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When will Vantage Bay be launched?
Or just buy Rowsley as a proxy? Might hit $2?
Or just buy Rowsley as a proxy? Might hit $2?
-
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New developments to share
- Thread starter wuqi256
- Start date
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Hi gooddebt, try calling them. Most of them are fake. Only very few genuine posts of LF and EL land. The agent Jerry Lim mentioned by Nusajaya is perhaps the most active in these two developments.
Setia Sky 88 Altus Tower - Revised
via McTube for iPhone/iPad.
https://www.youtube.com/watch?v=wgL4FzsTUA4
via McTube for iPhone/iPad.
https://www.youtube.com/watch?v=wgL4FzsTUA4
Agree and the KLCC condo prices has not been moving that much for 5 years. I think most of them are undervalued as compared to the landed properties, probably everyone is still sitting on the wait and see attitude to check what will happen after the next GE. So much exciting projects are in progress in KLCC area nowadays, I believe it will not take long for the next bull run just like 2004-2007. Hotel industry is booming too with Grand Hyatt, St Regis, Four season and W hotel all rushing to make their debut in KL.
Yes, don't get fooled!
IR was the one who posted this a few months earlier which I didn't believe. It was in Oct/Nov 2012, I think. That time I saw a lot of postings at RM80 psf. I called a lot of agents in iProperty who advertised that. Guess what, they still have some plots next to highway but most were asking at RM120psf min at that time. This is very very misleading! These are "sub-prime" plots if you don't mind sleeping next to the highway! No offence meant but selling below market price will be my take.
Put it this way, today I will not hesitate to purchase a plot at RM 120psf away from the highway. Unfortunately, good agents like Jerry would tell me, fat hope. Firstly, he doesn't have anything left and secondly most will be asking above RM 150psf if the owner don't change his mind! Very frustrating time for both buyers and agents the same.
Cheers
N
- Joined
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Was invited to buy St Mary near KLCC at RM1180 psf. A unit on 8 floor not facing Petrona Twin Tower.
That was back in June 2012, and I am amaze on such a reasonable price for a very good location project.
I did not buy because I committed in 2 retail stores in Bugis.
It you search in Iproperty.com and narrow down to below RM1300 psf, you can still find a handful of units near KLCC available.
With a speed train link, it may enter a new stage of bull run which may stretch till 2022.
That was back in June 2012, and I am amaze on such a reasonable price for a very good location project.
I did not buy because I committed in 2 retail stores in Bugis.
It you search in Iproperty.com and narrow down to below RM1300 psf, you can still find a handful of units near KLCC available.
With a speed train link, it may enter a new stage of bull run which may stretch till 2022.
- Joined
- Dec 2, 2012
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- 48
Landed property in JB look just like Singapore in early 70s.
Even the crime and immigration movement is similar to Singapore.
Too bad I prefer fast exchange. Waiting 20-30 years is not really the way I like to trade.
But for those whom prefer not to jump in and out every 3-5 years. Just buy a few piece of land and build a cheap 1 storey Villa and leave it empty.
So far did not see anyone build a villa like those in Club Med. from what I know it is not too expensive as compare to Bungalow.
Even the crime and immigration movement is similar to Singapore.
Too bad I prefer fast exchange. Waiting 20-30 years is not really the way I like to trade.
But for those whom prefer not to jump in and out every 3-5 years. Just buy a few piece of land and build a cheap 1 storey Villa and leave it empty.
So far did not see anyone build a villa like those in Club Med. from what I know it is not too expensive as compare to Bungalow.
Fully agree!
Watch the KLCC space if you had enough of Nusajaya or thinking of diversifying your investment portfolio. Take Singapore from the equation, you can easily compare prices (psf) with Bangkok and Jakarta. IMHO, it's going to be like buying EL 5 years ago!
Opportunities aplenty in industrial properties
UNDERDOG: Industrial property prices have gone up by 50 – 100 per cent in the past 4 – 5 years, with demand outstripping supply in most cases, yet it barely receives much attentionof
Huge potential: Lost amid the heated debate over affordable housing last year is the fact that the market for factories and warehouses in industrial areas is growing with demand outstripping supply in most, if not all cases.
To give a quick snapshot, at 24.6 per cent contribution to the country’s Gross Domestic Product (GDP), the manufacturing sector is the second most important sector and contributor to the economy after the services sector (50.6 per cent). It also utilises 29 per cent of the total workforce. (Source – Department of Statistics, 2010).
As a result of the encouraging figures, most analysts are of the view that the local industrial property market in 2013 looks good. “Currently, the industrial property market base is small contributing only 2.2 per cent of the total property transactions in 1H2012 and only averaging about 8,000 units of yearly transactions (see table 4). Recent announcements of expansion of ports such as the Kuantan port, Johor port, Klang Northport and Westport, etc will result in demand for more modern warehouses, logistics centres and cold rooms to be built near the ports,” says James Wong, Managing Director of VPC Alliance (KL) Sdn Bhd.
