TREADING CAUTIOUSLY THROUGH A PERIOD OF HEIGHTENED UNCERTAINTY
The year of the wood snake started off literally with a bang. Based on recent media reports, the Petronas
gas pipeline explosion in Putra Heights in Selangor displaced more than 500 residents, damaged 190 homes, 148 cars and 11 motorcycles, and brought untold suffering and misery to everyone affected by the blast who would otherwise have been joyously celebrating Hari Raya over the long weekend. Affected residents will now have to tend to their injured loved ones, take stock of their lost belongings, lodge police reports, file insurance claims and navigate the intricacies of claiming for their financial losses. In addition, these people will have to take leave from work whilst children may have to skip school for a period of time whilst the families try to find alternative temporary accommodation, apply for replacement of important lost official documents like birth certificates, marriage certificates, identity cards, graduation certificates, property titles, car ownership registration cards and so on. It would likely take a while before they can go on to restoring or repairing their homes if they are not that badly damaged, or if they have been burnt to the ground, they will have to sort out their insurance claims and use the money to buy a new home.
This unfortunate event will certainly have some impact on the property industry. Potential house buyers will now ask whether the property that they are considering buying is located anywhere close to any gas pipelines. Financial institutions will also likely want to establish whether there are any gas pipelines running close to the properties that they are being asked to finance and property valuers will also take this factor into consideration when coming up with the OMV (open market value) for the property and make the necessary adjustments to the value just
like for properties which are located close to flood prone areas, high tension wires, cemetery, steep slopes, oxidation pond/sewerage treatment plant or other negative elements.
Trump’s Tariffs
On the global stage, the advent of the Trump II administration has, as expected, created a lot of fears, tension and uncertainty with the new President signing into power, a host of controversial executive orders on issues ranging from double citizenship and illegal immigrants to a freeze in federal staff hiring, halting government funding for transgender medical care, halt to federal aid, shuttering USAID and firing all its staff, shutting down offices of diversity, equity and inclusion (DEI), cutting jobs under the newly set up DOGE (Department of Government Efficiency) and so on.
Of more significant impact to the world is the announcement on the day after April Fool’s day and called Liberation Day by the U.S. President, the imposition of sweeping “reciprocal” tariffs ranging from a minimum of 10% to as high as 49% on all imports into the U.S. which affects even close allies of the countries. These new tariffs will add on to existing tariffs levied on the countries and this aggressive stance taken by the President will certainly invite retaliation by the countries affected which will then lead to an unprecedented all-out global trade war. This development could have a far reaching and damaging impact on world trade and economic growth. The announcement of the tariffs led to a carnage on Wall Street, recording the fourth-largest two-day drop in the S&P 500 since its inception in 1957 whilst Asian markets suffered historic losses and European bourses followed suit. Locally,
PLUS
Realising Potential Through Wisma JAG’s Renaissance p6
Repurposing Real Estate for Sports p7
Moderate New Launches in Klang Valley in 2024 p8
Comprehensive Legal Guide to Buying Auction Properties in Malaysia p10
Curtain Raiser 2025: Henry Butcher Malaysian & Southeast Asian Art Auction p11
the KLCI slumped to its biggest one day drop since March 2008.
Malaysia itself has been hit by a 24% tariff rate, higher than the 10% imposed on close U.S. ally Singapore and the 17% imposed on the Philippines but lower than the 46% imposed on Vietnam, 36% imposed on Thailand, 32% imposed on Indonesia and 49% imposed on Cambodia.
On a macro level, this will certainly have an impact on our exports to the U.S. and result in reduced orders from American consumers due to the higher prices that they now have to pay but at the micro level, the tariffs may actually benefit some of our exports eg. rubber gloves as Malaysian gloves will become relatively cheaper than similar products from competitors like China which have been hit by very much higher tariffs which have more than offset the lower production costs of Chinese manufacturers.
Tang Chee Meng
The coming months will be very interesting but filled with anxiety as the situation develops and the world waits with bated breath on what counter actions will be taken by countries against the U.S. Although it is still too early to tell what impact all these tariffs will have on Malaysia’s economic health, it is clear that the uncertainties enveloping the world will cause investors to adopt a more cautious approach. In a report examining the possible impact of the new tariffs on the economies of Asian countries, OCBC has revised downwards all its country economic forecasts including a 0.2% reduction for Malaysia. This is much less than the 0.8% cut for Thailand and 1.2% reduction for Vietnam. Arising from this uncertainty, we had an investor who just pulled out of a deal to acquire an industrial property because they were unsure of the possible impact on their business resulting from the tariffs. The property market will certainly enter a more cautious phase with developers thinking harder before launching any new projects and investors taking more time to study and understand the prospects and potential before committing to any new investments. As it is, REHDA has disclosed that its members experienced a 45% reduction in sales in the second half of 2024. For 2025, the REHDA members were more neutral about the property market in the first half of the year but expressed increased optimism for the second half. A lot will depend on how well the country copes with the new tariffs imposed by the U.S. and the way it navigates and tackles the new economic challenges that come with them.
Urban Renewal Act
On another front, a developing issue is the imminent tabling of the controversial Urban Renewal Act by KPKT (Ministry of Housing & Local Government) which will lay out new regulations on the rehabilitation and restoration of unsafe homes, and redevelopment of poorly maintained and neglected flats and apartments without needing the unanimous consent of the owners.
The proposed Act essentially covers three types of urban renewal: redevelopment, regeneration and revitalisation.
Redevelopment involves changes to the physical condition of the existing sites, including demolition, clearing of sites, erecting buildings and upgrading infrastructure and utility facilities whilst regeneration involves repairs or upgrades to neglected, dilapidated or abandoned buildings, and revitalisation involves improvements by way of upgrading, beautification or landscaping in general. (source: freemalaysiatoday.com)
Based on the latest proposals, the consent threshold will be brought down to 80% of the strata owners for properties under 30 years old, 75% for those over 30 years old and 51% for abandoned buildings. Although the aim of the URA is noble and to be applauded, there are many voices calling for the tabling of the Act to be deferred pending a more detailed review of the clauses in the Act. The main concern expressed is the rights and plight of the minority who do not agree to the redevelopment of the place they call home. Another concern is the cost that the strata owners have to pay to the developer undertaking the renewal/redevelopment for their new replacement homes as well as the location and condition of the temporary premises that these people have to be placed at pending the redevelopment as well as the period of time that they will be displaced in temporary premises.
