PROPERTY OUTLOOK PLUS - New Launches in Selangor Q3 2017 versus Q3 2018 - Henry Butcher Malaysia
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NEW YEAR EDITION 2019
by Henry Butcher Malaysia
PROPERTY
OUTLOOK
2019
KDN PP18893/11/2015(034373
PLUS
The Malaysian Property Market New Launches in Selangor
2018 in A Snapshot and Will Q3 2017 versus Q3 2018
We See A Revival in 2019?
SALE BY TENDER
Prime Land with Commercial
Development Potential &
Freehold Bungalow Lots in
Seremban, Negeri Sembilan
Tender closes at 5pm,
Friday, 8 March 2019.
Tender documents can be
purchased at RM100.00 each.
Property 1 Property 2
20.23 acres of Prime Land with Commercial 22 Freehold Bungalow Lots located within Chemara
Development Potential near Seremban Town Hills, Seremban
Located next to Palm Mall Seremban. Located in a development scheme known as Chemara
Strategically located approximately 2km from Hills.
Seremban Town. Close distance to Palm Mall Seremban & KPJ
Commercial Zoning. Seremban Hospital.
Good access via Jalan Sungai Ujong & Jalan Lingkaran Gated & Guarded development.
Tengah. Facilities included within the development scheme.
Approximately 20.23 acres (4 lots). 22 Freehold Bungalow Lots.
For enquiries, please call
Mr. Chai Kim Keong (REN 01747), Mobile no. +6012-282 5995 Ms. Hana (REN 09525), mobile no. +6012–322 7984
Mr. Haryanto Lim (PEA 1377), mobile no. +6016–295 4988
Mr. Long Shi Chuen (PV1848), mobile no. +6012–373 5580
Exclusive Marketing Agent
Henry Butcher Real Estate (NS) Sdn Bhd Henry Butcher Real Estate Sdn Bhd
(732554-W) (236461-W)
No. 11, Ground Floor, No. 25, Jalan Yap Ah Shak,
Jalan Tunku Hassan, 70000 Seremban, Negeri Sembilan. /12 Off Jalan Dang Wangi, 50300 Kuala Lumpur.
Tel: +606-761 8688 Fax: +606-761 8689 Tel: +603-2694 2212 Fax: +603-2694 1261
A CHANGE FOR THE BETTER
the new collective agreement signed our readers. As we do not accept paid
between Malaysian Commercial Banks advertisements, the cost of producing the
Association (MCBA) with the National newsletter is funded entirely by the group.
2018 was a truly tumultuous and historic Union of Bank Employees (NUBE) under As the cost of producing the newsletter
year when people’s power through the which all bank employees will enjoy 0% has gone up significantly especially with
ballot box, brought down the Barisan interest on their housing loans for the first the increase in print quantity and the
Nasional government which has ruled RM100,000 of their loan amount. additional staff needed to produce it, we
over Malaysia for more than sixty years The second was the announcement of the have taken stock of the situation and we
and replaced it with Pakatan Harapan, dates for the National Homeownership have a come to a decision to outsource
a coalition formed by parties which Campaign. This campaign is a its production although we will still take
have been cobbled together and led by collaborative effort between the Ministry charge of writing the articles to maintain
a 93-year-old former Prime Minister. of Housing and Local Government the quality. In line with this change, we
A large number of the newly appointed (KPPT) and Real Estate & Housing have also decided to revise the frequency
Ministers have no previous experience in Developers’ Association (REHDA) and of production from monthly to quarterly.
government and they struggled to get used will be a month-long campaign starting We will continue to produce articles
to their new roles amidst new revelations from 1 March 2019. The campaign will of high standards and maintain our
of wrongdoings and new scandals by involve 30,115 houses by 180 developers editorial integrity. We will look into ways
the previous administration. As the PH who will offer a 10% discount during the of enhancing our newsletter further and
leaders settle into their new roles, we will campaign period. We hope that these we welcome any suggestions from our
be sailing into the new year in uncharted efforts will finally breathe some life into readers in this regard. Just as we have
waters but buoyed with hope that the new the mundane housing market. changed our government with the hope
administration will, given sufficient time, This year marks the 8th year in print for that it will be a better one, it is our wish to
be able to clean up the mess left behind our newsletter, Herald by Henry Butcher see Herald moving forward to become an
by the previous administration, avoid Malaysia. Our circulation has gone up even more informative and useful tool to
the mistakes made and set the country to more than 4,200 and our circulation our clients and readers who are involved
on course again in our voyage to become list includes property developers, in businesses related to real estate, plant &
a developed nation which is clean, banks, public listed companies, SMEs, machinery and art.
