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COVER STORY
CITY OF MILLIONAIRES
Nov 2011 issue 17
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pg
Connect with us now
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NEWSFLASH ZOOMING IN ON PROPERTY REGISTRATION
Heading towards the creation of another major Malaysian city >> Read more
Courtesy of Ipohworld.org
SPOTLIGHT
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>> Read more
pg
9
STEERING MALAYSIA’S “MICE” MARKET
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GRAPHICALLY SPEAKING
>> Read more
SPECIAL REPORT
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INVESTOR PREFERENCES
SUSTAINING GROWTH THROUGH RETAIL TOURISM
MALAYSIA AT MIPIM ASIA 2011
>> Read more
>> Read more
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PROPERTY ABOVE RM1 MILLION BY STATE & SECTOR, 1H2011 >> Read more
10
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IN A NUTSHELL DECODING KL’S ECONOMIC RESILIENCY
>> Read more
8
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CROSSBORDER QUERIES LOOKING FOR INVESTMENT >> Read more
COVER STORY
2
CITY OF MILLIONAIRES?
Thailand
Heading towards the creation of another major Malaysian city
Penang
Ipoh Kota Kinabalu Kuala Lumpur
Brunei Johor Bahru
by Hazrul Izwan
Singapore
Perak takes its name from the silvery colour of the rich tin deposits for which it is renowned. Ipoh, the state capital of Perak, is known historically for its tinmining activities. “City of Millionaires” is one of its nicknames referring to the vast fortunes made during the mining era.
Kuching
Indonesia
The world’s tin industry collapsed in the 80’s and forced the once-bountiful state to look into diversification of its economic activities by developing valueadded, resource-linked manufacturing industries as well as boosting its services sector. Figure 1: GDP growth of Northern States in Malaysia, 2006-2010 (%) 10
10.0%
8 6
5.7% 5.4% 4.5%
4 2 0 -2 -4 -6 -8
2010
2009
2008
2007
2006
-10
Legend:
Perak
Penang
Perlis
Kedah
Source: Department of Statistics, Malaysia
According to FDI Markets, Perak (Manjung) was selected as one of the Top 20 Target Cities for FDI 2006-2011 across the oil, coal and natural gas sector.
from Brazil, will invest RM4 billion to build an iron ore distribution centre in Teluk Rubiah, Perak by 2015.
On the property front, Perak is expecting a delivery of around 10,000 new residential units in 2011, up from 4,582 in 2010. According to the National Property Information Centre (NAPIC), delivery of new units has ranged between 6,000 – 9,000 units from 2007 onwards. Strong domestic demand has driven property price growth at an increase of approximately 15% over the In 2010, Perak’s GDP grew by 5.7% past year. last year, a robust growth just second to Penang state. On the foreign direct More than half of the launched units investment (FDI) side, the Perak are situated in the Kinta district where Government was able to induce more its capital, Ipoh City is located. Ipoh is than RM1.43 billion worth of projects situated approximately 200km or two for new investments and RM0.22 billion hours drive to the north of Kuala Lumpur for expansion projects. Perak’s mining on the North-South Expressway. Kinta reputation from the past clearly benefits district’s sales performance in 3Q’11 in positioning them amongst the world’s rose by 2.4% to 21.7% compared with top mining companies for consideration. 3Q’10. Another improvement worthy of note is the gradual decrease in overhang According to FDI Markets , Perak from 30.8% in 2007 to the current range (Manjung) was selected as one of the Top of 24.9%-27.8%. 20 Target Cities for FDI 2006-2011 across the oil, coal and natural gas sector. Vale SA, the world’s largest iron-ore producer (continued next page)
COVER STORY
3
Figure 3: Number of Residential Units Launched and Overhang Rate in Perak, 4Q’07-3Q’11p
(from previous page)
(units)
(%)
6,000
35 30.8%
30
5,000
26.2%
25
4,000
The National Physical Plan forecasts Ipoh’s population to reach 1.09 million by 2020. Moving forward, the state government is implementing hard and soft infrastructure improvements on several fronts. Increased accessibility has been taken into account with the potential upgrading of Ipoh’s Sultan Azlan Shah Airport from domestic to international standards with more intercountry direct flights in the future.
