Property

KUALA LUMPUR: Khazanah Research Institute (KRI) has suggested a migration to the ‘build-and-sell’ housing buying scheme in Malaysia, where housing developers must complete a housing project before selling the houses in order to protect the consumers. Its Research Director Dr Suraya Ismail explained that under this system, homebuyers would not bear the commercial and construction risks associated with housing development. “Other Southeast Asian countries have implemented consumer protections against developers’ negligence. However, we lack a similar consumer protection act here,” she said during the KRI Webinar ‘The Financialisation and Commodification of Our Homes’. Currently, Malaysian developers practice the ‘sell-then-build’ (STB) scheme, where houses are sold, and progress payments are collected while construction is ongoing. Suraya also urged relevant parties to make housing prices genuinely affordable. According to data from the National Property Information Centre, Department of Statistics Malaysia (DOSM) and KRI calculations, the median house price rose at a compounded annual growth rate (CAGR) of 23% from RM170,000 to RM270,000 between 2012 and 2014. She said the housing market consistently scored above 3.0 (the affordability threshold), indicating that it is ‘seriously unaffordable’. In contrast, median household incomes grew at a slower CAGR of 11.7%, less than half the rate of increase in house prices. Citing a Bank Negara Malaysia report, she said that the household debt-to-gross domestic product (GDP) ratio increased from 67.2% in 2002 to 84.2% in 2023. Suraya added the total household sector loans have consistently grown over the years, surging from RM332 billion in 2006 to RM1.26 trillion in 2023. “Housing credit constitutes the largest proportion of total household loans, increasing from 36% in 1997 to 60.5% in 2023, followed by loans for motor vehicles and personal use,” she said. She also suggested discontinuing housing mortgages with long durations, such as those exceeding 35 years or intergenerational loans. “The longer the mortgage period, the more house prices will increase due to financing. Reducing mortgage periods will make house prices more affordable and create sustainable price increments in the market,” she added. — BERNAMA

SINGAPORE: Following the relaunch of its flagship in Hong Kong and new opening in Manila, Lanson Place Hospitality Management Limited (Lanson Place) has grown its portfolio to nine properties with two recent additions. The group’s first foray into the dynamic city of Shenzhen, China, and brand debut in Melbourne, Australia, reinforce its position as a transformative brand committed to creating the essence of home for guests seeking to work, rest, relax and recharge. The Lanson Place brand is designed to cater to the growing maturity and sophistication of the premium hotel and serviced residence sector in the Asia Pacific region, as signified by its new market entries: Yi Ju Apartments in Shenzhen, China, offers a new residential solution for the Millennial and Generation Z residents while Lanson Place Parliament Gardens in Melbourne manifests the brand’s signature services in a heritage landmark, formerly occupied by the Salvation Army printing press. Lanson Place has undertaken a significant renovation of its flagship property in Hong Kong, which reopened in March 2024. The newly transformed Lanson Place Causeway Bay, Hong Kong is designed in meticulous detail by world-renowned interior designer Pierre-Yves Rochon. It confidently showcases the personality of the Lanson Place brand and its unique blend of modernity and French flair. “Our aim is to transform and elevate Lanson Place Causeway Bay into the epitome of luxury and contemporary living, reflecting our commitment to excellence and enhancing the overall personal guest experience. Through this flagship, we are establishing the standard for future Lanson Place projects,” said Lanson Place Chief Executive Officer, Michael Hobson. Lanson Place then made its highly anticipated debut in Manila with the opening of Lanson Place Mall of Asia in April this year. Located in the heart of Pasay City, the property redefines urban stays by blending the city’s invigorating energy with the comfort, warmth, and community flavour of home. Conveniently situated within the Mall of Asia complex, one of the capital’s largest malls, the property boasts 247 hotel rooms and 142 serviced residences. It is only a stone’s throw away from SMX Convention Center Manila and just 15 minutes away from Manila Ninoy Aquino International Airport, providing convenience for business and leisure travellers. This September, the opening of Lanson Place Parliament Gardens in Melbourne will further strengthen the group’s collection of sanctuaries in gateway cities. An architectural conservation project located opposite the picturesque Parliament Gardens, the property is housed within the historic walls of the former Salvation Army printing press, located on the edge of the city in Albert Street, East Melbourne. The upscale boutique property features 137 tastefully appointed rooms, studio apartments, and 1- and 2-bedroom apartments. Two exquisite penthouses with panoramic views over Melbourne are its crowning glory. Guests will welcome its contemporary facilities, such as a wellness centre with a 20-metre swimming pool, a 24-hour fitness centre, and a ground-floor restaurant and bar. “Melbourne has a unique appeal to domestic and international guests, with its sporting and cultural calendar which draws visitors consistently throughout the year. We believe that Lanson Place will be a great fit for these guests, whether they are staying for a weekend getaway or a longer stay for work. We’re looking forward to a long future in Australia,” Hobson stated. Lanson Place also made its market entry to the dynamic Chinese city of Shenzhen and the long-term apartment rental market. Yi Ju Apartments is a distinctive project situated in the heart of the Xili district and aims to provide a welcoming and comfortable living experience through its attention to the smallest detail. With a total of 1,610 units offering a range of residential options from studios to four-bedroom apartments, Yi Ju caters to the diverse needs of a young and energetic audience, making this the ideal address in the Greater Bay Area amidst the urban energy of Shenzhen. Strategically located near the city’s transportation network and essential facilities, Yi Ju’s contemporary, minimalist design reflects the lifestyle of its Millennials and Generation Z residents. Renowned for its distinctive portfolio of personal hotels and serviced apartments, Lanson Place serves as a private sanctuary for extended-stay guests with its authentic family-like hospitality. Offering the comfort of home and personal service from devoted hosts, each Lanson Place address cultivates a true sense of community, where meaningful connections are established. With these new projects, Lanson Place is now found in Asia’s gateway cities of Hong Kong, Shanghai, Shenzhen, Kuala Lumpur, Singapore and Manila, with Melbourne joining the group in September 2024.

