PROPERTY OUTLOOK ISKANDAR MALAYSIA 2019 - Affin Bank€¦ · PROPERTY OUTLOOK . ISKANDAR MALAYSIA . 2019. By Sr. V. Sivadas. Executive Director. PA International Property Consultants

PROPERTY OUTLOOK ISKANDAR MALAYSIA

2019

By Sr. V. SivadasExecutive Director

PA International Property Consultants Sdn BhdJohor Bahru

This presentation is intended as general guideline only. While utmost care has been taken in its preparation and we believe the contents are accurate as at presentation time, the content does not represent any investment advice. PA International Property Consultants Sdn Bhd or person(s) involved in the preparation of this presentation slides do not give any warranty as to the contents nor accept anycontractual, tortuous or other form of liability for any consequences, loss or damage which may arise resulting from

any person acting on or using the statement, information or opinion contained in this presentation. All rights reserved. No part of this presentation slides may be reproduced or transmitted in any form by any person(s)without the permission of PA International Property Consultants Sdn Bhd.

AFFIN BANK SME BIZ CHAT 11 JULY 2019


PA International Property Consultants Sdn Bhd, originally formed as a soleproprietorship, is now full service real estate company registered with the Board ofValuers, Appraisers, Estate Agents and Property Managers, Malaysia.

Our Network Offices:1. Kuala Lumpur (HQ)2. Petaling Jaya, Selangor3. Johor Bahru4. Penang5. Klang, Selangor6. Ipoh, Perak7. Kluang, Johor8. Seremban, Negeri Sembilan9. Sungai Petani, Kedah 10. Ho Chi Minh City, Vietnam

(Representative Office)

Our Professional Services:1. Property Valuation2. Compulsory Land Acquisition and

Compensation3. Property Selling & Leasing4. Property Investment Consultancy5. Project Marketing6. Property Management7. Corporate & Advisory8. Property Market Research & Consultancy

Other associate companies:PA International Real Estate Sdn Bhd

PA International Property Management Sdn Bhd

Iskandar Malaysia Map Territory


ISKANDAR MALAYSIA IN NEWS

Source : The Star, 1 April 2019Source : The Star, 18 March 2019

Source : The Star, 22 February 2019


OVERALL MARKET PERFORMANCE IN ISKANDAR MALAYSIA (2009 – 2018)

Source : JPPH and PA International in-house analysis

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total Volume 63,499 65,778 69,941 84,958 110,117 75,767 47,095 55,419 64,268 53,837Total Value (RM 'million) 17,496.36 21,446.81 27,815.56 48,390.08 79,620.38 52,065.72 31,808.66 32,956.18 32,994.57 30,365.04

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Residential Sub-sector Transaction in Iskandar Malaysia(2009 – 2018)


2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Volume 13,589 13,966 14,575 18,003 23,375 16,547 10,291 12,212 14,346 11,745Value (RM 'million) 2,525.99 2,853.75 3,174.52 5,947.71 10,263.92 6,402 4,868 5,099 5,291 5,138

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Residential Sub-sector Transaction in Iskandar Malaysia(Q1 2016 – Q1 2019)


Q1 2016 Q1 2017 Q1 2018 Q1 2019pVolume 3,139 2,821 2,556 1,293Value (RM 'million) 1,311 1,129 1,168 624

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Commercial Sub-sector Transaction in Iskandar Malaysia(2009 – 2018)


2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Volume 1,900 2,099 2,234 2,683 3,518 2,049 1,149 1,447 1,530 1,553Value (RM 'million) 1,249.60 1,632.74 2,193.74 4,197.61 6,446.06 4,057 1,333 2,023 1,713 1,609

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Commercial Sub-sector Transaction in Iskandar Malaysia(Q1 2016 – Q1 2019)


Q1 2016 Q1 2017 Q1 2018 Q1 2019pVolume 328 270 317 156Value (RM 'million) 295 201 466 108

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Industrial Sub-sector Transaction in Iskandar Malaysia(2009 – 2018)


2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Volume 627 697 903 859 1,027 634 391 456 474 496Value (RM 'million) 747.60 793.63 1,592.78 1,782.11 2,472.31 1,948 1,700 1,468 1,296 1,356

