PMR20212022

PROPERTY
MARKET REVIEW
2021 / 2022
CONTENTS
02 03 06
Foreword Property Market 2021 in Review &
Snapshot the Year Ahead
10 38 62
Northern Region Central Region Southern Region
80 100 117
East Coast Region East Malaysia Region Glossary
118
Directory
This publication is prepared by Rahim & Co Research for information only. It highlights only selected projects as
examples in order to provide a general overview of property market trends. Whilst reasonable care has been exercised
in preparing this document, it is subject to change without notice. Interested parties should not rely on the statements
or representations made in this document but must satisfy themselves through their own investigation or otherwise
as to the accuracy. This publication may not be reproduced in any form or in any manner, in part or as a whole, without
written permission from the publisher, Rahim & Co Research. The publisher accepts no responsibility or liability as to
its accuracy or to any party for reliance on the contents of this publication.
2
FOREWORD
by Tan Sri Dato’ (Dr) Abdul Rahim Abdul Rahman
Executive Chairman, Rahim & Co Group of Companies
Malaysia and the world had hoped practices with work-from-home option
for 2021 to be the year of recovery. as well as new retail shopping trends
However, with the new variants of and e-commerce drove operators and
Covid-19 emerging, from Delta to the building owners to innovate new ways
latest Omicron variant, the pandemic to attract tenants and visitors. On a
had extended right through to 2021. brighter note, the industrial sector
The first quarter of the year saw the saw a sustained growth in the logistics
enforcement of Movement Control and warehousing segments, fuelled by
Order (MCO) 2.0 and later in the the demand driven by e-commerce
second quarter MCO 3.0, but in spite transactions that had surged during
of these, the economic resilience and the pandemic.
the rakyat’s determination to fight back
against the pandemic came through as This year’s issue of Rahim & Co’s
evidenced by the recovering numbers Property Market Review 2021/2022
recorded in the first half of 2021. provides a recap of how the market
performed in 2021 following the
Guided by the government’s Covid-19 unprecedented 2020 across all states
standard operating procedures transactions, it underlined Malaysia’s nationwide with a coverage on the key
(SOP) and physical distancing, more resilience and recovery prospect despite market sectors. As we hope for the year
economic sectors were reopened. The the continued challenging period. 2022 to bring better market stability
new normal is steadily established in with signs of renewed interest, we
managing the post-pandemic period as The residential sector saw glimpses share our views on the prospect of the
digitalisation was embraced to facilitate of recovery spurts with some news of property market in the coming months
economic activities and daily routines. better than expected take up rates as to equip our readers to make their real
In attaining herd immunity to help developers turned to digital medium to estate decisions. Should you wish to
keep the economy open, the National deploy targeted digital advertising and further inquire on real estate matters or
Covid-19 Immunisation Programme virtual sales campaigns. Homebuyers are inspired to purchase one (or more)
had begun in February and as at 18th have steadily acclimatised themselves properties, I invite you to contact any
December 2021, a total of 25.55 million to virtual show unit experiences, social of our 23 offices located nationwide
or 78.2% of Malaysia’s population had media outreach programmes and as we hope to help you capture the
received full vaccination. online communication with property opportunities that 2022 brings.
agents and developer representatives.
For the first half of 2021, the property Though international buyers may still
market had shown positive movements be hindered from tight border control
in transaction activities – coming to and tenuous investment prospect, local
139,754 transactions worth RM62.01 demand persists but with different
billion with a yearly growth of 21.0% sets of preferences and needs. For
and 32.1% respectively. Though this the commercial and retail sectors,
improvement may have muted in challenges in tenancy performance and Tan Sri Dato’ (Dr) Abdul Rahim
the third quarter due to MCO 3.0 maintaining visitors footfall continued Abdul Rahman
and comparatively is still short from into 2021 coupled by the slew of Executive Chairman,
1H2019’s performance at 160,172 incoming supply. New workplace Rahim & Co Group of Companies
PROPERTY
3
MARKET Snapshot
KEY ECONOMIC INDICATORS

GDP & CPI Growth Rate and Net FDI Population & Unemployment Rate
(2017 - 1H 2021) (Source: DOSM) (2017 - 1H 2021) (Source: DOSM)
(%) (RM billion) (mil) (%)

10 50 32.8 6.0
8 40
32.6 5.0
6 30
4 20
32.4 4.0
2 10
0 0 32.2 3.0
2017 2018 2019 2020 1H 2021
-2 -10
32.0 2.0
-4 -20
-6 -30
31.8 1.0
-8 -40
-10 -50 31.6 0.0

