REAL ESTATE HIGHLIGHTS - RESEARCH 1St HALF 2016 - Knight Frank
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RESEARCH REAL ESTATE HIGHLIGHTS 1st HALF 2016 kuala lumpur penang johor bahru KOTA KINABALU
HIGHLIGHTS KUALA LUMPUR HIGH END
The residential market continues to
CONDOMINIUM MARKET
remain lacklustre with lower volume
and value of transactions recorded. ECONOMIC AND
MARKET INDICATORS
Limited project completions and new Malaysia’s economy expanded at a
launches of high end condominiums / slower pace in 2015 with Gross Domestic
residences during the review period. Product (GDP) growing at an annual
rate of 5.0% (2014: 6.0%). For 2016, the
Government has trimmed the country’s
Growing pressure on rentals amid GDP growth forecast to 4 - 4.5% due to
strong supply pipeline (existing and the volatility in crude oil prices and other
new completions) and a challenging economic challenges. GDP continued
rental market while prices in to moderate in the first quarter of 2016,
the secondary market generally posting 4.2% growth, its slowest since
continue to remain resilient. 3Q2009 (4Q2015: 4.5%), driven by
domestic demand. Private consumption
expanded by 5.3% while private
Developers adopt innovative ‘push investment moderated to 2.2%.
marketing’ strategies to boost
Headline inflation for April 2016 registered at
sales of selected projects and 2.1%. It is expected to be lower at 2% to 3%
improve revenue. this year, compared to an earlier projection Aria
of 2.5% to 3.5% and will continue to remain
stable in 2017.
(432 units) and The Residences at The
Meanwhile, labour market conditions St. Regis Kuala Lumpur (160 units).
continued to weaken with more
retrenchment of workers, particularly in By the second half of 2016, the scheduled
the manufacturing, mining and services completions of another five projects will
sectors. Unemployment rate rose to 3.4% contribute some 1,138 units to the existing
in February 2016 (2015: 3.1%). stock. These projects are KL Trillion, Le
Nouvel, Seti Sky Residences (Divina Tower),
Despite moderating growth in household
Three28 Tun Razak and One Kiara (Tower A).
debt, Malaysia’s household debt-to-gross
domestic product (GDP) ratio remained Despite cautious sentiment in the high end
elevated at 89.1% in 2015 (2014: 86.8%). residential segment, there were several
notable previews and launches during the
The volume of residential loan
review period.
applications was 10.0% lower in 2015
when compared to 2014 while the YOO8 (Tower A), a branded residence
amount of loan approved declined by within the integrated project of 8 Conlay
14.6%, reflecting lower ratio of approvals was launched in November last year.
/ applications at 50.2% (2014: 52.9%) Tower A offers a total of 564 units with an
(source: Bank Negara Malaysia). average price of RM2,700 per sq ft while
the upcoming Tower B is is slated for
During the period under review, BNM
launch by 2Q2017.
continued to maintain the Overnight
Policy Rate (OPR) at 3.25% to remain Launched in March 2016, 8 Kia Peng,
accommodative and supportive of current the project touted as the “King of the
economic activity. Hill”, comprises 315 units of serviced
apartments and 127 units of SoHo
SUPPLY & DEMAND suites. The serviced apartments which
The completion of 1,033 units of high-end are priced from RM2,300 per sq ft has to
condominiums / residences from three date, achieved circa 20% take-up rate.
projects during the review period brought In KL City Fringe, Novum South Bangsar,
the cumulative supply in Kuala Lumpur launched in March 2016, features three
to 43,782 units. The projects are Pavilion towers housing 654 units of serviced
Banyan Tree Signatures (441 units), apartments. The units are priced at
Vortex Suites & Residences @ KLCC RM880 per sq ft on average.
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real estate highlights malaysia
TABLE 1 Prices & Rentals
Completion of High End Condominiums / Residences in 1H2016
During the review period, asking
The Residences at prices continued to remain resilient in
Pavilion Banyan Vortex Suite &
Residences @ KLCC The St Regis most locations.
Tree Signatures Kuala Lumpur
Since last year, the rental market,
particular in KL City, has been under
pressure following job cuts due to
the slump in crude oil prices and
a slowdown in the economy. With
heightened competition in a tenant-
Source: Knight Frank Research *Pending Certificate of Completion and Compliance led market, there are owners willing to
compromise on lower rentals to secure
and retain tenants.
Located in Mont’ Kiara, Sunway Mont upcoming luxury residential project of Aria,
Residences, launched on May 28 carries a located along Jalan Tun Razak, offers 598 In the primary market, selling prices
gross development value (GDV) of RM250 units in two blocks. The project features of high end condominiums / serviced
million. The 38-storey tower block will a generous spread of facilities and leisure apartments in KL City range from
house 288 units (typical and dual-key). spaces covering 65,000 sq ft of area on RM1,300 to RM1,900 per sq ft while
Priced from RM880,000 onwards, the four different floors. Aria will provide full- branded residences are generally priced
project has reportedly achieved circa 80% fledged 24-hour concierge service for all from RM2,000 per sq ft onwards. In
sales. residents as well as housekeeping, leasing KL Fringe such as Mont’ Kiara, new
and sub-sale services. The units are sized launches of condominiums / serviced
In KL City, some notable projects were
from 630 sq ft to 1,502 sq ft. apartments are priced from about
unveiled recently, inviting potential
purchasers to register their interest. The Also on the watch list are mega projects RM800 to RM1,200 per sq ft.
projects are Latitud 8, a joint venture (JV) with residential components, namely
Prices in the secondary market continued
between Crest Builder Holdings Bhd, the 19.4-acre Bukit Bintang City Centre
to remain resilient. During the second
Prasarana Malaysia Bhd and Detik Utuh; (BBCC) development and Pavilion
half of 2015, small to mid-sized units
and Aria by Hap Seng Land. Damansara Heights on a 15.8-acre site.
(about 600 sq ft to 1,300 sq ft) in selected
Latitud 8 is a transit oriented development Meanwhile, the cooling measures schemes such as ViPod Residences, The
(TOD) sitting above the existing Dang previously introduced by BNM to curb Horizon and The Troika were transacted
Wangi LRT station. The 43-storey single excessive speculation in the property at circa RM1,300 to RM1,800 per sq ft.
block mixed commercial development, market have met its objectives. In Meanwhile, larger units (1,600 sq ft to
with a GDV of RM1.1 billion, will feature Kuala Lumpur, the volume and value of 2,600 sq ft) in selected projects such
a lifestyle retail (800,000 sq ft NLA), residential property transactions declined as The Troika, Pavilion Residences and
business facilities, office space and 402 by 8.3% and 11.4% respectively in 2015 Quadro Residences, command prices
residential units including SoFo, SoHo and when compared to 2014. Growth in the
from RM1,100 to RM1,600 per sq ft.
Malaysian House Price Index was also
duplexes.
muted at 5.8% in 4Q2015, the lowest
Slated for launch by 3Q2016, the since 1Q2010 (5.7%).
FIGURE 1
Projection of Cumulative Supply for High End Condominiums / Residences 2010 - 2016 (f)
Source: Knight Frank Research
3
OUTLOOK
The market outlook for the high end entry level for foreigners. creative “Just Bid It” campaign; and SP
condominium segment remains lacklustre, Setia’s 10:90 scheme.
