Property

The Penang state government is considering broadening its recently introduced 5% housing discount—initially designated for Indian Muslim first-time homebuyers—to include all communities. This potential policy shift reflects efforts to revitalise the property market and address the issue of unsold residential units across the state. Chief Minister Chow Kon Yeow confirmed the possibility of extending the initiative following public feedback suggesting that a more inclusive approach could generate broader economic and social benefits. He has tasked state executive councillor for housing and environment, S Sundarajoo, with collaborating with private developers to evaluate and refine the discount mechanism. Chow stated that the goal is to create a policy that benefits all segments of society, aligning with the state’s commitment to social justice. “This would make the initiative more inclusive and beneficial to all segments of society, in line with the principles of social justice,” he said, adding that the matter will be deliberated in detail by the state executive council before a final decision is made. The original announcement, made on Thursday by Sundarajoo, proposed that private developers voluntarily offer a 5% discount to Indian Muslim first-time homebuyers for a period of one year as part of a targeted housing campaign. The move was framed as an effort to enhance homeownership among communities with historically lower participation in the open housing market. However, the initiative attracted criticism from human rights lawyer Rajesh Nagarajan, who described it as discriminatory and unconstitutional. In response, Sundarajoo maintained that the discount did not infringe upon the rights of other communities, emphasising that it was a form of corporate social responsibility rather than a state-funded programme. He clarified that the scheme was intended solely to encourage greater inclusivity in homeownership through the voluntary cooperation of private developers, without any financial outlay from the state government. -Free Malaysia Today

Negeri Sembilan is fast emerging as a key growth frontier for property developers, with Sime Darby Property Berhad (Sime Darby Property) taking a pivotal role in spearheading large-scale development in the region through the Malaysia Vision Valley 2.0 (MVV2.0) initiative. MVV2.0, a catalytic development corridor under the National Physical Plan, aims to unlock the economic potential of southern Klang Valley by transforming Negeri Sembilan into a dynamic extension of Greater Kuala Lumpur. Central to this initiative is Sime Darby Property’s strategic activation of its landbank in Nilai and Labu. The company currently retains approximately 4,000 acres of developable land within MVV2.0, with a projected gross development value (GDV) of RM16 billion. This landbank serves as a key lever in advancing the long-term viability of the corridor. According to TA Securities, Sime Darby Property’s management views Negeri Sembilan as a rapidly emerging investment destination, offering industrial land at roughly half the cost of comparable sites in Selangor, while benefiting from superior infrastructure connectivity. This favourable cost-accessibility dynamic is contributing to the state’s growing appeal among industrial and logistics players. This strategic shift is increasingly evident in the company’s sales performance. Negeri Sembilan accounted for 20 per cent of Sime Darby Property’s total property sales in the most recent quarter—quadrupling its average contribution of five per cent in FY2024. Two projects underscore this rising prominence. Hamilton Nilai City has seen robust demand, while Vision Business Park (VBP), a 760-acre integrated industrial and commercial estate launched in April, has received encouraging early market response. VBP carries a projected GDV of RM2.4 billion and is positioned to serve as a hub for logistics operators, light manufacturers and technology-led enterprises. Strategically located near key infrastructure assets such as KLIA, KLIA2, the Nilai Inland Port and the North-South Expressway, VBP offers a range of product offerings including ready-built factories, industrial plots, research and development facilities, and commercial shop offices. As Sime Darby Property continues to anchor its growth strategy in high-potential corridors like Negeri Sembilan, its role in shaping Malaysia’s next-generation industrial ecosystem appears increasingly significant. -Business Times

KUALA LUMPUR: Building and infrastructure construction services provider, TCS Group Holdings Berhad (“TCS” or the “Group”), announced that its wholly-owned subsidiary, TCS Construction Sdn. Bhd. (“TCSCSB”), has secured a RM216.9 million contract from Impiana Impresif Sdn. Bhd. (“IISB”), a wholly-owned subsidiary of Bandar Raya Developments Berhad (“BRDB”) for the proposed construction and completion of 2 blocks of 48-storey commercial serviced apartments in Subang Jaya, Selangor known as Federal Avenue (“Contract”). Dato’ Ir. Tee Chai Seng (拿督郑再盛), Managing Director of TCS said, “We are pleased to have secured yet another project from BRDB, a valued returning client. This continued partnership reflects on our proven track record in delivering high quality projects, good workmanship with timely completion.” “The Contract will boost our order book and give us healthy earnings visibility for the coming financial years. Our priority remains on quality execution and timely delivery of our ongoing projects. At the same time, we continue to be optimistic about the market outlook for the local construction industry, as we continue to see emerging opportunities across both Peninsular Malaysia and East Malaysia,” Dato’ Ir Tee further added. The duration of the Contract is 35 months.

