PROPERTY COUNTRY REPORT : MALAYSIA

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Imogene Richard
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1 PROPERTY COUNTRY REPORT : MALAYSIA VPC REGIONAL CONFERENCE 15 th November 2013 Bandung, Indonesia Conversion Rate: 1 = RM5.27 US$1 = RM3.26 1

2 VPC Network of Offices VPC OFFICES IN MALAYSIA 2

3 CONTENT Economic Brief Property Market : General Sectorial Property Market - Residential - Offices - Retail - Hotel Conclusion 3

4 Brief Economic Indicators Estimate Real GDP Growth Rate in 2013: 4.5% to 5% Forecast Real GDP Growth Rate in 2014: 5% - 5.5% GDP Current Price: USD billion GDP per Capita: USD 5, (as at 2012) Population: 29.3 million Central Bank Overnight Policy Rate (OPR): 3% Base Lending Rate: 6.6% Housing Loan Rate: 4.3% - 4.6% (BLR-2%to2.3%) Unemployment Rate: 3.0 (as at 2Q2013) Inflation Rate: 1.9% (as at Sep. 2013) Malaysia International Reserves as at Oct 2013: RM444.9 billion (equivalent to USD 36.6 billion) 4

5 ECONOMY FDI Inflows by Selected Host Countries in Asia Country USD Billion /12 Change (%) Cambodia % India % Indonesia % Japan % Malaysia % Myanmar % Singapore % Thailand % In the 1H2013, Malaysia's FDI inflow totalled RM18.2 billion from RM15.9 billion a year ago (increased by 14.47%) 5

6 BUDGET 2014 Cooling Measures on Property Market in Budget 2014 Increase Real Property Gains Tax (RPGT) according to below scale:- Disposal Period Budget 2014 (Effective in ) Budget 2013 Individual Corporate Foreigners All Categories Disposal within the 2 Years 30% 30% 30% 15% Disposal in 3 rd Year 30% 30% 30% 10% Disposal in 4 th Year 15% 15% 30% 10% Disposal in 5 th Year 15% 15% 30% 10% Disposal in 6 th Year and thereafter 0% 5% 5% 0% The minimum price of properties for foreigners can only purchase has been increased from RM500,000 to RM1 million (effective ). 6

7 BUDGET 2014 Cooling Measures on Property Market in Budget 2014 (Cont d) Increase transparency in property sales price, where property developers will have to display detailed sales price including all benefits and incentives offered to buyers such as exemption of legal fees, stamp duty, sales agreements, cash rebates and free gifts and prohibit developers from implementing projects that have features of Developer Interest Bearing Scheme (DIBS). To further increase access to home ownership at affordable prices, an estimated 223,000 units of new houses will be built by the Government and the private sector in Good and Service Tax (GST) will be implemented at 6% rate effective from 1 April Sale, purchase and rental of residential properties as well as selected financial services are exempted from GST. 7

8 BUDGET 2014 Impact on foreigners:- With the implementation of minimum price of properties for foreigners to purchase increased from RM500,000 to RM1 million, there may be a slight reduction in sales by foreigners in 2014 in most part of the Malaysia but have a minimal impact in Kuala Lumpur and Penang as most of the foreigners are already purchasing properties above RM1 million in KL and Penang. With the Real Property Gains Tax (RPGT) rate increased to 30% with the first 5 years of purchase, foreigners are now unable to flip their property and sell on completion. Sales of condominiums below RM1 million will be affected. In 2014, we are anticipating less transactions by foreigners. 8

High Impact Projects High impact projects affecting property market:- High Speed Railway (HSR) Immediate impact, we will expect more property developers to buy lands in these intercity areas even

9 High Impact Projects High impact projects affecting property market:- High Speed Railway (HSR) Immediate impact, we will expect more property developers to buy lands in these intercity areas even though the exact locations of the HSR stations are still uncertain at the moment. With the HSR connectivity between Singapore and Iskandar Malaysia, many Malaysians who are currently working and staying in Singapore may opt to buy condominiums or apartments in Iskandar due to its close proximity to Singapore. 9

High Impact Projects High impact projects affecting property market:- Mass Rapid Transit (MRT) and LRT Extension Line The upcoming 55-km Klang Valley Mass Rapid Transit (MRT) and Light Rail Train