The challenging property market
impacted by weak sentiment as potential
environment has led to greater level of While the impending completion of the
buyers and investors continue to adopt a marketing strategies with developers LRT extension line and Phase 1 of the on-
‘wait and see’ approach. adopting “push marketing” to boost going Sungai Buloh-Kajang MRT line by
With widening gap between supply and sales of selected projects and improve end of 2016 will continue to promote more
demand as well as mismatch in product revenue. Notable offers and marketing transit oriented developments (TODs)
pricing and affordability in the domestic programmes include Sunway Group’s along the transportation routes, more
market, more developers are widening “Sunway Property Certainty Campaign” developers are also looking to expand
offers up to 88% financing; IOI
their target catchment by marketing their land banks into the suburbs to offer a
Properties’ deferred payment scheme
overseas as the weak local currency wider mix of affordable housing products
over 18 to 24 months for the lump sum
translates to attractive pricing and low that cater to the domestic market.
downpayment; Tropicana Corp Bhd’s
TABLE 2
Average Asking Prices and Rentals of Existing High End Condominiums
* Excludes Binjai on the Park but includes Pavilion Residences *** Includes Twins @ Damansara Heights
** Excludes Desa U-Thant and Seri Hening **** Excludes Verve Suites which comprise mainly fully furnished small units
Source: Knight Frank Research
TABLE 3
Notable Launches of High-End Condominiums / Residences
Scheme YOO8 of 8 Conlay 8 Kia Peng Novum South Bangsar Sunway Mont Residences
Description Branded residences Serviced Apartments Serviced Apartment Condominium
serviced by Kempinski and SoHos
Launch Date Tower A: Nov 2015 Mar 2016 Mar 2016 May 2016
Tower B: 2Q 2017 (Target)
Developer KSK Land Sdn Bhd I-Bhd Eupe Corp Bhd Sunway Berhad
Area Jln Conlay (KL City) Jln Changkat Kia Peng Jln Persekutuan Jln Kiara 5 (Mont Kiara)
(KL City) (Bangsar South)
Target Completion Dec 2020 Sep 2019 Nov 2019 Q2 2020
No. of Units Tower A: 564 units Serviced Apt: 315 units Serviced Apt (Towers 288 units (including 90
Tower B: 468 units SoHos: 127 units A, B & C): 654 units dual-key units)
Unit Sizing Tower A: 700 - 1,308 sq ft 718 - 1,738 sq ft 647 - 1,441 sq ft Typical: 1,122 - 1,609 sq ft
Dual-Key: 1,695 - 1,906 sq ft
Pricing Average of RM2,700 psf From RM2,300 psf Average RM880 psf RM787 psf (after discount)
Source: Knight Frank Research
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real estate highlights malaysia
HIGHLIGHTS KUALA lUMPUR &
Beyond Kuala lumpur
(Selangor) OFFICE Markets
More multinational companies
(MNCs) from marine & offshore
sectors may be enticed to relocate to
Kuala Lumpur in view of the attractive
currency and competitive rental Market Indications
rates, translating to lower operational
Amid looming supply and a challenging
costs as well as to be near their business operating environment, the
clienteles amongst other reasons. office markets in Kuala Lumpur and
Beyond Kuala Lumpur (Selangor)
The investment market continued to continued to see subdued leasing
remain active during the review period. activity in 1H2016.
The tenant-led market saw marginal
The rental and occupancy levels are contraction in achieved rentals although
expected to record marginal declines occupancy levels continued to hold
in the coming quarters amid weaker steady during the review period.
demand / lower absorption and Supply & Demand
strong supply pipeline.
The cumulative supply of purpose built
office space in KL and Beyond KL
(Selangor) stood at circa 92.7 million sq ft
as of 1H2016.
Office - Mercu Mustapha Kamal (Tower 2)
The completion of some 0.18 million sq ft
of space in Beyond KL (Selangor) brought
its cumulative supply to 17.9 million sq ft Fringe, the overall occupancies in
while in KL City and KL City Fringe, with both regions remained flat at 82.8%
no completion, the cumulative supply (2H2015: 82.5%) and 90.1% (2H2015:
remained unchanged at 51.0 million sq ft 89.3%) respectively. It is noted that
and 23.8 million sq ft respectively. much of these leasing activities relates
to existing tenant movements, for
Tower 2 of Mercu Mustapha Kamal upgrading or rent advantage, rather
development, comprising 14 levels than for expansionary purposes.
of purpose-built office space with
approximately 179,844 sq ft NLA, was Also, while there are tenants in the Oil and
completed during the review period. Gas (O&G) industry that are sub-letting part
Located in Neo Damansara, Damansara of their office space to reduce operational
Perdana, the dual compliant project (GBI costs amid the challenging business
Gold certified and MSC status) features environment, this has not translated into a
two office towers atop a podium with 2 decline in the overall occupancy rate due to
levels of banquet hall, 5 levels of elevated their contractual obligations.
car park and 4 levels of basement car Beyond KL (Selangor), however,
park. Tower 1 with 26 levels of office chalked up marginal improvement in its
space (about 275,642 sq ft NLA) is occupancy, recording at 79.5% (2H2015:
scheduled for completion next year. 77.3%) with Block 3420 (former Ericsson
By the second half of the year, some 5.8 Building) in Cyberjaya fully taken up by
million sq ft of space is expected on- FTMS Global College (134,000 sq ft NLA)
stream from buildings that include Public and improved occupancies in several
Mutual Tower and JKG Tower in KL City; other buildings.
Menara Ken @ TTDI and Menara Hong There were several notable office related
Leong (Office Tower A – Damansara City) announcements in 1H2016.
in KL Fringe; and Iconic Tower - Block N
and Signature Tower - Block H at Empire Designed by Australian firm, Fender
City in Beyond KL (Selangor). Katsalidis Architects, the planned
118-storey skyscraper dubbed ‘Merdeka
Despite several notable occupier PNB118’, forms the first phase of the
movements in KL City and KL City Warisan Merdeka project that will also
5
TABLE 4
Office Investment Sales 1H2016
Block P of Garden
Building Name Dijaya Plaza (1) Menara Shell (4)
Office @ Encorp Strand (2)
Location Jalan Tun Razak Kota Damansara Jalan Tun Sambanthan
Approx.
Lettable Area 156,488 47,977 557,053
(sq ft)
Consideration
895 628 (3) 1,149
(RM) / (RM psf)
(1) Tropicana Plaza Sdn Bhd (formerly known as Dijaya Plaza Sdn Bhd) has proposed to sell a piece of freehold land together with a 19-storey office building known as
Dijaya Plaza with 2 levels of car park containing 322 parking bays and all equipment, fittings within the building to Kenanga Investment Bank Bhd.
(2) Encorp Bhd has sold a block (Block P) of office suites within Garden Office @ Encorp Strand in Kota Damansara, Selangor, to Koperasi Permodalan Felda
Malaysia Bhd for RM27 million in cash plus goods and services tax (GST). The two-year-old building comprising 20 office suites is of 99-year leasehold
tenure.
(3) The price consideration is based on total lettable space of 43,002 sq ft (exclude the accessory parcel of 4,675 sq ft).
