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PROPERTY COUNTRY REPORT :
MALAYSIA
VPC REGIONAL CONFERENCE
8 – 10th May 2014
Johor Bharu, Johor
1
Conversion Rate:
£1 = RM5.44
US$1 = RM3.27
VPC OFFICES IN MALAYSIA
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VPC Network of Offices
2
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CONTENT
• Economic Brief
• Property Market : General
• Sectorial Property Market
- Residential
- Offices
- Retail
- Hotel
• Conclusion
3
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ECONOMY
4
Period 2011 2012 2013 2014
Real GDP 5.1% 5.6% 4.7% 5% - 5.5%
Source: Department of Statistics and Ministry of Finance, Malaysia
• GDP expanded 4.7% in 2013, which was below the 5.6% registered
in 2012.
• Domestic demand remained the anchor for growth, expanding by
7.6% in 2013. (2012: 10.6%).
• Growth in private investment improved to 16.5% (3Q2013: 15.2%),
mainly on account of higher capital spending in the services and
manufacturing sectors.
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ECONOMY
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Source: Department of Statistics
and Ministry of Finance, Malaysia
7%8%
25%
4%
56%
GDP at Constant Price in 2013 (RM‘ Billion)
Agriculture
Mining and quarrying
Manufacturing
Construction
Services (includeGovernment Services)
• The service sector is the largest contributor to the economy which
contributes about 56% of the GDP, following by manufacturing (25%),
mining and quarrying (8%), agriculture (7%) and construction (4%).
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ECONOMY
The resilient economic growth for 2013 is boosted by
• Strong domestic demand
• Private sector demand and improvements in exports.
• High liquidity, with banks highly capitalised and liquid.
• Higher disposable income
• Increase in Foreign Direct Investments
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Brief Economic Indicators
Population: 29.7 million
Central Bank Overnight Policy Rate (OPR): 3%
Base Lending Rate: 6.6%
Housing Loan Rate: 4.5% - 5.0% p.a.
Unemployment Rate: 3.2% (as at Feb 2014)
Inflation Rate: 3.4% (as at Mar 2014)
GDP Current Price: USD 301.05 billion
Malaysia International Reserves as at Feb 2014: RM427.6 billion (equivalent to USD 130.6 billion)
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ECONOMYFDI Inflows by Selected Host Regions Countries and Major Host Economics
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CountryUSD Billion 2011/12
Change (%)
2012/2013
Change (%)2011 2012 2013 (est)
Cambodia 0.9 1.56 1.3 73.3% -16.7%
India 36.2 25.5 28 -29.4% 9.8%
Indonesia 19.2 19.9 19 3.2% -4.5%
Japan -1.8 1.7 2.8 198.6% 64.7%
UK 51.1 62.4 53 22.11% -15.1%
Malaysia 12.2 10.1 11.7 -17.4% 15.8%
Myanmar 2.20 2.24 NA 1.82% NA
Singapore 55.9 56.65 56 1.34% -1.15
Thailand 7.8 8.6 NA 10.6% NA
Source: UNCTAD & Central Banks
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Government Policies and Budget 2014:
Its Impact on the Property Market
• Increase Real Property Gains Tax (RPGT) according to scale below:-
• The minimum price of properties for foreigners to purchased has been increased from RM500,000to RM1 million. (Effective at 1.3.2014)
• To further increase access to home ownership at affordable prices, an estimated 223,000 units ofnew houses will be built by the Government and the private sector in 2014.
• Increase transparency in property sales price, where property developers will have to displaydetailed sales price including all benefits and incentives offered to buyers such as exemption oflegal fees, stamp duty, sales agreements, cash rebates and free gifts and prohibit developers fromimplementing projects that have features of Developer Interest Bearing Scheme (DIBS).
• Good and Service Tax (GST) will be fixed at 6% and to be effective from 1 April 2015. Sale,purchase and rental of residential properties as well as selected financial services are exemptedfrom GST.
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Disposal PeriodBudget 2014 Budget 2013
Individual Corporate Foreigners All Category
Within 3 Years 30% 30% 30% 15%
4th Year 20% 20% 30% 10%
5th Year 15% 15% 30% 10%
After 5 years 0% 5% 5% 0%
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Government Policies and Budget 2014
• Propose to increase assessment rates in major towns.
• Propose restrictions on bulk purchase/investor club (as there is no guideline by BNM of how investor club
can operate.
• Other additional measurements imposed by the State Government
– Penang
• Foreigner are allowed to purchase apartments at the priced above RM1 million, purchase
landed properties in Seberang Prai at the priced above RM1 million and purchase land
properties in the Penang Island at the priced above RM2 million.
