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Property sector improved in 2022 but high material cost and labour shortage remain a concern

Property News/ 6 December 2022 No comments

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The real estate sector saw improvement both in terms of transactions and value this year compared with 2021, supported mainly by the resumption of economic activities across the board and the reopening of the country’s international borders.

The National Property Information Centre (NAPIC), which comes under the Valuation and Property Services Department revealed that over 188,000 transactions worth RM84.40 billion were recorded in the first half of (H1) 2022, an increase of more than 30 per cent in volume and value compared to the same period previously.

The residential property sector recorded 116,178 transactions worth RM45.62 billion in the review period, an increase of 26.3 per cent in volume and 32.2 per cent in value year-on-year (y-o-y).

Penang, Kuala Lumpur, Johor and Selangor remained as the four major states, accounting for 47 per cent of the total national residential volume.

The commercial property segment recorded 15,169 transactions valued at RM14.02 billion, up by 45.4 per cent in volume and 28.3 per cent in value compared with the same period in 2021.

Selangor contributed the highest volume and value to the national market share with 26.5 per cent in volume (4,025 transactions), and 33.5 per cent in value (RM4.70 billion).

The first half of 2022 saw more than 10,000 newly launched units, down by 66.7 per cent against 31,687 units in H1 2021.

NAPIC said 20.3 per cent of newly launched units were sold, slightly lower than the 20.6 per cent recorded in H1 2021, and 8.1 per cent in H2 2021.

Challenges

This does not mean that the sector is without challenges on the business operation side.

The industry is still plagued by price hikes of building materials and labour shortage, severely affecting productivity in both the property and construction sectors, Real Estate and Housing Developers’ Association Malaysia (REHDA) said.

Its Property Industry Survey for H1 2022 and Market Outlook for H2 2022 and H1 2023 revealed that fewer residential units were launched in H1 2022, recording a 26 per cent decline compared with H2 2021.

Sales performance was down by five percentage points from 50 per cent in H2 2021 to 45 per cent in the period under review, according to its study which surveyed 150 developers.

“REHDA has called upon the government to address these issues swiftly, as the current situation will be detrimental on various levels, including to purchasers.”

“Should these issues be addressed, we believe that H2 2023 will paint a better picture for the industry and the nation as a whole,” REHDA told Bernama.

As the global and local economies recover and open up faster post-pandemic, the real estate market particularly housing should be positive next year.

The association further said it would continue to engage with the state and the federal government to discuss housing issues that would benefit the people as it is committed to nation-building.

Digitalisation, external factors

Real estate technology group Juwai IQI said technology and digitalisation have enabled it to reach out to more customers, co-founder and group chief executive officer Kashif Ansari said.

He said the group saw sales improve by between 60 and 70 per cent compared to 2021 with buyers seeking bigger properties, which is a new trend.

A house today is not viewed only as a shelter, it is also a gym and an office. Hence, there is a preference for more space so that they can be ready for any future possibilities.

Most Gen Y and Z nowadays also want their own property rather than share a unit because they want privacy, Kashif said.

On the external factors that could affect the sector, he said: “Although the United States (US) interest rate hikes have slowed down, globally, we are not seeing much of a slowdown at the moment. Even in the US, with the pace of interest rates rising (although at a slower pace), the real estate sector is seeing only a 5 to 10 per cent price correction, which is manageable.

“Reason being financial institutions and individuals have learnt their lesson from the subprime mortgage crisis and they are more careful and cautious about lending and borrowing,” Kashif explained.

The 2007-2010 subprime mortgage crisis stemmed from an earlier expansion of mortgage credit, including to borrowers who previously would have had difficulties getting a mortgage. The easy credit both contributed to and facilitated rapidly rising home prices in the US.

Another reason supporting the real estate sector is the shift in digital currencies and equity markets, where after a cycle of between four and five years, investors are returning to the real estate market because they see it as a safer investment option.

Real estate is a real asset and provides more security, he said.

Source: Bernama

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SAVANA @ Utropolis Batu Kawan Christmas Event 2022

Events/ 6 December 2022 No comments

Season’s Greetings from Paramount Property!

Come celebrate a joyous Christmas with Paramount on the 10th & 11th of December 2022 at the new SAVANA show unit.

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Setia Miracca

Bayan Lepas/ 5 December 2022 No comments

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Setia Mericca, an affordable housing development by Kay Pride Sdn. Bhd. (a subsidiary of S P Setia) near Bayan Lepas. Strategically located on 2.7 acres of land along Jalan Teluk Kumbar, next to Pavilion Resort condominium. This development is just a stone’s throw away from Penang International Airport with an abundance of essential amenities within 10 minutes drive.

The proposed development comprises a 36-storey residential building, featuring a total of 480 affordable units with two different built-up sizes (900sq.ft & 1,000sq.ft). There will also be 10 levels of car parking podium, and recreational facilities will be located at level 10, 11, 35 and rooftop.