2017 2018 2019 2020 1H 2021
Net FDI GDP Growth CPI Growth Population Unemployment

(RM/billion) Rate (LHS) Rate (LHS) (million) (LHS) Rate (RHS)
(RHS)
KEY PROPERTY MARKET INDICATORS

Quarterly House Price Index Household Debt-to-GDP Ratio & Impaired Loans
(2017 - 2Q 2021) (Source: IHRM, JPPH) Ration of Household Sector (2017 - 1H 2021) (Source: BNM)
(%) (%)
260 100 1.6
90
240 1.4
80
220 1.2
70
200 1.0
60
180 50 0.8
40
160 0.6
30
140 0.4
20
120 0.2
10
100 0 0.0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2017 2018 2019 2020 1H 2021
2017 2018 2019 2020 1H 2021
Malaysia Kuala Lumpur Selangor Household Debt-to- Impaired Loans Ratio of

GDP Ratio (LHS) Household Sector (RHS)
Johor Pulau Pinang
4
PROPERTY
MARKET ACTIVITY
Snapshot
MALAYSIA LEGEND
RESIDENTIAL
Northern Region a 22.2% a -2.1% a -2.0% a 29.4%
Transaction Volume Change
OFFICE
Occupancy Rate Change
Central Region RETAIL

PERLIS Occupancy Rate Change
a 50.7% a -1.0% a -11.6% a stable INDUSTRIAL

Transaction Volume Change
KEDAH KUALA LUMPUR

Note: Changes recorded based on
a 14.5% a 0.8% a 0.1% a 13.2% a 19.8% a -3.4% a -0.8% a 8.8% 1H2020 to 1H2021
PULAU PINANG SELANGOR Increase Stable Decrease
a 41.3% a 1.4% a -1.1% a 62.5% a 38.0% a -3.0% a -1.2% a 34.6% a a a

PERAK NEGERI SEMBILAN
a 11.5% a -0.9% a -0.2% a 37.0% a 24.9% a 1.2% a -3.1% a 51.3%
Southern Region East Coast Region East Malaysia Region
MELAKA KELANTAN SARAWAK
a 10.4% a 1.6% a -4.2% a 34.9% a 16.6% a -1.1% a -11.3% a 133.3% a 49.4% a 0.3% a -3.3% a 2.9%
JOHOR TERENGGANU SABAH
a 4.8% a -1.2% a -4.7% a 33.7% a 1.8% a 1.1% a 8.2% a -46.7% a 34.8% a -2.3% a -1.7% a -21.4%
PAHANG
a 26.1% a -1.4% a -1.6% a 26.3%
(Source: JPPH, Rahim&Co)
Property Market Review | 2021–2022 5
PROPERTY
MARKET VALUE
Snapshot
MALAYSIA LEGEND
RESIDENTIAL
Northern Region a 34.7% a 28.4% a 19.8%
Transaction Value Change
COMMERCIAL
Transaction Value Change
Central Region INDUSTRIAL

PERLIS Transaction Value Change
a 69.8% a 28.9% a 14.9% Note: Changes recorded based on

1H2020 to 1H2021
KEDAH KUALA LUMPUR
a 30.0% a 39.6% a -39.2% a 25.5% a 47.6% a 7.3% Increase Stable Decrease
PULAU PINANG SELANGOR a a a

a 55.3% a -28.2% a 89.8% a 47.1% a 40.3% a 6.1%
PERAK NEGERI SEMBILAN

a 10.2% a 23.5% a 96.9% a 34.2% a 102.0% a 25.0%
Southern Region East Coast Region East Malaysia Region
MELAKA KELANTAN SARAWAK
a 17.5% a -10.4% a 82.3% a 22.8% a 92.0% a -47.1% a 62.9% a 121.2% a 31.3%
JOHOR TERENGGANU SABAH
a 15.8% a 18.3% a 22.9% a 12.8% a -65.7% a -65.0% a 61.0% a 53.4% a 75.5%
PAHANG
a 38.7% a -38.8% a -9.2%
(Source: JPPH, Rahim&Co)
6
2021 IN REVIEW &