transparent and inclusive. selected condominiums, hotels and The Editorial team at Herald as well
Of course, we also wait with abated breath eateries. Herald as it is affably known as the Management of Henry Butcher
on the introduction of new measures that is also available in digital format on our Malaysia wishes all our clients and readers
will be taken by the PH administration Henry Butcher Malaysia group website, a Happy and Prosperous Chinese New
to inject more life to the dull property facebook, LinkedIn and is also sent out Year and a productive and fruitful 2019.
market. Two pieces of good news have to selected recipients via WhatsApp.
already been announced just two weeks We have endeavoured to produce Tang Chee Meng
into the new year. The first is the new professionally written articles which are Chief Operating Officer
benefit extended to bank employees under unbiased, well researched and useful to
JANUARY 2019 OUR SERVICES Email: hbampang@henrybutcher.com.my Tel: 603-26942212 Fax: 603-26941292 PAHANG | Kuantan | MALACCA |
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3 / HERALD NEW YEAR EDITION 2019
PROPERTY OUTLOOK 2019
The Malaysian Property Market 2018 in A Snapshot and Will We See A Revival in 2019?
Economic Outlook from RM12.49 billion to RM19.54 billion. the purchase of their homes. There is
Set against the background of the slower These figures exclude serviced apartments presently some degree of scepticism
global economic growth amidst the and sohos which if added on, will increase on this P2P platform and more details
disruptive trade tensions between China the total unsold stock to 40,916 units on this programme will need to be
and the United States and the drop in worth a staggering RM27.38 billion. announced to address the concerns
crude oil prices, Malaysia’s economy To address some of the prevailing issues of would-be house buyers as well as
this year is expected to grow at a slower affecting the residential property market, investors.
pace compared to the last two years. The the Finance Minister presented in Budget An allocation of RM1.5 billion will be
World Bank has projected a 4.9% growth 2019 on the 2nd of November 2018, set aside for the building of affordable
for Malaysia for 2018 and to decelerate to some positive measures to stimulate the homes targeted especially at the Below
4.7% in 2019 and 4.6% in 2020. residential property market, particularly 40 (B40) group. The plan is to build
the affordable homes segment viz: 100,000 affordable homes per year,
Residential Property Sector Stamp duty exemption on the first commencing from 2019 although
The residential property market in RM300,000 on the sale & purchase judging from the government’s
Malaysia has been chalking up lacklustre agreement and loan agreement for past track record, the figure seems
performances since 2015 with annual first time purchasers of homes costing unrealistic. Nevertheless, as this is a
declines in the volume and value of RM500,000 and below for a period of new administration with new people
transactions, increase in stocks of unsold two years till end 2020. at the helm, this lofty target set may be
houses and lower profits reported by Six-month stamp duty exemption achieved this time.
some of the major developers. Based on effective 1 January 2019 for first time A further sum of RM1 billion will be
the latest available statistics released by buyers of homes costing between provided via Bank Negara Malaysia
NAPIC, the number of unsold completed RM300,000 and RM1 million to help first time home buyers with
residential units rose 48.35% from 20,304 purchased from developers. monthly income of less than RM2,300
units to 30,115 units year-on-year as at Launch of P2P crowdfunding to finance their purchase of homes
30 September 2018 whilst the total value initiative to provide property buyers costing less than RM150,000 at a lower
of these unsold houses increased 56.44% an alternative source of funding for interest rate of 3.5%.
4 / HERALD NEW YEAR EDITION 2019
and 5% for companies and foreigners)
imposed on properties sold after a
Residential Transaction Volume Trend
holding period of five years except for low
cost, medium cost and affordable homes
costing RM200,000 and below. There has
also been an increase in the stamp duty
rate for properties above the threshold
of RM1 million which means that it has
become costlier to buy properties priced
above RM1 million. As a concession, the
government has recently announced the
deferment of the new higher tax rate for
six months which means that the new tax
rate will only take effect from July.