These concerns are real but the objective of the URA is noble and beneficial to everyone. It is hoped that the powers that be will be able to take the public’s concerns into consideration and build in provisions into the Act to address these concerns in a fair, win-win manner.
TANG CHEE MENG Chief Operating Officer
NB: At the time of printing the media has reported that President Trump has paused the implementation of the reciprocal tariffs on most countries for 90 days except for China for which he has hiked it up to 125%. In view of his temperamental nature it is however hard to predict how this tariff war will play out.
- June 2025
by Henry Butcher Malaysia
Publisher
Henry Butcher Malaysia Sdn Bhd 25, Jalan Yap Ah Shak, 50300 Kuala Lumpur
SEMBILAN | Seremban | MALACCA | Melaka | JOHOR | Johor Bahru • Muar
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The gas pipeline explosion on 1 April 2025 has left a devastating imprint on the lives of the affected residents in Putra Heights. (Image courtesy of Ber nama)
REVIEW
REVIEW OF JPPH’S PROPERTY MARKET REPORT FOR 2024: READ BEYOND THE HEADLINES
Overall
The Property Market Report 2024 recently released by JPPH reported that the volume and value of transactions recorded in 2024 were the highest in the past decade, driven by robust activities in all sub-sectors. The volume of transactions increased by 5.4% whilst the value of transactions jumped 18.0% compared to the previous year. This has certainly brought joy to all the stakeholders in the property industry as the direct message from that headline is that all is well in the property market and it has achieved the best performance in the past decade. Nevertheless, as always, it is prudent for different stakeholders to study the report in greater detail to understand and decipher what the statistics and commentaries mean for their individual areas of interest.
On further study of the data provided, we noted that whilst Q3 2024 recorded the highest volume of transactions followed by Q4, in terms of value, it was Q4 which recorded the highest, followed by Q3. This would imply that more properties of higher value were transacted in Q4 compared to Q3.
The Southern region contributed 25.7% of the total number of transactions whilst the Northern region had a share of 25.6%. Although the Central region only came in third at 23.7%, in terms of value, the region contributed the largest share of 44.5% vs 27.5% for the Southern region and only 15.7% for the Northern region. This indicates that property values in the Central region are very much higher than those in both the Northern as well as Southern regions.
All sub-sectors recorded year-on-year growth in the volume of transactions with the highest increase being recorded by the commercial sub-sector (13.6%) whilst development land and others came in second at 9.7%. The industrial sub-sector also grew at a faster pace of 7.7%, whilst the residential and agricultural sub-sectors grew more moderately at 4.0% and 4.1%, respectively. In terms of value, all sub-sectors recorded increases, led by the commercial sub-sector (51.6%), followed by development land and others (32.7%), industrial (16.4%), residential (5.9%), and agricultural (4.8%). From these statistics, it is clear that not all sub-sectors enjoyed the same high rate of growth.
Volume by Quarter 2024
Value by Quarter 2024
Volume by Sub-Sector 2024
Value by Sub-Sector 2024
Volume by Region 2024
Value by Region 2024
Residential Sub-Sector
The residential sub-sector provided the largest contribution to the volume of transactions with 62% (similar to last year) but in terms of value, its contribution came up to only 46%, a drop from the share of 51.3% for 2023. Although commercial properties made up only 10.9% of the total number of transactions, they contributed a 25% share in terms of value (up from 19.5% in 2023). Industrial properties on the other hand made up only 2.1% of the volume of transactions but contributed 12.0% of the value of transactions whilst the agriculture sub-sector made up 18.7% of transactions but only contributed 8.4% in terms of value.
By state, Selangor was the largest contributor in 2024 with 77,713 transactions which was a 4% jump over that of 2023 whilst Johor placed second with 66,894 transactions, a 6.5% increase over 2023. Perak was third with 46,438 transactions (4.6% increase) whilst Penang ranked only 7th whilst recording a 1% drop in the number of transactions. Perlis, Sabah, Negri Sembilan, Terengganu and Sarawak were the other states which recorded a decline in volume of transactions. Kuala Lumpur ranked 9th but recorded an increase of 6.7% whilst Kelantan recorded the biggest jump in volume of transactions (96.8%) followed by Melaka (20.4%). From this, it can be seen that although overall the country recorded an increase in the volume and value of residential transactions, the appreciation was only in the single digits and not all states recorded an increase in both volume as well as value of transactions.
By price range, the residential segment of above RM1 million recorded the highest growth at 11.3%, while residences in the other price ranges showed more modest increases. As expected, affordable houses priced at RM300,000 and below continued to see strong demand, making up 52.5% of total residential transactions whilst the RM300,001 to RM500,000 sub-segment ranked second at 24.5%, followed by the RM500,001 to RM1 million category at 17.5%. Houses priced over RM1 million contributed a share of only 5.5%.
By property type, demand was the strongest for terraced houses, accounting for 43.1% of total residential transactions, followed by vacant plots at 16.0%, high-rise units (13.9%), low-cost houses/flats (10.5%), semi-detached houses (7.7%) and other property types making up the balance. This reconfirms
Volume of Overall Transactions by State
Volume of Residential Transactions Trend 2020-2024
Value of Residential Transactions Trend 2020-2024
of Residential Transactions by Price Range 2020-2024
Commercial Sub-Sector
The commercial sub-sector recorded double digit increases in volume and value of transactions in 2024 and the strong performance of the subsector underpinned the record setting performance of the overall property market. In going through the report in more detail we noted that this exceptional performance was achieved through the conclusion of a number of major sales of hotels, office and commercial buildings as well as vacant commercial plots.
the preference of Malaysians for landed residences, if they can afford them and where they are available, not too far from their workplaces in the cities/ towns.