SINGAPORE: Brilliance Capital announced the sale of prime office units at 2 prestigious developments: Samsung Hub and The Adelphi that offer exceptional opportunities for investors and businesses looking to establish a presence in Singapore’s most sought-after commercial areas. Samsung Hub is considered one of the most coveted office spaces in Singapore that is available for strata purchase comes with a 999-year tenure and is an impressive 30-storey commercial development situated prominently in Singapore’s Central Business District. As a focal point of the CBD, Samsung Hub is equidistant from key areas such as the Orchard Road Shopping Belt and the Bugis-Rochor burgeoning arts, cultural, and rejuvenated business district. Strategically located in the heart of the bustling financial district, Samsung Hub offers unparalleled access to major financial institutions, corporate headquarters, and a diverse array of dining and retail options. The office floors are occupied by a broad spectrum of businesses, including multinational corporations, financial service firms, legal practices, and technology companies, making it a dynamic hub for commercial activity. Located on the high zone floors at Samsung Hub, this 3,595 square feet office unit is sold with existing tenancy and available on a private treaty basis, with a guide price of S$4,350 per square foot. Meanwhile, The Adelphi is an iconic 10-storey mixed-use development comprising a five-storey retail podium with a six-storey office block. It is located in the heart of the Civic District and within the Business and Financial Centre of Singapore, as well as the burgeoning Arts, Cultural, and Rejuvenated District. The office floors are characterised by occupiers in a diverse range of businesses, including corporate offices, law firms, and corporate secretarial companies, among many others. The advantageous location of The Adelphi places it in proximity to several prominent shopping and recreation destinations. Enjoying the benefits of a prime location in a bustling commercial district, The Adelphi offers a dynamic blend of commercial, cultural, and hospitality offerings, ensuring high visibility and footfall for businesses within the retail quadrant, easily accessible to both locals and tourists. The building also provides ample parking with 382 carpark lots available for its occupants and visitors. The two subject units, approximately 2,034 square feet and 2,852 square feet, combine to form a contiguous space of approximately 4,887 square feet. They feature ample natural light, expansive views of St Andrew’s Cathedral and North Bridge Road, a reception area, open office space, partitioned offices, conference rooms, a pantry area, discussion areas and storage space. The combined guide price for these units is S$14.4 million, translating to approximately S$2,950 psf. These units are available for sale individually or collectively. Brilliance Capital Pte Ltd Founder and Executive Director, Sammi Lim commented, “Samsung Hub has always been an extremely sought-after office asset where demand exceeds supply. The ownership and tenant profiles are unparalleled, making it the ideal choice for businesses seeking a prestigious address with strong neighbours. “We have also witnessed significant capital appreciation of sale prices over the past 10 years, and this is expected to continue for a scarce commodity that offers a 999-year tenure, which is akin to freehold. This property represents an exceptional opportunity for companies looking to establish or expand their presence in Singapore’s most dynamic commercial hub,” she said. Lim further added, “The offering of two adjoining corner units at The Adelphi is particularly compelling in today’s market. Also featuring a 999-year tenure and a strategic location, these units benefit from superb public transportation links. We anticipate strong interest from both investors and owner-occupiers. This is an excellent opportunity for owner-occupiers to acquire an ideally sized office asset in a highly sought-after location.” With the limited availability of quality freehold and 999-year office properties, along with the convenient accessibility offered by both The Adelphi and Samsung Hub, it is expected to have robust potential for capital and rental appreciation.

