Malaysia’s crime index increases 4.6%
Malaysia’s crime index recorded a 4.6% increase between January and April this year due to increase in property crimes. Federal police Crime Prevention and Community Safety Department director Datuk Acryl Sani Abdullah Sani said a total of 38,877 or 58% of crimes involving properties were recorded in the first quarter of the year. The number of car and motorcycle thefts had declined in the past three years, but the number of home burglaries and snatch theft had increased, which were related to criminals’ ability to pick locks and bypass security systems. Since the start of the year, 12,216 motorcycle thefts, 6,662 house break ins and 3,656 cases involving cars, were recorded. (New Straits Times Online)
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Decline in Malaysia 2015 property market transaction value, volume
According to the National Property Information Centre, Malaysia’s property market recorded an 8% decline in transaction value and a 5.7% contraction in the number of transactions in 2015. This was the second-sharpest decline since 2002, after a 8.3% decline in 2009. In terms of transaction volume by state, Johor led the decline (-19%), followed by Penang (-16%), Kuala Lumpur (-10%) and Selangor (-6%). New launches (units) dropped 19% as developers postponed launches in view of the softening property maket, but supply continued to increase. Housing loan applications declined for 12 consecutive months, and only saw increase in February (1.9%) and March (5.6%) this year. However, tightened bank lending will continue to limit property sales as approval rate is below 50%. In order to boost sales, developers have come out with different kinds of programs and promotions including cash rebates, deferred paymens, zero interest and financing schemes to attract buyers. Affordable housing remains the bright spot in the market, as new launches reported high take-up rates and first time homebuyers can apply for government housing schemes like MyDeposit. (The Edge Markets)
Source: The Edge
Moderate growth for industrial property
Malaysia’s industrial property sector is expected to grow moderately this year, boosted by ongoing government initiatives to boost investments and stable opportunities. According to NAPIC, the establishment of the Principal Hub initiative that offers multiple advantages to multinational companies that uses Malaysia as a base for their regional and global business operations, will bring better prospects for the industrial sub-sector. One property consultant noted that upcoming infrastructure developments will help to drive the industrial property segment over the next few years, the most notable being the RM12.8 billion funding for the Pan Borneo Highway, as well as a proposed rapid bus transit system for Kota Kinabalu. Rental rates for industrial property sectors also tend to be more stable compared with other sub-sectors, as people don’t flip them like residential properties but for personal use. (The Star Online)
Related article: Summaries of NAPIC 2015 Property Market Report (April 2016)
Gabungan AQRS in PR1MA project co-development
Gabungan AQRS Bhd’s wholly-owned subsidiary Gabungan Strategik Sdn Bhd (GSSB) will be co-developing PR1MA Homes in Kuantan, Pahang for RM424.23 million. GSSB had entered into a joint venture agreement with contractor Monolight IBS Building System Sdn Bhd to construct, develop and complete the PR1MA Homes on 182,000 sqm of land in Kuantan. Monolight holds a 51% stake in the JV. (The Star Online)
Goldman Sachs downgrades HK property, sees 20% drop in prices
Hong Kong property stocks were downgraded by Goldman Sachs Group Inc, which predicts a 20% decline in home prices as borrowing costs rise. The Wall Street bank cut the Hong Kong property sector view from “attractive” to “neutral”, saying that “tough conditions of high prices and low volumes” would persist. Hong Kong properties are one of the most expensive in the world, but prices have declined and sales plunged to a 25-year low in February amid economic uncertainty. Home prices in the city dropped about 12% from a peak in September through April. Goldman Sachs property analyst Justin Kwok predicted that developers would shift their focus from developing units for sale to building investment properties for rent. Goldman Sachs said the office segment was “the most defensive” as it was the only one with any growth, while retail would remain weak, given softening sales. (The Star Online)
