Datuk Anthony Adam Cho, JP (AAC), Branch Chairman of the Real Estate & Housing Developers’ Association (REHDA) Malacca and Ho Chin Soon (HCS), Chairman of Ho Chin Soon Sdn Bhd share with iProperty.com the appeal of these two Southern states.
The retail market in Malacca is expected to remain resilient, according to C H Williams Talhar & Wong Property Market 2016 Report.
What does this positive sentiment mean for the commercial property market in Malacca?
AAC: Office units may be “oversupplied” in certain locations. Nevertheless, if the supply is in growth areas, the market is still good. There is a lot of potential for shopping malls and retail outlets as the tourism market in Malacca is strong, with a lot of room to grow. The state sees a high volume of tourists, especially during the school holidays and long weekends.
Newly completed malls include The Shore Shopping Gallery, located along the Malacca River Cruise route and the Freeport A’Famosa Outlet Malacca, which houses a variety of designer brands and fashion items.
As long as Malacca remains a tourist hotspot, the office spaces and retail lots will be filled up. This is definitely achievable; according to the Tourism Promotion Division, the number of visitors to Malacca has doubled since 2008, to 14.31 million in 2014, whilst tourist receipts increased from RM3.8 million in 2008 to RM 10.9 million in 2013.
The Malacca State Government recently signed an MOU with Zhu Xiaodan, the Guangdong Province Governor to construct a Maritime Industrial Park, the Guangdong-Malacca Industrial Estate, a deep-sea port in Malacca and construction/provision of land-use areas for purposes of trade and commerce. There are also plans to extend the Batu Berendam Airport.
How does it affect the property market in the future?
AAC: With these foreign investments coming into Malacca, properties will continue to attract buying interest especially in new growth areas. Overall, Malacca’s property market remains promising because there is actually a lack of supply for non-Bumiputera residential units as the quota for Bumiputera houses is as high as 60%.
On top of that, the incoming foreign investment will definitely generate new job opportunities, which will, in turn, create further demand for housing in the state by both locals and foreigners.
Ayer Keroh in Malacca will be one of the stations of the upcoming High-Speed Rail (HSR).
How will this affect property prices in Malacca in the future?
AAC: Malacca has seen a steady increase in land prices over the years. With the HSR having a stop in Malacca, we will see tourism growing at even more rapid pace especially around the Air Keroh, Krubong, Durian Tunggal and Gapam areas.
Furthermore, as the house prices in Seremban have increased tremendously in the past few years, Malacca will be the next “suburb” option for those who work in Klang Valley as they can commute via the HSR. There will be a growing demand for residential properties in the area and this would cause an increase in property prices down the road.
There was an amendment to the state’s housing policy in June 2015, where the 30% low-cost housing policy was abolished and replaced with 50% affordable housing components (15% priced below RM80,000, 15% between RM80,001 to RM250,000 and at least 20% between RM250,000 to RM400,000). Also, the Bumiputera quota was raised from 30% to 50%.
How will this affect the residential property market in Negeri Sembilan?
HCS: Some developers are not adversely affected as their existing customers are predominantly Bumiputeras. This is because their projects and land banks are located in areas where Malays are in the majority and are near to or next to Malay Reserve Lands.
How will it affect the Malaysian Vision Valley Project in Negeri Sembilan, which is to be 80% driven by the private sector?
HCS: The Malaysian Vision Valley(MVV), which will be in western Negeri Sembilan encompassing Nilai, Seremban and Port Dickson was an idea inspired by the Sime Darby’s Vision Valley. It was a pet project of Dato’ Wahab Maskan, which has now evolved into a National Project or a federal initiative. As announced by the Prime Minister’s department in November last year, the proposed mega project is expected to generate total investments of more than RM417.6 billion by 2045. Thus, the project is promising and I do not foresee any hiccups in the pipeline.
The key factors in favour of the project are the HSR Link and the Locational Centre of Gravity for Greater KL heading southwards where MVV is located, and it will complete the development of Greater KL.
Labu, about 17km from Seremban, will be one of the stops for the proposed high-speed rail link (HSR) between Singapore and Kuala Lumpur.
How will this affect the property prices in Seremban?
HCS: According to Google Maps, the HSR station in Labu is about 8-10km away from Seremban’s central business district. Expected developers to benefit from this proximity would be Sime Darby Property, Matrix Concepts Bhd, a Sarawakian developer and several other smaller players; all which have ongoing or upcoming developments in the locality.
The aerial picture below indicates all the developments that are poised to benefit from the HSR project:
The commute from the proposed Labu station to the Bandar Malaysia station in Sungai Besi will take approximately 20 minutes. From here, commuters can switch to the integrated MRT Line 2 to get to Bukit Bintang, which is only 4 stops away!
This goes to show that the daily commute to KL’s city centre from Labu/Seremban/Nilai and the surrounding areas will be extremely convenient for working professionals. Thus, the growth in demand for residential properties in these areas is inevitable, which may cause property prices to increase in the future.
This article was first published in the iProperty.com Malaysia April 2016 Magazine. Get your copy from selected news stands or view the magazine online for free at www.iproperty.com.my/magazine. Better yet, order a discounted subscription by putting in your details in the form below!