(4) Pursuant to the Heads of Agreement (HOA) in December 2015, the Vendor (348 Sentral Sdn Bhd) had on June 30, 2016, entered into a conditional Sale
and Purchase Agreement with Maybank Trustees Berhad (Trustee for MRCB-Quill REIT) for the proposed disposal. The property comprises one block of
33-storey office building erected on a 5-storey podium and a 4-storey basement car park.
Source: Knight Frank Research
feature a seven-storey shopping mall. information and technology, oil and gas (includes F&B outlets) that will be
Standing at 630 metres, the iconic tower, sectors among its tenants. retained by the group – to cater for the
anticipated to be the fifth tallest building needs of the working population as well
Eco World Development Group Bhd
in the world when completed by 2020, as the residents in the future.
(EcoWorld) plans to unveil the maiden
will outstrip the 88-floor Petronas Twin
launch of its Bukit Bintang City Centre Uda Legasi Sdn Bhd’s upcoming mixed
Towers as the country’s tallest building.
(BBCC) mixed development by 2Q2016. use project, Legasi Kampong Bharu, will
The project comprises 82 levels of
The group has received positive response feature a 29-storey office tower with 83
office space (60 floors to be anchored
from buyers of The Stride, a 45-storey office suites. Located along Jalan Raja
by Permodalan Nasional Berhad (PNB)
block with strata offices targeted at small Muda Musa and adjacent to the Putra
with remaining 22 floors to be leased to
and medium enterprises. LRT Kg Bharu Station, Menara Legasi
local and international firms), 18 floors of
mechanical and electrical facilities that Naza TTDI is collaborating with Keystone is targeted for launch this June with
will accommodate an observation deck Impetus Sdn Bhd to develop two completion expected by 2019.
and a sky lobby, and another 18 floors to blocks of stratified office buildings on Mah Sing Group Bhd’s office building
house a 236-room six-star luxury hotel. a 2.47-acre site in KL Metropolis, with in the integrated Icon City development
completion slated by 2021. The 75.5-acre is open for lease. Located at the
Mulia Property Development Sdn Bhd,
mixed use development of KL Metropolis,
which is part of Indonesia’s commercial intersection of the Federal Highway and
located off Jalan Duta, will house the
property developer Mulia Group, will be the LDP, MSC Tower (pending official
country’s largest exhibition space,
building its Signature Tower in Tun Razak approval) is a nine-storey office building,
the Malaysia International Trade and
Exchange (TRX), the 70-acre site that is LEED and Green Building Index (GBI)
Exhibition Centre (MITEC).
being primed as Malaysia’s financial and certified and in compliant with the MSC
banking district. The 92-storey Signature IJM Land Bhd will be unveiling its first Malaysia Cybercentre status (stage 1).
Tower, with a GDV in excess of RM3.5 commercial development in Pantai The building, with a GFA of 48,833 sq ft,
billion, will be among the top 15 tallest Sentral Park in Bukit Kerinchi, Kuala offers approximately 3,662 sq ft of nett
buildings in the world when completed Lumpur, which carries a GDV of about floor area (NFA) on each level.
by 2018. With gross and net lettable area RM500 million by the end of this year.
of 4 million sq ft and 2.65 million sq ft It will comprise a 30-storey office and
a 36-storey serviced apartment. The
Prices and Rentals
respectively, the tower offers column-free
floors with typical floor plate averaging office tower, to be erected on parcel During the review period, the overall average
34,000 sq ft, the largest configuration of 13 of Pantai Sentral Park, will also be achieved rental rates in both KL City and KL
column-free floor space in the city. The IJM’s future corporate office. IJM Tower Fringe dipped marginally to RM6.13 per sq
group is eyeing banking and finance, will also comprise retail components ft and RM5.72 per sq ft respectively.
6
real estate highlights malaysia
Similarly, the overall average achieved TABLE 5
rental rate Beyond KL (Selangor) Selected Grade A Office Asking Rentals
declined marginally to RM4.16 per sq ft.
Despite further completions and weaker
business sentiment, rentals of Grade
A offices in Kuala Lumpur continue to
hold, ranging from RM7.00 to RM13.00
per sq ft per month.
Notable occupier movements during the
review period include the following:
McDermott Asia Pacific, one of the
leading engineering, procurement,
construction and installation services, has
relocated its regional office to Menara
Hap Seng 2 in Kuala Lumpur.
Infoblox has opened its first Asian
research and development facility
(Uptown 1, Damansara Uptown) to help
address global DNS (Domain Name
System) threats.
Milliman, Inc., a premier global consulting
and actuarial firm, has opened an office
in Kuala Lumpur (1 Sentral, KL Sentral).
The Kuala Lumpur office, its 12th in the
Asia-Pacific region, will offer employee
benefits, life, non-life, and health
insurance consulting services.
CE+T Power Group, one of the leading
manufacturers of modular power inverters
for European and the US market, has
opened its central APAC office in Kuala
Lumpur (Plaza Sentral).
Hytera Communications, a world leading
solution provider of professional mobile
radio, unveiled its Malaysia office in Kuala
Lumpur. The newly open office is located
at Tower A of Vertical Business Suites in
Bangsar South.
Other notable office-related investment
Source: Knight Frank Research
announcements during the review period
include the following: Tropicana Corp Bhd expects the disposal in cash plus goods and services tax
TSR Capital Bhd has proposed to of Dijaya Plaza in Jalan Tun Razak to (GST). The two-year-old building
acquire a private company that owns Kenanga Investment Bank Bhd for comprising 20 office suites is of 99-year
a parcel of freehold land (circa 5,000 RM140 million cash to be completed leasehold tenure.
sq m) with development approval for by the second quarter of the year. The
two blocks of office towers (19-storey asset comprises a parcel of freehold land
Outlook
and 11-storey) and a 4-storey car park. measuring approximately 3,674 sq m, Moving forward, the office markets in
The project which has a preliminary together with an en-bloc 19-storey office KL Fringe and Beyond KL (Selangor) are
estimated GDV of RM230 million is tower with two levels of basement car expected to remain subdued while in KL
located adjacent to Menara TSR in park (322 bays). City, the office market is anticipated to
Mutiara Damansara. TSR intends to face downward pressure in the view of
partially sell / or lease the buildings to Encorp Bhd has sold a block of office
persistent low oil prices.
be developed on the land, where 70% of suites (Block P) within Garden Office
the lettable space is targeted to be sold @ Encorp Strand in Kota Damansara, Amid widening mismatch between
and the remaining may be kept for rental Selangor, to Koperasi Permodalan supply and demand, office vacancies
income and capital appreciation. Felda Malaysia Bhd for RM27 million are expected to trend upwards due to
7
a strong supply pipeline and lacklustre rates due to sustained demand and limited quality of Living Survey).
absorption as more firms cut workforce supply of good grade space.
