The real estate fraternity is buoyant of the coming new year
The end of 2022 comes with the promise of significant change from the new government, bringing with it new policy and insight that will undoubtedly impact Malaysia’s property and real estate industry. When it comes to reading the playing field, property developers and leading property associations are the largest stakeholders.
Amid the uncertainty of the global economy, industry leaders are upbeat and speak out on their plans in the year ahead:
OSK Property Holdings Berhad
Chief executive officer
Ong Ghee Bin
"With the new government’s emphasis on economic growth and helping the Rakyat, we are more positive and optimistic about the property industry moving into 2023. Our focus still remains with our push on delivering value-focused products for high-rise and landed homes that fulfil the needs of our customers in all of our development locations, this strategy will be OSK Property’s winning factor moving forward.
We will also be emphasising on delivering sustainable projects, in line with our corporate ESG efforts to be a responsive and responsible developer that continues to serve the people of Malaysia."
GuocoLand (M) Berhad
Group managing director
Tan Wee Bee
"As we enter into the recovery phase of the pandemic, the quick resumption of businesses and trade activities, re-opening of borders and re-alignment of focus towards economic growth will augur well for the property industry as well as our developments and investments moving forward.
We foresee that the property sector may be affected by the elevated prices of building materials, inflation and labour cost. Nevertheless, it is important that we remain committed to continuously strategising through innovation and implementing stringent cost control. At the same time, we will also continue to strengthen our processes internally and refine our property management capabilities to provide the best value for our homebuyers."
Mah Sing Group Berhad
Founder and group managing director
Tan Sri Leong Hoy Kum
"Bank Negara has forecasted that the GDP will expand between 4%-5% in 2023. The group should continue to benefit from the five years stamp duty waiver for residential properties priced below RM500,000 for first-time homebuyers and a 75% stamp duty exemption for properties priced at RM500k-RM1m as announced in Budget 2023.
Supported by our confidence in the M-series of affordable homes, and backed by healthy balance sheets, the group will continue to scout for and acquire new lands. Other than Klang Valley, Greater KL, Penang and Johor for affordable high-rise projects in urban areas, and affordable landed homes in suburban areas, Mah Sing will also explore Seremban, Melaka and Perak for suitable lands to develop affordable landed homes.
The mid to long-term outlook for the Group remains positive supported by strong fundamental demand for properties due to the young demography. Demand for houses from first-time homebuyers should remain resilient."
Chief technology officer
"The recent months have witnessed the rollout of 5G at selected locations including i-City. We have the i-City SuperApp that offers beyond its normal online payment, car parking and many others. More importantly, it is a localised network where it better connects the local community within.
It brings people of the same interest together, to network, share their experiences, exchange ideas from gardening to gamers, to even entrepreneurs. We are enabling technology to network with people and on their common interests. In this context, we see this transformation in i-City Finance Avenue, where technology co-exists to support DoubleTree by Hilton, Mercu Maybank, BeCentral serviced residences, premium offices and retail including Central i-City Mall.
Properties with robust technology ecosystems, such as in i-City with a data centre on-site, super AI network and dual connectivity, 5G - it can enable convenient installation of the smart features in demand."
IJM Land Berhad
Chief executive officer
Datuk Wong Tuck Wai
"The affordable housing segment is expected to be the key focus followed by commercial activities with a focused approach toward more live-work-play developments. We also anticipate more developers increasing the adoption of industrialised building system (IBS) in construction and incorporating cost-effective designs and materials into their projects to reduce construction costs and maintain housing affordability.
Now with hybrid work firmly established post-pandemic, property buyers are placing a greater emphasis on flexible and adaptable living spaces, and comfort. In light of the new norm, and the necessities as well as sentiments resulting from it, IJM Land is exploring even more transformable and curated space within our integrated as well as township properties to accommodate hybrid working arrangements in the new normal. Developments with self-sustaining ecosystems (live-work-play concept) are now even more relevant than before, and hence our emphasis as well.
