Previn: The demand would definitely be in urban locations where families live and also proximity to medical services..
KUALA LUMPUR: Landbanking activities are anticipated to pick up for the remainder of the year, as developers seek to increase offerings and cater to the affordable market segment, say property consultants.
Zerin Properties chief executive officer Previn Singhe said the property market is also likely to see an increase in merger and acquisition (M&A) activity.
“Established and larger developers are expected to pursue M&A opportunities by acquiring stakes in smaller developer companies that own development lands or have ongoing projects in prime locations.
“This trend is driven by the desire to strengthen their market position, access new growth opportunities and gain a competitive advantage in the market,” he told StarBiz.
Previn said the property market is expected to undergo further stabilisation, supported by a positive overall economic outlook and promising opportunities for investment inflows.
“As inflationary pressures ease, the prospects for the market are anticipated to improve.
“However, there are lingering concerns regarding the rising construction costs and potential increases in the overnight policy rate, which may impact market conditions.”
Previn added that the growth of the property market will be fuelled primarily by the industrial and residential sectors, as well as emerging asset classes such as warehouses and distribution hubs, data centres, healthcare/wellness facilities and workers’ accommodation.
“For the residential sector, developers will be cautiously optimistic in the medium-to-long term, owing to strong demand for residences, particularly among first-time homebuyers.
“The rental market will see strong growth as an increasing number of property seekers are gravitating to renting, due to the higher cost of living.”
Savills Malaysia Sdn Bhd group managing director Datuk Paul Khong said the residential sector had shown positive signs of improvement as compared to 2022, mainly due to the resumption of businesses and a rebounding market.
“Take-up rates for landed residences are encouraging, especially properties in good locations.
“We observed that key developers are still actively purchasing strategic landbanks for future developments,” he said.
Last week, Scientex Bhd
announced that it was acquiring six parcels of freehold land in Kulai, Johor, for RM299.84mil, to boost its existing land bank at a reasonable cost.
Earlier this month, the group announced it had acquired 959.72 acres of freehold land from S P Setia Bhd in Tebrau, Johor Baru, for RM547.7mil.
Another developer that has been on a “buying spree” is Mah Sing Group Bhd, which announced earlier this month that it is developing a 4.88-acre residential development in Kepong, Kuala Lumpur, with a total estimated gross development value (GDV) of RM500mil.
It will be the group’s fourth project in Kepong, as well as its fourth land acquisition for 2023, contributing to a total combined estimated GDV of RM5bil to date.
Last month, it announced that it had acquired 500 acres of freehold land in Semenyih from S P Setia for RM392mil.
The same month, the group revealed that it had acquired a 75.7-acre freehold plot of land in Pulai, Johor for RM76.1mil.
The Pulai and Semenyih land parcels marked Mah Sing’s second and third land deals in 2023, respectively, following the purchase of two parcels of land in Puchong, Selangor, for RM85.9mil in January.
Separately, UEM Sunrise Bhd announced last month that it will be acquiring 3.7ha of freehold land near the Damansara-Puchong Expressway in Kelana Jaya, Selangor, from the Employees Provident Fund for RM155mil.
Additionally, Sunway Bhd announced in May that it was acquiring 5.09 acres of freehold land for RM170mil in Sri Hartamas, Kuala Lumpur, with an additional RM50mil if the group manages to increase the development plot ratio from five to seven within a year from the acquisition date.