• A five-year moratorium for affordable homes bought below RM400,000 on the island and
RM250,000 on the mainland, and a 10-year moratorium for low and low-medium cost housing
units priced up to RM72,500.
• A 2.1% levy of the purchase price will also be imposed on the seller on the sales of properties
of land titles with restriction in interests. For properties of land titles without restriction in interest,
the seller will have to make a statutory declaration for sale of a property within 3 years after
buying it.
• Mulling 3% levy on properties purchased by foreigners.
– Johor Bharu
• Impose 2% levy on foreigners.
• Foreigners can buy properties with the current minimum price of RM500,000 until 30 April 2014.
Investors need to ink a SPA by 30 April 2014 and submit it to the state’s land department by 29
May 2014 to avoid the new measures.
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Economic Outlook 2014
• The economic growth will grow at 5% to 5.5% in 2014.
• Private consumption and investment activities will support growth.
• Foreign Direct Investment is expected to increase slightly.
Concerns for 2014
• Rising inflation and increasing cost of living.
• European debt crisis
• Slowing down of China economy
• Uncertainty over the US budget and raising of the debt ceiling
• Reducing purchasing power
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PROPERTY MARKET: GENERAL
• The property market performance in Malaysia had generally softened in 2013 as compared to a year ago.
• The volume of transactions dropped by 10.9% but value of transactions expanded by 6.7%.
• The slow down of property market because
– Central Bank tightening up on mortgage loan
– Oversupply in certain property subsectors
– Recent government measures to curb speculation in property market.
– Overbuilding by developers
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2012 2013 % Increase
Volume of Transactions 427,520 381,130 -10.9%
Value of Transactions (RM’ Million) 142,844.94 152,372.12 6.7%
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RESIDENTIAL SECTOR 2013
• Dominate the overall property market in 2013, with
64.6% of the volume and 47.3% of the value of
transaction.
• 246,225 transactions worth RM72.06 billion registered
in 2013.
• The volume was lower by 9.7% and value was higher
by 6.3% in 2013 against 2012.
• In the primary market, new launches contracted after
experiencing 3 consecutive years of growth. In 2013, it
recorded 48,617 units of new launches into the market
compared to 57,162 units in 2012.
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RESIDENTIAL SECTOR IN KLANG
VALLEY in 2013
14
Existing Residential Property Supply in Malaysia, KL and Selangor:-
r
• Overall, housing supply saw a marginal growth of 1.9% in 2013.
• Housing supply saw a moderation in growth to about 1.67% in 2013 against 2012 in KL & Selangor.
• Supply of landed residential property in KL & Selangor shows a slight increase of 0.23% and 0.35%
respectively in 2013 against 2012 due to scarcity of land to develop landed residential properties.
2012 2013 Growth Rate (%)
Malaysia (Residential) 4,631,607 4,718,534 1.9%
Landed 3,249,310 3,313,892 1.9%
High-Rise 1,382,297 1,404,642 1.6%
KL (Residential)
Landed 124,460 124,747 0.23%
High-Rise 315,068 316,172 2.16%
Selangor (Residential)
Landed 761,704 778,181 0.35%
High-Rise 568,202 579,873 2.05%
Total 1,769,434 1,798,973 1.67%
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Luxury Condominiums
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• The accumulative supply of luxury condominiums in Klang Valley was 26,816 in2013. It has been rising at an average of 30% per annum from 2008 (10,674 units)to 2013. (Oversupply in luxury condominium).
• By the end of 2014, a new supply of about 5,134 units is expected to becompleted, with 33% of the total new supply are concentrated in the KL CityCentre, followed by Ampang Hilir/U-Thant area (31%), Mont’ Kiara (22%) andBangsar (14%).
• Overall, the average occupancy rate for the existing luxury condominium in KL wasrecorded at 70% in 2013, showing an increase of 3.3% (66.7%) since 2012.
• The average price of luxury condominiums in KL stood at RM900 psf in 2013.
• The average rental value declined by 2.5% y-o-y to RM3.56 psf per month.
• Amongst the notable developments expected to be completed in 2014 includeCeleste Tower@Setia Sky Residence, 188 Suites, Six Ceylon, One@Bukit Ceylon,Suasana Bukit Ceylon, 9 Madge, Dedaun, Madge Mansion, Rimbun EmbassyRow, Tower 1 of The Elements@Ampang, One Kiara (Tower A), Arcoris MontKiara, Richmond Kiara 3, The Icon Residence@Mont Kiara, The Signature@SriHartamas and Mirage Residences.