Meanwhile for those of us who
are in the real estate industry, we wait
with abated breath on what additional
measures the government will announce
this year to support and nurse the
property sector through these challenging
times. More concrete and effective steps
need to be taken by the government
Residential Transaction Value Trend to address the fundamental structural
issues related to the property industry in
a holistic and comprehensive manner so
that house prices can be brought down to
a level within reach of most Malaysians
eg. making available more land for
development especially for affordable
homes, controlling the rise in land costs,
construction costs and compliance costs,
providing more detailed and timely
data on the property industry to allow
developers to make more informed
decisions and speeding up plan approvals
and improving the mechanisms of release
of Bumiputera quota units. Perhaps the
National Housing Policy 2.0 (plus its sub-
policies, the National Affordable Homes
Policy and the National Community
Policy) which has been delayed but
now due to be announced by the end of
An allocation of RM25 million by Malaysian Commercial Banks Association January, may provide some guidance
Cagamas will be used to provide (MCBA) with the National Union of Bank on the government’s directions on this
mortgage guarantees for first time Employees (NUBE). matter.
home buyers with monthly household Whilst these measures are all good In the meantime, it is good to note
income of less than RM5,000. news for those who are buying their first that the Ministry of Housing and Local
home, will they be enough to spur buying Government (KPPT) in collaboration
The latest piece of good news was the activity in the market and help developers with the Real Estate and Housing
announcement that all bank employees clear their unsold stocks? It is noted that Developers’ Association (REHDA), will
will enjoy 0% interest on their housing in Budget 2019 there were also some be launching a series of National Home
loans for the first RM100,000 of their loan announcements which had a negative Ownership campaign this year as part of
amount. This was included in the new impact on the property market viz., the efforts to promote home ownership and
collective agreement reached between 5% RPGT (previously 0% for individuals reduce the developers’ unsold stocks.
5 / HERALD NEW YEAR EDITION 2019
REHDA will be offering a discount of at Existing Supply of Privately-Owned Purpose-Built Office Space in
least 10% on existing unsold properties Kuala Lumpur & Selangor as at Q3 2018
during the campaign. The success of State Existing New
Completion Incoming Planned
this home ownership programme will Supply (sqm) Supply Supply Planned
nevertheless depend on the location, type (sqm) (sqm)* (sqm) Supply
and pricing of the houses put up for sale (sqm)
in the programme and the attractiveness Kuala
8,340.066 0 1,149,235 626,957 340,861
of the sales packages offered by the Lumpur
developers.
W.P
We believe all these efforts will have a 350,472 53,774 364,565 31.545 0
Putrajaya
positive impact on the residential property
market and will provide a boost to property Selangor 3,529,904 39,218 39,218 10,276 0
sales by developers this year, in particular,
the affordable homes segment. We expect Total 12,220,442 1,553,018
92,992 668,778 340,861
the volume of property transactions to
increase slightly although the value of the Source: NAPIC
transactions may not rise proportionately
due to the weightage on lower priced Existing Supply of Privately-Owned Purpose-Built Office Space in
properties. Nevertheless, we note that Kuala Lumpur & Selangor as at Q3 2018
the trade tensions between the world’s Area No. of Existing % of Supply Occupancy
two biggest economies, if not resolved Buildings Supply Rate
quickly, may have a negative impact on (sqm) (%)
global economic growth and Malaysia,
being an export dependent nation, will Kuala Lumpur City Center
202 6,529,950 78 80.5
not be spared. This would place a yoke
(Seksyen 1-100, Bandar KL)
around the neck of the property market Outside City Centre (Luar 22
71 1,810,116 70.4
and prevent a sustained recovery although Seksyen 1-100, Bandar KL)
we are of the view that the market will not Total 273 8,340,066 100 78.3
experience any drastic downturn.