10 High Impact Projects High impact projects affecting property market:- Mass Rapid Transit (MRT) and LRT Extension Line The upcoming 55-km Klang Valley Mass Rapid Transit (MRT) and Light Rail Train (LRT) extension will form the catalyst for the future rapid expansion of Greater Kuala Lumpur. These new public transport systems will reduce dependence of car usage. New property developments close to MRT and LRT stations will witness the highest value increases. MRT Line LRT Extension Line (Ampang) LRT Extension Line (Kelana Jaya) 10

11 High Impact Projects Cumulative Investments in 5 Economic Growth Corridors (Jan Sep 2013) Corridors East Coast Economic Region (ECER) ( ) Jan Sept 2013 (RM Billion) Committed Realised Attracted Investment since launch date to Sep 2013 (RM Billion) Iskandar Malaysia ( ) Northern Corridor Economic Region (NCER) ( ) Sabah Development Corridor ( ) Sarawak Corridor of Renewable Energy ( ) Total

12 High Impact Projects Cumulative Investments in 5 Economic Growth Corridors (Jan Sep 2013) East Coast Economic Region (ECER) Kuantan Port Expansion Kuantan Port City Development Kuantan Hi-Tech Park Malaysia-China Kuantan Industrial Park (MCKIP) Kertih BioPolymer Park Automotive Industrial Hub, Pekan Iskandar Malaysia (IM) Pinewood Iskandar Malaysia Studios Gleneagles Medini Hospital Double Tree Hilton Pegasus International School Northern Corridor Economic Region (NCER) Biotechnology Incubation Centre Aquaculture Development Complex, Selinsing Expansion Programme Edu Citi Tel Sabah Development Corridor (SDC) Sabah Oil and Gas Terminal Sabah Sarawak Gas Pipeline Sipitang Oil and Gas Industrial Park Kimanis Power Plant International Technology and Commercial Centre. Aeropod Sabah International Convention Centre Sabah Agro Industrial Precinct Palm Oil Industrial Clusters at Lahad Datu and Sandakan Sarawak Corridor of Renewable Energy (SCORE) Ferro alloy manufacturing plant Polycrystalline silicon manufacturing plant 12

13 High Impact Projects High impact projects affecting property market:- The 5 Economic Corridors, which were launched during the Ninth Malaysian Plan (9MP) has attracted investments worth RM billion. During the first nine months of 2013, the corridors attracted RM53.4 billion of committed investments. About 50% of the committed investments have been realised during the period. With the General Elections over and there will be political stability for the next 4 or 5 years, foreign manufacturers will be looking towards investing in Malaysia. Given the various incentives under the Economic Transformation Programme (ETP), 5 Economic Corridors and the Third Industrial Master Plan whereby industrial clusters are being promoted in various part of the country such as Pengerang Oil and Gas refinery and transmission hub, Malaysia-China Kuantan Industrial Park, Kerteh BioPolymer Park, Southern Industrial and Logistics Clusters (SiLC), Seaport World Wide Petrochemical Industrial Park, etc, foreign investments will increase. 13

14 Economic Outlook 2014 The economic growth will grow at 5% to 5.5% in Private consumption and investment activities will support growth. Foreign Direct Investment is expected to increase slightly. Concerns for 2014 Rising inflation European debt crisis Slowing down of China economy Uncertainty over the US budget and raising of the debt ceiling Structural reforms in Japan 14

15 PROPERTY MARKET: GENERAL 1H H 2013 % Increase Volume of Transactions 217, , % Value of Transactions (RM Million) 68, , % The property market performances in Malaysia was generally softened in 1H2013 as compared to a year ago. The volume and value transaction decreased against 1H2012 by 14.5% and 2.8% respectively. The slow down in the property market because Central Bank tighten up the mortgage loan Oversupply in certain property subsectors Wait and see attitude in the 1H2013 prior to the General Election. 15

16 PROPERTY MARKET: GENERAL Sub-Sector Growth Rate (%) in 1H2013 against 1H2012 (Transaction Volume) Residential % Commercial % Industrial % Agricultural % Development Land % All property sub-sector activities decreased in 1H2013 against 1H2012. The highest decrease was recorded by commercial sub-sector at 23.57%. 16

