Selangor Eyes Two Million Landed, Strata Ownership In Three Years, Singapore’s Surging Rents To Benefit Johor’s Property Market And, More
4th April – 10th April
The Selangor state government aims to have about two million landed and stratified property holdings or ownership in three years.
Meanwhile, Ir Samuel Tan, Executive Director at KGV International Property Consultants (Johor) Sdn Bhd, believes the skyrocketing rent in Singapore may benefit Johor’s real estate market.
1. Selangor eyes two million landed, strata ownership in three years
The Selangor state government aims to have about two million landed and stratified property holdings or ownership in three years.
This is an increase from the 1.8 million property ownership so far and in line with the various projects currently being implemented, reported Bernama.
Menteri Besar Datuk Seri Amirudin Shari shared that the projects are mostly concentrated within the Hulu Langat, Petaling, Kuala Langat and Sepang districts.
He added that the 1.8 million property holdings made Selangor the state with the highest property holdings within the country.
“This does not include gazetted and reserve holdings specifically under the government’s management either under the state secretary or government ownership,” he said.
2. Singapore’s surging rents to benefit Johor’s property market
Ir Samuel Tan, Executive Director at KGV International Property Consultants (Johor) Sdn Bhd, believes the skyrocketing rent in Singapore may benefit Johor’s real estate market.
“We believe Johor Bahru being the closest neighbour to Singapore will be able to tap some spill-over in terms of business opportunities, investment across sectors as well as a choice of accommodation,” he told the New Straits Times.
In fact, many Singapore-based businesses and manufacturers have “relocated some or all of their operations to Malaysia to capitalise on the lower cost”, he added.
Tan was commenting on a recent report that seven in 10 Singapore firms are prepared to move their expat staff overseas amid soaring rental prices.
Notably, rental prices in Singapore soared at the fastest rate in 15 years in 2022, outpacing some other major cities.
Tan pointed to the upcoming Rail Transit System line as well as the potential revival of the Kuala Lumpur-Singapore High-Speed Rail project as the main draws to the Johor property market.
3. MM2H applicants dramatically declines following tougher conditions
The Malaysia My Second Home (MM2H) programme has seen a significant decline in applications following the introduction of tougher conditions, such as having at least RM1 million in permanent savings and at least RM1.5 million in liquid assets.
Applicants were also required to have an offshore monthly income of at least RM40,000, up from RM10,000 previously.
MM2H Consultants Association President Anthony Liew said the average number of applicants stood at 5,200 per year from 2017 to 2019 but has now plunged to just 10% of that figure, reported Free Malaysia Today.
He attributed the decline primarily to the income and savings requirements, noting that neighbouring countries did not impose such conditions.
And while foreign retirees may have adequate liquid assets, they do not always have enough monthly offshore income to be eligible for MM2H.
Liew noted that there are also fewer agencies helping foreigners apply for the programme since they were unable to sustain their business.
One MM2H consultant, who requested to remain anonymous, said he found it hard to find clients due to the stricter conditions.
“The requirements are too high,” he said. “If the applicants can meet them, they will not choose Malaysia as they have better options.”
4. PR1MA, SCID leverage on IBS tech to meet affordable housing demand
PR1MA Corporation Malaysia has partnered with SANY Construction Industry Development (M) Sdn Bhd (SCID) to leverage on the Industrialised Building System (IBS) technology to construct more affordable homes in Malaysia.
This follows a previous agreement in March 2022, which targets to build IBS factories with a potential investment of up to RM75 million in Malaysia reported the New Straits Times.
PR1MA Chairman Datuk Azrulnizam Abdul Aziz said the partnership will help increase the construction of affordable homes to meet demand from Malaysian homebuyers.
PR1MA and SCID’s strengthened partnership will fast-track the delivery of 12,000 affordable housing units via the PR1MA Mini Township strategic thrust.
The PR1MA Mini Township projects can be found at four locations – Simpang Pulai, Perak; Teluk Intan, Perak; Teluk Kumbar, Pulau Pinang as well as Ayer Panas, Melaka.
The latest partnership will see SCID construct an IBS factory to produce precast components to be used at nearby PR1MA projects.
5. Johor Bahru-Singapore RTS Link project 32.42% complete
Work progress on the Johor Bahru-Singapore Rapid Transit System (RTS) Link project is going well and is now at 32.42% complete, including various components like the stations, depot, marine lines and land lines.
According to State Works, Transportation and Infrastructure Committee chairman Mohamad Fazli Mohamad Salleh, the state government of Johor is dedicated to ensuring that the project will be operational by 2026, reported Bernama.
“To ensure this project development runs smoothly, a task force was set up on October 21, 2020 to help facilitate any matter related to the state government such as land issues and so forth, with PLANMalaysia Johor as its secretariat,” he said.
He shared that the goal is to complete the project infrastructure by December 2024 and for the RTS to be operational by December 2026.
“So far we are running on schedule and the project development is closely monitored by the Ministry of Transport,” added Mohamad Fazli.
Once completed, the 4km RTS Link will resolve some of the travelling challenges facing Malaysians and Singaporeans as the train service could serve up to 10,000 commuters per hour each way.
6. Construction project volume down 6.9% in 2022
Construction Industry Development Board (CIDB) data showed that construction project volume dipped 6.9% to 12,474 projects in 2022 from the 13,399 projects awarded in 2021.
Despite the decline in the number of projects, the total value of projects increased to RM140.5 billion in 2022 from RM129.8 billion in 2021, reported the New Straits Times.
CIDB Chief Executive Datuk Ir Ahmad ‘Asri Abdul Hamid said the lowest total project value was registered in 2020 at RM91.3 billion, a significant decline from 2019’s RM113.4 billion.
He noted that there are still ongoing and new construction projects given that industry players continue to demand more workers.
“The government had recently approved entry for 995,396 foreign workers as of March 14 for all sectors, namely construction, services, manufacturing, agriculture, quarrying and mining and plantation,” shared ‘Asri.