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Industrial Sub-sector Transaction in Iskandar Malaysia(Q1 2016 – Q1 2019)


Q1 2016 Q1 2017 Q1 2018 Q1 2019pVolume 88 78 83 51Value (RM 'million) 271 143 473 119

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HOUSING SECTOR


Residential Transaction Volume in Iskandar Malaysia(by the Developer and Sub-sale)


2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Residential (Developer) 4,148 3,891 1,788 5,204 9,133 4,769 2,463 2,774 1,310 579Residential (Sub-sale) 9,441 10,075 12,787 12,799 14,242 11,778 8,385 9,438 13,036 11,166

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Price Level 2016 2017 2018

Below RM150,000 1,845 1,510 1,081

RM150,001 to RM500,000 6,936 7,610 7,264

RM500,001 to RM1,000,000 2,549 2,552 2,666

More than RM1,000,001 471 494 463


Residential Transaction Volume in Iskandar Malaysia(Distribution according to prices level)

Residential Transaction Value in Iskandar Malaysia(by the Developer and Sub-sale)


2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Residential (Developer) 943.86 1,030.68 588.80 2,542.95 4,962.84 2,459 1,231 1,700 768 358Residential (Sub-sale) 1,582.13 1,823.06 2,585.71 3,404.76 5,301.08 3,943 3,637 3,399 4,523 4,780

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Source : State Exco, YB Sr Dzulkefly Bin Ahmad, EdgeProp

Unsold properties in Johor Q1 2019

Type Units Value (RM billion)

SoHo/Serviceapartment

30,127 20.78

Residential 17,462 10.95

Others (shop, industrial)

3,870 5.02

Total 51,459 36.75


For Johor Bahru district, the unsold properties are divided as follows:-

For Johor Bahru district, the unsold properties are divided as follows:-

Most of unsold:- 2 and 3 storey terrace houses above RM1 million- Condominium/Apartment above RM600,000

Source : State Exco, YB Sr Dzulkefly Bin Ahmad, EdgeProp

Type Unsold units

SoHo/serviced apartment 30,025

Residential 10,892

Shop lot 1,685

Industrial building 598


Challenges - Development charge policy by State- No revamp of state housing policies yet- Release of Bumiputra reserved units by State

inefficient- Unsold units are largely unaffordable

Housing Sector Outlook


Looking forward- Market is price sensitive- More than 10,000 units per annum transacted

in secondary market- The right product at the right location and

priced competitively will be sold- Huge unfulfilled demand for houses below

RM150,000 as well as below RM500,000

Housing Sector Outlook


OFFICE SECTOR


Between 2014 – 2018, about 7 new purpose-built office buildings completed whilst another 5buildings are incoming.

*Not included Forest City Source : Property Market Report 2018 and PA International research

Status Purpose-Built Office NLA/GFA(square feet)

Older purpose-built office

113 units 10,391,182

2014 - 2018 Medini 6Medini 7Medini 9Afiniti Corporate Training CentreImperia Tower Wisma Muafakat BSNMenara JLand

80,000144,000407,01167,096

170,824550,000251,481

Incoming Supply* Medini 10D’Pristine TowerMenara MBJBUMCity Premium Corporate Office Tower, MediniCoronation Square, IIBD

415,578200,000445,848

N/A

N/A


Supply and Occupancy Rate of Purpose-Built Office in Johor (2014 – 2018)

2014 2015 2016 2017 2018Total Space (square metres) 1,036,720 1,080,843 1,083,867 1,137,938 1,195,057Occupancy Rate (%) 77.5 79.9 80.37 80.5 75.9

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Occupancy Rate (%)Total Space (s.m.)