KUALA LUMPUR: The performance of projects and programmes planned by the East Coast Economic Region Development Council (ECERDC) for the Ninth Malaysia Plan (9MP) to 12MP period has exceeded 90%. According to the Auditor General’s Report 2/24 (LKAN), a total of 99 (90.8%) of 109 projects and programmes have been implemented, with 77 projects completed while 22 projects and programmes are in the planning stage, in the design stage and eight in the construction still being implemented with 3 stage. However, the performance targets involving realised investments, job opportunities and the number of entrepreneurs as stated in the East Coast Economic Region (ECER) Master Plan (EMP 1.0) were not achieved, while the actual achievements of the ECER Master Plan 2.0 cannot be assessed yet as the implementation period started from 2018 until 2025, said LKAN. “However, ECERDC did not reach the target for investment realised (for EMP 1.0) that is (which was achieved totalling RM53.875 billion), offering employment opportunities of 133,873 jobs and (producing) a total of 29,275 entrepreneurs compared to the actual target set of RM66 billion realised investments, 200,000 job opportunities and 60,000 entrepreneurs, respectively,” added the report. Despite this, the ECER received a committed investment of RM111.562 billion compared to the set target of RM110 billion under EMP 1.0. Additionally, the audit found that no database has been established to measure the socio-economic achievements of the target group in the ECER region, therefore the objective achievements of the projects and programmes implemented cannot be measured, besides the ECERDC has no accurate measurement method to identify the poverty rate and income of the population in the East Coast states. Thus, the Audit recommended the Ministry of Economy, ECERDC and related parties to review the objectives, functions and roles of ECERDC in ensuring that projects and programmes that are planned and implemented take into account the priorities, conditions and current needs so that they can benefit the target groups, achieve effective objectives and does not affect the returns to the government. Besides that, LKAN has also proposed a measurement method and the creation of a database for socio-economic achievements of the target groups to identify the poverty rate and income of the population in the ECER region to ensure that the objectives of the establishment of the ECERDC are achieved. Engagement sessions with all parties involved should also be held to formulate strategies and intensify promotional activities to attract investors in industrial plots and holding companies for agropolitan projects, it added. The LKAN audit focused on projects and programmes that are implemented in the ECER region based on the 9MP to 12MP as well as the ECER Master Plan from 2018 up to 31 December 2022. — BERNAMA

KUALA LUMPUR: MIDF Amanah Investment Bhd has maintained a positive outlook on the property sector as the better loan application data indicated stronger buying interest. In its research note, MIDF Amanah said the growing loan applications should underpin developers’ earnings outlook. “We think that the stronger buying interest is supported by a lower residential overhang in Malaysia, stable house price outlook and improving economic outlook for Malaysia,” it said. MIDF Amanah named Mah Sing Group as its top pick for the sector, placing a ‘buy’ call on the property developer’s shares with a target price (TP) of RM1.97 due to its high exposure to the affordable residential segment, supported by strong buying demand. It said Mah Sing continues to expand its landbank which should continue to sustain its new sales and earnings growth, adding that the property developer’s venture into a data centre would provide recurring income in the long term. “Meanwhile, we are positive on Matrix Concepts, with a ‘buy’ call (TP RM2.05) due to the resilient sales from its Bandar Sri Sendayan township in Seremban which is supported by demand for affordable landed houses,” it said. MIDF Amanah noted that Matrix Concepts continues to expand its landbank in Labu which would spur earnings growth beyond the financial year 2027 and offers an attractive dividend yield estimated at 5.7%. According to Bank Negara Malaysia (BNM), total loan applications for the purchase of properties grew +3.2% year-on-year (YoY) to RM58.5 billion in May 2024, following a +15% YoY growth in April 2024. On a monthly basis, total loan applications in May 2024 recorded double-digit growth at +10.5% month-on-month (MoM), increasing to the highest level since April 2023. — BERNAMA

