Another post extracted from CH Williams Tahar & Wong:
This is published in 2004 but I find it useful for those who are interested in real-estate, Malaysia
Selangor & Kuala Lumpur 2003 Events/Announcements
- January 2003 - The closure of the Jalan Kuching toll gates brought a great relief to motorists in January 2003. The 16-lane toll plaza was built after the flyover at the Jalan Ipoh/Kuching interchange was opened in 1986
- The concessionaire for the 25 km Guthrie Corridor Expressway (GCE) from Batu Tiga in Shah Alam to Kuang announced in January 2003 that the RM386 million expressway will be completed in the 3rd quarter of 2004. The GCE will form the western link of the Kuala Lumpur outer ring road and complement the North-South Expressway in Rawang. In an announcement made in July 2003, Kumpulan Guthrie plans to sell its interest in the GCE in order to focus on its core business ie plantations and property development.
- January 2003 Announcement - Work on the RM140 million project to upgrade and align the stretch of road from Jalan Duta to Jalan Segambut is expected to be completed in 2005.
- The RM450 million Penchala Link connecting the LDP at Sg Penchala to Mont Kiara is expected to be opened in 2004. The 5.5 km link which includes a 710 metre six-lane tunnel is the final phase of the Sistem Penyuraian Trafik KL Barat (Sprint) Highway.
- The long-awaited Shah Alam Public Transport Terminal project on a 40 hectare site in Section 13 Shah Alam was approved in April 2003. The new RM10 million project will be the nerve centre for Shah Alam located adjacent to the existing Makro hypermarket.
- The RM3 billion 37 kilometre SILK Highway connecting Balakong through Bandar Sg Long, Jalan Semenyih, Sg Chua, Sg Ramal and Saujana Impian is expected to be completed in April 2004.
- The flash flood that hit the Federal Capital in June 2003 led to the government’s decision to proceed with the Storm Water Management and Road Tunnel (SMART) to alleviate the recurring flood problems in Kuala Lumpur and also ease traffic congestion. The construction of RM2.5 billion SMART tunnel is underway in Sg Besi and is expected to be completed in 2006. On completion it will span 9.7 kilometres and will include the construction of holding basins or retention ponds.
- The KL Monorail Mass Rapid Transit System was commissioned on 31st August 2003. The RM1.8 billion project runs through from Titiwangsa to KL Sentral via Medan Tuanku, Raja Chulan, Imbi, Maharajalela before heading to KL Sentral in Brickfields.
- September 2003 Announcement – the RM1 billion New Pantai Expressway (NPE) will be the 3rd direct link between Kuala Lumpur and Petaling Jaya. The 19.6 kilometre intra-urban highway running on an east-west alignment starts at Jalan Tujuan in Subang traversing through Bandar Sunway, Jalan Kelang Lama, Jalan Templer and onto Pantai Dalam to Jalan Bangsar. The stretches involved the relocation of almost 2,000 squatters who are being relocated to alternative housing in Pantai Dalam under the highway construction contract. The NPE is expected to be completed in early 2004 and toll collection to commence in June 2004.
- Work on the 2.5 kilometre Rawang Bypass from Jalan Ipoh to Rawang commenced in 2003 and is expected to be completed in 2004.
- Construction on the RM60 million 2.8-kilometre Mahameru Elevated Highway commenced in 2003 and is expected to be completed in 2005
The closure of the NKVE Bukit Lanjan interchange, as a result of a landslide in December 2003, marked a milestone that also indicated that the transportation infrastructure system in the Klang Valley needed a boost. Infrastructural projects presently under way and slated for completion in 2004 / 2006 are:
- Penchala Link
- SILK Highway
- New Pantai Expressway
- Rawang Bypass
- Mahameru Elevated Highway
- Guthrie Corridor Expressway (GCE)
In 2003, the corporate headquarters for Malaysian operations of oil & gas companies, Shell and ExxonMobil underwent ownership changes. Bangunan Shell was sold by tender, and Pernas International Holdings Bhd sold its stake in Menara ExxonMobil to KLCC (Holdings) Bhd.