W.P Putrajaya 9 350,470 n.a 42.7
Purpose-Built Office Sector
The supply of purpose-built office space Selangor 160 3,529,900 n.a 72.5
(PBO) in Kuala Lumpur increased to
Source: NAPIC
approximately 95.7 million sq ft (8.890
million sqm) as at the third quarter of
The substantial supply of office space period was driven by oil and gas related
2018, based on the latest available official
due to come onto the market is expected companies (due to the recovery in oil
statistics. There is another 12.3 million sq
to result in a rise in vacancy rates and prices at the beginning of the year) as
ft (1.149 million sqm) in incoming supply
this may put pressure on rental rates well as co-working/shared office space
which will add substantially onto the
going forward. Nevertheless, in view of operators. Amongst co-working space
space available when completed.
the current soft market conditions and companies which have set up offices in
PBO’s within KL city centre recorded
no signs of any significant new sources of the Klang Valley are Common Ground,
an occupancy rate of 80.5% whilst those
demand for office space, some developers Worq, Colony, The Co, White Space and
located outside the city centre have a
may postpone their projects and this may the latest entrant, WeWork, currently the
lower occupancy rate of 70.4%. Overall,
offer some relief to the sector. largest co-working space operator in the
PBO’s in Kuala Lumpur recorded a drop in
On the whole, average office rentals in world who is scheduled to open its first
occupancy rate to 78.3% compared to 80%
Kuala Lumpur remained relatively stable office in Equatorial Plaza in early 2019
in the second half of 2017 and 81.4% in
with some investment grade buildings in with a capacity of 1,900 desks.
the first half of 2017. Putrajaya registered
good locations recording higher rentals. The slower economic growth projected
a rather low occupancy rate of only 42.7%
Older buildings which have not carried for the next two years as well as the
whilst Selangor’s occupancy rate declined
out any upgrading offered lower rentals to significant supply of office space which
slightly to 72.5%. A number of the more
retain existing tenants and to attract new is expected to come onstream without
recently completed buildings, aided by
ones. any corresponding increase in demand
more attractive terms, however managed
Office leasing activity during this presents a challenging environment for
to improve their occupancy rates.
6 / HERALD NEW YEAR EDITION 2019
Supply of Office Sector (Kuala Lumpur)
Supply and Occupancy Rates of Office Buildings in Kuala Lumpur (2005 to Q3 2018)
Office Sector - Kuala Lumpur
10,000,000 84
9,000,000
82
8,000,000
7,000,000
80
6,000,000
Total (`000 s.m)
5,000,000 78
4,000,000
76
3,000,000
2,000,000
74
1,000,000
0 72
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1-Q3 2018
Total Supplied (Sq.M) 5,854,987 5,928,254 6,039,111 6,214,639 6,484,856 6,810,670 6,962,474 7,539,833 7,699,638 8,097,642 8,282,678 8,657,577 8,747,246 8,898,497
Total Occupied (Sq.M) 4,796,936 4,849,178 5,016,212 5,122,290 5,393,858 5,501,669 5,598,775 5,735,257 6,079,454 6,739,899 6,722,600 6,747,246 7,127,482 7,065,198
& Occupied 81.9 81.8 83.1 82.4 83.2 80.8 80.4 76.1 79 83.2 81.2 77.9 81.5 79.4
Source: NAPIC
Supply of Office Sector (Selangor)
Supply and Occupancy Rates of Office Buildings in Selangor (2005 to Q3 2018)
Office Sector - Selangor
4,000,000 84
3,500,000 82
3,000,000
80
2,500,000
Total (`000 s.m)
78
2,000,000
76
1,500,000
74
1,000,000
500,000 72
0 70
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Total Supplied (Sq.M) 1,829,946 1,835,138 1,833,766 2,118,793 2,245,231 2,472,329 2,502,966 3,048,481 3,078,030 3,048,797 3,306,328 3,394,403 3,621,559
Total Occupied (Sq.M) 1,538,889 1,540,148 1,546,679 1,759,438 1,757,336 1,942,538 1,969,738 2,296,367 2,317,105 2,329,736 2,501,880 2,561,797 2,732,869
& Occupied 81.9 81.8 83.1 82.4 83.2 80.8 80.4 76.1 79 83.2 81.2 77.9 75.5
Source: NAPIC
the office sector in Klang Valley. The new
buildings which will be completed over
the next year will, unless owner occupied,
will require a longer time to get the
building filled up and may have to offer Retail Supply in Klang Valley 2018
more attractive rentals and terms to entice
No Location No. of Total Nett Average Average
tenants. As vacancy rates rise, building
Malls# Floor Area Rental Rate Occupancy
owners may feel pressured to reduce their
(sf) (RM psf Rate (%)
rentals in order to compete and to retain pm)*
existing tenants whose tenancies are up
for renewal. Rentals which have remained 1 Kuala Lumpur 118 35,320,465 12.04 79.4
relatively stable so far, may come down
when occupancy rates decline.
