THE Matrix Concepts Group blueprint for this 5,233-acre freehold township is built upon the dream of providing sprawling greenery with plenty of space to raise a family amid safe, secure and serene surroundings in a strategic location adjacent to amenities, an educational hub and other offerings.
The spotlight is now on Seremban. Once considered the backyard of Kuala Lumpur, this once-sleepy town is finding itself being thrust into the limelight with the State Government’s plans for it to be accorded city status this year.
In line with realising this vision, Matrix Concepts Group, the developer behind the ambitious 5,233-acre or 2,118 hectares (ha) Bandar Sri Sendayan (BSS) freehold township with a gross development value (GDV) of RM5bil is sparing no cost in creating what it envisions to be the “new Seremban town”, with the entire proposed development expected to be completed within 10 years.
“As a developer, we are constantly supporting the growth of Negri Sembilan, and we work closely with the State Government. This is a plus and I think, as far as Seremban is concerned, if you look at it in terms of revenue, we are the largest developer here with a market capitalisation exceeding RM1bil.
“We want to make BSS a place where people can live, study, work, and play. Apart from the tranquil environment, there is a large demand for entertainment facilities so the State Government has established new shopping complexes to satisfy that demand,”said Matrix Concepts Holdings Berhad chairman Datuk Mohamad Haslah Amin.
Marking a coming of age for the group, the freehold BSS township in Seremban epitomises the developer’s most ambitious and largest scale project yet.
Prior to developing this flagship township, Matrix Concepts – considered Seremban’s leading developer of affordable homes – has spearheaded various smaller developments in Negri Sembilan.
Work in KL, stay in Seremban
Already, a new trend is emerging that is seeing a mini migration of people choosing to make Seremban their home while making the daily commute to Kuala Lumpur to work.
Sprawling spaces, a serene environment graced by acres of lush greenery within a well-planned and integrated township are the motivation behind the series of affordable residences that is now heralding the rise of this fast-growing exodus trend to Seremban.
These highlights are further complemented by an educational hub and industrial offerings as well as other conveniences located within strategic distance.
“30 years ago, when people spoke about Seremban, they would think it was overshadowed by KL and Malacca.
“In fact, they would say Seremban was a boring town. But now, Seremban’s landscape is in the midst of being totally transformed,” observed Datuk Haslah.
“In the 70’s and 80’s, Damansara was like a backyard – more slow moving. However, after 20 to 30 years, because of the high-impact industries and the affluent families moving into the area, it has become very vibrant.
“In 10 years’ time, you will see this taking place in Bandar Sri Sendayan,” agreed Matrix Concepts managing director and CEO Datuk Lee Tian Hock.
Bandar Sri Sendayan
BSS is the group’s main project in terms of contributing to the company’s GDV of RM8bil. The entire land is also freehold and free of incumberances.
Complete with ample amenities and facilities to make living and working in BSS a dream come true, this premier integrated development is poised to become a vibrant utopia for investors, home buyers and entrepreneurs alike.
The township will have an industrial component which has already attracted more than 10 major multi-national companies.
Already, big names such as Daihatsu, Mitsubishi, Hino Motors, Nippon Kayaku and Messier-Bugatti-Dowty have signed on to be a part of the development’s 1,000-acre (405 ha) industrial park.
Seremban, being the new growth centre of the Klang Valley, will be connected via the Lekas (Kajang–Seremban Highway), NSECL (North-South Expressway Central Link) or the Elite Highway and (Plus) North-South Expressway. There will also be another highway stretching from Senawang right up to KLIA (Kuala Lumpur International Airport).
Besides this, there is a half-hourly commuter train operating from Seremban to KL. There are also plans for a new high-speed train that will make a stopover in Seremban.
Additionally, BSS will be home to the Matrix Global Schools which include private national primary and secondary schools (which will offer local syllabus) as well as an international school teaching the Cambridge syllabus from Pre-school to Year 13 (ALevels), making this township doubly attractive to families with school-going children.
The fact that TUDM (Tentera Udara Diraja) or the Malaysia Royal Malaysian Air Force has decided to set up its main training base in BSS will also add to the township’s population count. The group aims to increase the entire township’s population to 120,000 upon completion.