15 2,000
10
0
0 3Q’11
Legend:
Units Launched (RHS)
Overhang rate (completed units)
Source: NAPIC p Note : = prelimanary data
With the focused activities of state promotional agencies such as InvestPerak , potential business investors are also introduced to business-friendly incentives such as possible reduction on land premium and selected tax exemptions. The state remains confident that spill-over effects from FDI will have an indirect impact on Further positive outcome can be property sector growth especially in the achieved by tying in the planned residential and commercial sectors. activities with promotion of Tourism Malaysia’s Malaysia My Second Home (MM2H) programme. As of September For more information about investment this year, more than 1,300 participants opportunities in Perak and northern of this long stay visa programme have economic corridor, write to: also purchased a property in Malaysia, amounting to a total transaction of Hazrul Izwan hazrul@malaysiapropertyinc.com RM1.28 billion since 2007.
Figure 2: Sales Performance in Kinta District within 3,6 and 9 months , 3Q’11 Location: Kinta District
3Q ‘10
3Q ‘11
Within 3 months
19.3%
21.7%
Within 6 months
27.0%
ND
Within 9 months
50.3%
ND
Source: NAPIC Note: ND = no data
p
5
3Q’10
1,000
3Q’09
In conjunction with Visit Perak Year 2012, the state government could leverage on this promotional opportunity to promote Perak as an attractive property investment destination
20 3,000
3Q’08
In conjunction with Visit Perak Year 2012, the state government could leverage on this promotional opportunity to promote Perak as an attractive property investment destination.
4Q’07
One of the prominent local projects is The Haven Lakeside Residences, a project surrounded by 280-million-yearold limestone hills and a pristine 4-acre running lake at the foothill, currently operated by Best Western International Hotels. The project consists of three 26-storey luxury condominium blocks with sizes ranging from 968 sq ft - 2,852 sq ft and penthouses of over 3,000 sq. ft. The take up rate for tower 1 and 2 was impressive, with more than 50% local buyers and the remaining made up of buyers from Singapore, Hong Kong, United Kingdom and the Middle East. Through MPI’s Malaysia Property Exhibition in Jakarta, Indonesia last month, tower 3 has received continuous sales enquiries and requests for site visits. At a minimum intrinsic value of RM600 psf, The Haven expects to generate returns of 6% per annum for the first three years.
SPOTLIGHT
STEERING MALAYSIA’S “MICE” MARKET
4
Congress of Accountants in Kuala Lumpur 2010 (6,000 delegates),the 18th World FIGO Congress of Gynecology and Obstetrics 2006 (8,300 delegates) and the Perfect Travel China Incentive Conference 2007 (8,500 participants) have opened up a plethora of opportunities for Malaysia to attract international meetings to the country.
The recent launch of International Events Unit (IEU) by MyCEB is expected to further contribute to the nation’s economic growth by attracting more international visitors to Malaysia. This by Hazrul Izwan specialist unit is expected to contribute RM427 million in incremental Gross Zulkefli Hj. Sharif is currently the National Income (GNI) by year 2020. chief executive officer of the Malaysia Convention & Exhibition Bureau PQ: Malaysia ranked as one of the top (MyCEB), a non-profit organisation 10 meeting destinations in Asia Pacific established in 2009 by the Ministry of according to the latest International Tourism. MyCEB’s key role is to brand Congress and Convention Association and position Malaysia as a preferred (ICCA) report, what is the success story destination for business events in the behind the achievement and what is the next step towards improving Malaysia’s region. ranking at the global stage? Prior to this position, Zulkefli has held Zulkefli: Malaysia’s success in becoming various positions with Tourism Malaysia a major player in the business events across different divisions. This includes arena in the region is very much international marketing, promotional dependent on the collaborative efforts support, research, more than 10 years between the government and industry with the Conventions Division and to bid for and secure business events as a 4-year stint as Director of Tourism well as to facilitate successful events when they are being hosted in the Malaysia in Stockholm, Sweden. country. Property Quotient (PQ) caught up with him recently to gain insight on MyCEB’s The introduction of MyCEB’s Industry initiatives and how growing business Partner Programme (IPP) further tourism will influence the property galvanises Malaysia’s competitive market especially the hospitality sector. position in the global business tourism market. Cooperative programmes PQ: MyCEB has made its mark to further across the country, providing business strengthen Malaysia’s business tourism opportunities for partners and to industry since 2009. How has the increase Malaysia’s success rate in Malaysian MICE market evolved over the securing international business events years, especially in Kuala Lumpur? are also being implemented. Zulkefli: The business tourism industry in Malaysia has grown rapidly and PQ: In your opinion, what is the main positively over the years due to the component that should be incorporated smart partnerships and collaborative in property development in order to raise efforts between MyCEB, relevant Malaysia’s global competitiveness as an government bodies, stakeholders and international meetings destination? industry players. As provided in the Zulkefli: It has to be more purpose-built Economic Transformation Programme convention and exhibition facilities of (ETP) Roadmap, the industry was international standards, built based recognised as one of the Entry Point on clients and delegates needs and Projects (EPP) to establish Malaysia as requirements. These facilities must a leading business tourism destination. be built in a strategic location, well served by hotels, transportation, retail Malaysia and Kuala Lumpur’s strong outlets. This would definitely raise track record and reputation in hosting Malaysia’s global competitiveness as an successful business events with record international meetings destination. For example, the Kuala Lumpur Convention attendances, including the 18th World