2 Selangor 152 39,739,806 9.08 76.5
The completion and commencement
of operations of the new MRT/LRT line
3 Putrajaya 3 1,957,573 3.72 82.0
extensions will make certain areas outside
the traditional city centre more attractive
as office locations and this may lead to a
Total 273 77,017,844 8.85 78.0
flight to better quality new buildings in city
fringe areas like Damansara Heights and # includes hypermarket malls and arcades.
Mutiara Damansara/Damansara Perdana. * exclude rental rates of anchor tenants such as supermarket, department store, cineplex, bowling alley etc.
Source: Henry Butcher Retail
Nevertheless, although the outlook for
the office sector appears challenging, no
8 / HERALD NEW YEAR EDITION 2019
CONTEMPORARY ARCHITECTURE RESORT THEMED LANDSCAPING
10,000 SQFT RESIDENT CLUBHOUSE 4-ACRE PRIVATE HILL PARK
FREEHOLD
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VIEWING STRICTLY BY APPOINTMENT ONLY
CALL NOW
RYAN +6012 7958 995
FUZZ +6016 3085 825
Exclusive Marketing Agent:
25 Jalan Yap Ah Shak, 50300 Kuala Lumpur, Malaysia.
Email: admin@henrybutcher.com.my IRAMA WANGSA
Tel no. +603-2694 2212 | Fax no. +603-2694 5543 SALES GALLERY
Developer’s License No.: 13498-2/02-2019/01252(L) • Validity Period: 25/02/2018-24/02/2019 • Advertising & Sales Permit No.: 13498-2/02-2019/01252(P) • Validity Period: 25/02/2018-24/02/2019 • Approving Authority: Dewan Bandaraya Kuala Lumpur (DBKL) • Building Plan Reference No.: BP U2 OSC 2014 0223 • Land Tenure: Freehold • Property Type: Condominium
• Total No. Of Units: 200 • Expected Completion Date: April 2018 • Land Encumbrances: Public Bank Bhd • Minimum Price: RM 858,000 • Maximum Price: RM 1,230,800 • Bumiputera Discount 5% • Restrictions In Interest: NIL
Disclaimer: All information contained herein (including specifications, plans, measurements, illustrations and statements) are subject to amendments and modifications without prior notice as may be required by the relevant authorities or developer’s consultants. They shall not form part and parcel or invalidate or annul any contract of sale between the developer and the
purchaser. Whilst every reasonable care has been taken in preparing this information, the developer cannot be held liable for any variation or inaccuracy.
drastic downturn and decline in rentals is Industrial Transaction Volume Trend expected. Retail Property Sector As at December 2018, the Klang Valley (includes Kuala Lumpur, Selangor and Putrajaya) had a total of 273 shopping centres with a combined supply of 77 million sq ft in retail floor space. The average occupancy rate of these shopping centres dropped slightly for the third consecutive year from 79.9% in 2016 to 78.3% in 2017 and 78.0% in 2018. The breakdown of the retail floor space supply in Kuala Lumpur, Selangor and Putrajaya is as per the table (Retail Supply in Klang Valley 2018). Industrial Transaction Value Trend At least 8 new shopping centres are expected to open in 2019 with a total nett floor area of close to 3.8 million sq ft. They are located in various parts of Klang Valley. The average rental rate for retail space in the Klang Valley declined slightly for the third consecutive year from RM9.21 per sq ft per month in 2016 to RM8.97 per sq ft per month in 2017 and to RM8.85 per sq ft per month in 2018. This average does not include rental rates of anchor tenants such as supermarkets, department stores, cineplexes, bowling alleys etc. who typically pay low rents. The change of the ruling party and the ensuing bonus of a 3-month tax holiday when GST was suspended did not change Shopping centres in the Klang Valley during weekends. the fortunes of the retail sector as Klang registered a slight decline in achieved The spending patterns of Klang Valley Valley shopping centres still faced the same rental rates in 2018, especially for those consumers in shopping centres in 2019 challenges as in 2017 - higher operations located in suburban areas. Many new will be highly dependent on the Malaysian costs, reduced shopping traffic, decreased shopping centres offered rental rebates economic performance during the year. If retail sales and early termination by and longer rent-free periods to attract the economy performs well and benefits all tenants. It also took a longer time