THE YEAR AHEAD
The year 2021 kicked off with the hope inflicted domestic lockdowns coupled As the global economic recovery
that the market would have overcome with the subsequent Covid-19 waves continues but at a slower pace due
the shock brought by the Covid-19 seen in other countries had delayed the to the resurgence of Covid-19 new
pandemic and it would have fared recovery of global markets including variants, access to vaccine, booster
better than 2020. But the year unfolded Malaysia, in spite of the initial doses and early policy support are
itself quite differently. excitement of the new US Presidency crucial. For Malaysia, the slower-than-
early in the year. expected recovery was attributed to
Although the year was disrupted with similar reasons including a prolonged
more lockdowns amidst continued As Malaysia learned to adapt to the tight containment measure, persisting
global economic challenges, there intermittent lockdowns, the market cautious consumer behaviour and
were glimpses of market reactivation sentiment was somewhat better in subdued labour market conditions
whenever businesses and economic 2021. Buoyed by the resumption of in addition to the domestic
activities were opened. more economic sectors and the positive political uncertainty. Nevertheless,
spill over effect resulting from continued the encouraging progress of the
As the global economic growth domestic and external demand, the vaccination programme with 78.4% of
projections for 2021 were revised, the economic growth trajectory in 2021 the population being fully vaccinated
Malaysian economic growth was also is expected to accelerate in 2022 at as at end 2021, provides greater
reviewed to 3%-4% from the initial 5.5% to 6.5%. The economic stimulus confidence for 2022.
6%-7.5% announced at the start of packages introduced in 2021 such
the year. In contrast to the significant as the PERMAI, PEMERKASA, On the property market front,
16.1% jump in 2Q2021, the Malaysian PEMERKASA PLUS and PEMULIH national transaction numbers
GDP contracted by 4.5% in the third complemented the thrusts of the witnessed a significant rebound in
quarter, largely attributable to the strict federal government’s Budget 2022 to 1H2021 with 139,754 transactions
containment measures under the Full restore the rakyat’s livelihoods and worth RM62.01 billion, an increase
Movement Control Order (FMCO) revive business sectors for a sustainable of 21.0% in volume and 32.1% in
followed by Phase 1 of the National economy. value compared to 1H2020. The
Recovery Plan (NRP). The pandemic- improvement in transaction activities
“Although the year was disrupted with more lockdowns