Centre which is located in the integrated precinct of Kuala Lumpur City Centre with ample accommodation options and infrastructure available within walking distance .Plans are in place to build purpose built facilities in Sabah and Penang which will provide meeting planners multiple destinations within one country. This will create an added incentive for regional business events to return to Malaysia. PQ: To what extend do you think that the growing MICE market in Malaysia will influence the property market? Zulkefli: The growth in business events activities in Malaysia would mean a need for a wider range of accommodation to cope with the rising demand. The multiplier effect will be a boost for the property market especially in the hospitality sector. A big factor to be considered by hotels is the forward-bookings that apply to business tourism. MyCEB with its industry partners has successfully bid for and secured conventions for Malaysia between now until 2016 and is currently bidding for business events up to year 2020. This represents potential business in the high-yield sector for accommodation owners. The securing of medium to long term business helps create investor confidence in the market. Business and major events also help fill low season gaps in market. Part of MyCEB’s objective is to spread these events across the year.
(continued page 7)
SPECIAL REPORT
5
SUSTAINING GROWTH THROUGH RETAIL TOURISM
Figure 5: Malaysia: Travel & Tourism’s Direct Contribution to GDP, 2011
Affluent segment waiting to be tapped
Leisure spending 45.8%
Foreign visitor spending
Domestic visitor spending 37.3% Business spending 54.2%
Source: WTTC
by Afiq Syarifuddin
sia’s tourism retail towards positive growth. The 173,000 square feet premium outlet is strategically located near the Senai International Airport situated within the Iskandar Region, Stuart Tomlinson, Visa’s Malaysia about three hours from Kuala Lumpur. Country Manager, reveals that Malaysia’s key sources of affluent tourists are Boasting 70 outlets in the first phase coming from the emerging market set, with planned future expansion of with recorded average monthly income another 60 outlets, a water park, a of RM13,691 (approximately USD4,416). 2,000-room hotel and an international Based on the findings from a global convention centre in the second phase, survey commissioned by Visa, the Visa Simon Property Group is successful in (RM’000) (million) Global Travel Intentions Survey 2011 persuading luxury designer brands to reveals that 30% are from China, 26% play a part in the first Premium Outlet 120 35 from India and 8% from South Africa, megastore in Southeast Asia. Leveraging 30 followed closely by tourists from the on its close proximity to both Malaysian 100 and Singaporean shoppers, this is also United Arab Emirates. expected to attract a wider set of tourists 25 80 Tourism Malaysia officials have also from the neighbouring Lion City. 20 mentioned that Middle-Eastern tourists 60 constantly mark Malaysia as their Figure 6: Travel & Tourism’s Direct 15 Contribution to GDP by shopping haven during their summer 40 Selected Countries, 2011 holidays. This positive outlook for the 10 next two years is seen as a competitive Country Direct Contribution 20 advantage for Malaysia within the Rank 5 (USD’million) Southeast Asian countries. Tomlinson also added that Malaysia can enhance 0 0 2 China 166.73 its value proposition to these economic 11 Australia 44.70 contributors by offering special experiences. This can be done through 12 India 34.01 Legend: Foreign visitor exports (LHS) constant and sustainable investment Foreign tourist arrivals (RHS) 14 Indonesia 25.31 in terms of hospitality and retail Source: WTTC infrastructures to ensure that tourists’ f Note : = forecast 17 Thailand 20.48 demands and expectations on service According to the Malaysia Travel & levels, food and tourism product quality 21 Malaysia 18.27 Tourism Economic Impact 2011 report, are met. World Average 15.68 published by the World Travel & Tourism Council, travel & tourism contribution With the official opening of Johor 34 Singapore 9.32 to Malaysia’s GDP is forecasted at 5% Premium Outlet in early December 2011, 39 Phillipines 7.18 yearly growth for the next 10 years. In this joint-venture between international constant 2011 prices, this will translate retail giant Simon Property Group Inc and to RM203.6 billion in GDP contribution Malaysia’s conglomerate Genting Group Source: WTTC by 2021. This strong performance goes further encourages the path of Malay2021f
2011
2009
2007
2005
2003
2001
Tourists with a penchant for shopping are coming to Malaysia in droves. Visitor exports are expected to generate RM62.4 billion in revenue this year. Datuk Dr James Dawos Mamit, Malaysia’s deputy minister of tourism, reports that Malaysia’s tourism sector is projected to generate RM124.7 billion or 15.8% of gross domestic product (GDP) in 2011. Figure 4: Tourist Arrivals and Receipts to Malaysia, 2001-2021f
hand-in-hand with the investments made by various industry players into the tourism sector, totalling an estimated RM15.2 billion for the year 2011.
