Property market making slow comeback

Knight Frank Sarkunan Subra

PETALING JAYA: The local residential market is making a slow comeback, as evidenced by the higher number of launches in the second half of 2019, according to Knight Frank Malaysia.

In a statement yesterday, the property consultancy noted that 2019 saw the Tun Razak Exchange (TRX) taking shape with the completion of Menara Prudential and Exchange 106.

“Complementing these commercial developments, Core Previous Development Sdn Bhd, a joint venture between China-based China Communication Construction Group (CCCG) and Malaysia’s WCT Holdings Bhd, seized this opportune time to launch Core Residence @ TRX, ” it said.

In the same statement, Knight Frank Malaysia managing director Sarkunan Subramaniam (pic) said the market improvement has also spurred foreign buyer interest in Malaysian properties from Hong Kong, Taiwan, Japan, China, Singapore, USA, Australia, the United Kingdom, Germany and other European countries.

“Moving into 2020, we expect to see more new launches and transactions in the prime areas of Kuala Lumpur City, namely Bukit Bintang, Ampang Hilir/U-Thant, Mont’ Kiara, Bangsar and Damansara Heights and Kenny Hill.

“In addition to these prime areas, there are also some established neighbourhoods and upcoming hotspots that are drawing the attention of the upper-income population and high-net-worth individuals. They include Desa ParkCity, Taman Tun Dr Ismail and the upcoming financial district of Imbi/ Pudu - TRX, ” he said.

On the general residential segment, Sarkunan noted that several key policies as announced at Budget 2020 last year are expected to further stimulate the market.

Separately, the property consultancy said the revival of notable mega infrastructure projects in 2019, namely the East Coast Rail Link and the Bandar Malaysia project that will house a station of the Kuala Lumpur – Singapore High Speed Rail, continues to improve market sentiments and restores investors’ confidence.

It noted that manufacturing and e-commerce growth will pave the way for logistics sector in 2020.

“In the southern region, the long-awaited Johor Baru – Singapore Rapid Transit System (RTS) has also been given the greenlight, ” Knight Frank Malaysia said in another statement.

Meanwhile, Knight Frank Malaysia Capital Markets executive director Allan Sim said these revived projects point to more clarity in government policies and are a boon to the country’s economy and construction sector.

“Growth in the manufacturing sector is expected to regain momentum moving into 2020 after slowing to 3.6% in the third quarter of 2019 against 4.3% in the second quarter of last year.

“We foresee Selangor and Johor garnering more interests from manufacturers and investors alike, ” said Sim.

He added that industrial players have a preference for the Shah Alam – Bukit Jelutong locale due to its strategic positioning with good accessibility and connectivity.

“However, due to scarcity of sizeable land and high land cost, we observed an overspill to other areas.

“The ongoing West Coast Expressway with an interchange at Banting to be completed by early 2021 has opened up new opportunities for the locality, attracting the attention of major logistics and industrial players. Nestle’s distribution centre being Phase 1 of Axis Mega Distribution Centre and the upcoming development of The COMPASS @ Kota Seri Langat are both located herein, ” he said.

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