amidst continued global economic challenges, there were
glimpses of market reactivation whenever businesses and
economic activities were opened”
were observed across all key sectors of (HOC) that was supposed to end in the year to come. New workplace
the market. This was attributed to the on 31st May 2021 but was later practices with work-from-home
pent-up demand effect and deferred announced to be extended until the option has driven building owners to
transactional formalisations from end of 2021. There were suggestions innovate new ways to attract and retain
previous quarters, supported by the for the government to further extend tenants. Cost optimisation, capitalised
continued Bank Negara Malaysia’s the HOC period to assist especially cost treatments, asset enhancement
accommodative policies. first-time home buyers as well as initiatives (AEIs) and attractive leasing
to have the campaign’s benefits be packages are the new strategies
However, the FMCO and Phase 1 of extended to the secondary market. adopted by most landlords amidst
the NRP dwindled the transaction If such is extended, when coupled this highly competitive environment.
numbers pulling down the third quarter with the RPGT exemption and other Additionally, in keeping pace with
year-on-year performance. This led to initiatives provided under Budget 2022, the occupants and visitors’ wellbeing,
developers projecting a cloudy prospect transaction activities in the residential more buildings are expected to adopt
for 2H2021 with slower primary sector would be given a much needed “touchless” technology to promote a
market sales. boost this year. hygienic and safe workplace.
In the residential sector, the largest of For the commercial sector, challenges For the retail market that was one of the
the property sectors, while transaction in tenancy performance and rental worst hit sectors by the pandemic after
activities increased in 1H2021, newly levels continued into 2021 coupled by the tourism and hospitality sector, the
launched units in the primary market the slew of incoming supply concern. national occupancy declined to 76.6%
dropped by 34%. Although developers As the Klang Valley office supply stands in H12021 as compared to 78.6% in
were generally recording slower sales at above 140 million square feet, the H12020. Kuala Lumpur and Selangor
performance, the market did see completion of six more buildings in shopping mall occupancies dropped
some sporadic quick sales especially 2021 injecting about 2.8 million sq.ft. from 82.4% and 80.0% in H12020
for owner-occupier and domestic- heightened the level of supply concern. to 81.6% and 78.8% respectively in
focussed markets. Homebuyers have It is worth to note that Klang Valley H12021. According to Retail Group
steadily acclimatised themselves to is expecting another 5.2 million sq.ft. Malaysia (RGM), the retail sales
virtual experiences as developers of office space in 2022 including the growth for the full year 2021 was
turned to digital means and virtual iconic Merdeka 118 tower. expected to be a slim 0.5% factoring
sales campaigns. the lower-than-expected performance
Persisting from the previous year, the in 3Q2021. Nevertheless, in spite of
The sales that occurred are also tenant-led market is facing a pressure many retail brand closures seen in the
attributed to buyers taking advantage in its occupancy & effective rental rates last two years, new outlets openings and
of the Home Ownership Campaign and is expected to continue the same expansions were observed as well.
8 2021 in Review & the Year Ahead
Moving into 2022, Malaysia’s retail With Singapore being the highest and international tourist arrivals are
sales is projected to reach as high as contributor of tourist arrivals to key for the hotel sector’s recovery
a 6% growth, according to RGM, Malaysia, the opening of Malaysia- plus the ability to host major events
with high hopes placed on Christmas, Singapore Vaccinated Travel Lane and conventions. Although in late
New Year and Chinese New Year (VTL) on 29th November 2021 is December the VTL programme was
sales. However, concerns are still seen expected to help in the recovery of temporarily suspended amidst concern
especially on the rising cost of living the hospitality sector alongside the over the new Omicron variant, as the
that may affect the purchasing power Langkawi International Travel Bubble. travel sector is expected to be more
of Malaysian households and the risk These and other government initiatives open in later stages, the hotel sector is
of a potential fourth-wave of Covid-19. are anticipated to help re-ignite the expected to steadily improve in 2022 –
Although e-commerce has evolved to be hospitality sector since the market subject to continued management of
the new trend, shopping malls remain have been looking forward to resuming the Covid-19 situation.
relevant, evidenced by the return of travelling activities. Both domestic
footfalls in the malls after a prolonged Due to the disruptions in the supply
lull in visitor numbers. Whether this chain amidst the global lockdowns
footfall is translating into sales is to and movement restrictions at the
“During the
be figured out as we see malls have consumer level since 2020, the trend of
become a place of social interactions intermittent lifting online purchases, virtual malls, digital
and the go-to place for leisure and transactions and e-commerce expanded
relaxation while the international of interstate travel further in 2021. The momentum is
travelling borders are still closed. restriction during expected to continue in the next few
years as digitalisation embracement
As tourism was put to a stop for most the year and after and adoption have accelerated – even
parts of 2021, it was only in October across all consumer age groups. This
when interstate travel was allowed
it was fully lifted, led to high demand for distribution
fully that the hotels were able to open hotels and resorts centres and logistics facilities resulting
back its doors for business. During in a healthy growth for this sector.
the restricted travel period, a few saw bookings soaring
hotels were operating as quarantine The 12th Malaysia Plan that was
accommodation facility to supplement
high indicating the announced in September 2021 along
their operation while some others demand for domestic with the federal government’s Budget
had to be permanently closed down. 2022 in November had outlined
After interstate travel restrictions were travel is still evident measures to improve the country’s
lifted, hotels and resorts saw bookings but is constrained by industrial competitiveness including
soaring high indicating the demand for the transport and logistics sector
for domestic travel is still evident but is the pandemic-induced by firming up its institutional and
constrained by the pandemic-induced regulatory framework and support.
measures. measures.” The target is to attain a ranking in the
Top 30 of the World Bank’s Logistics
Performance Index (LPI) ranking by the market is anticipated to remain coverage, coupled with continued
2025, indirectly promising a good cautious with uncertainties raised government support, accomodative
future for the logistics sector within by the emergence of new Covid-19 policies and phased opening of
the next three years. variants, global geo-political conditions international borders. This is of course
and the potential 15th General dependent on the continued effective
In a nutshell, the recovery expected Election. In addition, the market faced management of the Covid-19 situation
in 2021 was disrupted due to the an unforeseen interruption brought and addressing the other systemic issues
resurgence of Covid-19 cases. The by flash floods that occurred in late in the property market.
Malaysian property market did 2021 which affected several states
improve in the first six months of including the Klang Valley. While it
2021 which created an initial positive requires a collective effort by all to
outlook. However, the third quarter’s revive the economy post-pandemic,
transactions drop have brought the it is also pertinent to address pre-
overall market performance to be existing property market challenges
hovering at similar level to 2020. like the demand-supply mismatch and
Though it is fortunate that the unaffordability issues.
sector is stable as the government’s
stimulus measures helped brace the Having witnessed glimpses of improved
impact of the pandemic, the hoped performance in between lockdowns last
property market recovery to pre-Covid year, we are cautiously optimistic on
performance will take a longer time. the outlook for 2022. The market is
Though the property market of late expected to show a gradual recovery
have seen some renewed interests, as we achieve higher vaccination
10
Perlis
Kedah
Pulau Pinang
Perak
NORTHERN
Region
Lebuh Armenia, Pulau Pinang