to secure prospective tenants instead of offering a business and industrial sectors, consumers new tenants to fill up lots vacated by these direct reduction in rental rates. spending will increase and this will in turn tenants. Just as experienced by the many new benefit shopping centres in general. Just as in previous years, many shopping shopping centres which opened during Retail Group Malaysia has projected centre owners needed to introduce rental the last 3 years, shopping centres targeted a 4.5% growth rate in retail sales for rebates or reduce rental rates in order to for opening in 2019 will continue to face Malaysia in 2019. The consumer spending retain existing tenants. Nevertheless, some challenges to fill up most of their retail lots pattern this year will be highly dependent established and popular shopping centres upon their opening. To attract tenants to on the economic performance and cost which suffered from low occupancy rates set up shop in their shopping centres, they of living during the year. The Malaysian in 2017 managed to fill up more retail will need to lower their rental rates and/ government expects the national economy lots in 2018. New shopping centres which or offer longer rent-free periods. Despite to be driven mainly by private sector opened in 2018 faced difficulty to achieve the rapid growth of online shopping in consumption and investment whilst at least 80% occupancy rate at the time of Malaysia, consumers are still visiting government expenditure is likely to opening. shopping malls, especially the larger ones, moderate during the year in order to cope 10 / HERALD NEW YEAR EDITION 2019
Malaysia Industrial Production Index (Jan to Nov 2018)
Source: Trading Economics, Dept. of Statistics, Malaysia
Malaysia Manufacturing Production (Jan to Nov 2018)
Source: Trading Economics, Dept. of Statistics, Malaysia
with the heavy public debt burden. overhang of unsold stock, and the office as the country could be a replacement for
Overall, the retail property sector as well as retail sectors which are in China in the sourcing of certain products
is expected to be affected by reduced an oversupply situation, the industrial for American industries and consumers
spending resultant from weaker consumer property sector managed to register and vice versa. The Industrial Production
sentiments and lower tourist arrivals, increases in both volume and value of Index, Manufacturing Index, PMI and
an oversupply of shopping centres in transactions as shown by NAPIC’s latest Exports statistics have been registering
general and some cases of poorly located available statistics for the first half of 2018. positive monthly growth in 2018 and do
and designed malls in particular, which Selangor was the star performer. Although not give rise for any concerns.
will put pressure on occupancy and the overhang of unsold industrial The Prime Minister launched the
rental rates. The retail property sector properties rose, the figures are nowhere as National Policy on Industry 4.0 named
will continue to face the same challenges alarming as the residential sector. Prices INDUSTRY4WRD on 31 October 2018
in 2019 as it has been facing over the recorded a mixed performance but were to prepare the country to embrace the
past three years. Nevertheless, we do generally very stable. fourth industrial revolution which is
not expect any significant declines in Going forward, Malaysia’s occurring worldwide. The industrial
occupancy and rental rates. manufacturing sector continues to look property sector is therefore expected to
good although the negative effects of a remain stable although certain industrial
Industrial Property Sector prolonged China–USA trade war is an property types eg. terrace factories in
Of all the sectors, the industrial property area of concern as it could have a negative certain locations may continue to face
sector was easily the best performer. impact on exports from Malaysia. high vacancy rates as they are not able to
Unlike the residential sector which faces Notwithstanding this, there could be attract the intended end users.
a problem of sluggish sales and a large certain sectors which may benefit Malaysia
11 / HERALD NEW YEAR EDITION 2019SELANGOR
New Launches in
Q3 2017 versus Q3 2018.