BSS will comprise the following components:-
- Residential and recreational (35%)
- Commercial and institutional (10%)
- Sendayan TechValley (20%)
- TUDM Academia and training (14%)
- Orchard (21%)
Affordable high-end homes Matrix Concepts, being a Seremban-based developer, has developed pockets of residential projects in various parts of Negri Sembilan (Seremban), Port Dickson, Bahau and Johor Bahru, gradually growing its GDV per project from RM20mil in 1997 to more than RM100mil in 2004.
In 2005, the group entered into joint ventures with Johor Korperasi and Negri Sembilan’s Menteri Besar Inc. (MBI) to undertake township developments in Kluang, Johor, and Seremban, Negri Sembilan. This culminated into its two townships, namely Taman Seri Impian (TSI) in Kluang spanning 900 acres, and BSS in Seremban.
Today, it is continuing its roll-out of quality developments in Seremban with the new Balista terrace houses in BSS which was just launched last Saturday.
These spacious 22’x80’ homes each come with a built-up area spanning 2,735sq ft. Each unit is fitted with four bedrooms, four bathrooms as well as dry and wet kitchens.
“All in, for Balista, we have about 357 units which we are selling parcel by parcel,” said Datuk Lee, noting that during last Saturday’s launch, more than 20 units were sold. He added that they are expecting to complete selling within the next three to four months.
According to Datuk Lee, about 50% of the target market for the Balista terrace houses consists of upgraders from Kuala Lumpur and the Klang Valley with a special focus on owner-occupiers. “Many of them stayed in apartments when they were younger. But as their children grow up, they need space for them to run and play. But within the Klang Valley, that’s just a dream,” he mused.
In order to make this dream achievable for the average household, Matrix Concepts has managed to keep the price of the high-end terraces affordable.
“Even though we are moving into the high-end market, the price range of our “high-end” products is still within the range of RM450,000 to RM500,000. By KL standards, this is still affordable,” maintained Datuk Lee.
”Our properties are value-for-money. With an income of RM7,000 to RM8,000, you can stay in a spacious, landed home. All you have to do is to travel a little further to work every day. The extra cost of petrol incurred is anywhere from RM500 to RM1,000.”
“In terms of travelling time, there’s not much difference if you stay in Sungai Buloh or the Puchong area. Travelling up to KL will take you about an hour or so. The extra cost is less than RM500, but the savings each month is more than RM3,000 which you can use for other expenses,” he calculated.
The group’s residential properties are usually priced at RM180 per sq ft, which is well within the affordability range of the masses compared to the RM210 to RM300 per sq ft price range of nearby developments.
What’s more, despite the low cost per sq ft, Matrix Concepts has managed to incorporate essential elements of space, safety and lifestyle within the township. These factors serve as additional pull factors to BSS, attracting upgraders from Seremban who want a wholesome living experience for their families.
“This means that with an average income, you can enjoy the same quality of life as someone who earns RM20,000 in KL,” said Datuk Lee. “That is the reason why, over the last few years, our purchasers from KL and the Klang Valley have been on the increase – from 10% three years ago, to approximately 30% to 40% two years ago. Last year, we saw an increase from 40% to 45%. And this year, we’re targeting 50%.”
“Unlike other developments, we are very generous in terms of space and have set aside 50% as green lungs. Even the spaces in between the houses are easily 20 ft. The concept that we have put in place is a well-planned township minus the stress.”
Matrix’s next phase of development in BSS would include commercial component, in which the community can enjoy wholesome recreational activities. For this reason, the Group is constructing its Sendayan Merchant Square, which will feature – amongst others - d’Tempat Country Club @ Sendayan and Matrix Global Schools.
The people’s developer
“As the biggest developer in this State, we never forget our CSR (Corporate Social Responsibility).
“We set aside a sizable chunk of money for our CSR activities. And, this covers all races and benefits a large portion of the Negeri Sembilan people,” Datuk Haslah said, emphasising that what sets Matrix apart as the people’s developer is their heavy involvement in community building activities.
In 2013 alone, Matrix Concepts implemented a number of community building activities, such as festive celebrations, environmental awareness campaigns as well as events to raise awareness for the underprivileged, in the spirit of giving back to the community.
“I believe that when people including the Seremban citizens look at us, these are positive qualities they will be able to see so they know we are not just thinking of ourselves,” concluded Datuk Haslah.
The RM1bil EcoSky, an integrated development by Eco World Development Sdn Bhd, has reached a milestone with its recent groundbreaking that was officiated by Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor.
Also present at the ceremony as guest of honour was Kuala Lumpur mayor Datuk Seri Ahmad Phesal Talib.