INVESTOR PREFERENCES
MALAYSIA AT MIPIM ASIA 2011
6
for new locations, service providers across the real estate value chain, government authorities and of developers from across Asia. A quick glimpse at the attendance list includes the likes of Aedas, Blackstone Group (HK), Camsing Global, Citic Capital, Deka Immobilien GMBH, EADS France, GE Capital Real Estate, Kohn Pedersen Fox Associates and many more.
A unique feature of MIPIM is the breadth of country or location positioning that is evident through pavilions from the Northern Caucasus, Gold Coast (Australia) and Incheon Free Economic Zone, amongst others
by Chan Tze Wee Marché International des Professionnels d’Immobilier (MIPIM) has been held annually in Cannes, France for the last 12 years and Hong Kong for the last 5 years. At the cost of €1,050 per delegate, this trade show attracts the attention of investors, exhibitors and service providers with an eye to potential largeticket real estate deals from across the Asia Pacific region. This year, a collective Malaysian effort was featured through a country pavilion at MIPIM Asia, highlighted by the developments and opportunities available from Sunway Berhad, Multimedia Development Corporation, UOA Development, Cyberview, IJM Land and the Selangor State Development Corporation (PKNS). The pavilion also played host to Malaysian delegates who attended from Sime Darby Property, MRCB and Iskandar Investment Berhad. The range of investment opportunities included those for hotel operators, retail operators, assets for direct acquisition as well as development joint ventures across various real estate sectors. Being within an event with the largest concentration of corporate investors in Asia Pacific, Malaysian projects were featured amongst a diverse mix of investors from institutional funds, investment managers, corporate end users, hotel groups, retailers scouting
The pavilion garnered the attention of both first time enquiries as well as those following up on the latest developments in Malaysia. While the former confirms the point that awareness of Malaysian companies and real estate opportunities could do with higher exposure and stronger positioning, the follow up enquiries are evidence of effective engagements from the past. One developer received renewed attention from an investor that they have met in a previous occasion but did not initially express interest. The Iskandar region received serious queries from both Japanese and Chinese companies, a product of the region’s strong profile built up from past branding activities as well as coverage of developments in the international press.
Figure 7: MIPIM Asia 2011 Summary Profile Summary Total no. of visitors
1,808
Total no. of companies visited
698
Total no. exhibitors
105
Total no. of countries represented (74% from Asia, 17% from Europe, 5% from North America, 3% from Pacific and 1% from Africa/Middle East) Source: MIPIM
A unique feature of MIPIM is the breadth of country or location positioning that is evident through pavilions from the Northern Caucasus, Gold Coast (Australia) and Incheon Free Economic Zone, amongst others. Undeniably, MIPIM provides a glimpse into the high level of competition for investments demonstrated by the scale of activities organized by the participating companies and local authorities. An example is the presence of the mayor of Taichung (Taiwan), presenting a case on the future development plans of the city. The French Minister for Urban Affairs, Maurice Leroy, was also present to update MIPIM Asia delegates on the Greater Paris project and invited international developers to pitch for Paris’ largest urban renewal project to date. With the attention received from VIP’s such as the Hong Kong Government’s Secretary of Development during the official VIP Tour, coupled with the positive sentiments on Malaysia expressed by Hong Kong major developer Cheung Kong Holdings and Chinabased funds such as Gaw Capital, this recognition supports MPI’s future plans to position Malaysian real estate within the corporate real estate investment arena.