In September 2003, I&P Bhd announced a rationalisation exercise involving Golden Hope Development (GHD) and SPPK to enable I&P to streamline the operations of the I&P Group and to enable it to focus on its existing core business activities i.e. property development. Both GHD and SPPK are principally involved in the property development business.
Major property launches/transactions in 2003 include
- January 2003 Announcement: Bandar Raya Developments Bhd proposed to purchase three pieces of freehold land adjacent to Mont Kiara for RM33.15 million for a condominium and townhouse project.
- January 2003 Announcement that Jaya Jusco Stores Bhd has acquired 17.5 hectares of land in Kepong from Magna Park Sdn Bhd and City Hall for RM36.07 million. The land will be used to develop a RM60 million shopping centre
- February 2003 disposal of 51% interest in Arena Johan Sdn Bhd (owner of Menara Exxon-Mobil), a wholly owned subsidiary of Pernas International Holdongs Berhad to KLCC Holdings Berhad at a consideration of RM282 million
- April 2003 Announcement – KPJ Healthcare Bhd acquired three parcels of land (approximately 3 acres) for RM28.271 million to build a new hospital. KPJ is relocating its existing Hospital Tawakal to the new site located adjacent to the current location at Jalan Pahang.
- April 2003 Announcement – In a move to replenish its landbank in prime areas, Island & Peninsular Bhd proposed to acquire 22 hectares of leasehold land for RM46.1 million in Bukit Jalil.
- April 2003 Announcement that Metacorp Bhd acquired Bangunan Shell Malaysia located in Damansara Heights for RM79 million under a tender exercise
- Wisma Setia 2, a 13-storey building together with 168 car parking bays, was sold in April 2003 to Permodalan Nasional Berhad, at a price of RM57.52 million or RM451 per square foot
- May 2003 Announcement – KL Kepong Bhd has proposed to acquire 995.5 acres of freehold land for RM136.47 million. The acquisition would give KL-Kepong a strategic landbank with good potential for property development. The site, Bukit Darah Estate is located on Jalan Kuala Selangor and is expected to enjoy better accessibility when the Guthrie Corridor Expressway (GCE) is completed.
- June 2003 Announcement – Advance Synergy Capital Bhd (ASC) purchased land and other assets for RM29 million from the Lion group’s land and building in Shah Alam. The land accommodates a 4½-storey office building (Suzuki Building) and a single-storey Silverstone Building located in the Lion Industrial Park in Section 22 Shah Alam. The acquisition was made to centralise the ASC bus transportation operations under its existing core business by making use of the premises to design, build, deploy and maintain buses
- In June 2003, a 3.7 acre leasehold site on the Federal Highway was purchased by Idaman Harmoni Sdn Bhd (subsidiary of Mega First Corp Bhd) for RM18 million.
- July 2003 Announcement – Selangor Dredging Bhd has proposed to acquire 9.2 hectares of freehold land in Taman Melawati for RM21 million. The acquisition is said to enable the company to expand further into property development activities.
- July 2003 Announcement – Bandar Raya Developments Bhd purchased 3.13 acres of freehold land for RM17.1 million. The sites include:
- 1.78 acres of residential development land in Taman Ulu Gombak for RM4.6 million
- 33,200 sq ft of land within Ukay Heights in Ulu Klang for RM3.3 million
- 25,500 sq ft site in Langgak Golf for RM9.2 million.
- Glomac Bhd’s quest for increasing its landbank was announced in August 2003 when it proposed to buy 80 hectares of land in Ijok, Kuala Selangor for RM34.3 million from Izasaja Sdn Bhd.
- October 2003 – Lien Hoe Corporation Bhd disposed its subsidiary, Atria Property Sdn Bhd (owners of Atria Shopping Centre, a 4-level shoping complex with annexed carparks) for RM101 million
- October 2003 Announcement that SP Setia Bhd has acquired a 13 acre parcel of freehold land for RM48.22 million in Sri Hartamas.