12
PERLIS
Indera Kayangan
Capital: Kangar Key Facts (as at 1H 2021)
Est. Population: 255,400 (Source: Rahim & Co Research, JPPH)
Area (km2): 816 RESIDENTIAL

(Source: DOSM) Supply 26,433 units 1.1% y-o-y
Transaction Volume 437 units 50.7% y-o-y
Transaction Value RM100.49 mil. 69.8% y-o-y
RETAIL
Supply 0.60 mil. sf 0.0% y-o-y
Occupancy Rate 88.4% 11.6%
Rental Prime: RM0.80psf – RM15.00psf
SHOP OFFICE
Supply 5,642 units 0.9% y-o-y
HOTEL
Existing Supply 1,245 rooms 0.0% y-o-y
Incoming Supply 120 rooms
INDUSTRIAL
Supply 296 units 0.0% y-o-y
Taman Melati, Perlis

Number of Residential Property Transactions in Perlis

a RESIDENTIAL (2017-1H 2021) (Source: JPPH)
(No. of units) (%)

As at 1H2021, the existing supply of residential units for the 1,600 20
whole of Perlis stood at 26,433 units and are predominantly
1,200 10
landed types with low-cost house and 1-sty terraced types at
34% and 27% share respectively. High-rise types make up 800 0
just 3% of total stock – flat and condominium/apartment
400 -10
combined. By location, areas with notable residential
property stock include Arau, Kuala Perlis, Sena, Utan Aji 0 -20
2017 2018 2019 2020 1H 2021
and Wang Bintong.
1H (LHS) 2H (LHS) % Change y-o-y (RHS)
Since 1H2020, overhang stock for Perlis has seen
improvements within the year as it has declined from 44
units to 27 units worth RM8.49 million – maintaining its
low trend and are all of the 1-sty semi-detached type priced Value of Residential Property Transactions in Perlis
between RM200,001 – RM400,000. (2017-1H 2021) (Source: JPPH)
(RM Mil.) (%)

On the incoming supply, all are landed types as no new high-
rise units were recorded. Of the new stock in the pipeline, 200 10
terraced houses dominate at 40% followed by semi-detached 150 5
houses at 32%. 0
100
-5
On transaction activities, the market had recovered from the 50
-10
previous first half performance due to Covid-19 as evidenced
0 -15
by the increase in both volume and value of transactions, 2017 2018 2019 2020 1H 2021
by 50.7% and 69.8% respectively, to 437 transacted units
worth RM100.49 million. This had even surpassed 1H2019’s 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
Kangar Residential Property Price Trend & House Price Index (2017-2021) (Source: Rahim & Co Research, IHRM)
Price ‘000 (RM) Price Index
700 250.0
1TH (LHS)
600
200.0 2TH (LHS)
500
1SD (LHS)
150.0
400
2SD (LHS)
300 1D (LHS)
100.0
200 2D (LHS)
50.0 All house
100
price Index
(RHS)
0 0.0
2017 2018 2019 2020 2021
14 Northern Region | Perlis
“On transaction activities, the market had recovered from the

previous first half performance due to Covid-19, as evidenced by
the increase in both volume and value of transaction by 50.7% and
69.8% respectively.”
Selected Upcoming Residential Properties in Perlis (Source: Rahim & Co Research)
No of Expected
Development Location Type Selling Price
Units Completion
Taman Indah Kayang Kangar 2-sty Semi-Detached 20 From RM488,000 2022
1-sty Semi-Detached From RM379,800

Taman Seri Embun Kangar 11 2023
1-sty Detached From RM550,000
2-sty Detached From RM798,000
Taman Saujana Idaman Arau 1&½-sty Terraced 58 From RM278,000 2023
1-sty Terraced 30 From RM258,000