We also noted that the secondary market (sub-sales) continued to contribute the largest share of transactions with 83% whilst primary market transactions (purchases directly from developers) made up 17%. The performance of the primary market was reported to have improved, spurred on by an increase in the number of units launched across all states except for Perlis. In 2024, a total of 75,784 units were launched, compared to 56,526 units in 2023 (up 34%).
Selangor led in the number of new launches, accounting for 19.6% of the national total, and registering a sales take-up of 35.1%. Johor followed closely with 18.7% and a better sales performance of 53.2% whilst WP Kuala Lumpur came in third with 10.3% and a sales performance of 38.0%.
Terraced houses continued to be the dominant property type in new launches. Single storey and two to three storeys terraces collectively made up 52.9% of the total units launched, with the majority located in Johor. Condominium/apartment units meanwhile came in second, contributing another 31.7% and located mostly in WP Kuala Lumpur and Selangor.
The residential overhang situation improved in 2024 in line with the better sales performance. There were 23,149 overhang units worth RM13.94 billion recorded, a drop of 10.3% and 21.2% in volume and value respectively compared to 2023.
For 2024, WP Kuala Lumpur recorded the highest number of overhang units in the country, accounting for 18.3% of the national total followed by Johor, Perak and Pulau Pinang. This is a change from the previous year where Perak led in the number of overhang units, followed by Johor, WP Kuala Lumpur, Selangor and Pulau Pinang.
In terms of value, WP Kuala Lumpur topped the list with RM3.38 billion, followed by Johor (RM 2.89 billion), Pulau Pinang (RM2.09 billion) and Selangor (RM1.59 billion). As in previous years, condominiums and apartments accounted for the largest share of the national residential overhang, accounting for nearly 60.0% of the overhang, followed by terraced houses (23.5%).
By price range, houses in the affordable price range of below RM300,000 contributed 32.9% of the total residential overhang (largest share) whilst houses within the price range of between RM300,001 and RM500,000 came in second, accounting for 28.4%. Meanwhile, those houses within the price range of RM500,001 to RM1 million contributed another 28.1%, followed by those priced above RM1 million (10.6%). In comparison, for 2023, the price category of RM500,001 to RM1 million came in second whilst houses priced between RM300,001 and RM500,000 placed third.
The Malaysian House Price Index (MHPI) continued to record a moderate annual growth of 3.3% with all states experiencing modest annual growth of between 0.6% and 5.5%. All house types saw positive growth, with semidetached houses recording the highest increase with 4.1% followed by terraced houses (3.6%), detached houses (2.6%), and high-rises (2.3%).
The volume and value of commercial property transactions expanded by 13.6% and 51.6% respectively to 45,985 transactions worth RM58.06 billion as compared to 2023 which recorded 40,463 transactions worth RM 38.31 billion.
Based on our analysis of the major sales reported by JPPH in the Property Market Report for 2024, the contributions from large commercial property transactions were as follows:
a) Vacant Commercial Plots: 4 properties worth RM3.198 billion
b) Shopping Malls/Commercial Centres: 17 properties worth RM2.31 billion
c) Office Buildings: 18 properties worth RM1.05 billion
d) Hotels/Resorts: 18 properties worth RM948 million
In total, these 57 properties contributed more than RM7.5 billion to the commercial transactions recognised by JPPH for 2024. Although these 57 commercial property transactions made up only 0.12% of the total number of commercial properties transacted, the value of these properties contributed nearly 13% of the overall value of these transactions.
Volume
Shopping Complexes & Office Buildings
The performance of shopping complexes continued to improve in 2024, with occupancy rates rising to 78.8%, up from 77.4% the year before. Seven states achieved occupancy rates exceeding 80.0% whilst Melaka recorded the lowest occupancy rates in the country at 64.0%. This indicates a resilient retail sector, supported by stable consumer confidence.
Rentals of retail space were reported to be generally stable, with several complexes, particularly in the Klang Valley recording an increase in rentals. In WP Kuala Lumpur, several shopping centres recorded significant rental appreciation of more than 15.0%. The situation was slightly different in Selangor which has shown more moderate rental increases. In Johor and Pulau Pinang, rentals were also largely stable, with several rental increases noted for several shopping malls at strategic locations due to rental renewals.
The office segment meanwhile showed a degree of resilience with occupancy rates being maintained close to 2023 levels at 78.1%, compared to 78.5% in 2023. All states managed to register a higher occupancy rate of more than 80.0%, except for Johor, WP Kuala Lumpur and Selangor. As for privatelyowned office buildings (PBOs), the average occupancy rates stood at 71.7%. Whilst Terengganu secured a higher occupancy rate at 92.0%, Kuala Lumpur and Johor recorded lower occupancy rates at 70.3% and 57.5% respectively. Putrajaya, where most of the office buildings are government owned and occupied, recorded the lowest occupancy rate for PBOs in the country (52.7%).
Supply & Occupancy of Purpose-Built Office (Private & Government) by State 2024
Supply & Occupancy of Shopping Complex 2020 - 2024
Volume of Industrial Transactions by 2020-2024
Value of Industrial Transactions by 2020-2024
Industrial Sub-Sector
The industrial sub-sector registered a 7.7% rise in volume and a 16.4% increase in value of transactions in 2024 compared to 2023, driven by strong growth in market activity. By type, transactions of vacant plots and industrial units were the most active, registering increases of 19.9% and 20.3% respectively. In terms of state, Selangor continued to lead the market, accounting for 33.3% of the national volume, followed by Johor (18.1%) and Perak (10.5%).
In terms of property type, terraced factories represented 32.3% of total industrial transactions, followed by vacant plots at 30.5%, semi-detached factories at 21.7%, and other types, which made up 15.5% of the total industrial transactions.