The on-going Klang Valley Mass Rapid
/ freeze hiring / consolidate business
Moving forward, more multinational Transit (KVMRT) project, namely the
operations.
companies (MNCs) from Marine and 51km Sungai Buloh-Kajang Line, which
Owners / landlords of newly completed Offshore (M&O) sector may see Kuala remains on track for full completion by
office buildings which have not been Lumpur as an attractive proposition. 2017 is expected to benefit decentralised
pre-let / have yet to achieve significant Besides offering the lowest prime office office locations along its route.
occupancies may offer more competitive rental amongst regional cities, MNCs
Meanwhile, the Ministry of Territories
rental package to secure tenants while relocating their regional offices here
has recently announced the tightening
those of older / dated and secondary office stands to benefit from lower operational
of approval for the construction of new
buildings are expected to be more flexible costs (attractive local currency - lower
office buildings in Kuala Lumpur, with
in negotiations to retain existing tenants. office rentals, cheaper accommodation
the exception of corporate buildings
and staff costs, etc.)
Well-located good grade, dual-compliant constructed for businesses’ own use
office space, however, is expected to Kuala Lumpur, ranked after Singapore in to control the escalating supply and
remain resilient, maintaining healthy South-East Asia, also offers good quality stabilise the office market.
occupancy levels and attractive rental living (source: Mercer’s 18th annual
FIGURE 2
Kuala Lumpur - Occupancy and Rental Trends 1H2010 - 1H2016
Source: Knight Frank Research
8real estate highlights malaysia
HIGHLIGHTS KLANG VALLEY RETAIL Market
Consumers continue to hold back
Market Indications
on spending evident from weaker
retail sales data in 1Q2016 (-4.4%) The MIER Consumer Sentiment Index occupied by PIKOM ICT Mall CapSquare
against 1.3% growth in 4Q2015. (CSI) which rebounded to 72.9 points (previously known as CapSquare Retail
in 1Q2016 from an all-time low of 63.8 Centre). The latter is part of an existing
points in 4Q2015 remains below the integrated project dubbed Jakel Square,
Projected retail sales growth for threshold level of confidence. located at Jalan Munshi Abdullah in the
2016 revised downwards to 3.5% older area of KL CBD.
Retail sales continued to be impacted by
from 4.0%. Scheduled to open by August, Damansara
rising cost of living amid a slowdown in the
economy and weak job market, growing City Mall (DC Mall) is positioned as a lifestyle
The recent completion of some 2.82 by a modest 1.4% in 2015 compared to a mall, targeting the greater community of
million sq ft NLA of retail space in 3.4% expansion in 2014. With consumers Damansara Heights and Bangsar as well as
continuing to hold back on spending, retail the KL-PJ population. Approximately 70%
Klang Valley and the scheduled
sales contracted sharply (-4.4%) in 1Q2016 of the total space has been allocated to the
opening of MyTown Shopping
(4Q2015: 1.3%). food & beverage (F&B) trade with tenants
Centre and Sunway Velocity Mall in such as Kampachi, Soleil, Charlie Chaplin,
KL city fringe by 2H2016 (total 2.1 Supply & Demand Awajiya Curry House, Cake Sense, I Love
million sq ft NLA), is expected to Yoo and Juiceworks. The mall forms part
A total of 12 shopping malls with
further heighten competition in the of the 8.5-acre Damansara City integrated
combined NLA of approximately 2.82
already crowded retail market. development which consist of luxury high-
million sq ft were opened / completed
rise residences (DC Residency), Grade A
during the review period, bringing the
office towers, and the five-star Sofitel Kuala
Owners of at least two suburban cumulative supply of retail space in Klang
Lumpur Damansara hotel. The locality
shopping malls are reportedly Valley to circa 53.72 million sq ft. The
of Damansara Heights which is currently
looking to divest their assets in this bulk of completion (1.88 million sq ft
undergoing rejuvenation with notable
or 67%) is located in Selangor with the
challenging operating environment. upcoming project Pavilion Damansara
remaining 0.94 million sq ft (33%) from
Heights will see improved accessibility and
new malls in Kuala Lumpur. Of the total
connectivity with the scheduled completion
Despite all negativity, there are completions, eight have commenced
of Phase 1 of the Sungai Buloh-Kajang
opportunities in the retail market, operations whilst the remaining four
Mass Rail Transit (MRT) Line by end 2016.
particularly in selected and malls, completed with Certificate of
upcoming areas which are under Completion and Compliance (CCC) Located within Glomac Damansara, the
issued, have yet to open for business. six-storey GLO Damansara Mall which
served but well populated.
Shopping malls that have commenced opened in April, is anchored by upscale
operations include LuLu Hypermarket & grocery store, Ben’s Independent Grocer
Department Store (250,000 sq ft), GLO (B.I.G). Other tenants include Imara
Damansara (360,000 sq ft) and M3 Mall Mediterranean Cuisine, Life Hot Yoga, The
(165,000 sq ft) in Kuala Lumpur; and Tranquerah, Boost Juice bar, MiniPani and
Sunway Pyramid Shopping Mall Phase Soon Thye Hang.
3 (63,000 sq ft), da:mén USJ Shopping
M3 Mall in Taman Melati, Setapak,
Mall (420,000 sq ft), Aeon Mall Shah Alam
commenced operations in early 2016.
(700,000 sq ft), Utropolis Marketplace
Located approximately 100m from the
(120,000 sq ft) and Gallerie @ De
Taman Melati Light Rail Transit (LRT)
Centrum (160,000 sq ft) in Selangor.
station and the planned Gombak Integrated
Newly completed malls which have yet Transport Terminal under a joint urban
to be operational include Damansara City redevelopment initiative between Kuala
Mall (169,000 sq ft) in Kuala Lumpur; and Lumpur City Hall (DBKL) and Gerbang
The Square @ One City (120,000 sq ft), M Mekar Sdn Bhd, the six-level mall offers
Square Shopping Mall (186,000 sq ft) and 165,000 sq ft retail space with 550 parking
Centrus Mall (109,000 sq ft) in Selangor. bays and a large multi-purpose hall. Key
tenants include The Store Supermarket,
Opened in June, LuLu Hypermarket & Texas Chicken, Georgetown White Coffee,
Department Store marks the entry of Station Kopitiam, King’s Confectionery,
the Middle Eastern retailer, LuLu Group
Mr. DIY, Nagoya Textile, Gintell, myNews.
International, into the local retail scene.
com, and Oppo Smartphone.
The new hypermarket-cum-department
store occupies some 250,000 sq ft Meanwhile, in Selangor, all eight newly
NLA in a refurbished building formerly opened / completed shopping malls with
9the exception of Aeon Mall Shah Alam, Developed by Millennium Land Sdn Bhd, a 45-storey block of strata offices and two
form part of integrated developments. M Square Shopping Mall is the retail blocks of serviced apartments (680 units).
component of Millennia City, an integrated
Phase 3 of Sunway Pyramid Shopping Also in March, Permodalan Nasional
project in Puchong which also comprise
Mall features a new retail podium with Berhad (PNB) revealed detailed
commercial and residential properties.
circa 63,000 sq ft NLA and a 4-star hotel, building plan of Merdeka PNB118
Phase 1 features the seven-storey shopping
Sunway Pyramid Hotel West. Linked mega development. The 118-storey
mall and Hilton Garden Inn with Phase 2
by a pedestrian bridge, the podium is tower which will overshadow the iconic
offering Millennia Residences. The mall, with
predominantly occupied by F&B outlets Petronas Twin Towers will accommodate
Parkson as the anchor tenant, is slated to
with notable tenants that include The 1.7 million sq ft of office space and a six-
commence operation by 2H2016.