Heading into 2023, we hope the new government will work toward restoring political stability and driving economic growth with conducive regulatory and fiscal policies over the next few years."
Tropicana Corporation Berhad
Deputy chief executive officer
“Tropicana Group remains optimistic and believes that there will still be demand for properties in prime locations in Tropicana’s established, matured, and developing townships. In the pipeline, we will be unlocking our landbank offering 7 new developments with a GDV of over RM2 billion. We will continue to innovate our projects, as we adapt to the market sentiment while staying true to our Tropicana development DNA and ESG commitments.”
Malaysian Institute of Estate Agents
Chan Ai Cheng
“Confidence is growing in the property market based on the JPPH Q3 2022 performance review. Q3 2022 seemed to have been a tumultuous period in view of the pending 15th general election and the many uncertainties that besieged the country. This always causes concern for real estate practitioners as we are unable to chart the course and direction of the property market in that respective quarter. To our astonishment, the market rallied to show improvements in the third quarter as the Napic report showed that in Q1 2022, there were 94,556 units sold while Q2 saw 93,456 transactions, a small decline. Q3 was a better-performing quarter with 105,204 transactions, an increase of 12.6 % over Q2.
As to the outlook of the 2023 property market, the data supports our views for the promising year 2023. With the new government in place headed by Datuk Seri Anwar Ibrahim as Malaysia’s 10th Prime Minister and the newly appointed Cabinet Ministers, we see renewed confidence in the market."
Datuk NK Tong
"Amidst the uncertainty, one thing is clear, that long-term structural inflation globally is here to stay for the rest of the decade, given the global monetary inflation that has taken place in the past decade and especially during the pandemic, albeit for good reasons. Malaysians are somewhat temporarily insulated from this inflation because of subsidies such as for fuel. We are confident that the new unity government is doing its best to navigate the challenges and set Malaysia up for a stronger 2023, given our PM’s head-down-and-straight-to-business approach that he has demonstrated.
From our recent survey of developers, they are moderately optimistic for the first half of 2023, and much more optimistic for the second half of 2023. So given that outlook, astute potential homeowners and investors looking to protect against this inflationary trend would do well to buy a home that will both put a roof over their head and protect the value of their savings in the medium to long run."
CEO and chief real estate consultant
Adzman Shah Mohd Ariffin
“In a nutshell, the outlook for 2023 appears to be promising for the real estate industry but at the same time, the market is cautious with many home buyers, investors and developers taking a wait-and-see stance.”
Royal Institution of Surveyors, Malaysia
Property Surveying Division vice-president
“Overall, 2023 will be a challenging year yet relatively promising with pockets of opportunity for the real estate property market. The Property Surveying Division of Royal Institution of Surveyors Malaysia sees a positive outlook for affordable residential properties as well as landed residential properties located at established locations. With the incentives provided by the government, first-time house buyers will drive the demand for residential properties in 2023.
The demand for high-end residential properties will remain subdued. The government should consider relaxing the MM2H guidelines to allow foreigners to buy high-end residential properties, especially those forming the overhang property stock.
The increase in the FDI and Industrial Revolution 4.0 has spurred the demand for industrial properties, particularly industrial land. Many large estates have been converted for industrial developments. The rapid industrial developments in the country, especially further away from the traditional growth areas, will contribute positively to the Malaysian property market in the medium to long term. It will create employment opportunities and economic activities around the industrial schemes, including property developments."
Chief executive officer
Datuk Choong Kai Wai
“SP Setia is continuing its efforts in creating greater value for its stakeholders through sustainability and digitalisation. We will continue innovating our products and offerings to stay ahead. The group is also aiming to build more sustainable homes and explore opportunities in the industrial property sector apart from township developments to boost sales. We also want to re-strategise and unlock the potential of our land parcels to garner greater value, and build up our investment property portfolio.”