Property

KUALA LUMPUR: The latest data reveals that Malaysia’s revamped Malaysia My Second Home (MM2H) visa programme has injected a staggering RM455.8 million into the economy within just six months, following policy changes implemented in June 2024. With 782 new visa approvals, the programme is on track to generate nearly RM1 billion in annual investments, according to IQI Co-Founder and Group CEO Kashif Ansari. MM2H: A Major Economic Driver “Over the past six months alone, MM2H visa holders have contributed RM455.8 million, benefiting Malaysia in two key ways,” Ansari explained. “Firstly, their funds circulate through local financial institutions via fixed deposits, supporting loans and economic development. Secondly, MM2H participants invest significantly in real estate, particularly in luxury homes, stimulating the property market and related industries.” With 319 principal applicants and 463 dependents approved under the programme in this period, each main applicant brings an average of 1.5 family members into Malaysia, further amplifying economic activity. A Global Appeal Beyond China While Chinese nationals continue to be the largest group of MM2H applicants, they now represent less than one-third of total approvals. Australia ranks as the second-largest source of applicants, with South Korea, Japan, Bangladesh, and the United Kingdom also contributing significant numbers. “MM2H is more international than many realize,” Ansari noted. “We see strong demand from countries across Asia and beyond, showcasing Malaysia’s global appeal as a top destination for expatriates.” Why Foreigners Choose Malaysia Malaysia’s attractiveness lies in its affordable yet high-quality lifestyle, rich cultural diversity, excellent education system, and fast-growing economy. Additionally, Malaysia provides a relatively lower language barrier for Chinese applicants, with Mandarin-speaking services widely available—a major advantage for families bringing elderly relatives who may not speak English. “Many Malaysians may not fully appreciate just how desirable their country is,” Ansari remarked. “Foreigners are willing to invest significantly to live here because Malaysia offers an exceptional quality of life at a fraction of the cost compared to Western countries.” What’s Next for MM2H? The government’s 2024 reforms introduced a three-tiered visa system, offering longer residency periods for greater financial commitments. Additionally, MM2H holders must now purchase a home and retain ownership for at least 10 years. To attract younger, working-age participants, age requirements were lowered, and minimum income thresholds removed. Looking ahead, further enhancements could boost MM2H’s impact, including easier work and business opportunities for visa holders and tax incentives to encourage foreign entrepreneurs to establish businesses in Malaysia. “With MM2H driving close to RM1 billion annually in investments, it’s already proving to be a major success,” Ansari concluded. “With the right improvements, its potential to fuel Malaysia’s economic growth could be even greater in the years ahead.”    

Despite a volatile macroeconomic landscape, family offices in the Asia-Pacific region are strengthening their commitment to real estate, recognizing the sector’s potential for both capital appreciation and wealth preservation. According to The Wealth Report, Knight Frank’s latest survey of 150 single and multi-family offices worldwide, investors are increasingly diversifying into high-growth real estate sectors such as luxury residential, industrial logistics, and living spaces. The survey, conducted between November and December 2024, covered 121 single-family offices, 18 multi-family offices, and 11 senior investment heads. Notably, 51% of surveyed offices are headquartered in Asia-Pacific, highlighting the region’s growing influence in global investment strategies. Major hubs such as Singapore, Sydney, and Hong Kong SAR are emerging as key centers for wealth management and property investment, alongside established markets like London, New York, and Geneva. Growing Allocations to Real Estate With total assets under management (AUM) exceeding US$84 billion across the surveyed firms, the findings indicate a significant shift toward real estate: 40% of family offices operate businesses with real estate holdings. 28% increased their real estate allocations in the past 18 months, compared to just 17% who reduced exposure. Office spaces (20%), luxury residential (17%), industrial (14%), and hotels (12%) remain the most preferred asset classes. Looking ahead, real estate investment appetite continues to strengthen. 44% of family offices plan to increase their property exposure over the next 18 months, with the highest interest in Living sectors (14%), Industrial/logistics (13%), and Luxury residential (12%). “Despite concerns over macroeconomic conditions, family offices remain bullish on real estate, particularly in Asia, where diversification into emerging sectors like data centers and living-related assets is gaining traction,” said Christine Li, Head of Research at Knight Frank Asia-Pacific. Challenges and Investment Strategies While optimism remains high, investors face structural challenges in expanding their real estate portfolios. The top barriers include: Identifying reliable partners/operators (23%) Complex tax regulations (20%) Intense competition for assets (19%) Regulatory and compliance hurdles (17%) In response, family offices are shifting away from traditional core investments toward opportunistic (31.9%) and value-add (30.3%) strategies, seeking higher returns in a market shaped by rising interest rates and shifting economic conditions. A Regional Focus with Global Ambitions Asia-Pacific family offices exhibit a strong preference for domestic real estate investments, with 70% of their portfolios concentrated in local markets. Countries such as New Zealand (93%) and Australia (90%) demonstrate particularly high domestic investment levels. However, investors in Hong Kong SAR (33%) and Singapore (41%) are expanding their reach, targeting opportunities in both regional and international markets. For most family offices, real estate remains a long-term strategy: 37% of investments have a horizon of nine years or more 32% span between three to six years Only 3% of transactions are made with a sub-three-year outlook Shifting Dynamics Among Family Offices The leadership of family offices remains predominantly baby boomer-led (50%), with Gen X (36%) following closely behind. However, the next generation is increasingly influencing investment decisions: 58% of family offices have involved younger generations in decision-making 47% report some shifts in investment strategies, with 18% seeing a significant transformation Millennials and Gen Z are prioritizing sustainable investments, with 63% of millennial investors actively allocating capital to ESG-focused assets, compared to 35% of baby boomers Singapore: A Growing Wealth Hub Singapore continues to solidify its position as a global wealth and investment hub. The number of registered single-family offices (SFOs) surged from 400 in 2020 to over 2,000 by 2024, underscoring the city-state’s appeal to high-net-worth individuals seeking stability and pro-business policies. “In an era of rising geopolitical tensions and economic fragmentation, Singapore remains an attractive destination for wealth preservation and capital deployment,” said Galven Tan, Chief Executive Officer at Knight Frank Singapore. In 2024 alone, family offices played a crucial role in high-profile property acquisitions previously dominated by institutional investors. Notable transactions included: Admirax Industrial Building – Sold for S$154 million 21 Collyer Quay (Office Building) – Acquired for S$688 million River Valley Apartments (Collective Sale) – Closed at S$56 million, brokered by Knight Frank Singapore The growing influence of family offices in real estate investment signals a major shift in global wealth management. With a stronghold in Asia-Pacific, these investors are actively diversifying into resilient and high-yielding property assets, overcoming structural challenges through strategic partnerships and innovative investment approaches. As family offices continue to evolve, the next generation of leaders is expected to drive further changes, particularly in sustainable and technology-driven real estate investments.

