Stabilising property market in Malacca

Stabilising property market in Malacca

According to the Ministry of Finance’s Valuation and Property Services Department’s Property Market Report 2014, the prospect of Malacca’s real estate industry is anticipated to remain positive with prices of properties expected to firm up.

One long term mega project which would entail excitement in the property industry is the 246-hectare Melaka Gateway. This project with 12 precincts includes residential, commercial, cultural, entertainment, and lifestyle elements. The project is expected to be fully completed in 2025. Upon completion, its marina terminal will be the largest in Asia.

On the shores of Pulau Melaka, we can expect a new landmark that is being developed. The Harbour City is a mixed development with a water theme park that is expected to have elements of thrilling rides and multi-storey slides. There will also be retail and entertainment elements, together with an international hotel, serviced suites, and resort.

In a move to address traffic congestion from Ayer Keroh to the city centre, the Federal Government had approved the development of two new flyovers, one at Malacca International Trade Centre (MITC) and the other at the Tun Ghafar Baba Interchange in Peringgit. These flyovers are a part of road upgrading projects that will cost RM2 billion and are expected to take four years to complete.

The state had recently added another feather in its leisure segment with the recent launch of a premium outlet, the Freeport A’Famosa Outlet Village, located next to A’Famosa Resort in Alor Gajah, which offers a variety of designer brands and fashion items.

In the housing segment, several PR1MA housing projects have been balloted, while others are expected to be coming soon. For example, PR1MA @ Malacca Tengah 1 and 2 Zones have already been balloted. Coming soon would be developments such as PR1MA @ Padang Temu, Malacca Tengah Zone.

Generally, prices of residential property have remained stable, with mixed movements noted in several locations. Single storey terraces generally fetched between RM110,000 and RM170,000 per unit, with a higher range of more than RM200,000 recorded in selected neighbourhoods of Malacca Tengah. As at Q4 2014, the All House Price Index for the state stood at 173.6 points, increased from 169.9 points in Q4 2013.

The residential rental market was on a stable trend with exceptions in several locations. Rental of single storey terraces in Malacca town generally fetched between RM350 and RM550 per month. Similar units in Taman Merdeka, Malacca Tengah, recorded a 22.1% rental increase due to its proximity to industrial areas. Higher institutions such as Multimedia University and Bukit Beruang Community College pushed up rental by 25.0% in Taman Air Keroh Heights.

CHAN AI CHENG
• General Manager, S. K. Brothers Realty (M) Sdn Bhd
• Registered Estate Agent with the Board of Valuers, Appraisers and Estate Agents Malaysia
• Certified Residential Specialist, NAR USA • Certified International Property Specialist, NAR USA
• Registered Financial Consultant, IARFC
* For feedback on this article or any other comments, please email aicheng@skbrothers.com.

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