17 RESIDENTIAL SECTOR 2013 Dominate the overall property market in the second half of 2013, with 64% of the volume and 49.1% of the value of transaction. 118,890 transactions worth RM billion registered in the first half of The volume was lower by 12.58% and value was higher by 1.04% in 1H2013 against the first half of

18 MALAYSIA RESIDENTIAL SECTOR: SALES TAKE-UP RATE IN 1H2013 Type Number of New Launches Sold Take-up Rate (%) Terrace Houses 8,918 3, % Condo/Apartment 2,505 1, % Serviced Apartment 1, % Others 3,833 1, % Total 17,105 6, % In the primary market, the overall sales performance was less encouraging, with lower take-up rate. There were 17,105 units launched of which 6,367 units were sold, recording sales performance of 37.2%. The take-up rate was lower compared to 1H2012 (39.4%). The number of new launches were much lesser in 1H2013, recording 17,105 units compared with 43,737 units in 1H2012. By type, condominium/apartment has achieved the highest take-up rate of 56.5% from the new launches in 1H

19 RESIDENTIAL SECTOR IN KLANG VALLEY 2013 Table: Existing Residential Property Supply in KL and Selangor KL (Residential) 2012-Q Q3 Growth Rate (%) Landed Property 124, , % High-Rise Property 312, , % Selangor (Residential) Landed Property 757, , % High-Rise Property 565, , % Total 1,760,052 1,795, % Supply of residential property in KL and Selangor increase by 2.01% in 2013Q3 against 2012Q3. 19

20 Luxury Condominiums: KL Oversupply in luxury condominiums. Expected new supply of more than 7,000 units to be completed in The majority, 6,000 units are located in the City Centre. In the 1Q2013, first Four Seasons Place was launched. The average selling price for the residences with unit sizing from 1,098 sq.ft. to 3,843 sq. ft. is in the region of RM2,500 psf. The 2 penthouses with typical floor area of 11,900 sq.ft. have been reserved at RM37 million, translating to a record sales price of RM3,026 psf surpassing the RM2,900psf record for a 4,000 sq.ft. unit at Binjai on the Park. About 50% of the residences have reportedly been booked. The average capital value of high-end condominiums in KL marginally increased by 3.5% q-o-q to RM750 psf. The average rental rate remained stable at RM3.60 psf. 20

21 Location of Selected Completed Luxurious Condominiums in Kuala Lumpur PANORAMA (33-Storey) Completed: March 2011 Total Units: 223 Dev. Price: RM1,200 psf Current Asking Price : RM1,300 psf K RESIDENCE (50-Storey) Completed: 2007 Total Units: 188 Dev. Price: RM650 psf Current Asking Price : RM1,100 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 : RM1,300 psf HAMPSHIRE PLACE (30-Storey) Completed: Sept 2010 Total Units: 186 Dev. Price: RM700 psf Current Asking Price : RM1,100 psf BINJAI RESIDENCY (32-Storey) Completed: 2007 Total Units: 100 Dev. Price: RM520 psf Current Asking Price : RM1,000 psf THE TROIKA (38, 44 & 55-Storey) Completed: 2011 Total Units: 229 Dev. Price: RM920 psf Current Asking Price : RM1,630 psf ONE KL (35-Storey) Completed: 2009 Total Units: 94 Dev. Price: RM1,200 psf Current Asking Price : RM1,360 psf THE AVARE (41-Storey) Completed: 2009 Total Units: 78 Dev. Price: RM950 psf Current Asking Price : RM1,100 psf DUA RESIDENCY (20-Storey) Completed: Apr 2007 Total Units: 288 Dev. Price: RM520 psf Current Asking Price : RM860 psf SURIA STONOR (23-Storey) Completed: Apr 2008 Total Units: 138 Dev. Price: RM650 psf Current Asking Price : RM1,000 psf THE BINJAI (44 & 45-Storey) Completed: End 2008 Total Units: 171 Dev. Price: RM1,000 psf Current Asking Price : RM2,300 psf PAVILION RESIDENCES (43 & 50-Storey) Completed: Early 2009 Total Units: 368 Dev. Price: RM900 psf Current Asking Price : RM1,700 psf PARK SEVEN (20-Storey) Completed: Mar 2008 Total Units: 105 Dev. Price: RM640 psf Current Asking Price : RM1,200psf STONOR PARK (20-Storey) Completed: 2006 Total Units: 71 Dev. Price: RM500 psf Current Asking Price : RM960 psf 21

Location of Upcoming Luxurious Condominiums in Kuala Lumpur City

Price: From RM1,700 psf Take-up: 75% Launched: March 2013 Expected:

Price: From RM1,000 psf Take-up: 71% Launched: Sep 2011 Expected:

Price: From RM2,200 psf Take-up: NA% Exp.