- Seri Tegamas, a wholly owned subsidiary of Crest Builder Holdings Berhad has purchased an industrial land at Section 19 for RM30.4 million (or RM126 per sq ft) in October 2003
- November 2003 Announcement that Kris Components proposed to purchase 99.54% stake in Mid Valley City which owns Mid Valley Megamall. This proposal is still subject to approvals by relevant authorities
- December 2003 KLSE Announcement on the proposed purchase of The Mines Shopping Fair at RM325 million, The Mines Waterfront Business Park at RM100 million and The Mines International Exhibition & Convention Centre at RM230 million.
- High-end residential launches took the lead with regard to new residential projects in 2003:
- Stonor Park by Beneton Properties offering 142 condominium units
- Mont Kiara Aman by Sunrise Berhad offering 345 condominium units
- Bungalow lots within Mutiara Damansara by Boustead Holdings Berhad
- HighBank Condominiums in Federal Hill (Bukit Persekutuan) by Tan & Tan offering 80 units
- Sutra Bukit Tunku by Sunrise Berhad
- Damansara Idaman’s exclusive bungalow enclave
OFFICE
The office sector continued to perform well in 2003 with an overall occupancy rate for Klang Valley improving from 78% in 2002 to 81% in 2003. Office space in Kuala Lumpur Central Area (KLCA) remains popular with occupancy rates achieving 83% compared with only 78% recorded in Kuala Lumpur Metropolitan Area (KLM). KLCA supplies almost 60% of 58.8 million square feet office space in Klang Valley. Only one office building was completed during the year, namely PNB Lot 1406 at Jalan Raja Laut. Another 665,000 square feet is expected to enter the market in 2004, contributed by Menara Marinara, Menara Axis and Yayasan Tun Razak.
The take-up rate for office space in Klang Valley is approximately 2.03 million square feet in 2003; almost similar to the amount of space taken up in year 2002. Approximately 96% of the space taken up is within KL. Movements of occupiers were mainly government offices and subsidiaries of companies to their own buildings such as Vision City Tower 2, Maju Perdana and TH Perdana in KLCA and Menara Telekom and Dataran Maybank in KLM.
Transactions of office buildings were more active in 2003 compared with 2002 and these transactions include:
- In April 2003, SPPK sold Wisma Setia II, in the Damansara Business District (DBD), together with its anchor tenant, KPMG to Permodalan Nasional Berhad at a consideration of RM57.52 million
- The disposal of 51% interest in Arena Johan Sdn Bhd (owner of Menara Exxon-Mobil), a wholly owned subsidiary of Pernas International Holdings Berhad to KLCC (Holdings) Berhad at a consideration of RM282 million in February 2003
- Bangunan Shell was sold to Exclusive Skycity Sdn Bhd, a subsidiary of Metacorp Berhad at RM79 million in April 2003. The building has a net lettable area of 213,000 square feet and 326 car parking bays. The sale is with a leaseback to the existing tenant.
- In June, Wisma Amsteel, Klang was sold to Selangor and Kuala Lumpur Teo Chew Association at RM23.4 million or approximately RM200 per square foot.
- In September, unsold units totalling a net lettable area of 155,224 square feet in Wisma Massalam, Shah Alam was sold at a consideration of RM48.52 million to ABS Land Properties Bhd as a part of a proposed fund raising exercise by Sunway Holdings Incorporated Berhad.
- In November, Wisma Perdana at DBD, an 11-storey building with a net lettable area of 92,183 square feet changed hands at a price of RM36 million to subsidiaries of Selangor Properties Berhad.
- In December, Amanah Raya Berhad bought Kompleks Kelana Centre Point Tower 3 from a subsidiary of Glomac Berhad for a consideration of RM50 million. The building has a net lettable area of 118,574 square feet and was previously occupied by Ericsson. Ericsson has moved its operations to Cyberjaya in early 2003.