Parenthood, Sanook, Impresseoul, star luxury hotel with 236 guest rooms.
Hokkaido, Ramen and Starbucks. In Cyberjaya, the three-level Centrus The development which will also feature
Mall, completed in early 2016 forms a shopping mall with circa 900,000 sq ft
Located at Persiaran Kewajipan in USJ 1,
part of the Centrus @ CBD Perdana 3 space is slated for completion by 2020.
approximately 5-minute walk from the USJ7
mixed commercial development that also
LRT station, da:mén USJ Shopping Mall, Earlier in January, M101 Holdings Sdn
comprises retail lots, office suites and
commenced operations in January 2016. Bhd launched M101 SkyWheel, a mixed
SOHOs units. The developer has reportedly
The six-storey mall (including lower ground development located along Jalan Raja
initiated a leasing negotiation that may lead
floor) is part of an integrated commercial to change of usage to office space if the Muda Abdul Aziz. The project, scheduled
development that also comprises shop deal is successful sealed. for completion by 2020, will comprise
offices and apartment blocks with a 6-level the 200,000 sq ft First Sky Shopping
podium car park. Key tenants of the Gallerie @ De Centrum is located within Mall (from 48th to 52nd floors), a Planet
new mall include Jaya Grocers, Suki-ya the 100-acre De Centrum City township Hollywood Hotel, small offices / flexible
Japanese Shabu-shabu, Starbucks, Coffee in Kajang that also features residential, offices (SoFo) units, and a ferris wheel
Bean Tea Leaf, Grand Harbour Restaurant, academic and recreational components. located at the 52nd Floor of the building.
Grandmama’s, Morganfields, Tonkatsu, Key tenants of the mall which commenced
operations during the review period In April, Crest Builder Holdings Bhd
Nam Heong, Sukiya, Sangkaya plus Tea
include Kentucky Fried Chicken, 7-Eleven entered into a joint venture (JV) with
Press (Tea Roasters from Japan), Popular
and Optical 88. Prasarana Malaysia Bhd and Detik Utuh
Bookstore, Sothys Paris, Crabtree and
Sdn Bhd to develop a 43-storey single
Evelyn, and Murad. During the review period, one expansion block mixed-commercial development.
Completed in February 2016, The Square @ plan and several new shopping mall Latitud 8 will comprise a retail podium
One City is one of the few retail components projects in Klang Valley were unveiled, with with business and convention facilities
within the 77-acre integrated development a number of them set to transform the local (800,000 sq ft NLA), office space and
of One City in USJ25. The three-level retail retail landscape. residential units (SoFos, SoHos and
podium with two blocks of SoHo units atop In June, IOI City Mall Sdn Bhd unveiled its duplexes). The JV companies plans to
has yet to commence operation. plan to expand IOI City Mall via Phase 2 retain circa 20% to 30% of the retail
which will see another 1.0 million sq ft of space, with the remaining space to be
On March 22, Aeon Co. (M) Bhd opened
retail space added to the existing mall. sold to a single party with multiple equity
its 23rd mall. Touted as one of its largest
partners. Located at the underground
flagship malls in the country, the 700,000 In March, BBCC Development Sdn Bhd Dang Wangi LRT station at Jalan
sq ft four-storey mall, anchored by Aeon (BBCCD), a consortium made up of Eco Ampang, it will be the first transit-oriented
Shah Alam Store, also features 200 World Holding, UDA Holdings Bhd and development (TOD) in Malaysia when
specialty stores with notable tenants such the Employees Provident Fund (EPF), completed by 2020.
as Padini Concept Store, H&M, Uniqlo, inked an agreement with Mitsui Fudosan
Cotton On, Brands Outlet, Index Living (Asia) Pte Ltd, a subsidiary of Japan’s In May, developer CK East Group
Mall, Red Lobster, and Olive Garden. Its Mitsui Fudosan Group to develop and unveiled its mixed development project,
four-season concept décor is inspired manage a retail mall with circa 860,000 Rencana TTDI. Located in Taman Tun
by Japan’s seasonal changes – summer, sq ft NLA at the Bukit Bintang City Centre Dr Ismail in the city fringe, Rencana
autumn, winter and spring. (BBCC) project in Jalan Pudu. The retail TTDI will encompass SOFOs, 2-storey
mall, to be developed under the Mitsui garden terraced units, retail lots and
Utropolis Marketplace, the retail component
Shopping Park LaLaport concept which strata office units. The developer plans
of Paramount Utropolis integrated project
has evolved to “a place where people to either dispose the retail podium (circa
by developer, Paramount Property, made
interact”, will see the Japanese retail 100,000 sq ft) to a single buyer or retain
its debut in May. The retail component
mall developer / owner bring in new retail and manage the same for better control
caters mainly to the student population of
brands / tenants from Japan. of tenant mix.
the 10-acre flagship KDU University College
campus with notable tenants that include Scheduled to complete by 2021, it will be Against headwinds in the country’s retail
Sam’s Groceria, PapaRich, Texas Chicken, the first LaLaport Mall in Southeast Asia. industry, both foreign and local retailers
CaliBurger, Sushi Q, Subway, Little Fat Other development components in the continued to innovate and strategize.
Duck, Aroi Thai, Grab It, Level Up Fitness first phase of BBCC comprise a four-star For example, the increasingly intense
Xpress, RHB Bank and myNews.com. hotel (to be operated by The Ascott Ltd), competition has led to departmental store
10real estate highlights malaysia
investment holding company whilst
its subsidiaries are in the business of
general contractors, project management
and trading in related products.
In tandem with the growing online
shopping trend, Central Market
shopping centre signed a Memorandum
of Understanding (MoU) with online
market, 11street, to offer Central
Market’s tenants products to on-line
shoppers. The upcoming USJ Wholesale
City Mall will also launch its e-commerce
platform www.moora.com.my for its
tenants to promote its products online
this coming August.
The second half of 2016 is expected to
da : mén USJ Mall see the completion of six new shopping
malls with combined retail space of
circa 3.36 million sq ft in Kuala Lumpur
giants, Parkson and Aeon, to introduce flagship store at Courts Megastore in
and Selangor. They include Pavilion
new elements in their business strategies. Sri Damansara.
Elite, KL Gateway, MyTown Shopping
In February, Parkson officially launched Foreign new retailers / franchises that will Centre, and Sunway Velocity Mall in
the refurbished Parkson Maju Junction open outlets in Klang Valley include Aeon Kuala Lumpur; and The Starling Mall and
(previously known as Maju Junction MaxValue Prime at Sunway Velocity Mall Amerin Mall in Selangor.
Shopping Centre) in KL CBD. The while Pezzo, a Singapore-based pizza
Prime and established shopping centres
refurbished mall incorporates a gourmet- chain, will open its first outlet in Peninsula
in the Klang Valley continued to enjoy
concept supermarket and food hall Malaysia at da:mén USJ Shopping Mall in
high occupancies (> 95%). They include
named Foodpark by Parkson, which is the June / July.
Suria KLCC and Pavilion Kuala Lumpur
retailer’s first foray into this trade category.