Wong adds that as the country marches towards being an industrialised economy by 2020, the outlook for the industrial property market is promising. “Under the Economic Transformation Programme (ETP) and the Third Industrial Master Plan, there are many mega industrial projects that are currently being implemented including Pengerang Oil and Gas refinery and transmission hub, Malaysia-China Kuantan Industrial Park, Kerteh BioPolymer Park, Seaport World Wide Petrochemical Industrial Park, etc. The implementation of many of the industrial clusters and industrial projects in the various Regional Economic Corridors – Iskandar Malaysia, Northern Corridor Economic Region (NCER), East Coast Economic Region (ECER), Sabah Development Corridor (SDC) and Sarawak Corridor of Renewable Energy (SCORE) will stimulate more demand for more industrial properties,” explains Wong (see Table 1 & 2).
Growth trajectory: Stephen Tew, Managing Partner of Hectares & Stratas and Director of Axis REIT Managers Bhd. agrees, adding that the still positive economic situation is driving demand. “Manufacturers and traders are still on a positive growth trajectory and have been amassing a lot of extra capital from their profits over the years. There is a shortage of industrial land especially in the Klang Valley and Penang Island, resulting in demand outstripping supply and prices skyrocketing. There is also an increase in demand from Singaporean industrialist seeking to relocate their manufacturing operations out of Singapore especially to Johor.”
The increasing number of industrial parks usually refers mainly to two types, according to See Kok Loong, Director of Metro Homes. “The first type is the large industrial parks designed and developed by the government and state agencies such as PKNS (Selangor State Development Corporation). The other type is the smaller scale industrial developments. Overall, industrial properties should be in demand for the coming years as our nation is supported largely by SMEs (Small Medium Enterprises) and SMIs (Small Medium Industries). However, they need amenities and other supporting infrastructure to grow,” observes See.
“We are a major trading country to many surrounding countries in Southeast Asia and we have a strong demand for warehousing and logistic businesses, apart from manufacturing. Many goods come into Malaysia for repackaging and are then redistributed to other countries.”
Well-spread: In VPC’s Wong’s opinion, there is equal focus on large industrial properties and SMEs, as each of them demands different industrial properties types. “Large manufacturers and MNCs will purchase vacant industrial lots in the industrial parks or build large industrial buildings based on their specifications. On the other hand, the SMEs, due to the nature of their business and small capital base, will go more for terrace factories or semi-detached factories,” reveals Wong.
Tew adds that many of the SMEs supply to the domestic market whilst the large manufacturers are very often also exporters, thus both requiring different specifications for their industrial spaces.
Challenges: As with other markets feeling the pinch of the global economic downturn, the local industrial market also faces various issues and challenges. “There has definitely been a slowdown in foreign direct investments (FDI). The total FDI inflow into Malaysia in H12012 decreased to RM13.6 billion compared to RM21.3 billion during the corresponding period the previous year. The economy is still caught in the “middle income” trap and unable to move up the value chain. There is inadequate research and development (R&D) by the manufacturing companies and SMEs are facing problems accessing the export markets, getting financing and forging linkages with the MNCs (Multinational Corporations),” Wong reveals.
Resilient economy: On top of that, the higher local wages compared with neighbouring countries have also affected the industrial market. “Based on Bureau of Labour and Employment Statistics Report for June 2012, Malaysia recorded the second highest wages among the ASEAN (Association of Southeast Asian Nations) countries with minimum wages of RM62 per day in Malaysia, whilst minimum wages in the Philippines is half at RM31 per day, Thailand is RM28 per day, Indonesia is RM15 per day, Vietnam is RM9 per day and Cambodia is RM6 per day,” explains Wong.
“The global economic downturn has resulted in lower world exports and imports and this in turn have affected the local manufacturing companies. For example, in Penang, there was a decline of foreign investors investing in the Electrical and Electronics sectors in the first nine months of 2012. However, with the gradual improvement in the global economy, the US fiscal cliff being averted and with the Malaysian economy still resilient with a projected GDP growth rate of 4.5 to 5 per cent in 2013, the global economic downturn has not had much effect on the industrial property market to a large extent,” Wong says citing a decrease in overhang supply of industrial units in 1H2012 compared to 1H2011 (see Table 5).
The global economic downturn has no doubt affected local industrialists. “The most obvious being our furniture manufacturers, many of whom have been badly affected as demand especially from Europe and US has slowed down,” says Hectares & Stratas’ Tew. Nevertheless, See says that Malaysia’s industrial properties have been very localised since the 1997 financial crisis and that has limited its exposure to the global economic crisis.
“Supply of new industrial properties from the government has also been limited, except for certain specific industrial parks for oil and gas. One of the main issues in the industrial property market is that land costs have gone up substantially. We have to plan the demand and supply carefully, and that includes the price factor. Due to the high price of the individual titles of commercial properties, the industrial property also needs to draw investors in to the category again with the right pricing. As the land cost continues to go up, it will not be surprising to see industrial properties in the future located in multiple storey buildings similar to Hong Kong and Singapore, where industrial property is sold on strata basis and the movement of goods are by lifts,” predicts See.
The main buyers of local industrial properties tend to be mainly end-users. Investors tend to be very niche due to the expertise required. They tend to be individuals with either an industrial background or otherwise those who are existing industrial building owners. Not too many new investors come into this market as it is very niche and needs a deep understanding of industrial supply and demand.
