Market to consolidate in 2014.6

THE EDGE WEEKLY ISSUE#995

THE WEEK OF DECEMBER 30, 2013 – JANUARY 5, 2014

City & Country Section

LOCAL CONSULTANTS’ POLL: By THE CITY & COUNTRY TEAM

NABEEL HUSSAIN
ASSOCIATE DIRECTOR
CB RICHARD ELLIS MALAYSIA
SDN. BHD.

Outlook

We expect activity in the residential market to slow in 2014 in response to the cooling measures introduced in Budget 2014.  projects that will perform well will be those located near new infrastructure projects such as MRT lines and those that are targeted at true occupancy demand.

The city centre office market should fare well, boosted by limited new completions between now and 2017.

Competition in the suburban retail market will continue to be strong, as a number of projects are scheduled to be completed over the next two years, and there will be pressure on discretionary income from the recent petrol and electricity price hikes as well as other subsidy rollbacks.

Within Greater KL, well-located and well-conceived residential developments around new infrastructure projects (not just MRT / LRT extensions, but also new roads and highways) may be a wise bet.  With the proposed restrictions on primary market sales, it is also likely that we will see greater activity in the secondary market, and this may be a good time to snap up undervalued existing properties.

Outside Greater KL, Iskandar Malaysia remains popular destination, although it remains to be seen exactly what measures or changes the state government has in mind.

Wish list

• An MSC-type designation for new hotels in Malaysia, giving tax breaks, automatic visit passes (work permits) for approved migrant workers, and lower utility costs; and
• A genuine concerted effort to clamp down on unlicensed and unregistered agents with a few showcase prosecutions.  This would involve widespread education of the public, the press and local authorities, with a special unit to be set up in the Commercial Crime Division.