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Location of Selected Luxurious Condominiums in Kuala
Lumpur
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HAMPSHIRE PLACE (30-Storey)
Completed: Sept 2010
Total Units: 186
Dev. Price: RM700 psf
Current Asking Price : RM1,160 psf
PANORAMA (33-Storey)
Completed: March 2011
Total Units: 223
Dev. Price: RM1,200 psf
Current Asking Price : RM1,400 psf
K RESIDENCE (50-Storey)
Completed: 2007
Total Units: 188
Dev. Price: RM650 psf
Current Asking Price : RM1,160 psf
PARK VIEW (41-Storey)
Completed: End 2006
Total Units: 417
Dev. Price: RM500 psf
Current Asking Price : RM1,100 psf
MARC RESIDENCE (35-Storey)
Completed: August 2007
Total Units: 635
Dev. Price: RM750 psf
Current Asking Price : RM1,300 psf
ST MARY RESIDENCE (28-Storey)
Completed: 2012
Total Units: 657
Dev. Price: RM942 psf
Current Asking Price : RM1,455 psf
THE BINJAI (44 & 45-Storey)
Completed: End 2008
Total Units: 171
Dev. Price: RM1,000 psf
Current Asking Price : RM2,320 psf
PAVILION RESIDENCES (43 & 50-Storey)
Completed: Early 2009
Total Units: 368
Dev. Price: RM900 psf
Current Asking Price : RM1,740 psf
PARK SEVEN (20-Storey)
Completed: Mar 2008
Total Units: 105
Dev. Price: RM640 psf
Current Asking Price : RM1,220psf
STONOR PARK (20-Storey)
Completed: 2006
Total Units: 71
Dev. Price: RM500 psf
Current Asking Price : RM960 psf
SURIA STONOR (23-Storey)
Completed: Apr 2008
Total Units: 138
Dev. Price: RM650 psf
Current Asking Price : RM1,100 psf
DUA RESIDENCY (20-Storey)
Completed: Apr 2007
Total Units: 288
Dev. Price: RM520 psf
Current Asking Price : RM910 psf
THE AVARE (41-Storey)
Completed: 2009
Total Units: 78
Dev. Price: RM950 psf
Current Asking Price : RM1,200 psf
ONE KL (35-Storey)
Completed: 2009
Total Units: 94
Dev. Price: RM1,200 psf
Current Asking Price : RM1,400 psf
THE TROIKA (38, 44 & 55-Storey)
Completed: 2011
Total Units: 229
Dev. Price: RM920 psf
Current Asking Price : RM1,600 psf
BINJAI RESIDENCY (32-Storey)
Completed: 2007
Total Units: 100
Dev. Price: RM520 psf
Current Asking Price : RM1,000 psf
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Location of Upcoming Luxurious Condominiums in Kuala Lumpur City Centre
(KLCC)
Four Seasons Place (65-storey)
Built-up: 1,098 – 11,900 sf
Dev. Price: From RM2,500 psf
Take-up: 65%
Launched: Jan 2013
Expected: 2015
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Le Nouvel (43 & 49 storeys)
Built-up: 1,800 – 4,700 sf
Exp. Dev. Price: From RM2,200 psf
Take-up: NA%
Exp. Launched: Mid 2014
Expected: June 2015
Mirage Residences (25-Storey)
Built-up: 850 – 3,100 sf
Dev. Price: From RM1,000 psf
Take-up: 71%
Launched: Sep 2011
Expected: 4Q2014
The Mews (38-storey)
Built-up922 – 2,623 sf
Dev. Price: From RM1,700 psf
Take-up: 75%
Launched: March 2013
Expected: 2017
Tribeca (37-storey)
Built-up: 510 – 1,293 sf
Dev. Price: From RM1,800 psf
Take-up: 42%
Launched: July 2013
Expected: Aug 2017
Manhattan Residen 61
Built-up: 588 – 1,285 sf
Exp. Dev. Price: From RM1,600 psf
Take-up: 60%
Exp. Launched: Mid 2013
Expected: Early 2016
The Ruma (37-storey)
Built-up: 915 – 3,692 sf
Dev. Price: From RM1,900 psf
Take-up: 95%
Launched: March 2013
Expected: Q12017
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Notable New Launches in 2013:
Luxury Condominiums
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Project Name LocationFloor Area (Sq.
ft.)