KUALA LUMPUR:  Radium Development Berhad (“Radium” or “the Group”) (KLSE: RADIUM), a leading Klang Valley property developer, has reported robust financial results for the financial year ended 31 December 2024 (“FYE2024”), driven by strong project performance and strategic expansion. Radium’s revenue rose 19.1% to RM152.8 million (FYE2023: RM128.3 million), supported by key projects such as Suite Canselor @ Ampang, Vista Adesa, and Radium Adesa @ Sungai Besi. Profit before tax (“PBT”) surged 29% to RM24.9 million (FYE2023: RM19.3 million), attributed to higher revenue and improved cost efficiencies. In 4Q FYE2024, revenue jumped 63.3% to RM46.2 million (4Q FYE2023: RM28.3 million), though PBT was lower at RM9.5 million (4Q FYE2023: RM15.3 million) due to a one-off fair value gain in the previous year. As of 31 December 2024, Radium maintains a strong balance sheet with RM244.5 million in cash and a low gross gearing ratio of 0.13 times against shareholders’ funds of RM767.6 million. Strategic Growth & Market Expansion Radium continues expanding its project pipeline, with the successful launch of Radium Arena @ Old Klang Road (GDV: RM550 million) and high take-up rates for Desa East Residences. Recent land acquisitions in Cheras and Ampang add GDVs of RM2.54 billion and RM470 million, respectively, strengthening future development prospects. Diversifying beyond property development, Radium is entering the hospitality sector with a 145-room boutique hotel at Suite Canselor @ Ampang, marking a new growth avenue. Future Outlook Datuk Gary Gan Kah Siong, Group Managing Director, stated: “Our strong FY2024 results underscore Radium’s resilience and growth potential. Demand for our developments remains strong, and our strategic land acquisitions, coupled with diversification into hospitality, position us for long-term success. With a solid financial base and a low gearing ratio, we are well-placed to drive sustainable growth and enhance shareholder value.” Moving forward, Radium will continue expanding its land bank in prime locations, diversifying revenue streams, and delivering high-quality projects to meet evolving market demands.

SELANGOR: Gamuda Land has announced the overwhelming success of The Clove, its newly introduced Park Homes typology, which achieved a 100% take-up rate for its first phase across Gamuda Cove, Gamuda Gardens, and twentyfive7. This milestone highlights the strong market demand for customer-centric innovation and AI-powered home customization, setting a new benchmark for modern homeownership. The Clove introduces Malaysia’s first-of-its-kind Park Homes, featuring an innovative cluster-of-eight layout arranged around a private, gated common garden. By blending the best aspects of terrace and semi-detached homes, this concept offers spacious, flexible layouts designed to meet the evolving needs of modern families. Compared to conventional terrace houses, Park Homes provide lower density, enhanced privacy, and a higher proportion of corner units, ensuring more green space and natural light—key factors for homebuyers prioritizing wellness, nature, and a secure living environment for their families. A standout feature of The Clove is its cutting-edge home customization technology, powered by Generative AI (GenAI) through the GL Connect portal. Buyers can personalize their home’s room configurations—choosing between one to three bedrooms—based on their lifestyle needs, all at no additional cost. This eliminates the need for costly post-purchase renovations, offering homeowners a seamless and hassle-free buying experience. “The Clove is a result of extensive research and customer feedback,” said Jess Teng, Chief Operating Officer of Gamuda Land. “We wanted to go beyond traditional housing and create homes that are not only spacious and sustainable but also flexible and future-proof. With GL Connect, buyers can design their ideal space without the usual renovation struggles, making homeownership more accessible and tailored to real-life needs.” While the unique Park Homes concept was initially unfamiliar to many buyers, the exclusive show unit previews at Gamuda Cove and Gamuda Gardens quickly changed perceptions. “Seeing the actual space helped buyers understand the benefits of this design,” Teng explained. “The overwhelming response confirms that homebuyers today are looking for innovative, adaptable, and nature-focused living spaces.” What’s Next? With a Gross Development Value (GDV) of RM1 billion, The Clove represents Gamuda Land’s commitment to sustainable, modern living. The show units at Gamuda Cove and Gamuda Gardens remain open for public viewing, while the Signature Collection at twentyfive7 is set to launch in March. For more information or to experience Malaysia’s first AI-powered home customisation portal, GL Connect, visit gamudaland.com.my.