The review period also saw local food in KL City; Mid Valley Megamall and The
The second food hall similar to Foodpark
processor, QL Resources signing a Gardens Mall in KL Fringe; and Sunway
will be unveiled at the newly completed M
master franchise agreement with Tokyo- Pyramid, 1Utama Shopping Centre,
Square Shopping Mall by July.
listed FamilyMart Co Ltd, the world’s Empire Shopping Gallery, Subang Parade
Meanwhile, AEON Co (M) Bhd has second largest convenience store chain and The Mines in Selangor.
allocated RM650 million for capital after 7-Eleven. FamilyMart is set to enter
Malaysia with its first store slated to open
expenditure (capex) to develop new malls Prices and Rentals
and to refurbish malls / stores that are five by the end of this year.
years old and above, including the existing Overall, prime shopping centres listed
Meanwhile, local franchiser, Texchem
AEON Mid Valley, as part of efforts to under the property portfolio of KLCC
Corp Bhd plans to set up 11 Yoshinoya,
remain competitive in the industry. Stapled REIT, IGB REIT, Sunway REIT
11 Hanamaru and 11 Sushi King outlets in
and Pavilion REIT continued to record
Notable outlets that opened in Klang the country this year.
higher rates during the review period
Valley during the review period include Several acquisitions / disposals in the mainly from new and renewed leases.
Balenciaga in The Gardens Mall; Sam’s Malaysia retail industry were reported
Groceria, Mydin Mohamed Holdings For the 1Q2016 financial results, the
during the review period. In May, a 45%
Bhd’s premium grocery store in Utropolis combined revenue for KLCC Stapled
stake of Jaya Grocer was reportedly
Marketplace; Thailand’s home furnishing REIT’s retail property was recorded at
sold to Asean Industrial Growth Fund
retailer, Index Living Mall and Sushi RM123.48 million, depicting a 2.27%
(AIGF), a private equity fund managed
King in AEON Mall Shah Alam; senQ in year-on-year (y-o-y) increase (1Q2015:
by CIMB Private Equity and Mitsubishi
Alamanda Shopping Centre, Putrajaya; RM120.74million), attributed to higher
Corp. The Teng family will hold the
and The Store in M3 Mall, Setapak. rental rates that became effective during
remaining 55% and continue to manage
the quarter.
New retailers that entered the Klang Valley the grocery chain.
market include French-based Dior Homme The gross revenue of IGB REIT grew
In March, Marvellous Future Sdn Bhd,
with its first store in Malaysia at Suria by 4.6% y-o-y to record at RM131.21
the holding company of the fashion
million compared to the corresponding
KLCC Shopping Centre; Hong Kong- apparel firm Voir Holdings Bhd, sold
quarter in 2015 (1Q2015: RM125.44 million).
based eyewear retailer Mujosh’s first 50.71% of its Voir equity interests to
overseas concept store at Pavilion Kuala Vista Lestari Development Sdn Bhd The gross revenue of Sunway Pyramid
Lumpur, Shoopen at Fahrenheit 88; and and its persons acting in concert Shopping Mall was 6.6% higher for
French sports retailer Decathlon’s first (PACs). Vista Lestari is principally an the period ended March 31, 2016
11compared to the corresponding period the second half of 2016, competition in capita currently.
in 2015 mainly due to higher average the retail market will heighten.
In the A.T. Kearney 2016 Global Retail
net rent per sq ft.
MyTown Shopping Centre and Sunway Development Index (GRDI), Malaysia is
As at March 31, 2016, the retail property Velocity Mall, with 1.10 million sq ft ranked at third position, the highest since
portfolio of Pavilion REIT increased to three and 1.0 million sq ft NLA respectively the index started in 2001, indicating that
following the acquisition of da:mén USJ are slated to open in the last quarter of the country has vast growth potential both
Shopping Mall and The Intermark Mall in 2016 in time for the year end festive and in traditional as well as online retail market.
September and December 2015 respectively. school holiday seasons. These two malls
Malaysia has also won the award of the
which have reportedly secured prominent
During the 1Q2016, gross revenue of world’s Fifth Best Shopping Destination
retailers will further dilute the market,
the retail property segment in Pavilion by Expedia UK, and the Second Best
particularly in Kuala Lumpur.
REIT was reported at RM103.64 Shopping Destination 2015 for Muslims
million, up by 1.15% compared to the There are, however, opportunities in in the OIC Destination based on Crescent
corresponding period in 2015 (1Q2015: retail market, particularly in selected Rating and MasterCard Muslim Travel
RM102.46 million). / upcoming locations which are well Shopping Index.
populated and have low retail space per
Meanwhile, owners of Empire Shopping
Gallery and Evolve Concept Mall
reportedly have intentions to divert their
retail assets. TABLE 6
Shopping Centres Scheduled for Completion / Opening in 2H2016
In June, Mammoth Empire Holdings
Sdn Bhd, owner of Empire Shopping
Gallery in Subang Jaya, cited that it
intends to divest Empire Shopping
Gallery if a concrete offer was received.
The five-storey upper-middle retail
mall with circa 350,000 sq ft NLA has a
rental yield of between 6.5% and 7%.
The property which was last valued at
RM583 million attracts some 6.5 million
shoppers per year.
Earlier in April, JAKS Resources Bhd
also revealed its intention to dispose of
Evolve Concept Mall in Ara Damansara
to strengthen the company’s balance
sheet. Opened in November 2015, the
four-storey retail mall with circa 400,000
sq ft NLA, was reportedly 75% leased as
of December 2015.
Source: Knight Frank Research
Outlook
The projected retail sales growth for
2016 has been revised downwards
from 4.0% to 3.5% following the weak
performance in 1Q2016.
Consumer spending remains a key
challenge in the retail industry with many
continuing to hold back on purchases
due to growing concerns on rising cost of
living and weaker job prospect.
Moving forward, the uncertainties
following the recent Brexit referendum
are expected to further weigh down
market sentiments globally and this will
not augur well for the local retail industry.
With the scheduled completion of some
3.36 million sq ft of new retail space in
12real estate highlights malaysia
HIGHLIGHTS Penang Property MARKET
The RM337 million Bayan Lepas
Expressway comprising an elevated Market Indications
structure of 3.2 kilometres and a According to the latest Property Market start in 1H2016 and to be operational
street-level route of 4.2 kilometres Report, the total volume of transactions by 2H2017; SAM’s reinvestment of
linked to Sultan Abdul Halim for all sectors in the State of Penang for RM100 million between 2016 and 2018
Muadzam Shah Bridge (2nd Penang Year 2015 registered a drop of 15.6% – RM70 million to build a new 120,000
Bridge), was opened to traffic in against 2014. Similarly, in terms of value sq ft facility in Bukit Minyak and RM30
early April 2016. The highway, of transactions, the drop is recorded million on its Penang plant for aerospace
capable of accommodating a traffic at 15%. Residential transactions which work; Robert Bosch’s RM66 million
volume of 70,000 vehicles daily, is made up 70.9% [was 72% in 2014] of the expansion of its Penang plant; and Tek
part of the traffic dispersal initiative total volume, recorded a drop of 16.9% Seng Holdings Bhd, a solar cell maker,
in the area and is expected to ease and 18.5% in terms of the volume and will spend RM237 million to expand its
traffic congestion between Batu value of transactions done respectively production capacity to triple its existing
Maung and Sungai Nibong. for the period compared – Year 2015 vs size this year.