KLCA office buildings remained the preferred address as reflected in its high occupancy rates compared with decentralised office locations in the Klang Valley. Grade Premium A and Grade A offices particularly recorded respectable occupancy rates of about 85%. Rentals achieved averaged from RM4.50 to RM6.00 per square foot. Upgrading and refurbishment works were being carried out at Wisma Perdana and Menara Prime. Megan Ambassy, along Jalan Ampang which was planned for office has seen a change in use i.e. it has been converted to hotel suites (operated by Holiday Villa Kuala Lumpur). Similarly, the Tri-Star project at Jalan Tun Razak is being changed to serviced suites to be known as Golden Avenue. In the city centre, City Properties Management, the developer of Avenue-K, has announced a change in use of one of its two tower blocks. Its 43-storey tower has been converted from office to serviced suites (to be known as K-Residence) and will be launched in 2004.
RETAIL
Despite the looming sentiment that the retail sector in the Klang Valley is saturated, the sector has not been void of new developments in 2003. The retail space grew from 23.76 million square feet in 2002 to 26.93 million sq ft by end of 2003 with the bulk of the new supply contributed by the completion and official opening of Berjaya Times Square (2.1 million sq ft) at Jalan Imbi and One Utama 2. The competion of One Utama 2 as well as Ikea, Tesco and Ikano Power Centre (and the Curve in 2004) at Mutiara Damansara, PJ would provide Klang Valley residents an alternative shopping destination to KL which traditionally accounted for more than 70% of the total retail space in the Klang Valley.
2003 also saw the continued expansion of Jaya Jusco, Giant, Carrefour and Tesco in the Klang Valley with the opening of new outlets or purchase of new sites. This includes Tesco stores at Mutiara Damansara, PJ and Bandar Bukit Tinggi, Klang; Carrefour at Plaza 393 in Cheras and Giant at Bandar Bukit Tinggi, Klang. Giant and Jaya Jusco each purchased a site at Kelana Jaya and Kepong respectively for their new outlets.
Additionally, IKEA which was occupying approximately 81,500 square feet in 1 Utama moved to its own premises in Mutiara Damansara. This Ikea Store, which occupies 385,000 sq ft and is reputedly to be the largest in Asia, was officially opened in August 2003. Subsequently, Ikano Power Centre which adjoins Ikea opened in December 2003. Its 420,000 sq ft complex houses Aussino, Harvey Norman, ACE, Padini, Citadium Sports, Cold Storage, Popular Bookstore and Pet Safari.
The space formerly occupied by Ikea in 1 Utama was eventually wholly taken up by Jaya Jusco’s furnishing department and a car centre. It was officially opened in December 2003.
In One Utama 2, Parkson-U and Giant are the anchor tenants. The complex is reported to have secured tenancies for approximately 70% of its available space.
Times Square’s soft opening was in October 2003. Reputed to be the largest mall in Asia with 2.1 million sq ft retail space, it houses a functional amusement park operated by Cosmo’s World and a newcomer, British based anchor tenant, Debenham’s.
Other projects include:
- A commercial centre announced for Bukit Jelutong in Shah Alam - sprawled over 80 hectares within the 800 hectare township, the centre will comprise a mosque, retail complex, bowling centre, cinemas and offices to cater for the needs of the Bukit Jelutong township
- The Selangor Economic Development Corporation and Ikaz Engineering (subsidiary of Sunway Mas) proposed that Bangi will go commercial with the development of Bangi Town Centre (BTC) which will form part of the 70-acre commercial parcel. On completion it will comprise shopoffices, a 4-storey mall, a 20-storey office tower and shop apartments adopting Singapore’s Bugis Street as its main theme. It is expected to be completed in 2008.
- Dataran Ara Damansara (by developer Sime UEP) was launched in 2003. It is the 9.68 acre commercial precinct within the 299 hectare township of Ara Damansara. On completion, it will comprise 96 units of 3-5 storey shopoffices.
The notable transaction of a retail centre in 2003 was that of Atria Shopping Centre, a 4-level shopping complex with annexed car parks, in October 2003. Lien Hoe Corporation Berhad disposed its subsidiary, Atria Property Sdn Bhd (owners of Atria Shopping Centre) for RM101 million.