Selling Price (RM
psf)
Take-Up
Rate(%)
St. Regis Residences KL Sentral 766 – 4,253 1,600 – 2,000 65%
Four Seasons
ResidencesKLCC 1,098 – 11,900 From 2,500 65%
The MewsJalan Yap Kwan
Seng922 – 2,623 From 1,700 75%
Tribeca Jalan Imbi 510-1,923 From 1,800 42%
The Ruma Jalan Kia Peng 915 – 1,098 From 1,900 70%
KL Trillion Block B Jalan Tun Razak 963-3,101 922 – 1,560 55%
Star ResidencesJalan Yap Kwan
SengFrom 625 1,500 70%
Pavilion Hilltop Mont Kiara 1,200 – 1,830 From 900 70%
Manhattan 61 Jalan Raja Chulan 588 – 1,285 From 1,600 60%
Three 28Jalan Yap Kwan
Seng710 – 1,625 From 1,180 60%
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Average Asking Prices and Rentals of
Existing High End Condominiums
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Asking Rental
(RMpsf/Month)
Asking Price
(RM psf)
KL City Centre 3.30 – 5.60 900 – 2,000
Ampang Hilir/U-Thant 2.20 – 3.80 600 – 1,200
Bangsar 2.70 – 4.90 600 – 1,200
Mont Kiara 2.30 – 3.60 450 - 800
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Sample of Prime Landed Residential Properties in KL
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KL CITY CENTRE
Tijani Ukay, Bukit Tunku (Bungalow Land)
Launch Date: Dec 2012
Total Units: 110
Developer’s Price: From RM632 psf
Current Asking Price: RM741 psf
Take-up Rate: 100%
The Madge, Ampang Hilir (2-Storey)
Current Asking Price: RM790 psf
Taman U-Thant (2-Storey)
Current Asking Price : RM850 psf
Villa Prima, Taman Danau Desa (3-Storey)
Completed : 2014
Total Units : 34
Developer’s Price : RM 848 psf
Vasana 25, Seputeh Heights (3-Storey)
Completed : 2011
Total Units : 25
Developer’s Price: RM1,100 psf
Current Asking Price : RM1,160 psf
The Ara, Bangsar (3½ -Storey)
Completed : 2008
Total Units : 30
Developer’s Price: RM655 psf
Current Asking Price : RM1,000 psf
Cahaya Villas, TTDI (3 -Storey)
Completed : 2013
Total Units : 26
Developer’s Price: RM590 psf
Current Asking Price : RM700 psf
Seri Beringin@ Bkt. D’sara (2 -Storey)
Completed : 2005
Total Units : 98
Developer’s Price: RM500 – 720 psf
Current Asking Price : RM1,000 psf
Bukit Ledang @ D’sara Heights (2&3 -Storey)
Current Asking Price: RM1,000 psf
(bungalow)
Current Asking Price: RM295 – RM310 psf
(land)
Parkcity Heights (Bungalow Land)
Completed : Mid 2002
Total Units : 95
Developer’s Price: RM110 psf
Current Asking Price : RM610-650 psf
Kenny Vale@ Kenny Hills (Bungalow Land)
Completed : Aug 2003
Total Units : 9
Developer’s Price: RM235 psf
Current Asking Price : RM540 psf (land)
Current Asking Price : RM1,300 (bungalow)
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Residential Sector Outlook 2014
• In 2014, the landed residential sector is expected to continue to be
resilient with stable growth especially property within a gated and
guarded community.
• In 2014, we expect more affordable homes introduce in the
property market. Property near the proposed MRT and LRT
Extension Line will continue to be in good demand.
• House prices will continue to increase, driven by rising costs of
land, construction materials and labour.
• Sales of residential property to foreigners will be slower in 2014
due to the increase of the RPGT imposed on the sale of properties
by foreigners was revised to 30% for the first 5 years and the
minimum price of properties for foreigners to purchase has been
increased from RM500,000 to RM1 million.
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Office Sector
• Supply 2013
• The performance of purpose built office sub-sector was stable.
• The average occupancy rate in Malaysia increased slightly to 82.9% in the 2013
against 82.3% registered in 2012.
• KL City Centre contributes 70.2% of the office space, while the remaining 29.8%
comes from KL City Fringe.
• There are only approximately 7.5 million sq. ft. of office space or 9.1% are
classified as “Prime A+”
• Dual-compliant office building which consist of MSC status and certified Green
Building Index only account for 7.6 million sq. ft. or about 9.2% of the total office
space supply in KL.
22
Malaysia 204.1 million sq. ft.
Kuala Lumpur 82.6 million sq. ft.
(40.5% of national supply)
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Office Sector: Kuala Lumpur
• There were 7 new office buildings completed in 2013 which added 3.228 million
sq.ft. of Grade A office space to the existing stock. The new offices were Menara
LGB (386,000 sq.ft.), 1 Sentrum (450,000 sq.ft.), Glomac D’sara Block D (255,000
sq.ft.), Menara CIMB (609,000 sq.ft.), Menara D’ Damansara (253,000 sq.ft.), Nu
Tower 1 (259,000 sq.ft.), Nu Tower 2 (498,000 sq.ft.) and Menara Shell (538,617
sq.ft.)