Taman Empiang Ceria Kangar 2023
1-sty Semi-Detached 54 From RM368,000
performance at a slightly lower 416 transacted units worth Existing Supply & Occupancy Rate of Retail Spaces in
RM97.16 million – 1H2019 often termed as the pre- Perlis (2017-1H 2021) (Source: JPPH)
Covid-19 level. While this bodes well for the recovery pace
(Mil.sf) (%)
of Perlis following the dampening Covid-19 period, the
challenge now lies in maintaining that pace as the market 0.8 100
continues to readjust and reposition itself in a post-pandemic 0.6 80
environment. 60
0.4
40
0.2
a RETAIL 20
0.0 0
2017 2018 2019 2020 1H 2021
The retail segment of Perlis’ property has continued Existing supply (LHS) Space Occupied (LHS)
to maintain its supply at 601,401 sf with 191,210 sf of Occupancy rate (RHS)

new spaces in the pipeline – though no updates have yet
been announced on the completion of some of the new
establishments. These incoming new complexes include a SHOP OFFICE
the K-Parc Kangar by UDA Holdings Bhd, Kangar City
Centre (KCC) by the Perlis State Economic Development
Corp and Safuan Group, and the Padang Besar Pavilion As at 1H2021, transaction activities in Perlis have slightly
by PZS Development Sdn Bhd. After having maintained recovered from its previous low performance to 36 transacted
its strong occupancy rate at 100% for the past few years, units worth RM22.26 million – recording a small recovery
a drop was recorded for 1H2021 down to 88% despite no of 9% and 20% respectively. Despite the slight recovery,
additional supply. transaction levels have yet to return back to pre-pandemic
levels. However, outlook is on a positive note as economic
and business activities are well underway to resuming and
re-positioning themselves up post-pandemic.
a HOTEL
Al Hussain Mosque, Kuala Perlis
The supply of hotel rooms in Perlis have maintained at 1,245

On the supply side, it remains relatively steady at 5,642 shop rooms, making up 32 hotel establishments with no new supply.
office units across Perlis. 1-sty and 2-sty types continue to Incoming stock has maintained at 120 rooms since 2018. The
dominate the market with a contribution of 78% of total top well-established hotels are Putra Regency Hotel, Putra
existing stock. In the transaction market, it is the 2-sty and Brasmana Hotel and Hotel Seri Malaysia Kangar.
3-sty types being mostly transacted at 31 transacted units
out of the total 36 units – 86% of total transaction volume.
The 2-sty units were mainly transacted between RM300,001 Existing Supply of Hotels in Perlis
to RM700,000 whilst some of the 3-sty units were transacted (2017-1H 2021) (Source: JPPH)
at RM1 million and above.

(No. of rooms) (%)
1,500 40
Number of Shop Office Property Transactions in Perlis 1,200 20
(2017-1H 2021) (Source: JPPH) 900
0
600
(No. of units) (%)
-20
300
150 40
0 -40
120 2017 2018 2019 2020 1H 2021
20
90
0 Existing supply (LHS) % Change y-o-y (RHS)
60
-20
30
0 -40 a INDUSTRIAL
2017 2018 2019 2020 1H 2021

While other sectors have shown some recovery since 2020
Value of Shop Office Property Transactions in Perlis after more than a year of the pandemic, the industrial sector
(2017-1H 2021) (Source: JPPH) in Perlis declined to just 3 transactions worth RM1.08 million.
But in observing the past years’ trend, more transactions can
(RM Mil.) (%) be expected for the second half of the year as seen in 2018
80 60 and 2019 which lends some hope to 2021 possibly repeating
40
the same pattern of recovery from the Covid-19 crisis.
60
20
40 On the supply side, existing stock remains at 296 units with
0 most being the terraced, semi-detached and detached types.
20 -20 29 new units are currently in the pipeline and are mostly
0 -40 located in Seriap. By location, existing industrial units are
2017 2018 2019 2020 1H 2021
largely concentrated within the areas of Jejawi, Kuala Perlis,
1H (LHS) 2H (LHS) % Change y-o-y (RHS) Seriap and Titi Tinggi.
16 Northern Region | Perlis
Number of Industrial Property Transactions in Perlis

(2017-1H 2021) (Source: JPPH)
Notable Announcements
(No. of units) (%)
• FGV Holdings Bhd has launched the FGV Chuping
30 100
Agro Valley (FCAV) with the intention of developing
25
50 an integrated high-value cash crop plantation, and
20
potentially a fully integrated large-scale dairy farm
15 0
by 2025. This is in line with the strategic project of
10
-50 the NCER Agriculture Economic Zone in Chuping,
5
0
Perlis.
-100
2017 2018 2019 2020 1H 2021
• In their efforts to have complete presence nationwide,
Berjaya Starbucks Coffee Co Sdn Bhd (BStarbucks)
is in the works of adding a store in Perlis, with
Value of Industrial Property Transactions in Perlis construction almost completed at the time of writing.
Opening is expected in early 2022, signalling the
(2017-1H 2021) (Source: JPPH)
state’s first ever Starbucks store.
(RM Mil.) (%)
10 100
8 50
6
0
4
-50
2
0 -100
2017 2018 2019 2020 1H 2021