RAWANG KERLING
Landed
1
Highrise
RM350 RM200
- -
3 RM800 RM250
Landed
2017 2018 RM200
-
SUNGAI RM350
BULOH KELANA JAYA
4% 46 9% 41
Highrise
RM650 Highrise
1
PETALING
- RM650
2
5
5
%
JAYA
%
56
KUALA
40
RM800 Highrise -
SELANGOR Landed
3 RM800 RM800 BANDAR
MAHKOTA
1
Landed RM300 -
RM300 - RM1200 CHERASHighrise
RM450
1
- RM400
SERI -
RM500 KEMBANGAN
RM600
Highrise
1
RM660
Highrise Highrise -
RM1500
Landed Landed
SETIA ALAM
Number of New Project Launches Landed SEMENYIH
3 RM300
Landed
2
-
RM300
RM550
-
RM550
5% 75 7% 63
%
3
2
%
SHAH ALAM
19,929 11,265 Highrise SUNGAI
RM800 LONG Highrise
1
-
2 RM900
Landed
RM300 KOTA
RM350
-
RM500
- KEMUNING
Strata Strata RM550 Highrise PUTRAJAYA
Landed RM130 PUCHONG
Landed Highrise
4 1
- Highrise
KLANG RM800
RM700
Number of Units Launched in New Projects Landed
RM500 -
4
Landed -
3
RM300 RM800
RM300 RM650
-
- Landed
RM600
RM1000 RM450
-
14 RM550
BANDAR
12 SEPANG
12 SUNWAY
Landed
3
Highrise
10
2
RM300
RM700
-
-
RM500
8 8 8
RM1200
Units
7 7 7 7 7
6
5 5 CYBERJAYA
4 4 4 4 Highrise
3 3 3 RM500
2 -
0 Jan Feb Mac
1
Apr
1
May Jun Jul Aug Sep
2 RM600
Landed
RM400
-
Total Launches by Month RM500
25
Location and Number of Project
20 21
19
15 15
Units
10 11
8
5 5 6 5
3 4
3 1 1 1 1 1
0
Apartment / Flat Bungalow Condominium Semi-D Serviced Soho / Sofo / Terrace / Super Townhouse
Residence / Sovo / Soso Link
Serviced
Apartment
Types of Projects
12 / HERALD NEW YEAR EDITION 2019Based on the data on new launches the number of strata residential units July 2018 with 8 projects launched.
compiled by us, we observed a dip in were much higher (63% vs 37%). Nevertheless, the post-electoral feel
the number of new projects launched On a monthly basis, March 2017 good factor was not sustained as
in Selangor in the first 9 months of was the most active month for new the numbers tapered off slightly in
2018 compared to the same period in launches with 12 projects before it August and September.
2017. There were 56 projects launched began to slow down in the subsequent In terms of size of units, which is
in 2017 but the figure dropped months. June 2017 experienced a usually dictated by a host of factors
28.57% to 40 in 2018 as a result of the “bottoming out” with only 3 projects such as land prices, consumer
softer market conditions. In terms of before the trend picked up in July. preferences and other socio-
number of units, there was a larger The positive movement lasted until economic variables like inflation and
decline of 43.47% from 19,929 to February 2018 with 7 projects strength of the Ringgit, units launched
11,265 units in Q3 2018 compared released to the market. The gradual in 2018 somewhat mirrored 2017’s
to the same period in the preceding rise did not continue as it was halted statistics with a heavier concentration
year. The drop did not really come as by GE14’s “Election Fever” from for sizes below 2,500 sq ft. A distinct
a surprise as the market was shrouded March onwards. But thankfully, the difference worth mentioning is
with uncertainties in the first half of change in the country’s leadership perhaps the leading sizes for the two
2018 leading up to the 14th General brought about a renewed vibe that corresponding periods ie. the more
Election (GE14). reverberated throughout the nation. conducive and livable 1,500 to 2,000
Developers launched more landed With hopes restored or seemingly sq ft led 2018 with 17 projects (25%)
than strata residential projects (51% now on a path to restoration, while the more compact less than
vs 49%) during this period but due to property footwork also followed suit 1,000 sq ft championed 2017 with 25
the higher density of such projects, with interest stirring up again in projects (24%). Larger sizes beyond
Unit Sizes $ Pricing Price Per Square
Feet (PSF)
7% 5%New Project Launches by Location
2017 2018
3,000 sq ft were few and far between property prices have risen quite In terms of location, interest has
in 2018 with only 7%, dropping from substantially since a decade ago. moved to the royal city of Klang with
17% in 2017. Case in point, up to 50% of the 4 projects followed by Setia Alam
With regards to pricing, 56% projects launched in the first three with 3 projects. In 2017, Semenyih
of the projects launched were quarters of 2018 were priced beyond led with 5 projects with Puchong next
priced between the RM400,000 RM800,000, in contrast with 2017’s with 4 projects.
and RM800,000 bracket, with an dominant RM400,000 to RM800,000
equal share between RM400,000 bracket. With prices coming down to
to RM600,000 and RM600,000 to a more realistic level now where even
RM800,000 at 28% each. In terms of the price per sq ft has experienced a
price per sq ft, there is only a marginal slide down the scale - from the most
difference between the two periods number of projects between RM751
under observation with a lion’s share to RM1,000 per sq ft in 2017 (42%, 32
of 73% (2018) and 77% (2017) of the projects) to now RM501 to RM750 in
projects priced at RM501 to RM1,000 2018 (38%, 24 projects) - it may just
per sq ft. be what the market has been yearning
The pricing mechanism in this for to remedy the less than ideal
sense may have been influenced market conditions and prevent more
by the market’s persistent call for overhang from entering the market in
more affordable housing given that the future.