The industrial overhang situation continued to improve in 2024, with a gradual decrease in the number of overhang units and value, declining by 12.7% and 16.6% respectively. In contrast, the unsold under construction and not constructed industrial units increased to 801 units and 202 units respectively.
Observations & Conclusions
On the surface, JPPH’s property market report 2024 paints a rosy picture of a buoyant market, with record volume and value of transactions being recorded. Nevertheless, it is always important and necessary to go through the report in detail to fully understand the actual performance and unique behaviour of the different market subsegments so that decisions that need to be taken are based on analysis and consideration of data which best serves the situation at hand and the decisions that have to be made.
Whilst the overall volume and value of transactions achieved in 2024 may have been the highest recorded in the past decade, this accolade can largely be attributed to lumpy one-off transactions of high value commercial properties and to a certain extent, industrial properties. If the commercial properties that will be transacted in 2025 does not match up in number and/or value to those transacted in 2024, the statistics for 2025 may not match up to the impressive figures presented for 2024 and there may even be a possibility that a drop in the volume or value could be registered. We are nevertheless confident that the property market will continue to enjoy positive growth in 2025 but possibly at a slower pace.
For housing developers, it is pertinent to note that the volume and value of residential transactions in 2024 have not been spectacular, being only single digit increases. In fact, some states including Penang (surprisingly), Perlis, Sabah, Negri Sembilan, Terengganu and Sarawak all recorded a drop in either the volume or value of transactions or both. As such, housing developers should analyse and study the residential sub-sector in greater detail to ensure that they plan and execute their projects with the right understanding of the market situation.
Secondly, whilst everyone would expect the lower priced residential segments to enjoy the best sales take-up rates, it is ironic to note that houses priced at RM300,000 and below continued to contribute the largest share of the residential overhang, followed by houses priced between RM300,001 to RM500,000. Together these two price segments make up 61% of the residential overhang. Some possible reasons for this seeming anomaly could be:
a) Unsold units reserved under the Bumiputera quota.
b) Location of the projects are not convenient to those in the lower income group eg. too far away from their place of work which will mean higher travelling costs.
c) No urgency to buy houses as some within the targeted low-income groups are satisfied staying in their current family owned kampung houses.
d) Some of the targeted buyers in this lower income group may not have the financial means to come up with the downpayment required or have the documentary evidence to support their loan applications to buy the houses.
The government could perhaps try to identify the real underlying reasons for this surprising situation and then formulate policies and strategies to assist the targeted income groups acquire and own the affordable homes intended and built for them eg. rent to buy schemes, zero downpayment schemes, improved public transportation and undertaking more indepth market studies before deciding where and what to build for the targeted lower income groups. Some of these strategies have already been implemented by the government in one form or another and it would be good to continue them, perhaps with some refinements to make them even more effective.
The occupancy rates of shopping malls and office buildings continue to be resilient and sustained through
stable economic growth and positive business confidence. Nevertheless, it is important to note that the supply of shopping malls as well as office buildings in some of the major markets will increase substantially in the coming years if all the projects under construction are completed as planned. Unless demand can be raised significantly through the adoption of effective policies and actions by the government and relevant stakeholders, there will come a time when the increase in supply of space, especially in the office sub-sector, will cause the equilibrium to tilt and this will result in the occupancy rate registering a decline and in turn put pressure on rental rates.
With the government’s current focus and push for the development of data centres and chip design and manufacturing activities coupled with the roll out of the country’s New Industrial Master Plan 2030 as well as the National Energy Transition Roadmap, the industrial sub-sector will likely continue to do well, provided the world’s economy does not end up in a tail spin as a result of the sanctions and tariffs imposed by the Trump led US administration and the resultant trade wars that ensue with the other leading global economies.
In parting, we firmly believe that “true wisdom lies in understanding the underlying meaning or reality behind a situation, rather than just accepting what appears on the surface.”
We are like icebergs in the ocean: one-eighth part consciousness and the rest submerged beneath the surface of articulate apprehension ~ William Gerhardie
NB: All the charts and graphs in this article have been reconstructed based on the original charts/graphs and data in JPPH’s Property Market Report 2024.
REALISING POTENTIAL THROUGH WISMA JAG’S RENAISSANCE
In the dynamic landscape of commercial real estate, strategic partnerships and expert guidance
are paramount to unlocking a property’s true value. At Henry Butcher Real Estate (HBRE), we pride ourselves on providing comprehensive real estate solutions, as exemplified by our engagement as the Exclusive Marketing Agent for Wisma JAG in Taman Desa, Kuala Lumpur.
Nestled in a matured, low-density township with excellent connectivity, Wisma JAG presents a compelling alternative. Its strategic location, a stone’s throw away from Mid Valley City and easily accessible via Federal Highway, Salak Highway and Old Klang Road, positions it as an attractive option for businesses seeking a prime address without the associated traffic congestions that are common along Klang Valley’s main thoroughfares and its respective suburban town centres. Recognising this inherent potential, the owners of Wisma JAG entrusted HBRE to spearhead the leasing efforts, as early as when refurbishment commenced in 2024.
Marketing & Consulting
Our engagement with Wisma JAG went beyond just traditional marketing as our key deliverables included not only securing tenants for the 12½ storeys of office space and F&B dining at the mezzanine and ground floors, but also providing consulting services on suitable tenant mix and optimal office
layout sizes. This holistic approach contributes to the creation of a vibrant and sustainable ecosystem for Wisma JAG right from the beginning.
To date, HBRE has successfully secured the leasing of up to 18,000 sq ft of retail and office space, bringing in reputable companies such as Vitality Boost Sdn Bhd renowned for the Boost Juice brand and Brew & Bread Coffee Sdn Bhd for their chic cafe Brew&Bread. These additions have enhanced the appeal of Wisma JAG whilst at the same time, integrating harmoniously to the matured surrounding community.
