Commercial Properties Gaining Traction
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FocusM | May 5-11, 2018 property 23 Commercial properties gaining traction HE positive effect of a well- the short-term but also expand in the industry. CBRE|WTW foresees an opti- performing tourism sector has near future, with the incoming new supply mistic outlook for the sector and encour- spilled over into the commer- of retail space and big brands. However, it aging performance for the average occu- Tcial properties sector, with 285 trans- might take some time before retail prop- pancy rate in 2014. While competition is actions taking place in 2017. Shoplots erties can benefit from this as the avail- emerging from Airbnb, the conventional comprised 242 transactions, followed ability of retail options coupled with new hotel market has not been significantly by 20 for offices. This disparity could supply will result in competition. affected, it adds. be due to a weaker preference for This could work in businesses’ favour Sunway City (Ipoh) Sdn Bhd senior purpose-built offices, with as property owners would be more willing general manager Wong Wan Wooi says CBRE|WTW describing the market as to compromise on rentals to retain ten- Sunway City Ipoh receives 1.5 million being in a quiet but stable mode. ants and secure new ones. “Hence, rent visits a year on average for its tourism Dissuading factors for a purpose-built and subsequently, yield and capital appre- components, while Oriental Realty Ipoh office property, for both occupiers and ciation are more likely to remain at their head of sales and senior negotiator owners, include location, accessibility and current levels for 2018 and beyond,” it Gladwin Agilan names several areas in the availability of parking space, it says. says. city where retail properties are expected On the other hand, the retail segment The hotel industry, however, stands to to grow - Klebang, Bandar Meru Raya and is not only expected to remain stable in benefit the most from a healthy tourism Ipoh’s old town. remaining is set to be completed by 2025. Spanning some 546ha, the integrated township contains not just residences but also hotels, a theme park, a proposed outlet mall and alfresco riverside boule- vard as well as commercial units which have been performing well (see sidebar). Wong says Ipoh was chosen as the site of the development by Sunway Group chairman and founder Tan Sri Jeffrey Cheah for three main reasons. “Firstly, Ipoh is a strategic location as it is midpoint for hun- dreds of thousands of motorists on the North-South Expressway who travel between the key cities of Penang and KL, two of Malaysia’s most robust economic centres. “Additionally, Ipoh also func- tions as a major land transporta- tion hub because of its excellent connectivity,” he says. Surrounded by limestone hills formed over millions of years, lush forests, hot springs, lakes and caves, Cheah also recognised the city’s potential as a world-class tourism destination with the sup- port of intelligent planning and tourism amenities. “Thirdly, Ipoh was already still believes the sector will put in a “Completed units were 100% “There is a segment who buy tional purchase price entry for slowly gaining more visitors from resilient performance. sold and are currently chalking up into areas just to be in the vicinity foreigners. This allows potential around the globe as one of the Reiterating the positive a good investment return while of international schools such as buyers access to more affordable hidden tourism treasures in the impact the international coverage for projects in progress, only lim- Tenby Schools Ipoh in Bandar homes if they choose Ipoh to region – it was well-known for its has had on Ipoh’s primary proper- ited numbers remain,” says Wong. Meru Raya, Ametis International retire in,” he points out. colonial era architecture, food and ties, in particular covering newly- The developer is also expect- School in Ipoh town and Fairview According to Wong, purchas- friendly community,” adds Wong. launched high-end condomini- ing to launch at least another International School in the ers from other states as well as He reveals that Cheah was also ums or boutique developments in 1,000 units of hilltop homes as Bandar Seri Botani area,” he overseas make up a significant motivated by a personal goal to the city or in prime areas, Agilan well as over 800 serviced apart- explains. segment for its properties in revive Ipoh’s economy, having explains this is because of the ments, the latter coming with He says some of the buyers Sunway City Ipoh. grown up in nearby small-town existence of a segment of buyers natural hot spring water facilities. are those whose roots are in Ipoh, “For the residential segment, Pusing. who have sold their bungalows, including children from wealthy we have recorded increasing “We are fortunate to have Tan commercial properties or land Buyers’ profile families who left town when the numbers of interstate purchasers Sri Cheah making personal efforts and opted for smaller and man- CBRE|WTW says the move by tin industry collapsed decades especially from the Klang Valley to promote Ipoh to the world. ageable gated properties which developers to push through with ago. “Many have nostalgic memo- and Penang, as well as increased “He has personally brought are more suited to an “on-the-go” plans for new developments ries and many still have relatives interest from China, Hong Kong many educationists, media per- lifestyle. reflect their optimism in the and a significant number of prop- and Singapore,” he reveals. sonnel, economists, scientists, Such promising prospects for landed residential market, but erties in Ipoh.” In highlighting the correlation various thought leaders, ministers new properties have prompted also predicts a more active sub- For outsiders, reasons draw- between tourism and property, he and other government officials greater incoming supply. For sale market in 2018 due to slower ing them to settle down in the city says the growth of the tourism from around the world to Sunway example, Sunway City Ipoh has incoming supply. include the availability of good industry will also increase job and City Ipoh and around Ipoh as completed about 1,400 homes as It believes homebuyers will food, affordability, cleanliness, entrepreneurship opportunities well,” he says. at the end of last year and at least remain the principal driver of friendly locals as well as a relative which will in turn further boost Wong also reveals that in the another 2,000 more are being local properties, with investors absence of traffic jams. the property and tourism indus- pipeline are more offerings for the planned. supplementing demand. Geographically, it also enjoys tries. development to stay relevant and “The residential projects Agilan notes a majority of good connectivity as it is in the keep up with current and future include Garden Villa, Lakeside Ipoh’s property purchasers are middle of Peninsular Malaysia and Pull factors demands, including more exclu- Villa, Lakeside Homes, Country first-time home owners, upgrad- is free from natural disasters. Conceived in 1996 as a growth sive residential options, an outlet Homes Bungalow, Lakeside ers as well as those who want to “Ipoh is Malaysia My Second catalyst for the Eastern mall and healthcare facilities. “We Mansions, Alpine Village move into gated and guarded Home-friendly as the entry price Development Corridor of Ipoh, will constantly refresh our offer- Apartment, MontBleu Residence properties such as condominiums for participants is RM350,000 about 70% of Sunway City Ipoh ings as we continue towards and Serene Villas. equipped with facilities. instead of RM1 mil for the conven- has been developed so far and the growing a world-class city.” FocusM .