Year 2014. Whilst only the “industrial” and
“others” subsectors registered growth High End Condominium
The Penang State Government of 25.4% and 215.4% respectively over Hunza Group, a well-established and
is hoping to secure a conditional 2014 in terms of number of transactions reputable property developer in Penang,
approval for the first line of the done, the “commercial”, “industrial” and has launched ALILA² as a sequel to their
RM27 billion Penang Transport “others” sub-sectors registered positive successful Alila Horizons and Alila Homes
Master Plan (PTMP) where plans growth showing increases of 19%, 5% in Tanjong Bungah. ALILA² is sited away
for the Bayan Lepas Light Rail and 1,034.5% respectively in the value of from the hustle and bustle of Georgetown
Transit (LRT) to the Land Public deals done for the same period compared. and yet is close enough to the city, Batu
Transport Commission (SPAD) was Ferringhi, international schools, medical
Penang International Airport, which has facilities, retail outlets and the varied dining
submitted for approval on March 29,
reached its capacity of accommodating choices Penang is known for.
2016. The 30km Bayan Lepas LRT, 6.5 million passengers per annum,
expected to provide a speedy route has been earmarked for an expansion ALILA² is a low density modern resort-
to the airport, will start from Komtar programme to cater for increased inspired condominium development
and traverse through densely capacity of serving 10 million passengers comprising 2 towers sitting atop a
populated residential, commercial 6-storey podium over 9.8 acres of lush
a year. Malaysia Airports Holdings Bhd
and industrial areas of Jelutong, landscapes; the 2 towers have been
will construct a multi-storey car park that
designed to comply with Malaysia’s
Gelugor, Bayan Baru / Bayan Lepas will house 3,000 lots of parking space to
Green Building Index (GBI) Certification.
and Penang International Airport be done in two phases. The first phase
The comprehensive range of recreational
before ending at the proposed that will include the completion of 1,500
facilities includes infinity pool with jacuzzi
Penang South Reclamation lots will be operational in the first-quarter beds, seats and aqua gym equipment;
Project development. of 2017 (1Q2017), while the second two-storey lounge area with BBQ pit,
phase will be opened in 1Q2018. dining table and seating, and entertainment
New investments and reinvestments into deck; tennis court and half-size basketball
Penang’s industrial sector include Boston court and themed pocket spaces with
Scientific’s new facility in Batu Kawan feature shelters, giant swings and cocoon
Industrial Park where construction will seating to enjoy the beauty of nature.
Alila 2
13Expected to complete by 4Q2017, ALILA² as 2H2015. Rents secured at Hunza Tower In prime shopping malls, rental rates for
offers 270 large semi-furnished apartment is about RM3.50 per sq ft per month where ground floor retail lots generally range from
units at prices ranging from RM790 to the occupancy rate is 100%. RM13 to above RM35 per sq ft per month,
RM1,066 per sq ft for the typical units sized depending on the mall, location and size of
Average occupancy rates at Suntech
from 1,905 sq ft to 3,235 sq ft and from the units.
and Menara IJM Land, both newer office
RM993 to RM1,000 per sq ft for penthouse
buildings located outside the city, currently
and duplex units sized from 3,900 sq ft to
stands at 95%, a slight 1% increase
Outlook
5,789 sq ft. Optional furniture packages are
compared to 2H2015. Asking rents at With the continuing challenging global
available and a minimum of 2 car parking
these two buildings range from RM2.60 and national economic environment, the
bays are provided for each unit.
to RM3.30 per sq ft per month, with one negative property market sentiments have
Buyers of the high-end condominium sector building recording slightly lower rents. remained and the scenario is not expected
have higher expectations; thus, developers to improve in the immediate future.
of many newer launches offer units which are Retail
fitted out with built-in cabinets to bedrooms, Further softening and consolidation of
The existing supply of purpose-built
kitchen cabinets c / w hood / hob / electrical the residential sector is expected with
shopping space on Penang Island remains
items as well as light fittings, air-conditioning increasing supply and poorer take up rates.
unchanged at 2H2015’s level of 6.69 million
units and quality sanitary fittings. sq ft. No new purpose-built shopping malls Despite the fact that there is no new incoming
There are very few recorded were completed on the island in 1H2016. supply, the office market has plateaued with
transactions of larger sized M Mall 020, Phase 2 of Penang Times occupancies generally stable.
condominiums with built-up areas Square which opened for business in late
December 2015 had its official opening on Landlords of secondary buildings are
from 3,500 sq ft to 6,000 sq ft in
May 28, 2016. There are several proposed expecting pressures from tenants to
the secondary market in 1H2016.
Transactions in 1H2016 of such sized shopping malls coming up over the next suppress rental rates.
units in Tanjong Bungah range from five years on the island, please refer to
In the retail sub-sector, the prime malls
RM446 / RM626 per sq ft (both at The Table 7.
are still performing well but are not totally
Cove) to RM793 per sq ft. Smaller spared the effects of the weak economy.
Occupancy rates for the prime shopping
sized units at Gurney Paragon were Occupancies and rental rates will also come
malls on the island range from 80% to 98.5%
resold at RM808 per sq ft to RM1,150 under downward pressure. Secondary malls
whilst for the secondary shopping malls, the
per sq ft whilst at Quayside, Seri
range is generally from 70% to 90%. will face even greater challenges.
Tanjong Pinang, units were resold at
prices varying from RM768 per sq ft to
RM1,138 per sq ft in 1H2016.
Asking rents are noted to be slightly TABLE 7
lower when compared to last year. For Future Supply of Retail Space within Penang Island
larger sized units in Tanjong Bungah,
asking rents generally range from RM1.10
to RM2.30 per sq ft per month whilst
some landlords are still holding onto
high asking rents of RM2.80 to RM2.95
per sq ft per month. For similar sized
units in Gurney Drive, asking rents vary
from RM1.80 to RM2.60 per sq ft per
month. For smaller sized units in Tanjong
Tokong and Gurney Drive, asking rents
are in the range of RM2.20 to RM2.90 per
sq ft per month whilst some landlords
have higher asking rents of RM3.50 to
RM4.40 per sq ft per month.
Office
The existing supply of office space (buildings
of 10-storey and above) on Penang Island
remains at 2H2015’s level of 5.59 million sq ft.