KEDAH
Darul Aman
Capital: Alor Setar
Est. Population: 2,194,100 Key Facts (as at 1H 2021)

Area (km2): 9,492 (Source: Rahim & Co Research, JPPH)
(Source: DOSM)
RESIDENTIAL
Transaction Volume 5,644 units 14.5% y-o-y
Transaction Value RM1,471.25 mil. 30.0% y-o-y
RETAIL
Supply 6.27mil. sf 1.1% y-o-y
SHOP OFFICE
HOTEL
INDUSTRIAL
Langkawi Skybridge
18 Northern Region | Kedah
Value of Residential Property Transactions in Kedah

(RM Mil.) (%)
Kedah’s residential market, as at 1H2021, saw its existing 4,000 40

housing stock maintaining at 341,789 units with only 3,000 20
minor growth of 1.0% y-o-y. Landed homes dominated the
supply stock with terraced houses at 37% share, low-cost 2,000 0
houses at 30% and semi-detached at 22%. High-rise units 1,000 -20

of condominiums and apartments remain at a small 1%
0 -40
portion of the stock with serviced apartments and SOHO 2017 2018 2019 2020 1H 2021
units maintaining at 637 units and 64 units respectively.
Number of Residential Property Transactions in Kedah Kuala Muda district, in having Sungai Petani as part of it, is
(2017-1H 2021) (Source: JPPH) the popular choice of residence for the locals as evidenced by
its largest supply at 134,694 units – 39% of the total existing
(No. of units) (%) stock. In the pipeline, the state will be expecting 16,523 new
20,000 20 units into the market upon their completion with the top
two areas being Kulim and Kuala Muda. Alongside this
15,000 10
incoming number are the readily available overhang stock
10,000 0 that has improved after having dropped to 652 units worth
RM235.54 million from more than double the stock back in
5,000 -10
1H2020, at 1,341 units worth RM380.59 million. More than
0 -20 90% of the overhang stock are priced below RM500,000
2017 2018 2019 2020 1H 2021
which may indicate a mismatch situation and not just too
1H (LHS) 2H (LHS) % Change y-o-y (RHS) high of a price tag.
Alor Setar Residential Property Price Trend & House Price Index (2017-2021) (Source: Rahim & Co Research, IHRM)
800 250.0
1TH (LHS)
700
200.0 2TH (LHS)
600
1SD (LHS)
500 150.0
2SD (LHS)
400
100.0 1D (LHS)
300
2D (LHS)
200
50.0 All house
100 price Index
(RHS)
0 0.0
2017 2018 2019 2020 2021
Selected Upcoming Residential Properties in Kedah (Source: Rahim & Co Research)
No of Expected
Units Completion
Taman Purnama Jitra 1-sty Semi-Detached 30 From RM325,000 2022
Lavanya Residence Langkawi Serviced Apartment 223 From RM623,000 2022
La Casa Lunas (Phase 2) Lunas 2-sty Terraced 116 From RM390,000 2022
Bandar Darul Aman,
Akustika @ Simfoni West 2-sty Terraced 75 From RM362,300 2022
Jitra
Taman Seri Putat Jitra 1-sty Terraced 30 From RM238,000 2022
G Residence Alor Setar Condominium 120 From RM330,000 2023
The Bay Residences @
Kuala Kedah Serviced Apartment 152 From RM286,000 2023
Aman Laut
Taman Derga Perdana Alor Setar 1-sty Semi-Detached 54 From RM358,000 2023
Taman Saderi Alor Setar 1-sty Terraced 71 From RM292,000 2023
Taman Bintang Maya 3 Sungai Petani 2-sty Terraced 60 FromRM369,000 2023
Taman Universiti Bestari Bedong 1-sty Semi-Detached 54 From RM304,000 2024
Avani Heights @ Amanjaya Sungai Petani 1-sty Detached 72 From RM700,900 2024
On the demand side of the market, trends have also showed RM180,000 to RM250,000. The first phase is expected to
encouraging improvements with transaction activities having be completed within two years from its construction and will
recovered from 1H2020’s lowest point with a growth of then be followed by the subsequent phases.
14% in volume and 30% in value up to 5,644 transacted
units worth RM1.47 billion. Concerns were felt on Kedah’s The Airport City and Aerotropolis segment of the larger
absorption capability in relation to both the overhang and Kulim International Airport (KXP) development in Sidam
incoming units, adding pressure to the supply side of the Kiri, Kuala Muda will be seeing its residential component be
market. But with decreasing unsold number and recovering developed by Ivory Properties Group Bhd with a joint venture
demand pace, there is hope for an upward recovery trend agreement with ECK Development Sdn Bhd. Covering a
whilst the challenge lies in maintaining such upward span of 55 hectares, both developers are aiming to transform
movement post-pandemic. the area into a 21st century urban neighbourhood and be a
part of the new large-scale commercial gateway in Kulim.
Positive price trends were observed for the average transacted
prices of 2021 for Alor Setar for its landed homes, particularly
for the 2-sty semi-detached units in areas of Taman Anggerik a RETAIL
and Taman Lumba Kuda and 2-sty detached units in areas
of Jalan Kuala Kedah and Jalan Sultanah.
After having endured more than a year of disruptive and
In keeping pace with the current demand for housing in debilitating pandemic conditions, the retail segment of
Sungai Petani as well as for affordable housing in general, Kedah has survived with its occupancy rate maintaining at
Bina Darulaman Bhd (BDB) has inked a joint venture 75% and retail space supply at 6.27 million sf. Though there
agreement with Lagenda Properties Bhd in April 2021 to are no new spaces recorded in the pipeline, Bina Darulaman
develop a 93-hectare township named Darulaman Lagenda Bhd (BDB) has entered a joint venture with Menteri Besar
which involves the construction of 2,500 affordable housing Kedah Incorporated (MBI Kedah) to develop an integrated
units through several phases. Phase 1 of this township commercial development involving premium and business
development will consist of 282 1-sty units across 11.11 outlets, food & beverage shops as well as recreational facilities
hectares of the land with prices estimated to be between in Langkawi.
This JV project, in collaboration with the Langkawi