KUALA LUMPUR: Gamuda Bhd, through its wholly-owned subsidiary Gamuda Land (T12) Sdn Bhd, has announced the acquisition of a 148.11-hectare parcel of land in Kuala Langat, Selangor, for RM248.7 million. According to a filing with Bursa Malaysia, the strategic land parcel lies directly south of the existing Gamuda Cove development and will be integrated as an extension of the flagship township. The newly acquired site carries an estimated gross development value (GDV) of RM2.2 billion. The group stated that the expansion aims to strengthen its township offering by delivering differentiated, branded homes tailored to market demands in the surrounding areas, particularly Dengkil and Rimbayu. “This land addition will further enhance connectivity to and from Gamuda Cove, catering to the growing population in adjacent townships,” the company said. Completion of the acquisition is targeted for the second quarter of 2026, subject to customary conditions and approvals. In a separate statement, Gamuda Land reaffirmed its continued commitment to sustainable development, stating that upcoming projects on the new site will incorporate biophilic design elements and sustainable construction techniques to reduce carbon impact and elevate community liveability. Gamuda Land, which has delivered over 60,000 homes to date, continues to build on its robust track record in township development. The company has outlined an ambitious five-year investment plan of RM10.5 billion (US$2.4 billion), encompassing a total GDV of RM26 billion (US$6 billion) across key growth markets in Malaysia, Vietnam, and the United Kingdom. -Bernama

KUALA LUMPUR: Avillion Bhd  has proposed a private placement of 283 million new shares to raise approximately RM11.5 million, primarily to fund refurbishment works at its flagship property, Avillion Port Dickson. The proposed exercise is subject to shareholder approval. Datuk Dani Abdul Daim, the son of the late Tun Daim Zainuddin, holds a 21.8% stake in the company. Post-placement, his shareholding will dilute to 17.5%. According to its filing with Bursa Malaysia, Avillion intends to allocate RM4 million of the proceeds for the refurbishment of hotel rooms, the restaurant, gymnasium, and swimming pool. A further RM3.9 million will be channelled towards working capital, while RM3 million will be used for partial repayment of bank borrowings. The total cost of the refurbishment project is estimated at RM15 million. The remaining RM11 million required will be sourced through internal funds or bank borrowings. Refurbishment works are scheduled to commence in the third quarter of 2025, with a projected completion timeline of 24 months. As of now, Avillion’s total bank borrowings amount to RM76.5 million. The company also announced its intention to seek shareholder approval for a proposed variation in the utilisation of proceeds from its 2021 private placement. Initially, RM3 million from the earlier fundraising—earmarked for hotel upgrades and the development of an eco-tourism park at Avillion Admiral Cove—will now be redirected towards working capital and loan repayment. In 2021, Avillion raised RM22.7 million via a private placement at an issue price of 12 sen per share. Owing to the impact of the Covid-19 pandemic, RM5.5 million of the RM10 million originally allocated for loan repayments and upgrades was redirected towards operational needs. To date, RM2.6 million has been utilised for refurbishments at Avillion Hotel Port Dickson, specifically on its ballroom, function spaces, and public amenities. As of April 2025, RM3 million remains unutilised. Avillion confirmed the cancellation of the eco-tourism park project at Avillion Admiral Cove, which had not commenced. The group now aims to focus its resources on enhancing existing assets—namely, room upgrades, facility improvements, and ongoing maintenance at Avillion Port Dickson—to maintain competitiveness. The group stated it remains committed to asset improvement but will proceed cautiously in alignment with the market’s recovery trajectory. Future projects may be funded through debt financing or strategic partnerships. On Friday, shares of Avillion closed 11.11% higher at five sen, valuing the group at RM56.7 million. Year to date, the counter has gained 11.11%. -The Edge Malaysia