Penang I Property - Penang Property, House For Sale and Rent Blogspot

Friday, December 14, 2012

Property market expected to stay level next year

KUALA LUMPUR: The Malaysian property market next year is expected to remain subdued with little growth in prices, according to the Malaysian Institute of Estate Agents (MIEA).

"I think we all agree that next year, prices are not going to go up but we don't see prices coming down either," MIEA president Nixon Paul told reporters on Dec 12.

He said sales in the residential secondary market may be held back due to the difference in expectations between buyer and seller prices.

"Some buyers expect to buy at fire sale prices because of the misconception that there is an oversupply situation in the residential property market in Malaysia. On the other hand, a number of owners are holding on to their properties until they can sell at par or above market price," said Paul.

This situation is echoed by Reapfield Properties Group chief executive Gerard Kho. Based on the agency's experience this year, the volume growth in residential transactions has been slower at about 5%, compared with between 10% and 15% per annum in the previous years.

"In 2012, buyers have felt no urgency to purchase as asking prices are not close to the market value. When asking prices have been priced close to market value, the properties are transacted within a short period of time," said Kho.

The office market is forecast to remain healthy in 2013 with the recent shift towards green and MSC-status buildings set to continue, said YY Lau of YY Property Solutions.

"There is also a growing trend of companies moving into office spaces built in integrated developments which include hotels and shopping malls. Parking availability is also a very important factor," said Lau.

Despite the concern of an oversupply situation in Kuala Lumpur's central business district (CBD) which may well contribute to a slow rental market here next year, Lau said there is hardly any oversupply of office space in the city fringes and suburbs such as KL Sentral, Petaling Jaya, Shah Alam and Damansara.

She said rental rates for Grade A offices in the CBD area will decrease a little next year, especially for existing tenants, but rates for new tenants may still be higher. As at the third quarter this year, Lau revealed the average rental for CBD office spaces is at RM7.45 psf while the average for fringe areas is from RM4.57 psf.

For shophouses, principal realtor of GDS Properties Govin Bala said this segment is projected to do well in 2013 as prices are being driven upwards by end users and investors. With prices of shophouses rising, it has become increasingly difficult for the average businessman to buy a unit. This means more businessmen will be renting premises rather than owning them.

In the industrial property market, Hectares & Stratas managing partner Stephen Tew said there has been a strong demand for industrial property, especially in the Klang Valley and Penang, which is expected to continue into 2013. The demand could be due to a lack of supply as there have been no large planned industrial parks in the Klang Valley and Penang in recent times on a lack of space. The last industrial estates developed in Selangor were the Kota Kemuning and Berjaya Industrial Parks, launched 20 years ago.

This article first appeared in The Edge Financial Daily, on Dec 14, 2012.

Thursday, December 13, 2012

2013 start for IJM's RM5bil Penang project

GEORGE TOWN: IJM Land Bhd will commence work for its RM5bil commercial precinct next to the Penang Bridge in the second half of next year.

Its chief executive officer Datuk Soam Heng Choon said the commercial precinct located on a 102-acre site would comprise four hotels, a shopping centre, a convention centre, and an international business district.

The commercial precinct would be developed in stages and would take seven to eight years to complete, Soam said.

He spoke after signing an agreement with Singapore's Suntec International to jointly develop the convention centre, known as the RM346mil Penang Waterfront Convention Centre (PWCC).

Also present was Suntec Penang chief executive officer Arun Madhok, who signed for Suntec, and IJM Corp chief executive officer Datuk Teh Kean Ming.

Penang Chief Minister Lim Guan Eng was present to witness the signing ceremony.

Soam said the PWCC was designed by Larry Oltmanns, design director of Vx3, a London-based architectural firm specialising in large scale urban developments and convention centres.

“His impressive portfolio includes landmarks such as NATO headquarters in Brussels and Hong Kong Convention Centre in Victoria Harbour,” Soam added.

The highlight of the convention centre was a 10,000 sq m column-free multi-purpose hall that could be divided or used as a single space for exhibitions, conventions, corporate events, and private functions, Soam said.

“It can be converted into a 9,000-seat arena for world-class concerts that can be held in Penang for the first time.

“The PWCC is expected to be completed in early 2017,” he added.

Meanwhile, Teh said the PWCC would serve as an alternative to renowned convention venues in places such as Kuala Lumpur, Bangkok, Singapore, and Hong Kong.

“The strategic partnership with Suntec will further attract higher investments and spur Penang's economic, social, and environmental development,” Teh added.

On PWCC, Madhok said Suntec would advise on the design and functionality of PWCC.

“We will also manage the project upon its completion,” he said. - The Star