TRX is Savill’s top property pick for 2018
Tun Razak Exchange (TRX) is the number one property pick of 2018 of real estate advisory firm Savills (Malaysia) Sdn Bhd, which believes the TRX will emerge as the most successful commercial development in the country this year. The rest of its top pick list of the year comprises properties adjacent to Mass Rapid Transit (MRT) system, logistic-related industrial properties, and retail properties. It also noted that logistics properties, which will be driven by increasing e-commerce activities, will be the focus in the industrial sector. Malaysia is likely to be the top destination for new retail brands that are expanding into Southeast Asia. (The Edge Markets)

MB World to develop RM1.46bil waterfront in Johor
MB World Group Bhd (MBW) has secured the rights to develop an integrated waterfront in Johor that has an expected GDV of RM1.46 billion. Located within Teluk Jawa, Johor Bahru, the development will sit on approximately 49.62 acres of leasehold land, including 15 acres belonging to the government. It will comprise both commercial and residential components, including a service apartment, affordable houses, townhouses, shop offices and a shopping mall. Phase 1 will be the affordable housing project of Rumah Mampu Milik Johor (RMMJ) known as Taman Perbadanan Islam Telok Permata, measuring approximately 15 acres. (The Edge Markets)

SPNB to build 15,000 affordable homes nationwide this year
Syarikat Perumahan Negara Berhad (SPNB) aims to build 15,000 units of affordable homes at 10% to 15% below market prices nationwide this year. Its subsidiary, SPNB Aspirasi Sdn Bhd, would also continue with the third phase of the Sungai Buloh Laguna Biru housing project, involving the construction of 600 condominum units in the third quarter of 2018. (Malay Mail Online)

Alcom plans to diversify into property development
Aluminium Company of Malaysia Bhd (Alcom) is planning to diversify into property development with a RM500 million GDV industrial park venture, and transfer its listing status to a new holding company. The group, which is currently only in manufacturing and trading of aluminium sheet and foil products, outlined plans for its unit EM Hub Sdn Bhd to acquire 9.4 acre vacant industrial land in Sungai Buloh, Selangor from a unit of Paramount Corp Bhd for RM92 million, to be developed into a gated and guarded industrial park. (The Sun Daily)

Shareda expecting 40% decline in new property launches
New property launches for 2017 are expected to be 40% lower than those recorded in 2016. According to Sabah Housing and Real Estate Developers Association (Shareda) president Chew Sang Hai, property launches worth some RM2.7 billion were recorded last year. However, for 2017 Shareda is expecting new project launches to be worth less than RM1 billion. One the reasons contributing to the decline in new property launches was the difficulty in securing bank loans for purchasers. The federal cabinet’s decision to freeze approval for new properties over RM1 million would not affect Sabah, as 80% of new condominum projects were priced at RM500,000 and below. (The Borneo Post)

OSK Holdings puts Faber Towers up for sale
Faber Towers in Taman Desa, Kuala Lumpur has been put on the market. Property owner OSK Holdings Bhd is seeking to monetise some of its assets. The freehold, strata-titled retail-and-office property is expected to fetch between RM230 million and RM250 million. Faber Towers comprises two 16-storey towers atop a three-storey retail podium. It has a total net lettable area (NLA) of 483,175 sq ft. As at Dec 21, the entire property is 70.18% occupied, with 96.1% of its retail space taken up while 65.3% of the office space leased out. (Free Malaysia Today)

Faber Towers

Malaysian equity market expected to stay strong in 2018
AmBank Research said Malaysia’s equity market is expected to stay strong in 2018 supported by a strong flow of deals, healthy GDP outlook, firmer commodity prices and a stronger ringgit against the USD. Initial public offerings (IPO) are poised to come from energy, infrastructure, financial services and consumer sectors. Several significant IPOs are expected in 2018, including Bank Islam, Edra Global Energy and potentially, foreign insurers in Malaysia. In Malaysia, capital is expected to be raised through equity placements and right issues as the equity market continues to gain momentum, while growth will come from the mid-corporate segment. In the meantime, the Malaysian debt market will remain positive given the various funding requirements for upcoming infrastructure projects. (The Edge Markets)

ALI gains 50.19% control of MCT
Property giant Ayala Land Inc. has boosted its interest in Malaysian property and construction firm MCT Bhd to 50.19% from 32.95%, in line with its vision to grow this offshore unit to be a major real estate player in Malaysia. Through its wholly-owned subsidiary Regent Wise Investments Limited (RWIL), ALI signed a share purchase agreement to acquire an additional 17.24 percent share in MCT Bhd. First established in 1999 as a construction company, MCT specializes in mixed-use projects that include retail, office, hotel, and mid- to affordable residential developments in Malaysia. (Business Inquirer)

Chinese investments in Malaysia likely to diversify into more sectors in 2018
The flow of investment from China into Malaysia is likely to diversify into more sectors compared to the current emphasis on infrastructure and property development projects, economists said. “China’s Belt and Road Initiative (BRI) is about building partnerships and infrastructure is a key beneficiary. This will lead to greater investment flows into the tourism, food and beverages, hotel, recreation, education and healthcare sectors,” said UOB Kay Hian Malaysia Research economist Julia Goh. Malaysia has continued to enjoy resilient foreign investment flows from China, even as the latter’s total ODI to other parts of the world has fallen significantly year-on-year. (The Star Online)

Ampang Park Shopping Centre (Photo from The Malaysian Insider)

Demolition of Ampang Park shopping centre underway
Contractors are in the middle of dismantling Ampang Park shopping centre after its closure on Dec 31 last year. Workers were seen removing the ceiling and fixtures inside the empty shops. The entire mall was bare and metal barricades were placed at the mall entrance. Several tenants were still doing last-minute packing and moving as well. When asked, the tenants were unsure when the building would be torn down as they were only told to vacate their shops on Dec 31. The shopping centre, which opened in 1973, will be demolished to make way for the construction of the Ampang Park MRT station. (The Star Online)

Australia home prices slip in December as Sydney slows
Home prices across Australia’s major cities fell in December as the once red-hot Sydney market continued to cool in the face of tighter rules on investment lending, a relief to regulators but a potential drag on consumer spending power. Annual growth in prices slowed to 4.3% from 5.2% in November and 10.5% in the middle of 2017. Meanwhile, prices in Sydney slipped 0.9% in December and pulled annual growth down to just 3.1%. Melbourne fared somewhat better, thanks in part to rapid population growth, with prices easing 0.2% in December to be 8.9% higher for the year. A slowdown has been much desired by the country’s bank watchdog which tightened standards on investment and interest-only loans, leading banks to raise rates on some mortgage products. (Free Malaysia Today)