Malaysia Real Estate Highlights

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Malaysia Real Estate Highlights RESEARCH REAL ESTATE HIGHLIGHTS 2ND HALF 2018 Photo by KUALA LUMPUR PENANG JOHOR BAHRU KOTA KINABALU HIGHLIGHTS KUALA LUMPUR HIGH END CONDOMINIUM MARKET There were noticeably more completions and launches during the review period. ECONOMIC AND MARKET 53,033 units following the completion of INDICATORS four projects during the review period. They are Ruma Residences (199 units), Prices of high-end condominiums Malaysia’s economy recorded sustained Pavilion Suites (383 units), Premium / serviced apartments remained growth at 4.4% in the 3Q2018 (2Q2018: Residences @ KL Gateway (466 units) resilient in the secondary market. 4.5%), driven mainly by expansion in and Dorsett Residences Sri Hartamas As for the lettings market, there domestic demand and higher private (707 units). was a marginal rental decline in investment. The country’s GDP for the Damansara Heights. whole year of 2018 is expected to be in By 1H2019, the scheduled completions the region of 4.8%. of Inwood Residences @ Pantai Sentral Park (211 units), One Kiara – Block A Slight upward revision in stamp The headline inflation at 0.5% in 3Q2018 (118 units), Residensi Sefina (245 units) duty and real property gains tax was the lowest since 1Q2015 (0.7%) and Opus KL (357 units) will collectively (RPGT) rates as announced in following the 3-month tax holiday from contribute an additional 931 units to the Budget 2019 unlikely to have June until September. Overall headline existing stock. significant impact on the high- inflation is expected to ease to 2.0% this end condominium market. year (2017: 3.7%). During the review period, there were noticeably more previews and launches The labour market conditions continued compared to 1H2018. Notable project The mass and affordable housing to remain favourable with unemployment launches include Agile Bukit Bintang segments will kick-start the rate at 3.4% in 3Q2018 (2Q2018: 3.3%). (Block B) and Yoo8 of 8 Conlay (Block residential market moving into During the review period, the central B) in KL City; Windsor Suites @ Pavilion 2019, supported by various bank kept the Overnight Policy Rate Damansara Heights and; Trinity exemptions and initiatives under (OPR) unchanged at 3.25% to remain Pentamont and Residensi Astrea in Mont’ Budget 2019. accommodative and supportive of Kiara. current economic activity. Agile Bukit Bintang, a project that is More launches of high-end SUPPLY & DEMAND jointly developed by Agile Group and residential products in the Tropicana Corporation Berhad, features pipeline with improving market The cumulative supply of high-end three residential towers offering a total sentiment. condominiums / residences stood at of 1,501 units, 66 SOVO units and 14 Malaysian buyers are becoming FIGURE 1 more discerning while foreign Projection of Cumulative Supply for High End Condominiums / buyers find our residential Residences 2014 – 1H2019 (f) products attractive for investment purpose due to the country’s 60 liberal ownership policies and 50 with no additional stamp duty. 40 (No. of Units (’000)) 30 y 20 10 Cumulative Suppl 0 Year 2014 2015 2016 2017 1H2018 2H2018 1H2019(f) KL City Ampang Hilir/ U-Thant Mont’ Kiara/ Hartamas Bangsar/ Damansara Heights Notes: (1) (f) = Forecast (2) The locality of Bangsar includes Bangsar, Bangsar South, KL Sentral, KL Eco City and Pantai Sentral Park Source: Knight Frank Research 2 REAL ESTATE HIGHLIGHTS MALAYSIA parcel. To date, three residential towers, TABLE 1 namely Private Residences, Service Completion of High End Condominiums / Residences 2H2018 Suites 2 and Windsor Suites (formerly known as Service Suites 1) have been Project Location Area Total Units unveiled. Windsor Suites, the latest tower previewed on 20th October 2018, The Ruma Residences Jalan Kia Peng KL City 199 offers 568 units of one to four-bedroom Pavilion Suites Jalan Bukit Bintang KL City 383 serviced residences with typical sizing Premium Residences Bangsar South Bangsar 466 ranging from 614 sq ft to 1,831 sq ft and @ KL Gateway penthouse sized 6,483 sq ft. The selling Dorsett Residences Sri Hartamas Mont' Kiara / 707 prices range between RM1,700 per sq ft Sri Hartamas Sri Hartamas and RM2,116 per sq ft. Source: Knight Frank Research PRICES AND RENTALS Secondary pricing of high-end commercial lots. Launched in June 2018, condominiums / serviced apartments in the first phase saw the unveiling of Tower the selected localities under review were B, a 60-storey building comprising 21 SOVO units and 678 semi-furnished generally flat. As for the lettings market, residential units that come in six layouts there were marginal dip in rentals of with built-up areas ranging from 625 sq ft selected schemes reviewed in the locality to 1,157 sq ft. The units are priced from of Damansara