EcoSky is Eco World’s maiden project, located on a 3.9ha freehold plot along Jalan Ipoh in Taman Wahyu.
EcoSky has received positive response from the market with its first two residential towers, Aurora and Basalta, that launched last December, selling fast.
The third tower, Clarita, will be launched soon.
Set in an urban resort-style environment, the development includes modern office space and over 100 retail outlets for shopping, dining and entertainment.
The project is expected to be completed by mid-2018.
In his speech, Tengku Adnan encouraged developers to look outside the central business district and hoped EcoSky would be a template for future integrated developments.
“Today, about 65% of our population live in the city. So there is a need to ensure affordable housing for city dwellers and at the same time, provide good infrastructure and amenities for them.
“With private developers like Eco World, I am sure this can be achieved,” he said.
Eco World chairman Tan Sri Abdul Rashid Abdul Manaf noted that the 360 degrees living concept introduced in EcoSky is also a testament of the developer’s commitment to sustainable development.
EcoSky is pursuing certification by Malaysia’s Green Building Index, Singapore Building Construction Authority’s Green Mark and the US Green Building Council’s LEED.
Eco World will also spend about RM3mil to help upgrade facilities in the surrounding area, including building a new covered walkway to connect EcoSky to the Taman Wahyu KTM station and rejuvenating the landscape of a 1.1ha neighbouring public green space belonging to DBKL.
Eco World chief executive officer Datuk Chang Khim Wah said, the EcoSky once fully occupied would have a staying population of about 5,000 people.
“This development will certainly boost property prices in the vicinity,” he added.
Units in Aurora and Basalta range from 800sq ft (74.3sq m) to 1,900 sq ft (176.5sq m ) and priced at RM650,000 to RM1.5mil or an average of RM650psf.
Chang said the average price for Clarita will be RM750psf.
Eco World will continue to be on the lookout for more landbank.
It currently has a total of 1,214ha of land worth RM30bil under development in the Klang Valley, Johor and Penang.
Its other projects include the RM3bil EcoBotanic, a premier township development in Iskandar Malaysia.
More projects are expected to take off within the next two years including business parks and new townships in the Klang Valley, Iskandar Malaysia and Penang.
THE Penang property market will remain as an attraction for both local and foreign investment despite the recent introduction of measures, controls and regulations by the state to curb property speculators.
State Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo said the state had received this assurance from the Malaysian Institute of Estate Agents (MIEA) Penang branch with regard to the state’s new housing policy.
He said the aim of the policy was to ensure that only those eligible for low-cost and medium- cost housing continue to benefit from it.
Jagdeep Singh also said that among the features in the new policy was the extension of the moratorium in relation to the subsequent or secondary sale of private low-cost and low medium- cost housing units to 10 years, from the previous five years.
The new policy will also see a moratorium of five years in relation to the subsequent or secondary sale of government and private affordable housing units.
However, Jagdeep Singh added that home owners who have reasonable grounds (financial constraints or health reasons) to sell their property before the end of the moratorium period, may appeal to do so at the State Appeals Housing Committee.
Jagdeep Singh also said that the Land Office would use a comprehensive list of all low-cost and low medium-cost projects prepared by the local authorities to check on the background of the house owners who plan to sell their property.
“For example, if somebody wants to sell project A, then the Land Office will refer to project A and see if the requirements have been met,” he added.
Jagdeep Singh also said the state government would continue to give priority to providing affordable housing for Penangites.
The state will also go all out to ensure prices of property in the state were controlled and not manipulated by speculators.
There are a total of 1,182 stratified projects on the island itself (for all strata projects), with a total of 174,564 units as of Dec 31 last year.
The implementation of the new housing policy will take effect on March 1.
Other measures introduced in the new policy were the introduction of a 3% approval fee in relation to the purchase of property by foreigners and a 2% approval fee imposed on the sellers of property in relation to transactions conducted within three years of the date of purchase.
A hire purchase scheme will be re-introduced and a shared ownership scheme is included in the new policy.
MIEA caters to 70% of pro- perty transactions which constitutes the secondary property market.
LAUNCHED in December 2013, Capital 21 @ Capital City, a themed retail development located within Iskandar Malaysia development region in Johor has caught the attention of industry experts with its strong sales since its introduction into the Malaysian property market.
Two months after its official launch, Capital 21 has been drawing strong interest in Johor.
