is less than 5 minutes’ walking distance to Design Village outlet mall and UOW MALAYSIA KDU Penang University College, with easy access to Penang Second Bridge and North-South Expressway. This development features 522 residential units with 8 levels of car parking podium.

Find out more about Utropolis @ Batu Kawan:

• Phase 1 – Sensasi Commercial & Residential Suites (Completed)
• Phase 2 – Suasana Residential Suites (Completed)
• Phase 3 – Sinaran Avenue & Sinaran Residences (Completed)
• Phase 4 – Savana (On-going)

(Photo taken Dec 2023)

Rents across Malaysia increased by 5.5% in 2023, according to data from a newly released index.

Rents were now 7.4% higher than during the pandemic’s worst phase, suggests the Malaysia Home Rental Index by real estate agent network IQI, a member of Juwai IQI.

In the fourth quarter, it said that rents fell by 1.2% compared to the third quarter, but they still ended the year 5.5% higher than in Q4 2022.

The index also noted that the average residential rent in Malaysia was RM1,975 per month: RM1,851 in Selangor and RM3,192 in Kuala Lumpur when examined state-wise.

It said Selangor’s market was more stable, ending 2023 with rents 10.7% higher than Q4 2022 and 5% above Q4 2019, indicating a steady market with expectations of modest growth.

“Investors can find the highest yields in Johor Bahru, Iskander Puteri, and Subang Jaya. Even the lowest yield is attractive by international standards, at 4.02% in Georgetown,” said Juwai IQI co-founder/group CEO Kashif Ansari

It said yields are a calculation of gross income after expenses for property investors. The average gross rental yield in Johor Bahru is 6.23%, 5.67% in Iskander Puteri and 5.41% in Subang Jaya.

The rental index, which analyses over 58,000 residential rental transactions since 2018, is intended to serve as a complement to NAPIC’s Malaysia House Price Index, says its promoters.

Based on what it said was ‘robust recovery’ in the 2023 Malaysia Home Rental Index, IQI’s forecast was for a continuation of growth in rental demand.

Given the historical resilience of the Malaysian rental market and the post-pandemic economic rebound, it has projected a sustained rental rate increase into 2024, particularly in high-yield urban centers such as Kuala Lumpur, Johor Bahru and Iskander Puteri.

“The data suggests a shift toward recovery, with the Malaysia Home Rental Index reaching its highest point in nearly three years — since early 2020. Factors influencing these trends include supply-demand balance, seasonal variations, seasonal variations in the transaction mix, and investor activity,” he said.

Source: TheMalaysianReserve.com