42
For detailed coverage of MIPIM Asia 2011, visit http://www.mipim.com/en/mipim-asia/
NEWSFLASH
2.5
100
2.0
80 1.5 60 1.0
40
0
0
Legend:
Time (days) (LHS)
Cost (% of property value ) (RHS)
Source: Doing Business Report
electronic filing of complaints, which can potentially expedite the process of enforcing property-related contracts such as tenancy agreements or SPAs. Moving forward, alignment with international standards of measurements or classifications is one way to further improve the procedural shortfalls that influence the foreign investor’s market entry into Malaysia. For more information about PEMUDAH’s initiatives, visit http://www.pemudah.gov.my
(from page 4) Figure 9: Highlights of upcoming business events, 2012 PQ: As a closing statement, what is the Event Location MICE market outlook for 2012? Zulkefli: Based on the ICCA report 20012010, international association meetings are continuing their upward progression, especially in the Asia/Middle East region – where meetings have increased by 113 percent, from 814 (2001) to 1,737 (2010). This trend is likely to continue. The outlook for 2012 is very promising. MyCEB and its industry partners have secured over 70 international and regional conferences for the period 20122016, with 88,000 delegates and RM950 million in economic impact. In view of the growth in Malaysia, educating and encouraging local associations to bid for their international counterpart’s congresses through the MyCEB annual association support programme is vital. The programme to be
2012
0.5
2011
20
2010
Essentially, the Doing Business Report measures the “Registering Property” process across all countries by tabulating total days taken to undertake all the mandatory procedures and document submission related to the registration or transfer of titles. With this, the total number of days for the completion of this process in Malaysia is 56 days. In comparison, PEMUDAH’s classification of “Registering Property”, which only Malaysia ranked highest in the areas of covers the single stage process of online getting credit, protecting investors and or manual registration through the Land trading across borders. On the flipside, Office, falls between 2 - 25 days. the areas where major improvements are needed were also identified. The Nevertheless, PEMUDAH’s role as the 3 key issues are matters dealing with government taskforce with a mandate to construction permits, getting electricity address bureaucracy issues in businessand registering property. government dealing has significantly improved existing lagging procedures. Detailed examinations of the process of In fact, Malaysia’s ranking in registering property registration are as follows: property jumped from 86th position in 2010 to 60th in 2011, attributable to the reduction of numbers of days 1. Form 14A is the official document for registration or transfer of property taken to process registrations. Other improvements have been undertaken ownership. This is issued by all Land by relevant government agencies to Offices across Malaysian states. increase access and transparency. 2. According to PEMUDAH, current This includes the online availability of practice shows that the manual registration process from submission cadastre information online and
The World Bank’s Doing Business Report is one of the consistently published reports that measures countries against pertinent areas and associated costs for businesses making cross border entry into markets. According to the 2012 report, Malaysia ranked 18th worldwide, an overall improvement from 21 st position previously.
2009
Towards further alignment with international standards of measurements
to approval stage takes between 3 – 25 Figure 8: Time taken (days) and Cost days and online registration between Involved for Registering 2 – 11 days. Property in Malaysia, 3.This timeframe does not include 2008-2012 Time Cost the mandatory submission of Sale & (days) (%) Purchase Agreement, adjudication of 3.5 160 Form 14A for stamp duty, valuation of 3.0 property, payment of stamp duty and 140 stamping of Form 14A. 120
2008
ZOOMING IN ON PROPERTY REGISTRATION
7
25th World Gas Conferences
Number of Delegates
Kuala Lumpur
3,500
7 Triennial Meeting of the Commonwealth Dental Association
Kuching, Sarawak
2,000
14th Congress of the International Society for Peritoneal Dialysis (ISPD) 2012
Kuala Lumpur
2,000
10th International Scientific Conference of the Royal College of Obstetricians and Gynaecologists
Kuching, Sarawak
1,600
Royal Australasian College of Surgeons Annual Scientific Congress (ASC) 2012
Kuala Lumpur
2,000
th 9 World Congress of Chinese Medicine
Kuching, Sarawak
1,000
th
Source: MyCEB
launched by year end (2011) are designed to help make locally-based organizations aware of the professional support and in-kind assistance that is available to organisations which are considering bid-
ding for their counterpart international events. For more information about MyCEB, visit http://www.myceb.com.my
IN A NUTSHELL
8
DECODING KL’S ECONOMIC RESILIENCY
mance has experienced less contraction Figure 13: Population density in the built-up part of metropolitan than its neighbours such as Singapore, areas (people/hectare) Thailand and Hong Kong. Bank Negara Malaysia recently announced 3Q2011 Bangalore Real GDP growth at 5.8%. Barcelona metro
by Afiq Syarifuddin With the world’s current population at 7 billion and increasing, great cities compete with each other on countless fronts – resources, knowledge workers, investment inflows, connectivity and most importantly, human traffic. As a natural progression from being the nation’s capital city, Kuala Lumpur is the logical hub that has been strategically singled out by the government’s Economic Transformation Plan (ETP) to be nurtured into one of the world’s noteworthy cities.