The new retail development comprising 1,200 retail units ranging from 120sq ft to 5,000sq ft, is said to be increasingly in demand among local and foreign investors.
As its name suggests, the themed floors of Capital 21 will feature 21 different “Capitals”. Some of which are country capitals, and others prominent and memorable cities or countries. The 21 capitals are Hawaii, Los Angeles, Switzerland, Las Vegas, Tokyo, Washington DC, Madrid, Paris, Milan, Amsterdam, Stockholm, Athens, Istanbul, Cairo, Dubai, New Delhi, Singapore, Hong Kong, Shanghai, Seoul and Sydney.
Now, not only will shoppers have access to renowned fashion brands and international cuisine, they will also be able to experience the excitement of world cultures in one locale. The ambitious new retail model is the first of its kind in Malaysia.
For an introduction to the development’s concept, visitors can go to the Capital City Show Gallery located at 1132, Jalan Tampoi, Kawasan Perindustrian Tampoi, Johor Baru.
The gallery offers a glimpse into the actual 360° view and 3D layout of the mall with five featured capitals. Visitors can experience first-hand the lifestyle in Tokyo, the life-size windmill feature from Amsterdam, Hong Kong’s famous street markets, the ski slopes in Switzerland and the vibrancy of Madrid.
As part of a joint-venture initiative between developers, Hatten Group Sdn Bhd, Sunbuild Development Sdn Bhd and contractor, Gadang Holdings Bhd, Capital 21 is just the first phase of the RM2.2bil integrated project named Capital City.
Spread across 14 acres in the increasingly developed area of Iskandar Malaysia, the vast mixed-use development will also house two international hotel blocks and three SOHO towers nestled atop Capital 21’s massive mall platform which offers over 1 million sq ft of retail space.
The unconventional marketing approach to Capital City is also drawing attention.
Instead of introducing the residential phase first to establish a population and consumer base for the retail element, the partners have launched the shopping mall — Capital 21 . The move was initially questioned by critics but the result speaks for itself with high sales figures recorded in just two months. When asked about the sales response achieved for Capital 21, Colin Tan, group managing director of Hatten Group Sdn Bhd, attributed the success to the passion and experience of the joint venture partners.
“With our combined expertise in the property industry, we have worked together to design and conceptualise this project and we have the utmost faith in the success of Capital City. We are pleased that the sales figures are reflecting such outstanding public trust and support,” he said.
Siow Chien Fu, group managing director of Sunbuild Development Sdn Bhd, said, “Investors are tapping into the high-potential of Capital 21 not only for its unique, multi-capital mall concept, but also due to its strategic location, its fully-integrated development layout and the surety of a guaranteed 15% rental yield for the first two years.”
Capital 21 is slated to be complete in 2018.
For more information go to www.capitalcity.com.my or call 017 309 1399.
PETALING JAYA: The Greenland Group, one of China’s biggest state-owned companies, is planning to invest RM3bil in an integrated real estate development project in Danga Bay in Johor.
In a statement yesterday, it said the company chairman, Zhang Yuliang, led a six-member high-powered delegation from its headquarters in Shanghai to finalise a major land deal with Iskandar Waterfront Holdings Sdn Bhd (IWH) for the development.
It said Greenland, which is reportedly keen to acquire around 60ha land in IWH, was expected to formalise the land deal soon.
The high-profile China developer has been on a buying spree in recent years, acquiring big real-estate projects in New York, Los Angeles, Sydney, London and South Korea.
Greenland was ranked 359 in the Fortune Global 500 company survey last year.
“Greenland’s forte is in mixed commercial development, including high-end hotels and residential towers.
“We expect them to bring their expertise and market knowledge to help build world-class waterfront properties in Danga Bay,” said IWH executive director Lim Chen Herng. He said the premier waterfront site had drawn strong interests from major property players from around the world, several of whom had already launched landmark projects here.
“To date 16 local and foreign investors have joined hands with IWH to develop properties with a cumulative gross development value of RM125bil,” said managing director of IWH Tan Sri Lim Kang Hoo.
They include Temasek/CapitaLand, Tune Hotel, Tropicana Corp Bhd, Brunsfield Group, Nam Cheong, Skyfront Holdings, Azea Properties and Centurian Properties
KUALA LUMPUR: Foreigners can only buy properties costing RM1 million and above in Kuala Lumpur, Putrajaya and Labuan starting today.