HOTEL
The impact of the war in Iraq and the unexpected SARS outbreak in East Asia brought occupancy rates to a low 50% in the middle of the year. With the aggressive promotions conducted by the Ministry of Culture, Arts and Tourism Malaysia both locally and internationally since early 2002, occupancy rates of Klang Valley hotels improved drastically by end of the year to an average of 70%. 4 and 5 star hotels performed better than 3 star hotels due to competitive and cheaper tariffs offered by these hotels and the growing confidence amongst tourists in this part of the world. In 2003, KL played host to the 13th NAM Summit in February and the 10th OIC Summit in October.
The cumulative supply of hotel rooms in Klang Valley in 2003 is 26,285 rooms provided by 85 hotels. KL contributes 76% of the total supply out of which 69% offered 4-star and 5 star accommodation.
Only two hotels were completed in Klang Valley, namely The Westin in the famous Bukit Bintang area and The Residence Hotel, off Jalan Raja Laut. Both hotels are located in Kuala Lumpur and provide a total of 436 rooms. Prince Hotel opened 148 additional rooms, having first launched in 2002 while The Westin offered its first 288 rooms in September 2003.
Mutiara Hotel Kuala Lumpur also completed its refurbishment works, soft launching 105 rooms in mid 2003 and was fully opened by year end. Wentworth Hotel, closed in 2001, re-opened during the second half of 2003 offering 265 rooms. Four more hotels in various stages of construction will further add supply to the 4 and 5 star hotel rooms; these are Hilton KL Sentral, Le Meridien both of which are in KL Sentral development, the new 4 star 580 room hotel, Traders Hotel (Shangri-La Hotels and Resort Group’s second brand), at the Kuala Lumpur Convention Centre at KLCC and Sunway Pyramid Tower Hotel at Sunway City. The former Holiday On The Park is also under refurbishment; it was earlier sold to Petronas Retirement Benefit Fund in 2002.
The supply of serviced apartments in Kuala Lumpur is set to increase with the launch of projects such as MARC Serviced Apartments, adjoining the existing The Ascot at Jalan Pinang; and Seri Bukit Ceylon at Changkat Raja Chulan. Both will be under the management of the Ascot Group Ltd.
Average room rates for 5 star and 4 star hotels in Klang Valley have improved slightly at around RM200 and RM120 per night respectively by end of 2003 while 3 star hotels’ average room rates remained stable.
RESIDENTIAL
Coupled with low interest rates, attractive mortgage loan packages and confidence in the economy, the residential sector continued dominate the Klang Valley market with new launches. Of the known launches in 2003, 44% of these units comprise landed residential units out of which almost 80% of these units are situated within the Klang Valley region.
Notable launches include :
- Within the KLCA, KLCC (Holdings) Bhd launched its 168 unit luxury condominium units at KLCC.
- In April, 142 units of condominium known as Stonor Park was opened for sale by Beneton Properties offering two layouts at 2,314 square feet and 3,326 square feet priced from RM1 million.
- In Mont Kiara, a new condominium project by Sunrise Berhad, Mont Kiara Aman comprising 345 units with average floor area of 1,668 square feet, is priced at RM420 per square foot.
- HighBank Condominiums, Sri Bukit Persekutuan developed by Tan & Tan is a low-rise, low density apartments with large built-up areas of 1,811 to 3,574 square feet for standard units and 5,231 square feet and 9,408 square feet for penthouses. The price for standard units starts from RM450 per square foot.
- Mutiara Damansara has also launched its bungalows known as Phase 1B1 and 1B2 comprising 58 units double storey bungalows priced between RM1.55 million to RM1.8 million
- Sunrise Berhad also launched its Sutra Bukit Tunku in October 2003, offering 24 units of 3+1 and 4+3 bedrooms with floor areas ranging from 2,929 square feet to 4,111 square feet priced at RM578 to RM623 per square feet for standard unit
- Bandar Utama Development has successfully sold almost 200 units of their latest 2½ storey terraced houses at BU6 priced at minimum RM588,000 for a 22’ x 75’ with built up area of 2,885 square feet. These units were sold on a “build and sell” concept i.e. with Certificates of Fitness For Occupation .