Manhattan Residen 61 Built-up: 588 1,285 sf Exp. Dev.

Launched: Mid 2014 Expected: Early 2016 The Ruma (37-storey) Built-up:

22 Location of Upcoming Luxurious Condominiums in Kuala Lumpur City Centre (KLCC) The Mews (38-storey) Built-up922 2,623 sf Dev. Price: From RM1,700 psf Take-up: 75% Launched: March 2013 Expected: 2017 Mirage Residences (25-Storey) Built-up: 850 3,100 sf Dev. Price: From RM1,000 psf Take-up: 71% Launched: Sep 2011 Expected: 4Q2014 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 Four Seasons Place (65-storey) Built-up: 1,098 11,900 sf Dev. Price: From RM2,500 psf Take-up: 50% Launched: Jan 2013 Expected: 2015 Manhattan Residen 61 Built-up: 588 1,285 sf Exp. Dev. Price: From RM1,600 psf Take-up: 60% Exp. Launched: Mid 2014 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: Q12007 Tribeca (37-storey) Built-up: 510 1,293 sf Dev. Price: From RM1,800 psf Take-up: 42% Launched: July 2013 Expected: Aug

Sample of Prime Landed Residential Properties in KL Seri Beringin@ Bkt.

23 Sample of Prime Landed Residential Properties in KL Seri Bkt. D sara (2 -Storey) Completed : 2008 Total Units : 98 Developer s Price: RM400 psf Current Asking Price : RM764 psf Bukit D sara Heights (2&3 -Storey) Parkcity Heights (Bungalow Land) Completed : Mid 2002 Total Units : 95 Developer s Price: RM110 psf Current Asking Price : RM540 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) Tijani, Bukit Tunku (Bungalow Land) Launch Date: Dec 2012 Total Units: 110 Developer s Price: From RM632 psf Take-up Rate: 70% Current Asking Price: RM860 psf KL CITY CENTRE Taman U-Thant (2-Storey) Current Asking Price : RM1,250 psf Cahaya Villas, TTDI (3 -Storey) Completed : 2013 Total Units : 26 Developer s Price: RM590 psf Current Asking Price : RM600 psf The Ara, Bangsar (3½ -Storey) Completed : 2008 Total Units : 30 Developer s Price: RM655 psf Current Asking Price : RM1,000 psf Vasana 25, Seputeh Heights (3-Storey) Completed : 2011 Total Units : 25 Developer s Price: RM1,100 psf Current Asking Price : RM1,160 psf Villa Prima, Taman Danau Desa (3-Storey) Completed : 2014 Total Units : 34 Developer s Price : RM 848 psf 23

24 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. Properties near the proposed MRT and LRT Extension Line will continue to be popular. Sales of residential property to foreigners will be slow in 2014 due to the measures introduced in Budget House prices will continue to increase, driven by rising costs of land, construction materials and labour. Also, as foreigners can only purchase properties RM1 million and above, we expect developers will offering better quality finishing, furniture packages, rental schemes in order to justify the RM1 million price tag. Transactions in condominium market will slow down, with possible price correction. 24

25 Office Sector Supply 3Q 2013 Malaysia Kuala Lumpur million sq. ft million sq. ft. (40.6% of national supply) The performance of purpose built office sub-sector was moderate. The average occupancy rate in Malaysia increased marginally to record 82.3% in the 3Q2013 against 82.1% registered in 2Q2013. Office supply had increased by about million sq. ft. as 5 new prime offices were completed in Jan Sep 2013 in Klang Valley. (Menara CIMB Mapletree@KL Sentral, Nu Tower 1 and Tower 2@ KL Sentral, Glomac Damansara and Menara Shell@KL Sentral). 25

