Savills: Brace yourself for change in global real estate sector
A perfect storm of demographic, social, economic and technological change will transform the real estate sector globally, said Savills World Research head Yolande Barnes. “In the economic sphere, there has been an extraordinary and unprecedented fall in the world’s interest rate, particularly in the developed countries, spurred on by central banks as well as the underlying demographic system. The consequences of that have been that asset prices have risen and thus impacting numerous global real estate markets,” she said. However, she believes that real estate yields will not go any lower, as yield compression over the years have either completed in most major cities or are approaching completion. (The Edge Markets)
Bank Negara introduces eCCRIS
Bank Negara Malaysia recently launched its online Central Credit Reference Information System (eCCRIS), which can help users become more aware of their financial obligations. eCCRIS enables consumers to stay on top of their credit standing, find out whether there have been any fraudulent activities and prevent identity theft. It also allows them to engage directly with the participating financial institutions and Bank Negara should there be any errors in the information available in the CCRIS reports. The eCCRIS service, which was introduced in January, is provided free of charge. It allows the public to obtain their credit reports, which detail their financing and payment history, such as their housing, car and education loans, for the past 12 months. The public can register for the service at any Bank Negara or AKPK branch, then access the eCCRIS website at anytime after that. (The Edge Markets)
Co-working spaces to drive repositioning of oversupplied offices
The shifting trend of co-working spaces may help reposition the supply and demand of office space in Malaysia, said Savills Malaysia. This is because traditional office buildings which meet tenants’ criteria for modern facilities, can easily be deployed as co-working space. It can also be aimed at office spaces in the suburbs and other cities, not only the Golden Triangle. This trend has helped alleviate the oversupply situation of the office property market. However, it may do little to help with rental growth as typically, tenants justify their move from an aged building to a newer one, if rents are not significantly higher, and the market supply is still challenging. (The Edge Markets)
PNB funds reach RM279bil, 98% invested locally
Permodalan Nasional Bhd (PNB), established some 40 years ago, is today the country’s largest fund manager, managing funds worth RM279 billion. Group chairman Tan Sri Abdul Wahid Omar said 98% of the fund were invested locally to create business and economic opportunities for Malaysians, including providing equal opportunities to Bumiputera professionals in the corporate sector. 70% or RM200 billion of PNB’s fund were invested in the stock market/public equity. In November 2016, it announced the strategic plan for PNB 2017-2022 called STRIVE-15, with a vision for PNB to become a distinctive world-class investment house. (Malay Mail Online)
KSL buys another nine parcels of Johor land for RM177mil
KSL Holdings Bhd has acquired nine parcels of freehold land measuring 74.72 hectares in Johor Bahru for RM176.94 million. This comes just eight days after it proposed the purchase of two parcels of leasehold land measuring 47.74 hectares for RM133.59mil. Two of its wholly owned subsidiaries are buying three parcels and six parcels respectively. The group plans to use the land for landed property development and further enhance its presence in the property market in Johor. (The Edge Markets)
Pasukhas bags RM41.3mil job from Paramount
Pasukhas Group Bhd has bagged construction works worth a combined RM41.3 million from Paramount Property Construction Sdn Bhd for a hotel and serviced apartments in Shah Alam, Selangor. The project includes a five-storey car park, a 14-level block of serviced apartments of 389 units, a 14-level block of hotel with 240 rooms and a taxi stand with roofing. The superstructure works for the hotel is expected to be completed by Feb 15, 2019, while the serviced apartments are expected to be completed by end-November 2019. (The Edge Markets)
Country Garden records double net profit, upbeat on Malaysia project
China’s Country Garden Holdings Co Ltd said annual core profit doubled to a record on robust domestic sales and was hopeful about a high-profile property project in Malaysia despite a sharp drop in sales to mainland Chinese buyers. Country Garden’s core profit, which excludes non-recurring income and revaluation gains, grew to 24.7 billion yuan ($3.9 billion) on a 48% surge in revenue. Development on its Forest City mega project will not slow down this year, and the developer also said it hopes to capitalise on what it expects will be government efforts to promote the development of long-term property leasing. (NST Online)
Scale model of the Forest City Golf Resort (Photo from Estate123.com)
Govt to implement redevelopment of old houses, minister says
The government through the Urban Wellbeing, Housing and Local Government Ministry (KPKT) will be implementing the redevelopment of old houses for the comfort and benefit of the people in the country, says its Minister Tan Sri Noh Omar. A new legislation and a special body would be created to ensure the smooth redevelopment of the houses involved. (Malay Mail Online)
Image from Cuckoo
Cuckoo Electronics to build RM100mil factory in Malaysia
South Korea’s home appliance maker, Cuckoo Electronics Co Ltd, plans to build a RM100 million factory in Malaysia to produce water purifier products. The expansion of its manufacturing to Port Klang, Selangor, will bridge the demand gap due to the rapid growth in Southeast Asia’s rapid growth with its huge potential market, apart from trimming its transportation cost. It is currently checking out potential properties and carrying out a feasibility study for the venture. The company is also planning to build two other factories in Indonesia and India to meet the increasing rising demand. Currently, it has two plants located in Yangsan and Siheung, South Korea. (NST Online)