The occupancy rates for the 4 prime office
buildings monitored in Georgetown generally
remain at 2H2015’s level, ranging from 80% to
100%. Current asking rentals for the older
buildings generally range from RM2.80 to
RM3.00 per sq ft per month, the same level Source: Knight Frank Research
14real estate highlights malaysia
HIGHLIGHTS Johor Bahru PROPERTY Market
Iskandar still attractive to investors;
cumulative investments now stand
Market Highlights
at RM202 billion from 2006. The headliner for the 1H2016 for Johor is serve as a global procurement centre for
of course Forest City. The 1,386-hectare the group. Supply chain management, key
mixed development project spread decisions concerning growth strategies
The international launch of the over four man made islands by Chinese and management of profit and loss of the
Forest City development by Chinese heavyweight developer, Country Garden, group will be carried out at the hub. This
developer Country Garden. Four man- was officially launched by the Sultan of adds to the growing list of global players
made island over 1,384 hectares, to Johor and The Prime Minister on March 6, setting up in Johor such as Pinewood
be developed over 20 years. 2016. An entire city designed from scratch, studios and Hershey’s.
this mega- development is set to include
In March 2016, 3Cnergy, a property solutions
extensive green landscaping and to utilize
Despite difficulties, the PIPC company has entered into a conditional
clever design to create a green ‘smart city’.
project in Pengerang is still a sale and purchase agreement (SPA) for
The development is expected to take over
key long term investment and acquisition of all the issued shares in Liberty
20 years to complete. The project has been
Bridge Sdn Bhd for RM186 million. Pursuant
stakeholders are committing more heavily marketed and has generated a buzz
to the SPA, 3Cnergy will acquire Liberty
capital to the project. around town that has been sorely missed
which owns ten parcels of undeveloped
over the last 6 months.
land measuring approximately 37.4 acres in
At the launch, the Prime Minister announced Puteri Harbour. 3Cnergy intends to continue
that Forest City will be accorded duty with Liberty’s existing plan to develop
free status. In addition to that, further tax the land into an integrated development
incentives for green developers, tourism, consisting of SOHO, serviced apartments,
health and education sectors were also condominiums, office lots, office tower, hotel,
bestowed upon Forest City. Companies street front retail and activity retail - a mixed
that are eligible for the above tax incentives development with predominantly residential
are also free from the usual restrictions components and complemented with retail
/ equity conditions placed upon foreign and commercial components.
ownership of company shares.
The 197km Gemas-Johor Bahru
As of March 2016, Iskandar Malaysia electrified double-tracking project (EDTP)
has registered cumulative investments of is expected to start at year-end upon
RM202.45 billion starting from 2006, mainly completion of its land acquisition; it is
from the manufacturing sector which expected to take three to five years to
accounted for about 27%. Of this total, complete. The double-tracking rail has
RM103.50 billion or about 51% of the total a capacity for the train to run at 160km
investments has been realized. Foreign per hour and an operating speed limit of
investors have contributed RM81.01 billion 140km per hour.
to the total cumulative investments which
UEM Sunrise Bhd (UEMS) has entered into
represents approximately 40% of the total
a JV and shareholder’s agreement with
investment thus far.
Mulpha International Bhd (MIB) to jointly
The locally listed JCY Group, a regional develop and optimise the value of 38 parcels
producer of hard disk drive components, of freehold land with a combined land size of
has announced that it will be setting up 231.35 acres at Gerbang Nusajaya. UEMS
its principal hub in Johor. Announced and MIB will develop the land into a mixed
by MIDA on April 2, the principal hub will residential and commercial development
Impression of Forest City
15comprising luxury landed villas as well as TABLE 8
mixed use and neighbourhood retail shop Cumulative Investment In Iskandar Malaysia 2006-1Q2016 (RM ‘ Billion)
developments. The project is expected to
span over a maximum period of 20 years
with an estimated GDV of over RM5 billion.
In January 2016, Multimedia University
(MMU) launched its new campus at
Educity which was built on the success of
its two campuses in Melaka and Cyberjaya.
Occupying an area of 45,000 sq ft, the new
campus can accommodate 500 students
and provides state of the art facilities such as
digital library, media resource centre, gallery,
post production laboratories, shooting
stage, recording studio and workshops.
Hua Yang Bhd has acquired Grand View
Realty Sdn Bhd which owns the 73.16-acre Source: IRDA
freehold land at Pasir Gudang for RM52.9
million. It plans to develop it with cluster Residential RM480,000 per unit. All international units
houses, semi-detached houses and shop have been sold out. Taking advantage of the
offices with an estimated GDV of about The looming oversupply and tepid market good response, the next phase is targeted to
RM346.4 million. activity has justifiably caused uncertainties launch in July 2016.
in the market and is representative in the
Swiss-Garden International Sdn Bhd had reduced number of launches so far in 2016. Hua Yang Bhd has launched Tower A, the
a soft opening for its 205-room Swiss- Some developments that were in the pipeline second tower of its Citywoods serviced
Inn Johor Bahru in Jalan Syed Mohd have been shelved for now as the market apartment project, along Jalan Abdul Samad.
Mufti. The company had spent RM63 Like Tower B, which was launched in
sits in the ‘wait-and-see’ camp. That said
million and two years renovating and September 2014, Tower A is also a 19-storey
there are still good deals to be found and the
refurbishing the 10-storey existing office apartment block with only nine units per
momentum is building for the buyers. Notable
building into a mid-sized hotel. floor. Tower A offers three design layouts
activities in the Johor Bahru residential sector
ranging from 764 sq ft, 958 sq ft and 1,249
The RAPID project in Pengerang is still for 1H2016 are as follows:-
sq ft respectively with prices starting from
seeing committed development from The most anticipated new high rise RM446,000 per unit.
stakeholders in the face of the current apartments launched in 1H2016 is phase one
global oil and gas crisis. As at April 2016, In March, Mah Sing Group Bhd held a
of Forest City. It consists of 482 units with
the committed investments in Pengerang topping-up ceremony for The Meridin @
sizes ranging from 753 sq ft to 1,862 sq ft
Intergrated Petroleum Coplex (PIPC) are Medini which symbolizes the completion
and gross selling price from RM1,200 per sq
from Petronas developing the Petronas of the development’s structure. Launched
ft. This launch has received plenty of attention
Integrated Complex (PIC) valued at in 2013, the completion of The Meridin@
globally and is continuing to be aggressively
RM104.73 billion, as well as the JV Medini’s structural works comes with the
marketed internationally.
CONQUAS Structural Assessment score
between Dialog Group Bhd, Royal Vopak
Bukit Impian Residence, which was launched above 80 point. The Meridin@Medini is
of Netherlands and Johor State Secretary
in March, offers 100 units of 2-storey terraced an integrated development offering hotel-
Inc (SSI) with their Pengerang Deepwater
houses with built-ups of 2,567 sq ft to 2,638 serviced suites, serviced residences, SOVO,
Terminal valued at RM11.64 billion. This
sq ft, and priced from RM648,000 to RM1.13 and retail shops. One of the earlier headline
is a welcome sign to many as it shows
million per unit. developments of Medini, its completion is
that PIPC is a long term investment with
highly anticipated.
stakeholders that have visions that go UEM Sunrise Bhd has launched Melia
beyond the current economic situation. Residences, the first freehold landed
The complex is expected to be operational strata residential development in Gerbang
early 2019. Nusajaya. The 73.64-acre development
offers 625 units of 2-storey terraced houses
Gleneagles Medini Hospital commenced
with built-up areas ranging from 2,006 sq
its operation at the end of December
ft to 2,594 sq ft. The selling prices for
2015 with a capacity of 300 beds and
phase one starts from RM550,000 per unit.
162 medical suites. Managed by IHH
The positive response from the market has
Healthcare, the RM400 million hospital
prompted the launch of Phase 3.
is located on a 6-hectare land in Medini,
Iskandar Puteri. The world-class hospital Mutiara Rini Sdn Bhd recently launched
attracts local and foreign visitors especially Phase 5B of Rini Homes comprising a total of
from Singapore due to its strategic location 223 units of 2-storey terraced houses. These
and is set to offer one of the best medical houses have built-up areas ranging from
Meridin@Medini
services currently available in the country. 1,694 sq ft to 2,327 sq ft, and are selling from
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