- Sunway Rahman Putra, a 27.5 acre development within the Rahman Putra Golf and Country Club, was launched in middle 2003. It comprises 41 double storey bungalows and and 112 superlink courtyard homes with built-up from 3,400 sq ft which are priced at RM1.3 million to RM1.9 million and from RM657,000 to RM1.1 million respectively.
- Desa Parkcity launched its Adiva Courtyard Homes (78 parkhomes, 66 courtyard terraces and 16 courtyard apartments) at prices of ranging from RM272,000 to RM928,000.
- Damansara Idaman, near the Tropicana Golf & Country Club, is an exclusive bungalow enclave was first launched in December 2003. Each bungalow would have land areas between 8,000 to 11,000 square feet with built up area of 5,500 to 6,300 square feet and are priced from RM2.2 million.
Improved accessibility within the Klang Valley area seems to play an important role in the development and success of new growth areas. These are evident looking at developments that are being created particularly along highways such as the LDP, SPRINT and Guthrie Corridor Expressway (GCE), et cetra.
DEVELOPMENT LAND
There were more activities in land sales to developers in 2003 compared with 2002 particularly lands around the KLCC area. Developers appeared to be bullish about luxury condominiums in prime city centre locations and have acquired lands for their high-end residential developments. Others bought these prime lands as part of their landbank.
Commercial land or land with commercial potential within the Kuala Lumpur city centre were transacted at prices ranging from RM375 to RM540 per square foot while prime residential lands changed hands at RM195 to RM360 per square foot.
Residential development lands in the suburban locations are generally sold at prices ranging from RM17 to RM25 per square foot for 20 to 50 acre plots. The Mont Kiara area continued to attract investors with prices achieving between RM60-80 per sq ft for residential development land.
In the greater suburban location, development lands within the Ijok – Sungai Buloh belt and Bukit Jalil also attracted property developers, such as :
- KL Kepong Bhd acquired Bukit Darah Estate in Rawang from The Bukit Darah Company Ltd for a consideration of RM136.47 million in cash. The 398 hectare oil palm estate is located adjacent to KL Kepong’s Ladang Coalfields currently being developed as Desa Coalfields
- In August 2003 it was announced that KUB Malaysia Bhd disposed a 50.86 acre plot at Bukit Jalil to Perumahan Kinrara Bhd for a consideration of RM39.3 million.
- It was announced in July 2003, Worldwide Bhd bought a 124.3 acre land in Puncak Alam for a cash consideration of RM20 million
- Glomac Bhd has acquired a 200 acre plot of leasehold land adjacent to their existing development known as Saujana Utama and Sungai Buloh Country Resort from Izasaja Sdn Bhd for a price of RM34.3 million.
INDUSTRIAL
In tandem with economic growth, the number of approved projects with foreign participation increased by 35.1% from 2002. According to MIDA, foreign investments valued at RM15.638 billion were approved in 2003 compared with RM11.578 billion in 2002; 75.7% of these approved investments are within the industries of basic metal products, transport equipment and electronics & electrical products. Manufacturing industry also expanded from 4.0% in 2002 to 8.2% in 2003 (Department of Statistics, Malaysia).
Transactions of industrial premises were more active in 2003; notable ones include :
- In June, it was announced that Silverstone Corporation Berhad entered into a Sale and Purchase Agreement with Aesbi Power Systems Sdn Bhd to dispose a freehold 15.2 acre site with industrial premises at Lion Industrial Park, Shah Alam at a consideration of RM29 million.
- Wisma Hagemeyer, Jalan Tandang, PJ was also sold in June to Polyrak Molding (Malaysia) Sdn Bhd at RM18.2 million. The building has an approximate built-up area of 175,760 sq ft (with an unexpired term of 54 years) and measures approximately 80,500 sq ft.