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2.9
3
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
2013 2014 2015 2016
New Supply Office Space (million sq.ft.)
New Supply Office Space (million sq.ft.)
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Office Sector: Kuala Lumpur
24
• Selected Grade A+ and Grade A office asking rentals
• Average office rents remain stable in 2013 at RM6.13 psf per month.
• Average values in KL has remain unchanged at RM838 psf in 2013.
Current Gross Rental (RM psf/month)
Menara Maxis RM10 – RM10.50
Menara Binjai RM8.50
Integra Tower @ The Intermark RM11.00
Vista Tower RM8.50 – RM9.00
Menara Petronas 3 RM12.00 – RM13.00
Menara Felda RM8.50 – RM9.00
G Tower RM8.50
Menara CIMB RM7.50 – RM8.50
The Garden North & South Tower RM7 – RM7.50
Quill 7 RM7.50
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Office Sector: Klang Valley
• Recent Transactions in 2013
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Office Building Location Vendor PurchaserConsideration
(RM’ Million)
Selling Price psf
(RM psf)
Tower 3, Avenue 7 Bangsar South, KL UOA Dev. Bhd Pelaburan Hartanah Bhd 183 740
East Wing, The IconJalan Tun Razak,
KLTS Law Top Gloves Corp. Bhd 226 844
Menara PMIJalan Changkat
Ceylon, KLPMI Bhd
Admiral Gateway Sdn
Bhd60 577
Tower 7, Avenue 3 Bangsar South, KL UOA Dev. BhdNextnation
Communication Bhd64 894
Tower 3. Avenue 3 Bangsar South, KL UOA Dev. Bhd Marak Moden 43 1,190
Menara 238 (formerly known
as Menara Marinara)
Jalan Tun Razak,
KL
DanaHarta
Hartanah S/BKPJ Healthcare Bhd 206 599
Petronas Twin Towers KLCCKLCC Holdings
BhdKLCC REITs 6,544.336 2,048
Menara ExxonMobil KLCCKLCC Holdings
BhdKLCC REITs 454.003 1,147
Menara 3 Petronas KLCCKLCC Holdings
BhdKLCC REITs 1,300** 1,599
Menara PJDJalan Tun Razak,
KLPJD Land Sdn Bhd Able Starship 220.0 494
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Office Outlook
• Occupancy rate and rents expected to remain soft in the 2014.
• In 2014, building due for completion in KL City include Menara Hap Seng 2, Crest
Sultan Ismail, TH Tower, Menara Bangkok Bank, Public Mutual Tower, Menara
Centara, Bank Rakyat HQ, Ken TTDI and Federal Auto HQ (MBMR Tower with a
total NLA of some 3.6 million sq.ft.
• In 2014, rental yield of the office space is expected to remain challenging due to
oversupply, stiff competition and increased costs from assessments levied by local
authorities, utilities and wages. Furthermore, expected new supply of 3.6 million sq.
ft. in 2014 will keep the office rental market competitive.
• Older office buildings will be challenged as tenants relocate to newer buildings with
similar rates.
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Retail Sector
• The retail market saw a slight improvement as the average occupancy rate of retail centres in
KL and Selangor increased slightly to 83.2% (2012: 82.7%) and 81.7% (2012: 80.4%)
respectively.
• The cumulative stock of retail space in 2013 stands at approximately 48.682 million sq.ft. in
both KL and Selangor.
• Avenue K, located opposite of Suria KLCC has finally completed its refurbishment and received
a strong take-up, as Swedish retailer H&M occupied 35,000 sq. ft. retail space across 3 floors.
Other anchor tenants include Presto Supermarket, Fitness First, Taste Enclave, Popular
Bookstore and EMS Exhibits.
• Another revived mall, Cheras Sentral with NLA 500,000 sq.ft. has been completed with
Japanese brand Uniqlo as an anchor tenant.
• New malls completed in 2013 were Sky Park@One City Park (460,000 sq.ft.), Setia Walk
(300,000 sq. ft.) and Bangi Gateway Shopping Complex contributing 1.235 million sq.ft. in total.
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Retail Sector
• At Starhill Gallery, luxury French brand, Louis Vuitton, had expanded the retail floor area
from 5,000 sq. ft. to 15,000 sq. ft. and also Christian Dior from 5,000 sq. ft. to 10,000 sq.
ft.