More details to be available upon official launch.

READ MORE ABOUT AFFORDABLE HOUSING:

Project Name : Setia Mericca
Location : Bayan Lepas
Property Type : Affordable housing
Built-up Size: 900sq.ft. & 1,000sq.ft
Total Units: 288 (900sq.ft.), 192 (1,000sq.ft)
Indicative Price: From RM300,000 onwards
Developer : Kay Pride Sdn. Bhd. (S P Setia)

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DISCLAIMER: This article is solely based on research done using publicly available data. This is not an advertisement. Any claim, statistic, quote or other representation about a project or service should be verified with the developer, provider or party in question.

SJKC Kuang Yu broke ground on new campus at Batu Kawan

Property News/ 4 December 2022 No comments

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The groundbreaking ceremony of primary school SRJK (C) Kuang Yu in Batu Kawan has made it into the Malaysia Book of Records after 500 people took part in the ceremony yesterday morning.

The primary school, which has 88 years of history, is being relocated to Batu Kawan from Kuala Muda, Penaga.

Bukit Tambun assemblyman Goh Choon Aik said the setting up of the new school would take three years to complete.

“The cost of the project is about RM18 million,” he said in his speech before the groundbreaking ceremony today.

It was reported in 2018 that the then Deputy Education Minister Teo Nie Ching had said the school, would be built on a 2.43ha plot provided by the Penang Development Corporation (PDC), and was expected to be ready three years later.

Chief Minister Chow Kon Yeow said the setting up of the school was delayed because of the Covid-19 pandemic.

“Back in 2018, Teo visited the primary school in Kuala Muda which has a low pupil enrolment. She also visited this site in Batu Kawan before proposing for the school to be relocated here so that it could continue to operate.

“An approval to build the primary school was granted by the Education Ministry in 2019,” he said.

Chow said the construction of the school was expected to start in the second quarter of next year.

He added that the Penang government allocated RM200,000 to assist the school.

He thanked and welcomed more sponsors to lend their support to the school.

Also present were state Social Development and Non-Islamic Religious Affairs Committee chairman Chong Eng, and Jawi assemblyman H’ng Mooi Lye.

Source: Buletin Mutiara

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Micron Technology to invest RM4.4bil on 2nd factory in Penang

Property News/ 2 December 2022 3 comments

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Strong market demand will continue to underpin Micron Technology Inc’s operations in Malaysia along with its increased factory space in Penang of 1.5 million square feet.

Chief executive officer Sanjay Mehrotra said the United States-based computer memory and computer data storage producer has invested US$1 billion in its operations here since 2019 which included a 600,000 sq ft factory for assembly and testing.

“We will invest another US$1 billion over the course of the next few years as we build our second factory, which will bring our total factory space to 1.5 million sq ft and is expected to begin production next year,” he told Bernama.

Sanjay said despite the current down-cycle experienced by the memory industry, Micron is poised to emerge stronger as it sits in a “sweet spot” of the semiconductor market, supported by the most advanced technology, the right products and a great team.

He said technology has evolved significantly which simultaneously causes our day-to-day lives being heavily reliant on data, artificial intelligence (AI), Internet-of-Things, smart homes and smart cities.

“We make the products that go into smartphones, vehicles and so on. Data lives in the products that Micron makes, therefore our products are essential. We are becoming bigger as storage is also becoming a bigger part of the semiconductor industry.

“Our growth opportunities are tremendous and we can navigate through the current down-cycle of the industry. We look for a strong performance and continued growth in line with market demand,” he said.

He said its Penang operations, which provided over 4,000 employment opportunities, have become a critically important part of Micron’s global manufacturing network, particularly looking at the tremendous opportunity the memory and storage industry represent to the global economy.

In this regard, Sanjay said workforce development also continued to be one of Micron’s top priority where it has carried out various programmes to develop, attract and retain talent.

He said Micron also focuses on engagement with local universities to spark interest in science, technology, engineering and mathematics among the youth, especially towards the kind of engineering that is needed by the semiconductor industry, on top of providing internships and research grants.

“With internships, we hope to train the workforce of the future that is needed by the industry. We also give research grants to universities in the areas related to AI, semiconductor materials and other engineering activities,” he added.

To ensure the well-being of its employees, Micron has recently set up the first public-privately funded childcare centre in the country in a bid to support work-life balance for its team members.

On the basis of creating a supportive and caring environment, Micron understood that access to childcare is one of the biggest factors that determine whether working parents and mothers specifically, are able to build a strong and fulfilling career.

The childcare centre was set up through a partnership with the Penang government and TalentCorp, and managed by the WhyteHouse Education Group, an established operator of early childcare education facilities in Malaysia.

“We aim to build a culture of collaboration, diversity, inclusion and sustainability in our operations,” he added.

Source: Bernama

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