Opportunities continue to be present for companies looking to establish their corporate offices in this strategic location as Wisma JAG offers flexible office layout sizes ranging from 820 sq ft to 7,590 sq ft with an asking rental rate of RM3.80 per sq ft. This flexibility caters to a diverse range of businesses, from startups to established corporations. On that note, Wisma JAG is also actively seeking to expand its F&B repertoire at Level 1 with asking rents at RM6 per sq ft. At the time of writing, this new lifestyle heartbeat already has the authentic Italian comfort food restaurant La Spiga D’Oro as one of its tenants and is looking to introduce a fitness centre and co-working space to further excite the tenant mix.
Wisma JAG’s strong central location factor is undoubtedly key to attracting corporate offices seeking accessibility and convenience. Hence, its bold
renaissance makeover is anticipated to anchor it as a landmark in Taman Desa and in fact, southern Kuala Lumpur in the years to come.
Wisma JAG in Brief
• 12½ storeys & 91,720sf of total nett lettable area.
• F&B at mezzanine & ground floors.
• 2 levels of basement parking.
• Previously known as Wisma TM.
Wisma JAG
Taman Desa, Jalan Desa Utama, Pusat Bandar Taman Desa, 58100 Kuala Lumpur.
For leasing enquiries, please contact:
• Samantha Ooi 017-6028938 (PEA3432)
• Nigel Chin 012-3960307 (REN09436)
• HBRE Office +603 2694 2212/0881
Encouraged by our engagement with Wisma JAG, HBRE is optimistic about the future where Malaysia’s positive economic climate presents itself as a fertile ground for commercial real estate opportunities. Our commitment to understanding each property’s unique strengths, combined with a proactive and strategic approach, allows us to extend our advisory and tenant sourcing services with an eye always on delivering results for our clients.
To explore how we can assist and maximise your property’s potential, please contact us at +603 2694 2212/0881.
A modern atmosphere at the lobby with Brew&Bread right next to it greeting everyone.
The rejuvenated towering landmark of Wisma JAG adds a dash of convenience with Boost Juice right at its entrance.
REPURPOSING REAL ESTATE FOR SPORTS
By Long Shi Chuen, Director, Corporate Real Estate
In recent times, Malaysians seem to be more involved with sporting activities and the demographics are
not only concentrated on those below 30 years old but also the higher age range as well.
One of the sports that is currently experiencing rapid growth is Pickleball. It is becoming increasingly visible in both the urban and suburban areas as we speak and at the time of my writing, pickleball already ranks Malaysia as among the top nations for rapid growth in terms of participation according to the Dynamic Universal Pickleball Rating (DUPR). The surge is supported by the availability of infrastructure such as Malaysia’s first dedicated pickleball stadium and the conversion of former retail spaces into pickleball hubs. In particular, starting 2 April this year, every primary school student in Malaysia will enjoy free access to professional pickleball facilities and coaching at the newly established Pickleball Stadium at Kenanga Wholesale City in Kuala Lumpur. The initiative, led by Malaysia’s Youth & Sports Minister Hannah Yeoh and backed by a private-public partnership with E-Motion Sdn Bhd, will allow students nationwide to play and train for free on weekdays from 8am to 4pm.
On the ball is also Selangor as it plans to introduce the sport in the country’s biennial sporting games for the youth at SUKMA 2026 amid the projected staggering 100 million new players picking up the sport in Asia over the next five years through repurposing outdoor badminton courts.
Over in East Malaysia, the MATTA (Malaysian Association of Tour & Travel Agents) Malaysia Pickleball Grand Slam 2025 (MPG2025) scheduled from 7 to 20 October 2025 at PIKABOL in Kuching, Sarawak, is aimed at establishing Malaysia as a premier sports tourism destination. The pioneering tournament is expected to draw many international players and enthusiasts to the country, which will double up and boost inbound tourism just before Visit Malaysia 2026.
Top-Down Support
The future prospects of pickleball are rather immense. This includes its potential expansion into the smaller towns and through dedicated training programmes that can widen awareness for this game.
Support from the government is also present, such as the collaboration between the Selangor State Government and ASICS Malaysia that aligns with the Prime Minister’s MADANI framework. This suggests there is sustained governmental backing to facilitate the game’s expansion as it dovetails with the National Sports Vision 2030 that aims to transform Malaysia into a genuine sporting powerhouse through grassroots development.
By putting up these new facilities, many underused car parks, tennis or badminton courts can be converted to meet the rising demand. Industrial properties that were previously vacant have also been snapped up by keen investors to convert them for the trending sport.
In terms of spatial planning and requirements, a typical pickleball facility would require 15,000 to 20,000 sq ft of space with a higher ceiling as more conducive for another emerging sport - Padel.
Just like pickleball, Padel is also gaining traction with clubs and venues developing across major cities like Kuala Lumpur, Penang and Johor. Originating from Acapulco, Mexico in 1969, padel’s illustrious history included its introduction to Spain by Prince Alfonso of HohenloheLangenburg, who built two courts at his Marbella Club Hotel. Pickleball on the other hand was created just a few years before that in 1965 in the USA.
Sporting grounds for padel in Klang Valley include the Ascaro Padel & Social Club and Joy Division Padel in Petaling Jaya, both of which offer high-end facilities for the sport. The setting up of these premium facilities is telling of its popularity.
Interests of these games have also caught on in Johor where the state is exploring having pickleball and padel as the star attractions for its sports tourism agenda. State Youth & Sports, Entrepreneur Development and Cooperatives Mohd Hairi Mad Shah in particular has said that they are expecting to build six courts
for the sports with Nusa Duta already earmarked as the preferred venue. Not stopping just there, the Johor State Government is in fact planning to build more courts to boost the state’s sports tourism and at the same time, introduce dual-purpose courts that integrate both the games to further accelerate growth and accessibility.
Challenges & Opportunities
While the games are growing rapidly, challenges are also abound like concerns of oversupply. As such, addressing it before they become over-saturated will be crucial to its stable growth.