• New luxury brands occupying The Gardens Mall are Hermes and Gucci.
• Hamleys, the finest toy shop in the world has made its first flagship store in Malaysia
and Southeast Asia at 1U Shopping Centre, occupying approximately 20,478 sq. ft.
• In 2013, 2 malls closed for refurbishment:
– Sunway Putra Mall
– PIKOM Mall Cap Square
• 2013 was a rent review year for the prime retail malls - KLCC, Pavilion KL, Mid Valley
and The Gardens Mall. Average net yield for the prime retail malls is ranging from 5.9%
to 8% in 2013.
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Retail Sector
Notable New Tenants in 2013
29
Malls Tenant Type Origin
Suria KLCC Carolina Herrera Fashion & Accessories USA
Pavilion Superdry
Crabtree & Evelyn
Fashion & Accessories
Specialty Store
UK
USA
Avenue K H & M Fashion & Accessories Sweden
Berjaya Time Sq. Uniqlo Fashion & Accessories Japan
Mid Valley Megamall Superdry
Cath Kidston
Fashion & Accessories
Fashion & Accessories
UK
UK
The Gardens Hermes Fashion & Accessories France
1 Utama H &M
Hamleys
Fashion & Accessories
Toys
UK
UK
Sunway Pyramid Victoria Secret
H&M
Burton Menswear
Specialty Store
Fashion & Accessories
Fashion & Accessories
USA
Sweden
UK
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Mall Performance in 2013
30
Mall
Average
Hypermarket/Dep
artment Store
rental rates (RM
psf)
Average Gross
Rental (RM
psf)
Max.
Rental
Rates (RM
psf)
Net Yield (%)
Suria KLCC NA NA 155.00 7.41%
KL Pavilion 8.50 21.30 92.00 6.37%
Sungei Wang Plaza 7.10 – 7.25 13.70 NA 6.67%
The Mines 3.90 8.30 NA 7.05%
The Gardens NA 13.40 NA 5.93%
Megamall, Mid Valley NA 14.30 50.00 5.95%
Sunway Pyramid NA 11.80 48.00 6.32%
Subang Parade 3.80 8.20 NA 7.92%
Lot 10 NA 9.70 NA 6.80%
Starhill Gallery NA 13.20 NA 7.0%
Average yield at 6% to 8% pa.
vpcasiapacific.com
Selected Upcoming Retail Malls in
Klang Valley
Name of Development Estimate NLA (Sq. ft.) Estimate Completion Year
Nu Sentral, KL Sentral 680,000 Mar 2014
Encorp Strand Mall, Kota Damansara 308,000 Mar 2014
The Main Place, USJ 21 237,000 Mar 2014
IOI City Mall, Putrajaya 1,400,000 2014
Atria Shopping Mall, PJ 450,000 2014
G Avenue 144,000 2014
Jaya Shopping Centre, PJ 270,000 2014*
D’Pulze Shopping Mall 370,000 2015
Sunway Velocity, KL 800,000 2015
Quill City Mall, KL 770,000 2016
Central Plaza@i-City, Shah Alam 1,500,000 2017
31
* Under Refurbishement
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Retail Outlook
32
• The outlook is expected to remain cautious due to increase costs from
assessments levied by local authorities, utilities, wages and slower consumer
spending and expected slowdown in tourist arrivals.
• Another 6 new developments and 1 refurbishment with a total of 3.5 million sq. ft.
are expected to be completed in 2014 in Klang Valley. In 2014, occupancy rates
and rents of retail market could come under pressure due to substantial pipeline
supply which will likely affect both rental rates and occupancies.
• REIT players will continue to be active in expanding their portfolio. For example,
Hektar REIT has recently announced that it will double its assets base of RM1.05
billion to RM2 billion this year by acquiring neighbouring malls in developing towns
with population of 150,000 to 200,000.
• New international retail players who are keen to set up stores include Lafayette
Galleria and Takashimaya.
vpcasiapacific.com
Hotel Sector
33
• A total of 25.72 million tourist arrival recorded last year, depicting a 2.76% increasing over 2012
(Tourist arrivals in 2012: 25.03 million). Tourist arrivals yielded RM65.44 billion in revenue in
2013 compared with RM60.6 billion in revenue in 2012, saw a 8% increment.
• The average occupancy rate in Klang Valley was remained stagnant at 69.3%.