14 / HERALD NEW YEAR EDITION 2019Br a n d e d
Residences
T h e Ri t z - C a r l t o n
Le ge n da r y
Service
Ex cl usi v e Own e rs - o nly
Lu x ur y A m e n i t ies
Fr e e h o l d
N ei g hb o u r i n g K LCC
Pe tron a s Twi n Tow er s
Actual show home
A H E R I TA G E O F L U X U R Y L I V I N G
A WORLD LEGENDARY BRAND Besides being equipped with advanced
amenities and features, The Residences are
The Ritz-Carlton Residences, Kuala Lumpur, managed by a dedicated team of Ritz-Carl-
Jalan Sultan Ismail, are designed to be the ton ladies and gentlemen who are on hand to
hallmark of luxury living. cater to the residents’ every need, in
accordance with the legendary brand’s
Setting the standard for service and innova- standards, providing a lifestyle that delivers
tions in a premiere living experience, The privacy and comfort for each homeowner.
Ritz-Carlton brand has built its reputation for
impeccable service and attention to detail. REDEFINED EXPERIENCE
Homeowners at The Residences and their Grand Lobby
A PRESTIGIOUS DEVELOPMENT
families are sure to enjoy an indelible journey
Ideally located in the dynamic heart of the of experience with the tailored services and
capital city, The Ritz-Carlton Residences are privacy:
one of the two towers at Berjaya Central Park, • Privileged ownership in the legendary
a prestigious development adjacent to the brand
renowned KLCC Petronas Twin Towers and • Premium management by The Ritz-Carlton
KL Tower. The development is within the • A heritage of luxury living with personalize
vicinity of corporate and commercial centers, services including 24-hour concierge services,
shopping districts, international hotels, and a la carte services such as housekeeping
famous tourist and entertainment spots. and more
• Privacy ensured with CCTV surveillance
The Residences consist of 288 homes: system and card access system to
residential lobby & dedicated floors
• Typical Units: 1,023 sf - 2,142 sf (1 Bdr, 2 Bdr Infinity Lap Pool
& 3 Bdr)
The Residences are ready to move in, with
• Penthouses: 2,605 sf - 4,284 sf (3 Bdr &
actual show homes for viewing.
4 Bdr)
C O N TA C T
C h ri s t i n e Ch u a REN09437 0 1 2 -3 1 4 2 8 6 4
N i g el Ch i n REN09436 0 1 2 -3 9 6 0 3 0 7
L i n da Oo i REN09433 0 1 2 -2 3 6 3 0 6 5
Residence Lounge
The Ritz-Carlton Residences, Kuala Lumpur, Jalan Sultan Ismail are brought to you by one of Malaysia’s largest conglomerates, Berjaya Corporation Berhad.
Developer : Wangsa Tegap Sdn Bhd (Company No. : 185589-W) (A wholly-owned subsidiary of Berjaya Corporation Berhad)
Property Gallery : 02-20, Level 2, West, Berjaya Times Square, No. 1, Jalan Imbi, 55100 Kuala Lumpur, Malaysia.
Head Office : Level 12, East, Berjaya Times Square, No.1, Jalan Imbi, 55100 Kuala Lumpur, Malaysia.
Tel : (6)03-2142 8028 / Fax : (6)03-2143 2028 | Email : info@rcr-kl.com | Website : www.rcr-kl.com
The Ritz-Carlton Residences, Kuala Lumpur, Jalan Sultan Ismail are not owned, developed or sold by The Ritz-Carlton Hotel Company, L.L.C. or any of its affiliates.
Wangsa Tegap Sdn Bhd uses The Ritz-Carlton marks under a license from an affiliate of The Ritz-Carlton Hotel Company, L.L.C.You can also read
