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Liz Lee

The Star

Publication Date : 08-03-2013

The Economic Transformation Programme (ETP) will continue to attract both local and foreign investor interest to the Malaysian property sector, said Performance Management and Delivery Unit (Pemandu) chief executive and minister in the Prime Minister's Department Idris Jala.

Catalysts to pull in the investments include the improved urban public transportation and Entry Point Projects such as the Mass Rapid Transit (MRT), he said.

“The property landscape will continue to flourish with more jobs created, increased property development and enhanced gross national income (GNI) for the country,” shared Idris at the Malaysian Annual Real Estate Convention 2013.

He added that while private investments had tripled since the start of the ETP from 12.2 per cent in 2011 to 22 per cent last year, the country's GNI had also risen 49 per cent in three years. Government revenue also increased to a record high of 207 billion ringgit (US$66.5 billion) in 2012.

“I am convinced that the property sector will attract interest with many new exciting developments that will help expand our economy,” he said.

On a separate note, Idris said that real estate agents needed to brace themselves for buyers becoming more selective and demanding of certain features in their homes.

“My view is that buying trends are changing to be more sophisticated,” he said, “Those who win are those who have unique customer value propositions to cater to the demand for certain functionalities and aesthetic features.”

He also said that as income per capita rose to $15,000 by 2020, it would have a positive impact on the real estate business, especially in cities, noting that by then, 70 per cent of the local population would be in urban centres.

On other mega trends in the property sector, Idris said demand for city-living would continue to rise in line with demand for high-rise buildings and apartments.

“Public transport will be key to liveability in city hubs, as otherwise, the city would be choked by the increasing number of cars,” he said.

Addressing the issue of illegal real estate agents, Idris said that it was important to ensure the relevant authorities were enforcing the standards set to regulate the industry.

“My team will discuss with the Malaysian Institute of Estate Agents and relevant parties to improve the enforcement,” he said.

Real Estate and Housing Developers' Association president Datuk Seri Michael Yam said in his presentation that apart from the rising income per capita, catalytic ETP projects and better infrastructure driving Malaysia's property sector last year, “the stable gross domestic product at 5.6 per cent and low unemployment rate of 3.2 per cent (also) contributed to the favourable market”.

In a separate session on future growth areas around the Klang Valley, Ho Chin Soon Research director Ho Chin Soon said the market should keep its eyes peeled on the next MRT lines.

“When people ask me where the hot spots were, I say follow the infrastructure,” he said, pointing to the highways, LRT, MRT and high-speed rail lines. “And speculate on the MRT circle line and Putrajaya line.”

Ho said the clue to the circle line was revealed when the Prime Minister officially launched the first MRT Blue Line or the Sungai Buloh-Kajang line.

“There was a glimpse (into where the lines might be) and we can deduce where the circle might be,” he said, noting that areas like Sentul, Kampung Baru and the Tun Razak Exchange had been highlighted.

“Bandar Baru Selangor all the way to Putrajaya could be the third line,” he pointed out.

Ho said: “When they punched a hole through the Penchala Link tunnel, the value flowed from Mont Kiara to the previously quiet surrounding areas.”

CIMB Research recently noted that the next MRT line was likely to be a circle line and that plans for this may take off this year-end.

Ho also foresaw that with the high-speed rail, migration to urban areas could slow down.