• In 2013, the average room rates (ARR) for selected 4-star hotels in Klang Valley were remained
stagnant at RM220 per room. As for selected 5-star hotels in Klang Valley, the average room
rates saw a marginal increase of 2.9%, recording at RM360 per room (2012: RM350 per room),
although the following 5-star hotels achieved an ARR above RM450 per room:
– Mandarin Oriental Hotel
– Ritz-Carlton Hotel
– Shangri-la Hotel
– Westin Hotel
• Following the opening of several hotels which include The Aloft, Pullman Bangsar,
Intercontinental Hotel (ex-Nikko Hotel), The Majestic Hotel, Wolo Hotel and Premier Hotel,
together with the closure of Crowne Plaza Mutiara of 565 rooms, the cumulative supply of 4-star
and 5-star hotels in Klang Valley has increased by 1,431 rooms or (7.6%) to 20,383 rooms in
2013.
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Hotel Sector
34
Notable 4 & 5 –star hotels completed in 2013
No Hotel Name Classification No. of Rooms
1 The Aloft, KL Sentral 5-star 482
2 Pullman KL, Bangsar 5-star 513
3 Intercontinental Hotel (formerly Nikko
Hotel)
5-star 473
4 The Majestic Hotel 5-star 300
5 Wolo Hotel
(former Menara KLIH)
4-star 138
6 Premier Hotel, Jln TAR 4-star 90
Total 1,996
vpcasiapacific.com
Hotel Sector: Upcoming HotelsDevelopment Location Classification Rooms Expected
Completion Date
Ascott Sentral KL Sentral 5-star 200 2014
Hilton Garden Inn Hotel Puchong 5-star 255 2014
Allson Capital Hotel KL 5-star 198 2014
St. Regis KL 6-star 208 2014
The Regent KL 5-star 238 2015
W Hotel KL 5-star 150 2016
Four Seasons Hotel KL 5-star 240 2016
Clermont Kuala Lumpur D’sara Heights 5-star 312 2016
Alila Bangsar Bangsar 5-star 124 2016
Ruma Hotel KL 5-star 253 2017
Harrods Hotel KL 7-star 250-300 2018
35
vpcasiapacific.com
Hotel Outlook
36
• 2014 is Visit Malaysia Year but with the negative impact of the MH370incident, we may not able to achieve our target of 28 million tourist arrivalsfor 2014 especially less tourists from China is expected.
• Four 5 and 6-star hotels are scheduled to open in Klang Valley this year,bringing another 861 rooms into the market.
• The hotel average of occupancy rate is expected to remain in about 68% -70%.
• The average rental rate is expected to remain stable.
• KLIA2, the world’s largest purpose-built terminal for low-cost carriers hasobtained the Certificate of Completion. Malindo Air, Cebu Pacific Air, TigerAirways Singapore, Lion Air, Indonesia’s Mandala Airlines and Air Asia willbegin operations at KLIA2 by 9 May 2014.
vpcasiapacific.com
Outlook 2014
37
• The property market is expected to weaken due to the cooling measures
that were announced during Budget 2014.
• In 2014, the market outlook for the affordable housing segment and
residential landed property with gated and guarded are remain very
positive.
• Property transactions is expected to slow down due to the tightening credit
restrictions, increased RGPT rates and prohibition of developers from
implementing projects that have features of DIBS, etc.
• Overall, property market is expected to slow down in 2014, with price
correction.
vpcasiapacific.com 38
JOINT VENTURE
PROPERTY DEVELOPMENT
WITH FOREIGN PARTIES
vpcasiapacific.com
KL City Centre – Tun Razak
Exchange (TRX)
39
Developer: 1Malaysia Development Bhd (1MBD)JV Partners: Qatar Investment Authority (QIA) and The Export-Import Bank of China (China Exim Bank)Location: Jalan Tun Razak, KLProposed Types of Development: Mixed Commercial and Residential DevelopmentsEstimate Project Value: RM26 billionLand Area: 70 acresRecent Land Sales for Joint Venture : RM3,193 to RM5,502 psf (Depending to Plot Ratios)
vpcasiapacific.com
KL City Centre – Oxley Hotels
40
Developer: Oxley Holdings Limited (SG)
JV Partner: Malaysia Govt. Linked Fund
Proposed Types of Development: 5-star Hotel
like Jumeirah and Waldorf Astoria (hotel chain
In Dubai)
Location: Jalan Ampang, KL
Estimate Project Value: RM2.5 – RM3.5 billion
Land Area: 3.11 acres
Land Price: RM3,300 psf
vpcasiapacific.com
KL City Centre – The Mews
41
Developer: Eastern and Oriental Bhd
JV Partner: Mitsui-Fudosan Limited (JP)
Location: Jalan Yap Kwan Seng, KL
Types of Development: High-end condominium
Estimate Project Value: RM400 million
Land Area: 5,221 sqm (1.3 acres)
Unit: 256
Built-Up Area of Units: 922 – 2,623 sf
vpcasiapacific.com
KL City Centre – IKEA CHERAS
42
Developer: Boustead Holdings Bhd
JV Partner: IKEA (Swedish)
Location: Jalan Cochrane, KL
Types of Development: Swedish home furnishings retailer IKEA
Land Area: 11 acres
NLA: 400,000 to 500,000 sf
vpcasiapacific.com
KL - KLIA Mitsui Outlet Park
43
Developer: Malaysia Airports Holding BhdJV Partner: Mitsui Fudosan Limited (JP)Location: Kuala Lumpur International Airport (KLIA)Types of Development: Japanese specialty stores, food and beverages and entertainment facilities as its complementary components based on strong themed attractions like Knowledge and Attractions, Prime Time Complex and World Food Expo and amusement parkGross Development Cost: RM 335 million Land Area: 50 acresNet Lettable Area: 46,300 sqm (498,373 sq. ft.)
