Malaysia property transaction volume down 11.5% in 2016
The property market continued its softening streak in 2016, with an 11.5% decline in transaction volume and 3% drop in value, according to the finance ministry’s latest Property Market 2016 report. Overall property transaction volume dropped to 320,425 in 2016 from 362,105 in 2015, while overall transaction value dropped by 3% to RM145.41 billion from RM149.96 billion. Transaction volume was driven by the residential sector at 63.4% and 45.1% for transaction value. The market is expected to remain soft in the next couple of years, supported by various property-related incentives and accommodative monetary policy. (The Edge Markets)

SP Setia wins S$265mil Singapore land tender
SP Setia Bhd has outbid 24 others to win the tender for the popular Toh Tuck Road site in Singapore for S$265 million (about RM847.6 million). The 4.6-acre leasehold plot will be home to the group’s third development in Singapore — a five-storey luxury condominium project with an estimated GDV of S$457 million. The land comes with a 99-year lease tenure and gross plot ratio of 1.4. The planned condominium project is targeted to be launched in 2018 and completed within 60 months. SP Setia has already completed two developments in Singapore, namely the 18 Woodsville and Eco Sanctuary. (The Edge Markets)

AmanahRaya REIT aims to buy ‘trophy assets’, eyes KL office tower
AmanahRaya REIT is planning to acquire “trophy assets” in the immediate term despite the soft property market. It is looking to acquire an office tower in Kuala Lumpur, valued between RM350mil and RM370mil, and is in negotiating terms with the party. The REIT hopes to close the deal by 2Q2017 and complete acquisition by year-end. In 2016, it acquired three properties, namely the Deluge Factory in Nusajaya, Toshiba TEC Malaysia in Shah Alam and Contraves in Cyberjaya, with a combined value of RM96 million. The REIT’s portfolio currently includes 15 properties scattered across Malaysia, collectively valued at RM1 billion. (The Edge Markets)

Redeveloped Plaza Rakyat set to be new iconic landmark
The once-abandoned Plaza Rakyat in Kuala Lumpur will be developed into an iconic new landmark in the city. Slated for completion in 2022, developer Profit Consortium Sdn Bhd has planned four skyscrapers — the tallest at 92 storeys — on the 15.3-acre site in Pudu. The project will comprise a central business district, five-star hotel, budget hotel, and residential condominium atop a retail podium. The developer, which is finalising the plan for the multibillion-ringgit mixed-used development, has already commenced repair works on the site. Industry experts have estimated a GDV of RM6 billion to RM8 billion for the project. (The Edge Markets)

Aerial view of the abandoned Plaza Rakyat project in Jalan Pudu (Photo from The Star Online)

Eupe redesigns Cheras residential project
Kedah-based Eupe Corp Bhd has redesigned and renamed its serviced apartment project in Cheras previously known as “The Weave” to “Parc 3” in order to develop a product which fits better with the current market conditions. The 2.7-acre leasehold development has an estimated GDV of RM500 million and is located in Taman Pudu Ulu, overseeing the 60-acre Pudu Ulu Recreational Park. It will be launched by 4Q2017. The main aims of the redesign is to increase the number of smaller units to cater to market demand and conditions. (The Edge Markets)

Astaka unveils show units for Bukit Pelali development in Johor
Astaka Holdings has unveiled terrace house show units for its new development in Pengerang, Johor. The 363-acre Bukit Pelali strata township is a gateway to the mega Pengerang Integrated Petroleum Complex (PIPC). Astaka will build 487 terraces, semi-detached and cluster houses as well as shop offices as part of its first phase of development, which will be completed by 2019. The development is set to be a self-sustaining township that comprises a shopping mall, hotel, hospital, mosque, school and private security. It’s grand launch will be held together with the opening of its sales gallery by mid-year. (The Edge Markets)

(Photo from The Star)

SkyWorld sets up centre for quality construction
SkyWorld Development Group is investing RM3.8mil in its SkyWorld Quality Centre, which will act as a benchmark for quality construction for all SkyWorld developments. The first of its kind, the centre will be completed in September 2017 and boasts 10 functional areas such as the SkyWorld lounge, a mini auditorium, and a comprehensive show unit. The centre can also be used as a training and education ground for staff, as well as a sharing hub for consultants and engineers, university students, prospective home buyers and the public. The centre signifies SkyWorld commitments to QLASSIC and CONQUAS quality assessment. (The Star Online)

Government mulls building third airport for Kedah
The federal government is studying the viability of building another international airport in Kedah, as the main international airport closest to Kedah is in Penang state and is heavily congested. Kedah currently has two airports, one in its state capital of Alor Setar and the other in the island resort of Langkawi that serves both domestic and international flights, but on a much smaller scale. An international airport near industrial Kulim had been proposed in 2015 to serve as a cargo hub, which was then estimated at RM1.6 billion. The current cost would most likely be around RM4 billion. (Malay Mail Online)