Heights. RM1.1 million onwards with completion Typical units sized between 1,000 sq expected by 4Q2022. ft and 1,400 sq ft at Marc Serviced KSK Land previewed Tower B, its second Residence and The Troika were transacted at around RM1,250 per sq ft branded residence tower of Yoo8 @ 8 Pavilion Suites Conlay in July 2018. The 57-storey Tower and RM1,500 per sq ft respectively. B which was launched recently features notable integrated developments that Meanwhile, in the primary market, 498 units of branded residences with have been in the watch list since they available units of selected schemes sizing between 705 sq ft and 1,328 sq ft were unveiled in 2016. Both projects launched previously, namely 8 Kia and priced from RM3,260 per sq ft. The have continued to launch their residential Peng, Eaton Residences and Lucentia units are designed by UK-based interior products braving the prevailing weak Residences @ BBCC are selling from designer, Kelly Hoppen. market condition in the high-end segment. about RM1,500 per sq ft to RM1,950 per Trinity Group Sdn Bhd has launched its sq ft for units sized below 1,000 sq ft. residential project in Mont’ Kiara named BBCC, which sits on a 19.4-acre prime Schemes launched recently are observed Trinity Pentamont in September 2018. address in KL City, is a joint development to have higher composition of units with The 41-storey condominium sits on a by UDA Holdings Bhd, Eco World and smaller built-up area below 1,000 sq ft, 2.9-acre freehold site and offers 330 EPF. To date, the project has unveiled resulting in lower quantum pricing but condominium units comprising 300 dual- its initial phase comprising the Mitsui higher price on per sq ft basis. key and 6 penthouse units sized from Shopping Park Lalaport KL Mall, 1,379 sq ft to 4,115 sq ft. The units come Canopy by Hilton Hotel, the lifestyle In contrast to KL City, the latest launches with at least two car park bays and are street and landscape podium, transit in Mont’ Kiara namely Trinity Pentamont priced from RM640 per sq ft. Slated for and entertainment hubs, The Stride and Residensi Astrea offer larger units completion by 2022, the project features strata office and Lucentia Residences sized above 1,300 sq ft with selling prices penthouse-style units targeted at the (Residential Suites 1 and 2 with total of from RM640 per sq ft and RM800 per sq upper-middle class families with children 666 units). The upcoming phase will kick- ft respectively. and upgraders. start with the third serviced apartment As for the remaining units of schemes block in 2019, focusing on different Officially launched in October, Residensi launched in 2016 and 2017 such as Arte target market. Other components in Astrea by UEM Sunrise is a 37-storey Mont’ Kiara and Solaris Parq Residensi, Phase 2 include two blocks of serviced project featuring 240 condominium units. the selling prices are between RM900 per apartments and the BBCC iconic Available in six layouts with built-up areas sq ft and RM1,350 per sq ft depending 80-storey signature tower. from 1,364 sq ft to 1,859 sq ft, the units on the scheme, built-up area, floor level are priced between RM1.2 million and Meanwhile, Pavilion Damansara Heights, and other factors. The remaining units RM1.7 million. The freehold residential the rejuvenation of the former Pusat at Arte Mont’ Kiara and Solaris Parq project is targeted for completion by Bandar Damansara, will feature nine Residensi, both forming part of larger 1Q2023. office blocks, retail space and circa integrated developments, command Bukit Bintang City Centre (BBCC) and 1,300 residential units with sizes ranging higher selling prices (on per sq ft basis) Pavilion Damansara Heights are two from 600 sq ft to 2,800 sq ft in the first due to their smaller unit sizing. 3 TABLE 2 Notable Launches in 2H2018 Pavilion Name of Agile Bukit Bintang YOO8 Damansara Heights Residensi Astrea Trinity Pentamont Development - Block B - Block B - Windsor Suites Type Serviced Apartment Branded Residence Serviced Apartment Condominium Condominium Tenure Freehold Freehold Freehold Freehold Freehold JV between Impian Ekspresi Modern Pandora Milik Harta Sdn Bhd Agile Group and Sdn Bhd Sdn Bhd Developer KSK Land Sdn Bhd (Subsidiary of Tropicana Corporation (Subsidiary of (Subsidiary of UEM Sunrise) Berhad 1 Pavilion) Trinity Group) Mont' Kiara / Mont' Kiara / Area KL City KL City Damansara Heights Sri Hartamas Sri Hartamas No. of Units 678 498 568 240 330 Unit Sizing 625 - 1,157 sq ft 705 - 1,328 sq ft 614 – 1,831 sq ft 1,364 - 1,859 sq ft 1,379 – 4,115 sq ft (Min - Max) RM1,839 - RM2,107 RM3,262 - RM3,464 From RM1,700 From RM800 From RM640 Selling Price per sq ft per sq ft per sq ft per sq ft per sq ft Source: Knight Frank Research OUTLOOK are unlikely to have significant impact further assist first time homebuyers.
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