Industrial REITS
Of course, the other main buyers of big industrial buildings are industrial REITS (Real Estate Investment Trusts) such as Axis REIT, Malaysia’s first REIT listed on Bursa Kuala Lumpur,” Tew says.
Wong is sanguine about the outlook for the industrial REITs in 2013. “Existing REIT players are continuously looking to acquire more industrial and logistics assets to expand their portfolios. For example, Malaysia’s largest industrial REIT, Axis REIT aims to grow its portfolio by 20 per cent a year. The company is negotiating to expand its portfolio by 2013 amounting to RM277.78 million. These investments include a technology centre in Petaling Jaya for RM30 million, two industrial facilities in PTP, Johor for RM29 million and RM17 million respectively, two industrial facilities in Johor for RM21.8 million and a warehouse in Shah Alam for RM139 million.”
Wong stresses that industrial REITs are attractive to investors because industrial properties offer the highest yield among property types as the industrial buildings are normally rented out to large corporations or multi-national companies, and come with low maintenance and stable occupancy rates as industrial leases normally have long-term tenures.
It is also attractive for investors who are looking for steady dividends as it is a policy and requirement of listed REITs to pay regular dividends,” explains Wong.
Metro Homes’ See sounds a note of caution however. “The industrial returns are limited unlike shopping malls, hospitals or hotels whereby rent increases can be significant. On the other hand, entry costs are lower for REITs and REITs need stable incomes thus targeting mainly MNCs or PLCs (Public Limited Companies) as tenants. It is not unknown that many industrial REITs have changed to acquiring offices in places such as PJ and surrounding areas for the higher yields,” says See.
Equilibrium: There is definitely a difference in approach for investors in each segment of the market as the residential and commercial property markets are obviously different from the industrial property market. “The residential property market is dependent upon location, disposable income, availability of easy credit, etc, whereas the industrial property market is primarily dependent on the performance of the manufacturing sector, which currently contributes 24.6 per cent to the national GDP and 28.9 per cent of total employment in the country,” says Wong.
The VPC MD adds that as the industrial property market contributes a small percentage to property market in Malaysia and is under developed with total supply of only 93,774 units as at 1H2012 compared to the residential sector, which is the largest player in the property market in Malaysia with total supply of about 4.59 million units, it will be hard to compare the industrial properties’ performance with the residential and commercial properties.
“Generally, the residential and commercial property markets have reached an equilibrium, with supply matching demand, whereas the industrial property market is still very much under developed with demand exceeding supply,” Wong emphasises.
Bigger gains: The residential boom has also caused raw land prices to generally increase substantially due to the increased demand for land by developers to build residential projects. “This has mopped up a lot of land which otherwise might be available for industrial use. Industrial property prices have also gone up (about 50 – 100 per cent increase) in the past 4 – 5 years, although at a lesser percentage compared to commercial and residential real estate,” says Tew.
See agrees saying that although the residential boom is pushing land prices up higher, a lot of investors are being drawn into the industrial market and the trend should continue this year. “The industrial property prices would be limited in increases in terms of ratio as it only caters to a smaller group of users. However, it is a larger investment and might offer bigger lump sum gains.
“For example, the minimum price currently for some industrial properties is from RM2 million onwards in Semenyih to RM3 million in Balakong and Puchong. Overall, the industrial sector has not being noticed as much by investors as the commercial and residential sectors, maybe due to usage and other factors but the price increases are still attractive,” See divulges.
Hotspots: There are various hotspots for industrial property markets around the country and the government is playing a key role in catalysing the growth of this vital industry. “As Selangor state has the largest concentration of industrial properties and attracted the most approved investment on manufacturing projects with capital investments of RM7.684 billion or 24 per cent of the investments in approved projects from January to September 2012 (Source - MIDA reports), Selangor continues to be a hotspot for industrial developments. There are still opportunities in industrial areas such as Port Klang, Shah Alam, Subang Jaya - Puchong, Sungei Buloh and Petaling Jaya,” observes Wong (see Table 6).
Another hotspot location is Johor in view of the Singapore government’s strategy to relocate some of its medium and small industries to Johor, the emergence of Iskandar as the “Shenzhen” of Singapore and the strategic location of Johor with its many ports. “There is potential for industrial estates in Johor including Southern Industrial and Logistics Clusters (SiLC), building in Nusajaya, Pengerang Oil and Gas refinery and transmission hub and Seaport World Wide Petrochemical Industrial Park,” says the VPC chief.
Also, with the Second Bridge in Penang expected to complete by the end of 2013, there will be potential growth in industrial estates particularly at Batu Kawan and Bukit Minyak on the Penang Mainland.
Catalysts: The regional economic corridors are also catalysts for growth in industrial properties. Of the committed investments in 1H2012, manufacturing is the biggest investment. At ECER, of the committed investments in 1H2012, 37.5 per cent is in the logistics sector while 16.8 per cent is in the manufacturing sector.
Of the total investments received by NCER in 1H2012, 78 per cent were from foreign investors with the bulk of investments in the manufacturing sector, particularly in the Electrical and Electronic subsector.
SCORE received investments worth RM3.4 billion for the first 6 months of 2012 mostly in the manufacturing sector in Salamaju Industrial Park.