The Economic Planning Unit (EPU) of the Prime Minister's Department yesterday said in states other than the Federal Territories of Kuala Lumpur, Putrajaya and Labuan, the actual enforcement date is subject to the respective state authority.
"This measure is undertaken to stabilise domestic property prices from excessive speculation activities, as well as to enable local interests to acquire quality properties valued at less than RM1 million per unit, especially residential units," it said.
The EPU said the guideline on properties acquisition was first enforced on June 30 2009 to replace the Foreign Investment Committee Guidelines.
Among others, it aims to control ownership of properties by foreign interests in Malaysia.
BOOSTING PORTFOLIO: Fund now in final stage of decison-making with a foreign firm to invest in the US, China and Japan
THE Employees Provident Fund (EPF) plans to expand its property investment portfolio into the United States, China and Japan, from five countries currently.
Newly-appointed deputy chief executive officer (investment) Mohamad Nasir Ab Latif said EPF is now in the final stage of making the foray, together with a foreign fund management company, to invest in commercial properties in major cities in the three countries.
"We are looking to invest in properties in the range of 150 million euros (RM675 million), which have long-term agreement from tenants with good credit, and get rental income yield of between five and seven per cent.
"We are in the final stage of the investments and will go there soon," he told Business Times earlier this week.
Mohamad Nasir, however, declined to reveal the cities.
EPF, the world's sixth largest provident fund, has investmented in commercial buildings in the United Kingdom, Germany, Australia, Singapore and France since 2010.
As at September 2013, it managed RM568.04 billion of assets, of which 57 per cent were invested in fixed-income (government securities, global bonds), share market in 17 countries (37 per cent), real assets and property infrastructure in five countries (three per cent) and cash or money market instrument investments such as fixed and Islamic deposits (three per cent).
Locally, EPF has investments in some 180 companies with high market capitalisation on Bursa Malaysia.
Out of the RM568.04 billion, EPF's total overseas exposure comprises of 23 per cent of its total investment assets from 21 per cent a year before.
Mohamad Nasir said as part of its plan to boost earnings over the long term, EPF aims to increase the property contribution to 10 per cent of overall assets by beefing up foreign investments and expanding asset class.
He said property investments are a good move for pension funds such as EPF and can be a hedging tool, citing its investment in the United Kingdom, which has garnered between five and six per cent in rental income.
Mohamad Nasir added that property investments give steady returns, while equities churn out better returns, but have a longer holding period.
"We have to be careful in property investments and we have to do so in the US, Japan and China. But we will use our investments in the Europe as a learning experience."
EPF has been investing in foreign equity markets since 2006, while its property investment started in 2010.
"Europe's property assets are watering down and we are now going to the US. Even though the US property tax structure is punitive, we have done a study to invest there in a tax-efficient way."
The pension fund recently announced a 6.35 per cent dividend, involving a RM31.2 billion payout to six million active contributors for 2013, its highest since 2000.
TREC, the latest major development in the heart of Kuala Lumpur was recently last Thursday. Located along bustling Jalan Tun Razak, the TREC lifestyle and entertainment hub will sit directly opposite the future Tun Razak Exchange (TRX) – the new financial hub of Kuala Lumpur on land owned by the Royal Selangor Golf Club.
TREC will assimilate a variety of styles, atmospheres and moods into five separate zones offering casual and fine dining, quirky and artsy independent cafes, wine bars, pubs, lounges and clubs with the aim of attracting a diverse demographic of international tourists and local patrons.
With Phase 1 expected to be complete in early 2015 and the grand opening slated for mid-2015, TREC is now requesting registration of interest from suitable qualified food, beverage and entertainment operators.
“Kuala Lumpur has not seen any large-scale integrated entertainment developments in recent times. This is an area where we are falling behind our ASEAN neighbours. TREC will provide a safe, integrated entertainment destination for locals and a focal point for tourists in Malaysia,” explained founder, Cher Ng.
“As an important development in Kuala Lumpur, TREC will also create over 1,500 jobs and we estimate the development will add RM143 million to the local economy annually.”
As Malaysia’s first and only purpose-built urban F&B, lifestyle and entertainment destination, TREC will pioneer the one-stop integrated entertainment district that has made the likes of Hong Kong’s Lan Kwai Fong, Shanghai’s Xin Tian Di and Singapore’s Clarke Quay, must-visit locations in their respective countries.