The MEM highlights several issues to be addressed. The first involves maintaining a good balance of workforce with varying expertise. Cities must have a vibrant and knowledge-intensive economy. This requires a combination of high value-added services and an available workforce with the abilities to perform more complex tasks across different levels of production.
Malaysian cities need to rein in sprawl and move towards a more compact urban form to ensure effective resources management
The World Bank’s Malaysia Economic Monitor (MEM) released in November 2011, themed Smart Cities, reported that Malaysia Real GDP grew by 6.0% and 2.5% in 1Q and 2Q of 2011 respectively. On a quarter-on-quarter (seasonally-adjusted annualized) basis, this is a considerable slowdown from the 9.2% growth experienced in 4Q2010. Nevertheless, Malaysia’s growth perfor- In terms of urban centre planning, sustainability and inclusiveness is Figure 12: GDP growth, Inflation rate needed to improve overall quality of life. and Unemployment rate, Connectivity within Malaysian cities can 2007-2012f be achieved through enhanced public (%) (%) transformation system and efficient 4.0 10 integration in city-centre developments. 3.8 8 Advance education practices, reduced 3.6 crime rate and lesser congestion are the 6 3.4 software improvements that will in turn attract and retain talents – locally and 4 3.2 from abroad. 2
3.0
0
2.8
Legend:
GDP (RHS)
Inflation Rate (RHS)
2012f
2011f
2010
2009
2008
2007
-2
Unemployment rate (Non-seasonally adjusted) Unemployment rate (Seasonally adjusted)
Source: The World Bank Report
Beijing Jakarta Singapore London Bangkok Kuala Lumpur
200
150
100
50
Los Angeles 0
Preparing Kuala Lumpur towards the path of a smart city
Growth performance aside, urbanisation is central to Malaysia‘s aspirations to become a high-income economy by 2020. This will be driven primarily by the preparedness of the various Malaysian cities to continuously attract and absorb inflow of rural migration. By addressing various fundamentals towards the enhancement of the city, a transition for Kuala Lumpur into a smart city is not a tall order into the near future.
Source: Bertaud (2004), The World Bank
mentation, more weight would be put on preventive development planning practices rather than short term problem-solving. In line with continuing efforts, the government has been channelling private investment growth towards improving Malaysia’s investment climate. The MEM, however, noted that subsidies rationalisation and fiscal consolidation have been delayed albeit services sectors liberalisation in Budget 2012. The MEM also cautioned that it is essential for government disbursements for the ETP programmes to be expedited, ensuring continuous and sustained GDP growth throughout the current economic uncertainties. The MEM also suggested further policy implementations in areas such as: • Land use enhancement • Zoning policies • Building codes incentives for private vehicle use • Suburban housing choices • Fuel taxes • Stricter vehicle emission standards; and • Congestion pricing in major urban centres
The MEM drew similar comparisons The full Malaysia Economic Monitor is between Kuala Lumpur and Los Angeles, available from implying that Kuala Lumpur and other http://www.worldbank.org Malaysian cities need to rein in sprawl and move towards a more compact urban form to ensure effective resources management. This could come in the form of active development planning procedure and positive environmental actions. With careful city zoning imple-
GRAPHICALLY SPEAKING
9
PROPERTY ABOVE RM1 MILLION BY STATE & SECTOR, 1H2011
SELANGOR Units 1,400
1.9%
1,200 1,000
KUALA LUMPUR
800
Units
0.8%
600
1,200 400 1,000
200
11.5% 800
0 11.5%
600
l al tia rci en d i me s m e R Co
al nt tri me us lop Ind e v De
Total Value = RM7.03 billion
400 200 0
l al tia rci en d i me s m e R Co
PENANG al nt tri me us d lop In e v De
Units 400
Total Value = RM5.71 billion
7.7%
350 300 250
JOHOR
200
Units
150
120
1.8%
100
100
50 3.6%
80
0
60 40
t al en tri us pm d o l In ve De
Total Value = RM1.34 billion
25.0%
20 0
ial ial nt erc de i m s m Re Co
Legend: Local Property Buyers
l al tia rci en me sid m e R Co
al nt tri me us lop Ind e v De
Foreign Property Buyers
Note: •Buyers comprise individuals and companies. •Transactions in Kuala Lumpur comprise municipalities of Batu, Seksyen 1-100, Kuala Lumpur, Ampang and Petaling only. •Transactions in Selangor comprise districts of Petaling, Gombak, Sepang and Hulu Langat only. •Transactions in Johor comprise districts of Johor Bahru, Pontian and Kota Tinggi only.