Source : Property Market Report 2018


Occupied Space of Purpose-Built Office in Johor (2014 – 2018)



Year Space (square metres)

Difference (square metres)

% increase per annum

2014 803,458 - -

2015 863,594 60,136 7.5

2016 871,104 7,510 0.9

2017 916,040 44,936 5.2

2018 907,048 -8,992 -1.0

Rental levels for Purpose-Built Office

Type Rental (RM / per square feet per month)

New office buildings 3.50 to 5.50

Older office buildings 1.50 to 3.00

Source : PA International research


INDUSTRIALSECTOR


Industrial Sub-sector Transaction in Iskandar Malaysia(2009 – 2018)


2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Volume 627 697 903 859 1,027 634 391 456 474 496Value (RM 'million) 747.60 793.63 1,592.78 1,782.11 2,472.31 1,948 1,700 1,468 1,296 1,356

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Volume for industrial properties in Iskandar Malaysia(2017 and 2018)


2017 2018Vacant Land 96 58Terrace Factory 136 184Semi-D/Cluster Factory 148 195Detached Factory 68 67

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Value for industrial properties in Iskandar Malaysia(2017 and 2018)


2017 2018Vacant Land 350 462Terrace Factory 101 137Semi-D/Cluster Factory 320 406Detached Factory 480 431

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SHOPOFFICE / SHOPHOUSE

SECTOR


Volume for shopoffice / shophouse in Iskandar Malaysia(2017 and 2018)


2017 20182 storey 458 5803 and 4 storey 286 358

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Value for shopoffice / shophouse in Iskandar Malaysia(2017 and 2018)


2017 20182 storey 340 4313 and 4 storey 410 489

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SHOPPING MALL SECTOR


In the past 3 years, 9 new malls supplied additional 5.607 million square feet retail space inIskandar Malaysia.

Status Shopping Malls NLA/GFA(square feet)

Older Malls 88 Malls 18,531,662

2016 - June 2019 Tasek CentralAEON Bandar Dato OnnParadigm MallCapital CityMid Valley Southey MegamallR & F Princess MallIkea TebrauSunway Citrine Hub

400,000600,000

1,300,000755,554

1,507,000532,000512,81571,000

Incoming Beletime Danga BayLarkin Junction MallToppen Shopping CentreD’Pristine @ MediniSunway Big Box VillageEco Galleria

600,000248,224

1,100,000200,000400,000680,000

Source : Property Market Report 2018 and PA International research


HOTEL SECTOR


Guests arrivals in Johor (2010 – 2018)

Source : Tourism Malaysia


Average Occupancy Rates (AOR) of Hotels in Johor (2010 – 2018)

Source : Tourism Malaysia


New supply hotels within Iskandar Malaysia last few years

NAME OF HOTEL NO. OF ROOMS

Capri By Fraser Hotel Residences, Johor Bahru 316 Rooms

Fraser Place, Puteri Harbour 297 Rooms

Phoenix Hotel, Forest City 283 Rooms

Ramada Meridin, Medini 752 Rooms

Trove, Johor Bahru (refurbished hotel) 283 Rooms

Pinetree Marina Resort, Iskandar Puteri 107 Rooms

Amari, Johor Bahru 242 Rooms

Impiana Hotel, Senai 172 Rooms

KSL Hot Spring Resort, Taman Daya 308 Rooms



Incoming supply of hotels within Iskandar Malaysia

NAME OF HOTEL NO. OF ROOMS

Holiday Inn, Johor Bahru 318 Rooms

Hyatt Place @ Paradigm Mall, Johor Bahru 200 Rooms

Novotel @ D’Pristine, Medini 285 Rooms

Tropical Inn (Rebranding / Refurbishment) 172 Rooms

Pan Pacific Serviced Suites, Puteri Harbour 205 Rooms

OZO Medini Iskandar, Medini 198 Rooms

Hilton Garden Inn, Johor Bahru 315 Rooms

Cititel Johor Bahru, Southkey, Johor Bahru 675 Rooms

Boulevard Hotel, Southkey, Johor Bahru 450 Rooms

The Gardens Hotel, Southkey, Johor Bahru 450 Rooms



QUESTIONS?


THANK YOUPA INTERNATIONAL PROPERTY

CONSULTANTS SDN BHDSUITE 1101, 11th FLOOR, JOHOR TOWER,

15, JALAN GEREJA, 80100 JOHOR BAHRU,

JOHOR

TEL : +607-2232 762 FAX : +607-2241 780WEBSITE : www.pa.com.my


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PROPERTY OUTLOOK ISKANDAR MALAYSIA 2019 - Affin Bank€¦ · PROPERTY OUTLOOK . ISKANDAR MALAYSIA . 2019. By Sr. V. Sivadas. Executive Director. PA International Property Consultants