Since 2008 to end of June 2012, Sabah Development Corridor (SDC) has attracted the largest committed investments worth RM112 billion from domestic and foreign investors in various sectors for flagship projects in SDC including the POIC (Palm Oil Industrial Cluster) in Lahad Datu and Sandakan, Keningau Integrated Livestock Centre (KILC) and Sabah Agro-Industrial Precinct (SAIP) at Kimanis (see Table 3).
There is without a doubt much potential growth for industrial properties in the East Coast of Peninsular Malaysia, Sabah and Sarawak as industrial lands in these areas are much cheaper and the government also provides attractive incentives to promote industries located in these regions which are generally considered to be the less developed regions of Malaysia, Wong elaborates.
Tew also concludes that the main hotspots for the industrial property market will mainly be in Klang Valley, Penang and Johor. “Penang because of it being the Silicon Valley of the East with its strong electronics manufacturing base;
Johor because of the Singapore factor and Klang Valley because of its huge industrial base, its large seven million population, its central location and Port Klang being the nation’s biggest port and ranked amongst the top 20 in the world.
“Malacca and Negeri Sembilan also have a reasonable amount of industrial properties due to both of them being located not too far away from Port Klang as well as being within reach of the ports in Johor.”
UNDERDOG: Industrial property prices have gone up by 50 – 100 per cent in the past 4 – 5 years, with demand outstripping supply in most cases, yet it barely receives much attentionof
Huge potential: Lost amid the heated debate over affordable housing last year is the fact that the market for factories and warehouses in industrial areas is growing with demand outstripping supply in most, if not all cases.
To give a quick snapshot, at 24.6 per cent contribution to the country’s Gross Domestic Product (GDP), the manufacturing sector is the second most important sector and contributor to the economy after the services sector (50.6 per cent). It also utilises 29 per cent of the total workforce. (Source – Department of Statistics, 2010).
As a result of the encouraging figures, most analysts are of the view that the local industrial property market in 2013 looks good. “Currently, the industrial property market base is small contributing only 2.2 per cent of the total property transactions in 1H2012 and only averaging about 8,000 units of yearly transactions (see table 4). Recent announcements of expansion of ports such as the Kuantan port, Johor port, Klang Northport and Westport, etc will result in demand for more modern warehouses, logistics centres and cold rooms to be built near the ports,” says James Wong, Managing Director of VPC Alliance (KL) Sdn Bhd.
Wong adds that as the country marches towards being an industrialised economy by 2020, the outlook for the industrial property market is promising. “Under the Economic Transformation Programme (ETP) and the Third Industrial Master Plan, there are many mega industrial projects that are currently being implemented including Pengerang Oil and Gas refinery and transmission hub, Malaysia-China Kuantan Industrial Park, Kerteh BioPolymer Park, Seaport World Wide Petrochemical Industrial Park, etc. The implementation of many of the industrial clusters and industrial projects in the various Regional Economic Corridors – Iskandar Malaysia, Northern Corridor Economic Region (NCER), East Coast Economic Region (ECER), Sabah Development Corridor (SDC) and Sarawak Corridor of Renewable Energy (SCORE) will stimulate more demand for more industrial properties,” explains Wong (see Table 1 & 2).
Growth trajectory: Stephen Tew, Managing Partner of Hectares & Stratas and Director of Axis REIT Managers Bhd. agrees, adding that the still positive economic situation is driving demand. “Manufacturers and traders are still on a positive growth trajectory and have been amassing a lot of extra capital from their profits over the years. There is a shortage of industrial land especially in the Klang Valley and Penang Island, resulting in demand outstripping supply and prices skyrocketing. There is also an increase in demand from Singaporean industrialist seeking to relocate their manufacturing operations out of Singapore especially to Johor.”
The increasing number of industrial parks usually refers mainly to two types, according to See Kok Loong, Director of Metro Homes. “The first type is the large industrial parks designed and developed by the government and state agencies such as PKNS (Selangor State Development Corporation). The other type is the smaller scale industrial developments. Overall, industrial properties should be in demand for the coming years as our nation is supported largely by SMEs (Small Medium Enterprises) and SMIs (Small Medium Industries). However, they need amenities and other supporting infrastructure to grow,” observes See.
“We are a major trading country to many surrounding countries in Southeast Asia and we have a strong demand for warehousing and logistic businesses, apart from manufacturing. Many goods come into Malaysia for repackaging and are then redistributed to other countries.”
Well-spread: In VPC’s Wong’s opinion, there is equal focus on large industrial properties and SMEs, as each of them demands different industrial properties types. “Large manufacturers and MNCs will purchase vacant industrial lots in the industrial parks or build large industrial buildings based on their specifications. On the other hand, the SMEs, due to the nature of their business and small capital base, will go more for terrace factories or semi-detached factories,” reveals Wong.
Tew adds that many of the SMEs supply to the domestic market whilst the large manufacturers are very often also exporters, thus both requiring different specifications for their industrial spaces.
Challenges: As with other markets feeling the pinch of the global economic downturn, the local industrial market also faces various issues and challenges. “There has definitely been a slowdown in foreign direct investments (FDI). The total FDI inflow into Malaysia in H12012 decreased to RM13.6 billion compared to RM21.3 billion during the corresponding period the previous year. The economy is still caught in the “middle income” trap and unable to move up the value chain. There is inadequate research and development (R&D) by the manufacturing companies and SMEs are facing problems accessing the export markets, getting financing and forging linkages with the MNCs (Multinational Corporations),” Wong reveals.
Resilient economy: On top of that, the higher local wages compared with neighbouring countries have also affected the industrial market. “Based on Bureau of Labour and Employment Statistics Report for June 2012, Malaysia recorded the second highest wages among the ASEAN (Association of Southeast Asian Nations) countries with minimum wages of RM62 per day in Malaysia, whilst minimum wages in the Philippines is half at RM31 per day, Thailand is RM28 per day, Indonesia is RM15 per day, Vietnam is RM9 per day and Cambodia is RM6 per day,” explains Wong.
“The global economic downturn has resulted in lower world exports and imports and this in turn have affected the local manufacturing companies. For example, in Penang, there was a decline of foreign investors investing in the Electrical and Electronics sectors in the first nine months of 2012. However, with the gradual improvement in the global economy, the US fiscal cliff being averted and with the Malaysian economy still resilient with a projected GDP growth rate of 4.5 to 5 per cent in 2013, the global economic downturn has not had much effect on the industrial property market to a large extent,” Wong says citing a decrease in overhang supply of industrial units in 1H2012 compared to 1H2011 (see Table 5).
The global economic downturn has no doubt affected local industrialists. “The most obvious being our furniture manufacturers, many of whom have been badly affected as demand especially from Europe and US has slowed down,” says Hectares & Stratas’ Tew. Nevertheless, See says that Malaysia’s industrial properties have been very localised since the 1997 financial crisis and that has limited its exposure to the global economic crisis.
“Supply of new industrial properties from the government has also been limited, except for certain specific industrial parks for oil and gas. One of the main issues in the industrial property market is that land costs have gone up substantially. We have to plan the demand and supply carefully, and that includes the price factor. Due to the high price of the individual titles of commercial properties, the industrial property also needs to draw investors in to the category again with the right pricing. As the land cost continues to go up, it will not be surprising to see industrial properties in the future located in multiple storey buildings similar to Hong Kong and Singapore, where industrial property is sold on strata basis and the movement of goods are by lifts,” predicts See.
The main buyers of local industrial properties tend to be mainly end-users. Investors tend to be very niche due to the expertise required. They tend to be individuals with either an industrial background or otherwise those who are existing industrial building owners. Not too many new investors come into this market as it is very niche and needs a deep understanding of industrial supply and demand.
Industrial REITS
Of course, the other main buyers of big industrial buildings are industrial REITS (Real Estate Investment Trusts) such as Axis REIT, Malaysia’s first REIT listed on Bursa Kuala Lumpur,” Tew says.
Wong is sanguine about the outlook for the industrial REITs in 2013. “Existing REIT players are continuously looking to acquire more industrial and logistics assets to expand their portfolios. For example, Malaysia’s largest industrial REIT, Axis REIT aims to grow its portfolio by 20 per cent a year. The company is negotiating to expand its portfolio by 2013 amounting to RM277.78 million. These investments include a technology centre in Petaling Jaya for RM30 million, two industrial facilities in PTP, Johor for RM29 million and RM17 million respectively, two industrial facilities in Johor for RM21.8 million and a warehouse in Shah Alam for RM139 million.”
Wong stresses that industrial REITs are attractive to investors because industrial properties offer the highest yield among property types as the industrial buildings are normally rented out to large corporations or multi-national companies, and come with low maintenance and stable occupancy rates as industrial leases normally have long-term tenures.
It is also attractive for investors who are looking for steady dividends as it is a policy and requirement of listed REITs to pay regular dividends,” explains Wong.
Metro Homes’ See sounds a note of caution however. “The industrial returns are limited unlike shopping malls, hospitals or hotels whereby rent increases can be significant. On the other hand, entry costs are lower for REITs and REITs need stable incomes thus targeting mainly MNCs or PLCs (Public Limited Companies) as tenants. It is not unknown that many industrial REITs have changed to acquiring offices in places such as PJ and surrounding areas for the higher yields,” says See.
Equilibrium: There is definitely a difference in approach for investors in each segment of the market as the residential and commercial property markets are obviously different from the industrial property market. “The residential property market is dependent upon location, disposable income, availability of easy credit, etc, whereas the industrial property market is primarily dependent on the performance of the manufacturing sector, which currently contributes 24.6 per cent to the national GDP and 28.9 per cent of total employment in the country,” says Wong.
The VPC MD adds that as the industrial property market contributes a small percentage to property market in Malaysia and is under developed with total supply of only 93,774 units as at 1H2012 compared to the residential sector, which is the largest player in the property market in Malaysia with total supply of about 4.59 million units, it will be hard to compare the industrial properties’ performance with the residential and commercial properties.
“Generally, the residential and commercial property markets have reached an equilibrium, with supply matching demand, whereas the industrial property market is still very much under developed with demand exceeding supply,” Wong emphasises.
Bigger gains: The residential boom has also caused raw land prices to generally increase substantially due to the increased demand for land by developers to build residential projects. “This has mopped up a lot of land which otherwise might be available for industrial use. Industrial property prices have also gone up (about 50 – 100 per cent increase) in the past 4 – 5 years, although at a lesser percentage compared to commercial and residential real estate,” says Tew.
See agrees saying that although the residential boom is pushing land prices up higher, a lot of investors are being drawn into the industrial market and the trend should continue this year. “The industrial property prices would be limited in increases in terms of ratio as it only caters to a smaller group of users. However, it is a larger investment and might offer bigger lump sum gains.
“For example, the minimum price currently for some industrial properties is from RM2 million onwards in Semenyih to RM3 million in Balakong and Puchong. Overall, the industrial sector has not being noticed as much by investors as the commercial and residential sectors, maybe due to usage and other factors but the price increases are still attractive,” See divulges.
Hotspots: There are various hotspots for industrial property markets around the country and the government is playing a key role in catalysing the growth of this vital industry. “As Selangor state has the largest concentration of industrial properties and attracted the most approved investment on manufacturing projects with capital investments of RM7.684 billion or 24 per cent of the investments in approved projects from January to September 2012 (Source - MIDA reports), Selangor continues to be a hotspot for industrial developments. There are still opportunities in industrial areas such as Port Klang, Shah Alam, Subang Jaya - Puchong, Sungei Buloh and Petaling Jaya,” observes Wong (see Table 6).
Another hotspot location is Johor in view of the Singapore government’s strategy to relocate some of its medium and small industries to Johor, the emergence of Iskandar as the “Shenzhen” of Singapore and the strategic location of Johor with its many ports. “There is potential for industrial estates in Johor including Southern Industrial and Logistics Clusters (SiLC), building in Nusajaya, Pengerang Oil and Gas refinery and transmission hub and Seaport World Wide Petrochemical Industrial Park,” says the VPC chief.
Also, with the Second Bridge in Penang expected to complete by the end of 2013, there will be potential growth in industrial estates particularly at Batu Kawan and Bukit Minyak on the Penang Mainland.
Catalysts: The regional economic corridors are also catalysts for growth in industrial properties. Of the committed investments in 1H2012, manufacturing is the biggest investment. At ECER, of the committed investments in 1H2012, 37.5 per cent is in the logistics sector while 16.8 per cent is in the manufacturing sector.
Of the total investments received by NCER in 1H2012, 78 per cent were from foreign investors with the bulk of investments in the manufacturing sector, particularly in the Electrical and Electronic subsector.
SCORE received investments worth RM3.4 billion for the first 6 months of 2012 mostly in the manufacturing sector in Salamaju Industrial Park.
Since 2008 to end of June 2012, Sabah Development Corridor (SDC) has attracted the largest committed investments worth RM112 billion from domestic and foreign investors in various sectors for flagship projects in SDC including the POIC (Palm Oil Industrial Cluster) in Lahad Datu and Sandakan, Keningau Integrated Livestock Centre (KILC) and Sabah Agro-Industrial Precinct (SAIP) at Kimanis (see Table 3).
There is without a doubt much potential growth for industrial properties in the East Coast of Peninsular Malaysia, Sabah and Sarawak as industrial lands in these areas are much cheaper and the government also provides attractive incentives to promote industries located in these regions which are generally considered to be the less developed regions of Malaysia, Wong elaborates.
Tew also concludes that the main hotspots for the industrial property market will mainly be in Klang Valley, Penang and Johor. “Penang because of it being the Silicon Valley of the East with its strong electronics manufacturing base;
Johor because of the Singapore factor and Klang Valley because of its huge industrial base, its large seven million population, its central location and Port Klang being the nation’s biggest port and ranked amongst the top 20 in the world.
“Malacca and Negeri Sembilan also have a reasonable amount of industrial properties due to both of them being located not too far away from Port Klang as well as being within reach of the ports in Johor.”
Commercial land prices in Johor expected to rise
THE price for vacant commercial land in Johor is expected to increase by about 10 per cent this year, driven by the Iskandar Malaysia development and new investors coming into the region.
A property expert from Rahim & Co (Johor) Sdn Bhd, Dzulkifly Sabtu, said the biggest beneficiaries would be UEM Land Holdings Bhd, Khazanah Nasional Bhd, Iskandar Investment Bhd and Ekovest Bhd, which own massive land in Iskandar Malaysia and Danga Bay in Johor Bahru.
Tebrau Teguh Bhd, Daiman Development Bhd, Sunway Bhd, Lee Rubber Co Ltd, Mulpha International Bhd, and Johor Corp also own large plots of land in Johor.
Dzulkifly said for land sizes ranging between 2ha and 6ha, the current price is trading at between RM250 psf and RM400 psf in and around the Danga Bay area, RM200 psf to RM250 psf in Nusajaya, which is in Iskandar Malaysia, and less than RM100 psf in Senai.
Dijaya Corp Bhd recently bought 2ha in Danga Bay for RM85.8 million or around RM400 psf.
Last year, China's property development giant Country Garden Holdings Ltd said it was buying 22ha in Danga Bay for RM900 million or RM376 psf.
This was slightly more than the first plot of land sold in Danga Bay for about RM350 psf, in 2011.
In Plentong, Johor Bahru, IGB Corp Bhd agreed to pay RM165 psf for 14.5ha last year.
According to a property consultant from another Johor-based real estate firm, who declined to be named, companies like UEM Land, Khazanah, Ekovest, Johor Corp, Tebrau Teguh and Daiman stand to gain substantially from new land deals.
"They will gain from appreciating land prices. Despite land price increasing in Johor, local developers are hungry to buy," he told Business Times.
He added that interest from local developers to own prime land in Johor and develop mixed properties has been increasing, especially in the last two years, buoyed by what is happening in Iskandar Malaysia.
Planned as a special economic zone, Iskandar Malaysia is currently attracting international investors, including developers, because of its proximity to Singapore, the entry of international theme park operators and universities, and government policy changes to attract greater foreign direct investments.
In the last one year, Singapore state investment firm Temasek Holdings and billionaire Peter Lim have agreed to invest in Iskandar Malaysia.
Lim has a 70 per cent joint venture with UEM Land to develop Motorsports City at over RM3.5 billion.
Iskandar Malaysia is expected to attract about RM370 billion in investments by 2020 and it has achieved around RM106 billion.
THE price for vacant commercial land in Johor is expected to increase by about 10 per cent this year, driven by the Iskandar Malaysia development and new investors coming into the region.
A property expert from Rahim & Co (Johor) Sdn Bhd, Dzulkifly Sabtu, said the biggest beneficiaries would be UEM Land Holdings Bhd, Khazanah Nasional Bhd, Iskandar Investment Bhd and Ekovest Bhd, which own massive land in Iskandar Malaysia and Danga Bay in Johor Bahru.
Tebrau Teguh Bhd, Daiman Development Bhd, Sunway Bhd, Lee Rubber Co Ltd, Mulpha International Bhd, and Johor Corp also own large plots of land in Johor.
Dzulkifly said for land sizes ranging between 2ha and 6ha, the current price is trading at between RM250 psf and RM400 psf in and around the Danga Bay area, RM200 psf to RM250 psf in Nusajaya, which is in Iskandar Malaysia, and less than RM100 psf in Senai.
Dijaya Corp Bhd recently bought 2ha in Danga Bay for RM85.8 million or around RM400 psf.
Last year, China's property development giant Country Garden Holdings Ltd said it was buying 22ha in Danga Bay for RM900 million or RM376 psf.
This was slightly more than the first plot of land sold in Danga Bay for about RM350 psf, in 2011.
In Plentong, Johor Bahru, IGB Corp Bhd agreed to pay RM165 psf for 14.5ha last year.
According to a property consultant from another Johor-based real estate firm, who declined to be named, companies like UEM Land, Khazanah, Ekovest, Johor Corp, Tebrau Teguh and Daiman stand to gain substantially from new land deals.
"They will gain from appreciating land prices. Despite land price increasing in Johor, local developers are hungry to buy," he told Business Times.
He added that interest from local developers to own prime land in Johor and develop mixed properties has been increasing, especially in the last two years, buoyed by what is happening in Iskandar Malaysia.
Planned as a special economic zone, Iskandar Malaysia is currently attracting international investors, including developers, because of its proximity to Singapore, the entry of international theme park operators and universities, and government policy changes to attract greater foreign direct investments.
In the last one year, Singapore state investment firm Temasek Holdings and billionaire Peter Lim have agreed to invest in Iskandar Malaysia.
Lim has a 70 per cent joint venture with UEM Land to develop Motorsports City at over RM3.5 billion.
Iskandar Malaysia is expected to attract about RM370 billion in investments by 2020 and it has achieved around RM106 billion.
After the budget speech it's more believable now.
Medini sees demand from SMEs
KUALA LUMPUR: There is a clear demand from small and medium enterprises, particularly from Singapore, for affordable space in Medini Iskandar, said Medini concession holder Global Capital & Development (GCD) chief executive officer Keith Martin.
This is not only a positive driver for development at Medini, Iskandar Malaysia but will also spur the growth of the Malaysian economy as it enters the list of high-income nations.
He said that GCD's next focus is to further engage in discussions with business park operators on opportunities to fund an SME business park for a wide range of business sectors and services.
GCD, he said, is seeing more investors, especially from Singapore, who are showing a keen interest in buying the three segments or development zones of Medini, namely Medini Business, Medini Living and Medini Lifestyle.
Recently, Medini got a further boost of S$1 billion (RM2.5 billion) investment from Singapore property developer Link Holdings Pte Ltd to develop the Media Village @ Medini Iskandar.
Martin said Singaporean investors' interest in the development of Iskandar Malaysia is expected given its proximity with Singapore, which is just a 40-minute drive from Singapore's Central Business District via the Tuas second link, and its good transport links with Kuala Lumpur.
"We also see the development of Medini as being complementary to both Singapore's growth and an expansion opportunity for Malaysian companies based in Kuala Lumpur," he said in an email interview.
He said Singapore and Kuala Lumpur-based companies can enjoy a cost-effective blended solution and dual platform for business, one in Medini where they can expand and base their support services given the more affordable business and living space; and the other in Singapore or Kuala Lumpur.
Martin said for Singapore-based companies, this may be a suitable option, especially in light of concerns expressed about the rising business costs and tightening of foreign manpower policy in the country as well as the recent property cooling measures deployed by the Singapore government.
"In this way, we see opportunities for future joint benefits and regional growth prospects for both Malaysia and Singapore."
Martin said GCD is committed to continue partnering quality investors to transform Medini into a destination city of global significance.
To date, GCD has secured a sizeable amount of committed investments in Medini. Iskandar Malaysia had until December last year recorded total cumulative investment of RM105.14 billion, exceeding the initial target of RM10 billion.
Medini sees demand from SMEs
KUALA LUMPUR: There is a clear demand from small and medium enterprises, particularly from Singapore, for affordable space in Medini Iskandar, said Medini concession holder Global Capital & Development (GCD) chief executive officer Keith Martin.
This is not only a positive driver for development at Medini, Iskandar Malaysia but will also spur the growth of the Malaysian economy as it enters the list of high-income nations.
He said that GCD's next focus is to further engage in discussions with business park operators on opportunities to fund an SME business park for a wide range of business sectors and services.
GCD, he said, is seeing more investors, especially from Singapore, who are showing a keen interest in buying the three segments or development zones of Medini, namely Medini Business, Medini Living and Medini Lifestyle.
Recently, Medini got a further boost of S$1 billion (RM2.5 billion) investment from Singapore property developer Link Holdings Pte Ltd to develop the Media Village @ Medini Iskandar.
Martin said Singaporean investors' interest in the development of Iskandar Malaysia is expected given its proximity with Singapore, which is just a 40-minute drive from Singapore's Central Business District via the Tuas second link, and its good transport links with Kuala Lumpur.
"We also see the development of Medini as being complementary to both Singapore's growth and an expansion opportunity for Malaysian companies based in Kuala Lumpur," he said in an email interview.
He said Singapore and Kuala Lumpur-based companies can enjoy a cost-effective blended solution and dual platform for business, one in Medini where they can expand and base their support services given the more affordable business and living space; and the other in Singapore or Kuala Lumpur.
Martin said for Singapore-based companies, this may be a suitable option, especially in light of concerns expressed about the rising business costs and tightening of foreign manpower policy in the country as well as the recent property cooling measures deployed by the Singapore government.
"In this way, we see opportunities for future joint benefits and regional growth prospects for both Malaysia and Singapore."
Martin said GCD is committed to continue partnering quality investors to transform Medini into a destination city of global significance.
To date, GCD has secured a sizeable amount of committed investments in Medini. Iskandar Malaysia had until December last year recorded total cumulative investment of RM105.14 billion, exceeding the initial target of RM10 billion.
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Agreed but need to be selective. KLCC is not all rosy.
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Will buying the cheapest one in KLCC work?
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No, it doesn't. Cheap does not mean it is good. Neither expensive is good.
It is about the quality, maintance, location, price and yield. Even within KLCC, condos near to each other had very different occupany rates.
Marc Serviced Residence and Fraser Place are 2 projects that constantly rise in value.
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Some commercial developments announced rencently around the area:
Axis-AME JV to develop 230-acre industrial city in Iskandar zone
February 27, 2013
By Tanu Pandey
PETALING JAYA: Axis Group and Johor-based AME Group will together invest RM600 million to develop a 230-acre (93.08ha) industrial city in the flagship Zone E of Iskandar Malaysia in Johor.
The development which was officially launched yesterday will be under the brands – “i-PARK” and “SME CITY”.
The project is a 50-50 joint venture (JV) between Axis and AME Group’s AME Construction Sdn Bhd.
The i-PARK brand will house multinationals while the SME CITY is being developed keeping in mind the small and medium enterprises.
Axis manages the Axis Real Estate Investment Trust (REIT), the first real estate investment trust listed on the Malaysian stock exchange.
“The project is through an equity ended funding and our principal bank is Malayan Banking Bhd,” the JV firm’s executive director Stewart Labrooy (photo) told The Malaysian Reserve when asked about the funding of the development.
He added that the launch for the SME CITY and third phase of i-PARK will be done next week.
The project site is 7.7km away from Senai International Airport, 35km from Tanjong Pelepas port and within the Kulaijaya township. The 230-acre development covering i-PARK phases 1, 2 and 3 and SME CITY is located in the rapidly growing Indahpura township which has a large residential component . The construction is expected to be completed by 2014, the company said in the statement.
Iskandar Malaysia, the new economic growth region in Southern Johor, is the new growth area for developers. In fact, the Johor property market also benefited from Iskandar as demand for high-end residential properties are on the rise in south Johor in recent years.
Among the notable projects worth mentioning include the Johor State New Administrative Centre in Kota Iskandar, Legoland Malaysia Theme Park, Johor Premium Outlets and Newcastle Medical University Malaysia.
Construction of new highways and upgrading of existing roads has also improved accessibility and connectivity within Iskandar.
According to Iskandar Regional Development Authority, from 2006 until Dec 31, 2012, Iskandar had received RM106.3 billion cumulative committed investments of which 63% are from domestic investors and 37% from foreigners.
Bro Dfiris, wonder you mind sharing how much efforts is needed to manage the invested serviced apartments in KL, in terms of number of trips to KL to attend to the properties and tenants? Hope it is not something very demanding.
Marc Residence at KLCC developed by Singaporean. Superb quality indeed.
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