RM20 billion worth of residential property overhang in H1 2020

According to the Property Market Report H1 2020, the residential property overhang situation in the first half of the year worsened to nearly 32,000 units valued at RM20 billion, up to 3% from the number of overhang units as at end-2019. Deputy Finance Minister II Mohd Shahar Abdullah said the primary residential property market had been impacted given that only about 13,000 units of new residential properties were launched. Property sales were also week at below 5%. The property subsectors, comprising residential, commercial, industrial, agriculture, and development land, contracted between 25% and 37% during the period under review. Mohd Shahar said the residential subsector drove the market, accounting for over 65% of total transactions. He called on developers and the authorities to consider the property overhang data when planning new development projects. This is to ensure that residential offerings are in tandem with demand and that the supply-demand mismatch is minimised. (NST Online)

Klang Valley warehouse rental rates remain attractive

Klang Valley remains attractive in terms of warehouse rental competitiveness among neighbouring key urban areas in the region. Knight Frank Malaysia capital markets executive director Allan Sim said this was due to integrated ecosystem of accessible skilled labour, talent and investor-friendly policies with favourable tax structures and attractive government incentives. “These help to put Malaysia at a competitive advantage among its neighbours in attracting multinational businesses that are diversifying their global supply chain and manufacturing operations to the region,” he said. The property consultancy has released its Asia-Pacific Warehouse Review which tracked prime warehouse rents across 17 key cities. Sim said various incentives unveiled under the RM35 billion short-term Economic Recovery Plan (Penjana) would help encourage more FDI flows. Meanwhile, the report highlighted that market conditions for 16 of the 17 cities tracked were expected to remain stable or improve over the next 12 months. (NST Online)

MCT to launch projects worth over RM1b GDV in 2020

MCT Bhd is planning to launch more new projects worth over RM1 billion GDV in the remaining of 2020. Following the recent launches of Casa Bayu @ Cybersouth and PR1MA Shops in Lakefront @ Cyberjaya, MCT is gearing for more new launches namely Aetas in Damansara and Alira in Subang Jaya in 2020. “Our group’s strategies remain focused on the affordable to mid-tier residential market in the Greater Klang Valley Region with a high population catchment, where transport links and public facilities are well provided for,” said MCT CEO Teh Heng Chong. As at FY2019, the group holds 317.3 acres of landbank, which 258.5 acres has allocated for future developments. (The Edge)

Only 1.8 million Malaysians responded to e-census 2020

Only 1.8 million Malaysians have completed the Population and Housing Census 2020 (Census 2020) online or e-Census since it was implemented on July 7, said the Chief Statistician of Malaysia, Datuk Seri Mohd Uzir Mahidin. He said the number was still below the target of 30% or about 9 million of the Malaysian population of 32.7 million people. Mohd Uzir, who is also the Commissioner for Census 2020 said of the total census received so far, several states showed an increase namely in Putrajaya which recorded more than 40% while Perak (over 10%) and Johor (about 8%). However, states on the east coast such as Kelantan and Terengganu are still low at about 2%. The first phase of the national census from July 7 to Sept 30 is done through e-Census, while the second phase from Oct 7 to 24, will be using the face-to-face interview method. (The Sun Daily)

Non-citizens entering M’sia to bear full cost of quarantine

Non-citizens entering Malaysia via the country’s international gates from today will have to bear the entire cost of their 14-day mandatory quarantine, said Senior Minister (Security Cluster) Datuk Seri Ismail Sabri Yaakob. “Non-citizens will have to pay the full charges without the government’s subsidy at the rate of RM4,700. (RM2,600 for the operations fixed charges and RM2,100 for the cost of accommodation). For the second and third person who are sharing a room with the first individual, the cost of accommodation is RM700 while children, aged six and below can stay for free,” he said. As for Malaysians, the government has decided to maintain the subsidy for the cost of quarantine. “They will only have to pay RM2,100 for the cost of accommodation as set earlier, while the cost of operations at RM2,600 will continue to be borne by the government,” he said. (NST Online)