26 Office Sector: Kuala Lumpur 4.0 Office Development Pipeline, sq ft (million) Upcoming supply Completed Prime Grade A office rents remain stable in Q32013 at RM6.15psf. Average capital values in KL were unchanged in Q32013 at RM838psf. 26

27 Office Sector: Klang Valley Recent Transactions ( Jan Oct 2013) Office Building Location Vendor Purchaser Consideration (RM Million) Selling Price psf (RM psf) Tower 3, Avenue 7 Bangsar South, KL UOA Dev. Bhd Pelaburan Hartanah Bhd East Wing, The Icon Jalan Tun Razak, KL TS Law Top Gloves Corp. Bhd Menara PMI Jalan Changkat Ceylon, KL PMI Bhd Admiral Gateway Sdn Bhd V-Square@PJ Centre Block 1 (Exchange Property) Section 14, PJ Malton Bhd Bukit Damansara Dev. Sdn Bhd Pusat Bandar Damansara Complex (Exchange Property) Damansara Heights, KL Bukit Damansara Dev. Sdn Bhd Malton Bhd 700 1,679 (Based on land value) Block H, Oasis Square Ara Damansara, Selangor Sime Darby Ara D sara S/B Brunsfield Oasis Tower S/B Packet Hub (Wisma SPSS) Jalan Templer, PJ, Selangor Worldline Enterprise S/B SYM World Realty Sdn Bhd Tower 7, Avenue 3 Bangsar South, KL UOA Dev. Bhd Nextnation Communication Bhd Tower A, Plaza 33 Section 13, PJ, Selangor Plaza 33 S/B Excel Force MSC Bhd Menara 238 (formerly known as Menara Marinara) Jalan Tun Razak, KL DanaHarta Hartanah S/B KPJ Healthcare Bhd Proposed 13-Storey Office Building Putrajaya Presint 3, KL Mayland Avenue Bhd Land and General Bhd

28 Office Outlook 2014 Occupancy rate and rents could come under pressure 2014 due to substantial pipeline supply which will likely affect both the rental rates and occupancies of older buildings as the tenants may relocate to newer buildings with better facilities whilst possible enjoying similar rental levels. Dual-compliant buildings (MSC and GBI) will continue to demonstrate improved occupancy and rental rates when compared to conventional office buildings. The GBI and MSC is the initiative designed to attract world-class technology companies and act as compliant to attract high-profile tenants and multinational companies. Office buildings expected to be ready by year end include 1 Sentrum and Menara LGB with total net lettable area of 864,000 sq. ft. 28

29 Retail Sector The average occupancy rate of retail centres registered an increase to 92% in Kuala Lumpur in 3Q2013 against 82.3% registered in 3Q2012. No major new completions in the first nine months of Sungai Wang Bukit Bintang, Avenue K@Jalan Ampang, Sunway Putra Mall, Cheras Sentral, Bukit Bintang Plaza and Jaya Shopping Mall are all undergoing refurbishment exercises. The Penang Development Corporation (PDC) has signed a purchase and development agreement for the construction of a Premium Retail Outlet in Bandar Cassia, Batu Kawan ( the nation s second Premium Outlet after the Johor Premium Outlet). 29

30 Retail Sector Mainstay Properties Sdn Bhd has entered a JV with US-based Horizon Group Properties to develop The Outlet Shoppes in Sepang, located within a 5km radius to KLIA. The buoyant retail market continues to attract international retailers. Recently, the world s famous diamond purveyor, De Beers has opened its first boutique at Suria KLCC (its second store in South East Asia after Singapore). Swiss luxury wriswatch manufacturer, Oris has opened its first concept store in 1Utama Shopping Centre with plans to open 6 more at Pavilion KL, Suria KLCC, Kota Kinabalu and Kuching within 2 years. AEON Group is in plan to open 6 hypermarkets in secondary towns across Malaysia between 2014 and 2016 to strengthen its presence and remain sustainable. Also, AEON Group has just form a JV with Thailand s Index Living Mall Co. Ltd to tap the retail market for furniture and home decorations with outlet sizes ranging from 65,000 to 108,000 sq. ft.) 30