vpcasiapacific.com
Penang– IKEA Batu Kawan
44
Developer: Aspen Vision Sdn BhdJV Partner: IKEA (Swedish)Location: Bandar Cassia, Batu KawanTypes of Development: Ph. 1 - 30 acres for IKEA store and shopping mall, Ph. 2 – 45 acres for shopping mall and Ph. 3 – 170 acres mixed development Land Cost : RM483.9516 millionLand Area: 99.15 ha (245 acres)
vpcasiapacific.com
Penang– GEMS International
School
45
Developer: Tambun Indah Sdn Bhd Long Term Tenant: GEMS International School (Dubai)Location: Pearl City Township, PenangTypes of Development: International SchoolProject Value: RM38 millionEstimate Completion Date: 2015Land Area: 8 acres
vpcasiapacific.com
Penang – Hull University
46
Developer: PKT Logistics Group
JV Partner: University of Hull (UK)
Location: Batu Kawan, Penang
Types of Development: University
Estimate Completion Date: 2017
Land Area: 5 acres
vpcasiapacific.com
Penang– Premium Outlet
47
Developer: PE Land Sdn BhdJV Partner: Genting-Simon Property Group (USA)Location: Bandar Cassia, Batu Kawan, PenangTypes of Development: Premium Outlet Mall, 300 rooms hotel, and mixeddevelopment.Gross Development Value: RM1 billionLand Area: 40 acres
vpcasiapacific.com
Pahang – Genting Premium Outlet
48
Developer: Genting Holdings Bhd
JV Partner: Genting-Simon Property Group (USA)
Location: Mid Hill Awana, Genting Highlands, Pahang
Types of Development: Premium Outlet Mall
vpcasiapacific.com
Pahang – China-Kuantan Industrial Park
(MCKIP)
49
Developer: SP Setia Bhd, Rimbunan Hijau Group and Pahang State Government
JV Partner: Qinzhou Jingu Investment Co. Ltd (China)
Location: Kuantan, Pahang
Types of Development: Industrial Park
Project Value: RM10.5 billion
Land Area: 607 ha
vpcasiapacific.com
Iskandar Malaysia (IM) – Country
Garden
50
Developer: Kumpulan Prasarana Rakyat Johor
JV Partner: Country Garden Holdings Co. Ltd (China)
Location: Danga Bay, Johor
Types of Development: Country Garden Township
Gross Development Value: RM18 billion
Land Area: 57 acres
vpcasiapacific.com
Iskandar Malaysia (IM) – Danga
Bay (Greenland Group)
51
Developer: Iskandar Waterfront Holdings BhdJV Partner: Greenland Group (Shanghai Based Developer)Location: Danga Bay, JohorTypes of Development: Mixed Development including hotels, high-end residential towersGross Development Value: RM2.2 billionLand Area: 5.58 ha
vpcasiapacific.com
Iskandar Malaysia (IM) –
Motorsports City
52
Developer: UEM Land Holdings Bhd
JV Partner: FastTrack Autosports Pte Ltd (SG) : Peter Lim
Location: Nusajaya, Johor
Types of Development: Racing Circuit
Development Cost: RM200 million
Land Area: 109.2 ha
vpcasiapacific.com
Iskandar Malaysia (IM) – Hao Yuan
Investment Pte Ltd
53
Developer: Iskandar Waterfront Holdings BhdJV Partner: Hao Yuan Investment Pte Ltd (SG)Location: Danga Bay, JohorTypes of Development: Tallest tower in Peninsular Malaysia, high-end residential, commercial and retail properties.Gross Development Value: RM8 billionLand Area: 37 acres
vpcasiapacific.com 54
THANK YOU