KUALA LUMPUR: Genting Plantations Bhd, via its indirect wholly-owned Indonesian subsidiaries, is acquiring two parcels of contiguous land in Jakarta totalling 152 hectares for 2.052 trillion rupiah (RM593 million). The plantation and property development group said its units PT Genting Properti Abadi and PT Genting Properti Jaya inked separate conditional agreements with PT Sentul City TBK, PT Aftanesia Raya and PT Primatama Cahaya Sentosa to acquire the land. PT Genting Properti Abadi is acquiring 80 hectares within the Sentul City township for RM509.8 million while PT Genting Properti Jaya is buying a 72-hectare parcel contiguous with the former land for RM83.2 million, it said in a filing with Bursa Malaysia. “The proposed acquisitions provide an opportunity for Genting Plantations, through its indirect wholly-owned Indonesian subsidiaries, to undertake property development-related activities in line with the objective of its Indonesian expansion. “In doing so, Genting Plantations will be able to establish its presence in the Jakarta property market which may offer other opportunities to further its Indonesia expansion initiative,” it said. Genting Plantations said the proposed acquisitions are expected to be completed in the first quarter of 2025. In a note, Kenanga Investment Bank Bhd said the acquisition would increase the company’s estimated end-FY2025 net debt of RM1.23 billion (22% net gearing) to RM1.58 billion (29% net gearing), which is still quite contained and manageable. “We believe Genting Plantations is probably also laying the groundwork for another possible Premium Outlets in Greater Jakarta and the potential property demand uplift following such an opening. “Therefore, we trim our FY2025 forecast earnings by 3% to account for higher finance cost, while property sales from Sentul City are unlikely to come in within our forecast period,” it said. As such, Kenanga Investment maintained a ‘market perform’ call on the company with a target price of RM6. Meanwhile, Maybank Investment Bank Bhd also maintained its earnings forecasts as the land acquisition would increase Genting Plantations proforma net gearing (as at end of March 2024) to 34% from 22%, if the entire purchase consideration is paid upfront. On the other hand, Hong Leong Investment Bank Bhd noted the latest proposed acquisitions would result in Genting Plantations’ net debt and net gearing increasing to RM1.7 billion and 0.32 times from RM1.2 billion and 0.22 times as of 3 March 2024. “Earnings impact, on the other hand, will likely be muted in the near term. We maintain earnings forecasts with a target price of RM5.80 and ‘hold’ rating on Genting Plantations for now, pending more updates from management,” it said. — BERNAMA

KUALA LUMPUR: Sunway Construction Sdn Bhd (SCSB) has awarded a RM416.78 million sub-contract to Sunway Engie DC Sdn Bhd, a 70:30 joint venture between its wholly-owned unit Sunway Engineering Sdn Bhd (SESB) and Engie Services Malaysia Sdn Bhd. Sunway Construction Group Bhd (SunCon), which indirectly owns SCSB, said the sub-contract works relate to the construction and installation of mechanical and electrical systems, including all associated ancillary works, for a data centre to be built in Selangor for a United States-headquartered multinational technology corporation. “The sub-contract works are for a period of 36 months and are expected to be completed by the second quarter (2Q) of 2027,” it said in a filing with Bursa Malaysia. SunCon announced on 21 March 2024 that SCSB had bagged an RM747.8 million job to build a data centre for a US-based multinational technology corporation in Selangor. It said the project work was scheduled to start no later than 15 May 2024 and would be completed by 2Q 2027. The construction company expects the sub-contract to contribute positively to the earnings of the group for the financial year ending 31 December 2024 onwards. Engie Services Malaysia is principally engaged in developing, owning and operating district cooling, onsite solar and onsite thermal energy facilities for production of utilities, provision of energy solutions and engineering, design and installation for data centre projects. — BERNAMA