31 Retail Sector Rentals of Prime Shopping Centres in Kuala Lumpur Building Name Average yield at 5.5% to 6.0%. Average Rental Rate (RM/sf) 2012 Average Rental Rate (RM/sf) in 2013 Suria KLCC RM 28 psf RM32 psf KL Pavilion RM17.90 psf RM19 psf Plaza Sungei Wang RM13.10 psf RM13.50 psf Mid Valley Megamall RM13.50 psf RM14.20 psf Mid Valley The Gardens RM12.60 psf RM13.10 psf Sunway Pyramid RM12.35 psf RM12.90 psf 31

32 Retail Sector Retail New Supply (NLA) in Klang Valley ('000) Name of Development NLA (sq. ft.) Expected Completion Jaya Shopping Centre 270, Cheras Sentral 500, Nu Sentral, KL 680, Sunway Velocity, KL 800, Damen, Subang Jaya 400, IOI City Mall, Putrajaya 1,300, Bangi Gateway 475, Pavilion (Extension), KL 300,

33 Retail Outlook in 2014 As the recent petrol price hike and the continuation of subsidy reductions for fuel, sugar and other items, it is a challenging year for retailers in With increasing retail space available, it is expected to increase competition between existing and new shopping centre. Retailers are more selective about location and expansion and have higher expectations of more competitive rental rates inclusive of incentives from the developers to entice them in as well as promoting activities and events to attract high level of shoppers traffic to stimulate spending. 33

Hotel Sector A total of 25.03 million foreign tourists visited Malaysia last year, surpassing the figure of 24.71 million arrivals in 2011. Total arrivals yielded RM60.

34 Hotel Sector A total of million foreign tourists visited Malaysia last year, surpassing the figure of million arrivals in Total arrivals yielded RM60.6 billion in revenue in 2012 compared with RM58.3 billion in the previous year. As at May 2013, average occupancy rates were recorded at 65% for the 4-star and 71% for the 5-star categories. As at May 2013, the average room rate (ARR) for selected 4-star hotels in Kuala Lumpur stood at RM207 (2012: RM211) while the ARR for selected 5-star hotels in Kuala Lumpur stood at RM348 (2012: RM347). 34

35 Hotel Sector: Upcoming Hotels Development Location Classificatio n Rooms Expected Completion Date The Aloft* KL Sentral 5-star Hilton Garden Inn Hotel KL 5-star Pullman KL Bangsar* KL 5-star The Majestic Hotel * KL 5-star Allson Capital Hotel KL 5-star St. Regis KL 6-star The Regent KL 5-star W Hotel KL 5-star Four Seasons Hotel KL 5-star Harrods Hotel KL 7-star * - Completed 35

36 Hotel Outlook Tourism spending and occupancy levels are expected to remain resilient in response to continued promotional activities and further success in attracting high economic value MICE, business, sports and medical tourists. In 2013, the tourism sector is expected to generate revenue of RM65 billion and 26.8 million tourist arrivals. As at June 2013, Malaysia has achieved million tourist arrivals, registered a growth of 8% compared to million tourist last year with the same period has been declared Visit Malaysia Year and is targeting to have 28 million tourists. To further promote Malaysia as a preferred tourist destination, the Government will continue to encourage investments particularly in new 4 and 5-star hotels. In order to support this, the Government proposed the application period for Pioneer Status and Investment Tax Allowance incentives be extended for another 3 years until 31 December

37 Conclusion: 2014 Challenging year ahead for the property market due to the uncertainties in global economy, cooling measures on property market in Budget 2014 and the expected increase in borrowing costs. In 2014, the market outlook for the affordable housing segment is very positive. Property transactions is expected to be slow down due to the tightening credit restrictions, increased RGPT rates and prohibit developers from implementing projects that have features of DIBS, etc Property market is expected to slow down in 2014, with price correction. 37

38 THANK YOU 38

PROPERTY INSIGHTS. Market Overview. Political uncertainties clouded market sentiment. Economic Overview. Malaysia Quarter 1, 2013

PROPERTY INSIGHTS. Market Overview. Political uncertainties clouded market sentiment. Economic Overview. Malaysia Quarter 1, 2013 PROPERTY INSIGHTS Malaysia Quarter 1, 2013 Political uncertainties clouded market sentiment Market Overview Strong economic performance with Q4 2012 growth at 6.4% boosted overall growth to 5.6% for 2012,