Total Value = RM2.05 billion
Analysis on average price (RM) per unit and growth rate in 1H2011 compared with 1H2010 Selangor
Kuala Lumpur
Penang
Johor
Residential
2,175,175
6.4%
2,231,567
(4.9%)
1,776,521
0.09%
2,138,857
8.4%
Commercial
2,542,975
(49.5%)
2,701,252
(9.2%)
1,830,477
(20.8%)
3,672,987
27.4%
Industrial
4,222,052
(11.8%)
3,731,615
42.6%
6,483,076
133.9%
3,334,268
21.4%
Development
3,864,539
46.7%
25,819,042
100.1%
4,498,936
7.7%
12,147,233
239.3%
Source: NAPIC, MPI Research
CROSS-BORDER QUERIES
10
LOOKING FOR INVESTMENT Malaysia Property Incorporated (MPI) receives foreign investor queries on an ongoing basis. For any parties interested to pursue these investment requirements, please contact the MPI team.
Request
Client
Requirement
Location
Dubai, UAE
10,000 square feet area
Klang Valley
Landbank, Development rights
Singapore
10 acres and above of freehold land to built a logistic park
Klang Valley (Shah Alam, Bukit Raja)
Landbank, Development JV
Singapore
Mixed development with medical component, medical resort e.g medical themed service apartments, retirement village
Klang Valley, Johor, Penang
Landbank, Development rights
Seoul, Korea
20 acres, mixed development
KL City Centre
Asset acquisition
Shenzen, China
Golf course with land for residential development
Greater KL vicinity
Landbank, Development rights
Singapore
Industrial park development (size TBA)
Greater KL vicinity, Iskandar region
Landbank, Development JV
Jakarta, Indonesia
High-end residential development (size TBA)
Greater KL vicinity, Iskandar region
Asset acquisition, Development JV
Kuala Lumpur, Malaysia
Commercial development opportunities, Grade A office en-bloc
Greater KL vicinity
Landbank, Development rights, Development JV
Shaanxi, China
Mixed development land or construction
Kuala Lumpur or Johor Bahru
Landbank, Development JV
Bangalore, India
12 - 15 acres of land in KL for JV to build school & boarding facilities
Greater KL vicinity
Seoul, Korea
Infrastructure projects with Minimum Return Guarantee
Nationwide
4Q 2011 Factory cum distributor office
3Q 2011
2Q 2011
1Q 2011 Construction JV
11
ABOUT US Malaysia Property Incorporated is a Government initiative set up under the Economic Planning Unit to drive investments in real estate into Malaysia. As the first port-of-call for real estate investment queries, Malaysia Property Inc. connects interested parties through an extensive network of government agencies, private sector companies, real estate firms, business councils and real estaterelated associations. MPI has two core objectives; to create international awareness and to establish connections between foreign interests and Malaysian real estate industry players, ultimately contributing to real estate investments into the country.
For further information and up-to-date tracking of Malaysian real estate data, visit: www.malaysiapropertyinc.com For further enquiry, write to: info@malaysiapropertyinc.com
Disclamer: This report contains information that is publicly-available and has been relied on by Malaysia Property Incorporated on the basis that it is accurate and complete. MPI is not liable if the case proves to be otherwise. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and the same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed.