KUALA LUMPUR (July 30): What makes land unique among all asset types is that it is the only one that does not depreciate in value. This is why despite economic crises, including the recent Covid-19 pandemic, land prices in the Klang Valley continue to appear healthy with moderate growth.
Transaction volumes and values in the Klang Valley last year saw a stronger recovery and have maintained an upward trend, particularly within prime areas, notes CBRE | WTW chairman Foo Gee Jen. The recovery, he says, was fuelled by active market performance and robust capital investment demand, and he expects stable momentum with growing transaction activities this year.
According to Knight Frank executive director of land and industrial solutions Allan Sim, the industrial sector appeared to be a silver lining in the market and has seen steady growth in recent years due to the higher e-commerce penetration rate, resulting in additional warehousing space requirements to meet the surge in last-mile delivery as well as a structural shift towards omnichannel retailing. He notes that average price per transaction for industrial land in the Klang and Petaling districts has shown robust growth from 2019 to 2021.
In the same issue, MBAM president Oliver Wee says the time is ripe for a review of the Construction Industry Payment and Adjudication Act 2012 (CIPAA), after a decade of its set up as, despite the law’s efficacy, billions of ringgit are still stuck in dispute at adjudication, arbitration or litigation yearly. He hopes that the CIPAA can simplify the adjudication process.
In The Edge Malaysia | Rahim & Co Kota Kinabalu Housing Property Monitor for 1Q2023, Rahim & Co regional manager (Sabah) Max Sylver Sintia notes that Sabah’s property market saw a year-on-year dip during the quarter due to a lower number of launches, seasonal lower house purchases at the start of the year, OPR hikes and inflation worries. The property monitor further highlights the quarterly trends seen in the high-rise and landed segments in the state.
Down south, Ehsan Plant & Property Sdn Bhd of Ehsan Group of Companies is gearing up for the Phase 2 launch of its Mutiara Austin Residence in Johor Bahru. The second phase (Block C), comprising 240 units of serviced apartments, will complement Phase 1 (Blocks A and B) with 410 units. The development also has nine shoplots on the ground floor. CEO Datuk Abdul Hamid PV Abdu says that the project is designed to provide the perfect blend of lifestyle and living conveniences in the established Mount Austin locality.
In Singapore, a five-storey industrial building at Ubi Avenue 4 has been put up for sale at S$50 million (RM171 million) by an EOI exercise. The owner spent S$5 million renovating the property, including upgrading the lobby, reception area, lift landings, swimming pool, putting green, office areas and landscaping in the compound. Solar panels have also been installed on the facade. The renovations were completed last year.
Read more in the July 31 issue of City & Country in The Edge Malaysia weekly.
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