As the games are still relatively new in Malaysia, only time will tell how many will remain interested in the long run. If and when interest dwindles, we may run into a situation where courts in remote locations would receive less demand and in turn raise the vacancy rate of industrial spaces that were previously converted for the sports.
But from a real estate perspective, pickleball and padel courts could act as a loss leader for a development and attracted footfall to the area. The sustained interest so far has also improved businesses in and around the development such as the cafes and retail outlets in the surrounding communities.
With governmental and corporate support continuing to remain robust and supported by initiatives like the free pickleball programmes for youth as well as the various upcoming tournaments at the private sector, such development showcases a shared enthusiasm for sports and recreation in the country. While adrenaline continues to be high right now, it might be prudent for practitioners to also be mindful about ensuring a sustainable future for the sports and real estate industry as a whole.
MODERATE NEW LAUNCHES IN KLANG VALLEY IN 2024
• For the full year of 2024, Klang Valley recorded 71 new launches, 14 projects less compared to the preceding year of 2023 with 85 projects.
• Whilst the number of new projects reduced by only 2 in Kuala Lumpur, Selangor recorded a more significant reduction with 12 less projects compared to 2023.
• Despite the drop in the number of projects in Kuala Lumpur, the number of units rolled out increased by 9.5%. Selangor on the other hand registered a decline of 12.0%.
• There were launches held throughout 2024 with the months of May and November recording the most launches with 9 projects each. This is followed by March, June, August and September with 8 projects each.
• By property type, the top 2 property categories of 2023 swapped places in 2024. Serviced residences/ serviced apartments topped the market with 29 projects, a 31.8% or 7 projects increase compared to 2023. Terrace/super link and condominium were next with 14 and 13 projects respectively. In 2023, the terrace/ super link dominated the new launches with 27 projects.
• More than half or 66% of the projects were high-rises in 2024 compared to only 55% in 2023.
• There is no comparison in terms of units contributed to the market between the high-rises and landed properties as the former has a 92% market share in 2024 where it also increased by 2.5% compared to 2023. Landed properties however experienced a 34.3% decline to 3,355 units.
• In terms of built-up, about half of the projects launched or 39 projects in 2024 had units between 801 to 1,000 sq ft. The 1,001 to 1,200 sq ft and the above 2,000 sq ft rounded up the
Kuala Lumpur
1) Ampang = 2 Projects
Highrise = RM1,100 - RM1,600psf
2) Bangsar = 1 Project
Highrise = RM1,000 - RM1,200psf
3) Brickfields = 1 Project
Highrise = RM400 - RM450psf
4) Bukit Bintang = 1 Project
Highrise = RM1,200 - RM1,500psf
5) Bukit Jalil = 3 Projects
Highrise = RM700 - RM1,000psf
6) Cheras = 2 Projects
Highrise = RM700 - RM900psf
7) City Centre = 1 Project Highrise = RM1,000 - RM1,100psf
8) Jalan Klang Lama = 1 Project Highrise = RM600 - RM650psf
17) Taman Desa = 1 Project Highrise = RM250 - RM650psf
most popular categories with 32% or 25 projects each featuring such builtups.
• Properties valued at RM401,000 to RM600,000 were the most common in 2024 with 45% or 35 projects possessing units sold within this price range. This is followed closely by the RM601,000 to RM800,000 with 43% or 33 projects. These were also the top 2 pricing categories in 2023 although they held contrasting positions.
Kuala Lumpur
• The RM501 to RM750 per sq ft pricing bracket was the most popular in 2024 with 57% or 44 projects with units priced within this range. This is followed by the below RM500 per sq ft category with 36% or 28 projects. This is consistent with the trend in 2023 except that the RM501 to RM750 per sq ft category had a significantly higher market share in 2024.
• By location, Puchong contributed a staggering number of new launches to the market with 12 projects. This is followed by 4 projects in Sg. Buloh and 3 each in Ampang, Bukit Jalil, Cyberjaya, Kajang, Klang, Petaling Jaya, Setapak and Shah Alam. Puchong was also dominant in 2023 with 6 new projects launched, behind only Shah Alam and Subang Jaya with 8 and 7 projects respectively.
NB: The percentages shown in the table are based on our analysis of the projects that we surveyed but they are not computed based on the number of units within those projects. The way to read this table is as follows eg. based on the projects that we analysed, 56% of them included units of above 2,000 sq ft in size. It however does not mean that 56% of all the units are above 2,000 sq ft. Each project will probably only have very few units of above 2,000 sq ft in size.
COMPREHENSIVE LEGAL GUIDE TO BUYING AUCTION PROPERTIES IN
MALAYSIA
- By Charlie Ng Zheng Hui, Lim Pei Han, Michelle Tan Mei Syen
Property auctions offer a unique opportunity for both buyers and sellers to secure competitive deals. This comprehensive guide provides an overview of property auctions, the legal framework and practical tips to help bidders navigate the process confidently.
Aspect
Definition
Process
Public Auction (Foreclosure Auctions)
The most common type in Malaysia, public auctions occur when borrowers default on mortgages and lenders sell properties to recover debts.
Lenders must serve a notice of default and demand repayment. If borrowers fail to respond, lenders can enforce their rights under Section 248 of the National Land Code 1965 by seeking a High Court Order for Sale. Upon obtaining the order, the lender sells the property through public auction.
Focus Recovery of outstanding debts.
Types of Auctions: Live vs. Online Models
Live Auctions
• Traditionally conducted at physical venues with auctioneers managing the bidding process.
• However, they are gradually being replaced by online or hybrid models due to technological advances and the need for accessibility.
Hybrid Auction Model
• These models combine traditional in-person bidding with online participation.
• Hybrid auction models maintain the physical auction atmosphere while broadening accessibility.
Private Auction
Often for commercial properties, aim to attract buyers and achieve competitive prices.
Conducted by private sellers or auction houses without judicial intervention.
Offering properties often below market value and appealing to investors.
Online Auctions
• With the rise of digital platforms, many auctions have shifted online.
• Licensed auctioneers use digital tools to streamline registration, property listing and payment, enhancing convenience and transparency.
