Weaker ringgit will boost foreign investment in property sector, says developer

KUALA LUMPUR: A weaker ringgit will attract more foreign investment into the country's property sector, Guocoland (Malaysia) Bhd managing director Tan Lee Koon said on Thursday.

The property arm of Hong Leong Group expects the current exchange rate scenario to spur demand for luxury residences in its Damansara City development, which has a gross development of RM2.5 billion.

On Monday, the ringgit breached the 3.80 level against the US dollar, the level at which it was pegged against the greenback in September 1998.

Today it is hovering at the 3.8000/8030 level versus the greenback.

Tan said Guocoland has received encouraging response from overseas buyers, especially Singaporeans and Cambodians, at its recent roadshow.

"The lower local currency has been favouring them, especially versus the Singapore dollar," he told reporters after announcing that Hong Leong Group has chosen Damansara City for its global headquarters.

Expected to be fully operational by mid-2016, the integrated development comprises two office towers, two towers of luxury residences, a lifestyle mall and a five-star hotel.

Tan said the first phase of the residency tower, which has 185 units, has recorded a take-up rate of 60% and half the buyers are foreigners.

The whole residency tower project consists of 370 serviced apartments priced at RM1,350 per square foot.

To a question, Tan said the company's current landbank is about 4046 hectares.

"We are constantly looking to acquire more land, and we see the Klang Valley as a location with a lot of sustainable growth potential," he said.

Going forward, the property firm is expected to launch three more mid-high segment residence projects in the Klang Valley. - Bernama