- Nine plots of industrial land with a combined land area of approximately 542,670 square feet in Rawang Integrated Industrial Park was sold to Gadang Holdings in July for a consideration of RM8.7 million. In the same debt settlement exercise, 168 factory lots were also transferred to Gadang for a consideration of RM7.62 million.
PUTRAJAYA & CYBERJAYA
Putrajaya is expected to house all government departments and ministries by 2005. Of the five parcels in Precinct 1, four has been developed and occupied while construction of offices for another 10 ministries in Precincts 2, 3 & 4 are in advanced stages of construction. The developer, Putrajaya Holdings Bhd, also announced that 67,000 residential units will be completed in stages by 2012.
Other than Wisma Putra, government buildings that are reported completed in 2003 are Ministry of Finance (MOF), Kementerian Perdagangan dalam Negeri dan Hal Ehwal Pengguna (all in Precinct 2) and Palace of Justice (Precinct 3). The buildings housing Ministry of Agriculture, Immigration Department, Ministry of Domestic Trade and Parcel E Government Complexes, Menara PJH and Menara PJC are still under construction and are expected to complete in 2004/5.
Other buildings completed in Putrajaya in 2003 include:
- Putrajaya Shangri-La in Precinct 1 which was opened in February 2003.
- Alamanda, Putrajaya’s RM300 million (700,000 sq ft) shopping centre is scheduled for opening in 2004. Alamanda is located on a 9.6 hectare site within Precinct 1. The anchor tenant will be Carrefour.
- The RM650 million Putrajaya Convention Centre was handed over to the government in June 2003. The 10,000 seat centre is sprawled over a 51-acre site located in Precinct 5 hosted the 10th OIC Summit in October 2003.
In Precinct 15, work is in progress for the development of 205 acre Putrajaya Diplomatic Enclave (PDE) which comprises 61 embassy lots, office chanceries, townhouses, a town center, an international school and shop-apartments/offices. Presently, twelve countries have already registered interest to move to PDE.
In Cyberjaya, several multinationals (MNCs) have taken up space. These include Ericsson, HSBC, DHL, Shell IT International, Nokia, IBM, Intel, Fujitsu, Microsoft and BMW.
Other MNCs are also looking for sites in Cyberjaya to set up their call / data centres and the response is reported to be favourable.
In addition, two tertiary educational facilities have been set up within Cyberjaya, i.e.
- Malaysian Multimedia University sprawled over 200 acres
- Lim Kok Wing University College of Creative Technology (LUCCT) with a campus sprawled over 17 acres.
2004 Market Outlook
The residential sector itself accounts for over 70% of all property transactions in KL/Selangor, rendering it the mainstay of the property sector since 1997. It is expected to lead the market well into 2004 with the continuing low interest rates and favourable economic climate. The demand and prices for landed residential properties, that continue to flourish along the new arterial highways leading into the city and its regional centres, is expected to increase. Developers of high-end hi-rise residential projects within the city centre will be actively launching units introducing innovative packages and lifestyles.
The continuing demand for any available development land, be it pockets within the city fringes or vast plantation land with close proximity to the new arterial links in the Klang Valley, is expected to be tapped for immediate development.
As rentals for office space stabilise in Kuala Lumpur in 2003; and with minimal new entries into the supply of office space in 2004, occupancy rates are expected to improve. This could lead to an upward pressure on rentals especially in sub-markets where current occupancies are good.
Selected retail centres which are currently enjoying almost full occupancies will continue to do well. The other centres should consider repositioning by making changes to the trade mix or even considering a change of use.
Barring all external factors, that had affected the tourism industry in 2003, the hospitality sector is expected to see improving occupancy rates in 2004. Four new hotels are expected to enter the market in 2004 ie KL Hilton and LeMeridien both located within KL Sentral; Sunway Pyramid Tower & Hotel in Sunway City and Traders Hotel in KLCC.
The general property market outlook for 2004 appears promising due to strong domestic demand (especially for residential properties) and increasing foreign interest.
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