• Further details regarding this section will be provided in the “Recent Development in Auction” section.
Step-by-Step Guide for the Public to Purchase An Auctioned Property in Malaysia
Step 1: Pre-Auction Due Diligence
• Firstly, the purchaser should conduct a land search on the target property. A land search report may be obtained from local authorities with a prescribed fee. The importance of the land search report is to confirm that the property is not encumbered by unresolved legal issues such as disputes over ownership and to ensure that there are no liens attached.
• The land search report would also show whether the target property has any restriction in interests imposed by the local land authorities. For example, if a piece of land is marked as Malay Reserved Land (“Tanah Rizab Melayu”), the land can only be owned by Malays or Bumiputera and is prohibited to sell or transfer to non-Malay individuals or non-Malay owned companies.
• Auctioned properties are sold at “as-is” basis. In the case of public auction, the Lender is not required to take possession of the property before auctioning the property. Thus, it is advisable for the bidder to arrange for an external inspection of the property. In addition, the bidder should also be prepared to settle the outstanding land taxes, utility or management bills if they are not cleared by the previous owner.
• Before registering for an auction, the buyer is encouraged to find out the reserve price for the property, which will set the minimum price in order for the sale to be completed. Also, the bidder should consider engaging a valuer to estimate market value and set a ceiling bid to avoid overbidding.
• Verifying the auctioneer’s credentials is crucial. Licensed auctioneers are regulated under the Auctioneers Act 1981 and state-level rules, and an auctioneer must obtain a license from the Ministry of Domestic Trade and Consumer Affairs, ensuring professionalism and compliance. Violations can result in penalties or revocation of licenses.
Step 2: Auction Day
• Physical Auction: On the day of the auction, participants will arrive at the auction venue, submit identification documents and pay a deposit for the target property. The price of the deposit is usually a small percentage of the reserve price or a fixed amount. The auctioneer starts the bidding process by announcing the opening bid and bidding continues until no further offers are made above the reserve price. The highest bid above the reserved price is accepted. The auctioneer announces the winning bid and declares the property sold.
• Online Auction: The online auction process involves participants bidding remotely via digital platforms, allowing them to compete for items or properties in real time. Interested bidders typically register on the auction platform and can place their bids electronically within a specified timeframe. Once the auction concludes, the highest bid is accepted and the winner is notified to finalise payment and ownership. It is crucial to verify that these online auctions are overseen by licensed auctioneers to minimise the risk of fraud.
Key Players Lender, borrower, High Court, auctioneer.
Private sellers, auction houses (eg. Ng Chan Mau & Co Sdn Bhd, Property Auction House Sdn Bhd).
Step 3: After the Auction
• The winning bidder signs a Proclamation of Sale (POS) and pays a 5% to 10% deposit. Certain high-value properties or properties with high demand might require higher deposit amounts to ensure the seriousness of the bid. This deposit is non-refundable if the bidder fails to complete the purchase. The buyer will often be given 30-90 days to pay the remaining balance purchase price. Failure to do so will result in the forfeiture of the deposit and the sale will be cancelled. Once the full payment is made, the buyer will receive the title deed or the deed of assignment (by way of transfer), as the case may be. The buyer is responsible for registering the property in their name at the relevant Land Office at the buyer’s own costs. It is advisable to consult legal professionals to ensure all legal documentation is processed correctly and that the title transfer is completed without any issues. Legal professionals can also assist in applying for an extension of time, if necessary, to pay the remaining purchase price, thereby providing additional flexibility in the transaction process.
Common Problems Encountered by Buyer
Recent Development in Auction
With the advent of digital technology, property auctions in Malaysia have increasingly transitioned to online platforms, revolutionising the way buyers and sellers interact in the auction process. Licensed auctioneers have adopted digitalisation of their auctioning procedures and have set up their own websites to display auctioning schedules and properties, making property auction more accessible to the public. As such, online auctions are now commonly conducted over the internet, allowing participants to bid remotely, eliminating geographical barriers and increasing the ease of participation. Buyers only need to set time reminders to bid at the designated auction times.
In terms of public auction of immovable properties, it has largely shifted to the e-Lelong system, an online platform managed by the High Court of Malaya. Interested buyers are merely required to register themselves as a bidder on
the e-Lelong platform and/or licensed auctioneer’s website and the auction information will be disclosed to them. As online auction platforms often include online registration and payment systems, this would be able to reduce the possibility of human errors. On the flip side of the coin however, buyers are encouraged to carefully examine whether the websites are genuinely operated by licensed auctioneers or if they are fraudulent schemes designed for cyber fraud in order to protect the buyer’s interests.
Property auctions can be an excellent opportunity to purchase real estate at competitive prices but they require careful preparation and understanding. They often present unique prospects such as foreclosures, estate sales or distressed properties that can be purchased below market value. However, while property auctions can yield significant financial opportunities,
they also come with risks. Buyers must be well-prepared, informed and methodical to avoid risks. By understanding the ins and outs of the auction procedures, risks and opportunities, conducting thorough due diligence and staying informed of recent trends, buyers will be better equipped to make informed decisions, securing the best possible deals and minimising pitfalls. By taking the time to research, setting clear budgets and verifying the auction’s credibility, buyers can then confidently navigate through the auction process and secure advantageous real estate opportunities.
This article is written by Charlie Ng Zheng Hui of Corporate & Commercial Practice Group of Messrs. Kuek, Ong & Associates (Advocates & Solicitors), and Lim Pei Han and Michelle Tan Mei Syen of the Real Estate & Project Practice Group of the same firm.
CURTAIN
RAISER 2025:
HENRY BUTCHER MALAYSIAN & SOUTHEAST ASIAN ART AUCTION
Henry Butcher Art Auctioneers (HBAA) sale of Malaysian and Southeast Asian Art is scheduled to be held on 20 April 2025.