Built on a seven-acre (3 ha) site, TREC will feature front row views over the spectacular greens of the venerable Royal Selangor Golf Course and will be adjacent to the new location of Zouk KL, Kuala Lumpur’s premier clubbing hot spot. TREC will provide both tourists and locals an unrivaled entertainment centre within Kuala Lumpur’s Golden Triangle, boasting over 200,000 square feet of space, with a total of 77 units ranging from 400 sq ft to 5,000 sq ft, allowing TREC to target an unparalleled tenant mix in terms of scale and diversity in Malaysia.
KUALA LUMPUR: Property transactions dropped in the first nine months of last year, said the Valuation and Property Services Department, confirming observations by real estate professionals that the market is slowing down.
Although the number of transactions was lower, there was an upward trajectory in value, an indication of rising prices.
The department’s deputy director-general Faizan Abdul Rahman said the residential sub-sector, which accounted for about 64% of the total property transactions, saw a 14% drop from a year earlier, with average house prices exceeding RM300,000.
Faizan was speaking at the 7th Malaysian Property Summit 2014 organised by the Association of Valuers, Property Managers, Estate Agents and Property Consultants yesterday.
Faizan said the commercial sub-sector saw a drop of 22.3%, compared with the previous year.
The industrial, agricultural and development sub-sectors saw reductions of about 20%, 13.6% and 8.3%, respectively.
The total number of transactions for the first nine months fell to 280,820 valued at almost RM106bil, compared with 328,692 in 2012 worth RM107bil.
Transactions in 2010 surpassed the RM100bil mark as a result of an extremely buoyant market, which started in 2009. It has been on an upward trajectory since then.
On the effect of the various tightening measures, organising chairman Choy Yue Kwong said they would curb excessive speculation.
Choy, who is Rahim and Co (Selangor) Sdn Bhd managing director, said the measures would discourage speculators from using bank loans to finance their purchases.
“The curbs are slowly taking effect. The measures will have a significant impact on speculation, especially speculators who depend on bank loans,” he said.
Choy added that the real property gains tax (RPGT), however, will have little effect on curbing speculative activities in the market.
He said the RPGT should have been introduced earlier when house prices were lowerand prices had appreciated faster, resulting in higher profit margins.
Prices had skyrocketed now, squeezing profit margins and rendering the RPGT less effective, he added.
CH Williams Talhar & Wong Sdn Bhd managing director Foo Gee Jen, meanwhile, said there was a mismatch between the demand for real estate and supply.
“There is an oversupply of high-end residential property in the market. Prices have gone up too much over the last few years. What people really need is affordably priced lower-to-mid-range housing,” said Foo.
“Developers will be pressured to cater to this market segment that is most in need. Having said that, the bright side is that the market is expected to stabilise with more realistic prices over the year.”
KUALA LUMPUR: The oversupply of real estate in the country is only a short-term situation, which will clear over time, says Malaysian Institute of Estate Agents president Siva Shanker.
As long as the local economy is healthy and not in a tailspin, the property market will withstand the pressures of speculation and the curbs imposed by Budget 2014, he said.
“Mont Kiara (excluding the surrounding Segambut areas) has in the last 20 years built an estimated 20,000 units. Iskandar Malaysia, on the other hand, has built some 40,000 units in the last three years. All this has created a lot of pressure on supply and the market has already adjusted by staying away,” he told a press conference.
“In the short term, this oversupply will continue to run its course. Many units that will be placed in the market won’t sell. But in the second half following this period of consolidation, people will come to terms with the market, so 2015 will see an upturn in the property sector, which will continue into 2016. Even in the medium term, much of the oversupply will sort itself out,” Siva said.
He added that the country’s relatively low exposure to the “international economic ups and downs” compared with Singapore was an advantage to Malaysia.
“There’s also the trickle down effect from large infrastructure projects as more industries benefit from them,” he said.
Siva said buyers were not keen on the secondary market although it made up 80% to 85% of the local property market transactions in the last three years, but as high-rise property prices surged, buyers would be forced to look elsewhere for more affordable landed property – and it will be found in the secondary market.
Siva forecast that property prices around the KLCC area will reach RM5,000 per sq ft within the next three to five years. “As it is, Four Seasons Place in Ampang is going at RM3,500 per sq ft.
“They realise that there are better deals in the secondary market. A very clear third strata will form now, which are properties that were completed in the last two years but flipped into the market. Those properties will face the most selling and renting pressure because they were purchased for sale on the day of completion.”