The curtain raiser sale event of 2025 presents an outstanding selection of 211 artworks from
pioneers, iconic modern masters, established artists and rising young talents. This auction will be led by an exquisite masterpiece by Awang Damit Ahmad titled Essence Of Culture (E.O.C.) – Rumbia Dan Ilalau, 1992 (estimate: RM88,000 – RM150,000). This painting is an important example of the artist’s work in the 1990s, with its powerful silhouettes of natural forms and earthy palette.
So here, the E.O.C. series represents the harsh challenges of weather, sea and land, where mankind overcome the obstacles, challenges in life through hard work, dogged persistence, fervent and steely determination, making an honest living.
The collection also presents another painting by Awang Damit titled Essence Of Culture (E.O.C.) – Piai Dan Rumbia, 1994 (estimate: RM42,000 – RM65,000). These iconic works are from Awang Damit Ahmad’s seminal series, Essence Of Culture (E.O.C.) or Intipati Budaya, which were created between 1985 to 1995.
C.N. Liew’s abstraction from 2015 titled A Dialogue With J. M. W. Turner (estimate: RM90,000 – RM180,000), is rendered with vehement swirls and earthy shades, painted with a touch of transcendental East West fusion. With its captivating and nebulous colours, Mindscape, 1991 displays Dato’ Sharifah Fatimah’s signature dynamic brushwork (estimate: RM65,000 –RM90,000).
Other leading highlights include a rare masterwork (with good provenance) by Jolly Koh titled Road to Malacca, 1999 (estimate: RM45,000 – RM80,000). Another prime example from Khalil Ibrahim’s fishermen series titled Sabak – Malaysian Expression, dated 1993 is also on offer (estimate: RM65,000 –RM100,000).
Auction Day: Sunday, 20 April 2025, 1pm – 4pm
Preview: 11–19 April 2025, 10am - 6pm daily (10am - 4pm on 19 April)
Venue: KEN Gallery
Level M, Hall 1-3, Menara KEN TTDI, 37, Jalan Burhanuddin Helmi, Taman Tun Dr. Ismail, 60000 Kuala Lumpur.
For more details, kindly contact Sim Polenn at 016-2733628 or visit www.hbart.com.my for the E-catalogue.
The batik section portrays themes of village life by the Father of Batik Art, Dato’ Chuah Thean Teng, titled At The Fruit Stall, 1975 (estimate: RM18,000 – RM32,000). Other batik highlights include Khalil Ibrahim’s Mother and Child dated 1968, with characteristics of his iconic portraits - figures with large, dark eyes and lively gaze expressed in smooth, lyrical lines (estimate: RM18,000 – RM30,000).
Khoo Sui Hoe’s dreamlike piece The Beach Boy depicts a boy with arms wide open enjoying the sea breeze (estimate: RM30,000 – RM50,000). This work shows Sui Hoe’s distinctive abstraction of forms and strong colours. Dzulkifli Buyong’s Two Cats, 1994 on the other hand is a personal expression of one the artist’s favourite subjects, depicted with naivete humour (estimate: RM35,000 – RM65,000).
Meanwhile, contemporary art is well represented with many exciting works by Ahmad Zakii Anwar, Zulkifli Yusoff, Rafiee Ghani, Tan Wei Kheng, Wong Hoy Cheong, Chang Yoong Chia, Justin Lim, Fadilah Karim and Kow Leong Kiang.
In Hamir Soib’s The Eruption of Desire, 2009, the artist depicts pent up emotion as smoke or forms unfurling explosively into the atmosphere, perhaps as an allusion to the destructive effects of human desire, an emotion that can be seen as a fundamental motivation of all human action (estimate: RM70,000 –RM100,000).
Executed on charcoal, Wong Hoy Cheong’s Man Carrying Sack dated 1995 is from the artist’s landmark exhibition Of Migrants & Rubber Trees (estimate: RM25,000 – RM40,000).
The Southeast Asian section in this sale is led by Singaporean artist Ong Kim Seng’s intricate watercolour titled Bali, 2009 (estimate: RM20,000 –RM35,000). Indonesian artists include Antoe Budiono, Huang Fong, Bob “Sick” Yudhita Agung and Erica Hestu Wahyuni.
Myanmar artists include Tin Maung Oo; while notable Philippine artists include Maya Munoz, Jaspher Penuliar and Max Balatbat. Thai artists are well represented, with quality works from Torlarp Larpjaroensook, Maitree Siriboon, Natthawut Singthong and Kedsuda Loogthoong.
Note: Buyer’s Premium for the Art Auction is 12% on top of the hammer price.
Acrylic on canvas, 90 x 90cm
Estimate RM30,000 – RM50,000
Oil on board, 50 x 49cm
Estimate RM35,000 – RM65,000
Acrylic on canvas, 120 x 120cm
Estimate RM35,000 – RM60,000
Acrylic on canvas, 120 x 120cm
Estimate RM35,000 – RM60,000
Estimate RM32,000 – RM60,000
Pastel
Estimate RM30,000 – RM55,000
Dzulkifli Buyong, Two Cats, 1994
Kow Leong Kiang, To The Sea 6, 2012
Mohd. Hoessein Enas, Dato’, Portrait Of A Burmese Lady, 1966
on paper, 64 x 50cm
Khoo Sui Hoe, The Beach Boy, 1979
Kok Yew Puah, Distractions
Yusof Ghani, Siri Topeng Watiqah, 1995
Oil on canvas, 122 x 122cm
SHARIFAH FATIMAH SYED ZUBIR, DATO’ Mindscape
1991, acrylic on canvas, 126 x 116cm estimate RM65,000 - 90,000
AWANG DAMIT AHMAD E.O.C. - Rumbia Dan Ilalau
1992, mixed media on canvas, 112 x 107cm estimate RM88,000 - 150,000
C.N. LIEW A Dialogue with J. M. W. Turner
2015, mixed media on metal, 110 x 150cm estimate RM90,000 - 180,000
AWANG DAMIT AHMAD Iraga
2006, mixed media on canvas, 100 x 91cm estimate RM40,000 - 65,000