Development Authority (LADA), will see its development
being constructed on 16.58 hectares of land in Padang
Matsirat which is located right next to Langkawi International
Pulau Dayang Bunting, Langkawi
Airport. To be developed in phases, Phase 1 of this initiative
includes the development of a “Malaysia Designer Outlet”
where local fashion brands and fusion restaurants will fill its
spaces. Completion is estimated to be in mid-2022 with the Located adjacent to Kulim’s largest shopping mall, Kulim
construction of 37 business outlets on 1.65 hectares of land Central Shopping Mall, is an upcoming commercial
scheduled to begin in the fourth quarter of 2021. Phase 2 development by Sri Awona Sdn Bhd named Landmark
will further include the built of premium outlets on 11.74 City Commercial Centre. Offering 70 units of 2-storey shop
hectares of land with completion estimated to be in 2024. offices, price starts from RM788,000 and construction is
scheduled for completion in 2022.
Existing Supply & Occupancy Rate of Retail Spaces in
Kedah (2017-1H 2021) (Source: JPPH) Another development in the pipeline is the Aman Laut
Commercial Centre in Kuala Kedah. Despite the larger-
(Mil.sf) (%) sized product offering 3-storey shop offices, the units start
8.0 100 at a lower price tag of RM320,000. Completion is expected
80 to be in 2023.
6.0
60
4.0
40 Number of Shop Office Property Transactions in
2.0 20 Kedah (2017-1H 2021) (Source: JPPH)
0.0 0
2017 2018 2019 2020 1H 2021 (No. of units) (%)
Existing supply (LHS) Space Occupied (LHS) 1,000 40

Occupancy rate (RHS) 800 20
600
0
400
a SHOP OFFICE -20
200
0 -40
2017 2018 2019 2020 1H 2021
As at 1H2021, Kedah’s shop office market saw its existing
stock maintaining at 30,878 units overall with 2-sty types 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
taking up 57% of the supply followed by 1-sty types at 22%

and 3-sty types at 14%. Another 1,012 new shop office units
will enter the market, with 87% of it being 2-sty units. – Value of Shop Office Property Transactions in Kedah
keeping this the most popular type in Kedah’s shop office (2017-1H 2021) (Source: JPPH)
market.
(RM Mil.) (%)
Transaction activities have shown promising recovery growth 500 40

since 1H2020’s pandemic-ridden low point, with a positive 400 20
12.7% increase in volume and 17.2% increase in value to 300
337 transacted units worth RM147.14 million. While the past 0
200
trend has been somewhat unstable with no steady upward -20
100
growth seen as yet, hopes remain in place for the market
to soon find and keep at its recovery pace back to its past 0 -40
2017 2018 2019 2020 1H 2021
booming transaction performances – transaction activities
having been on a overall downward decline since the early 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
2010’s.
Existing Supply of Hotels in Kedah

a HOTEL (2017-1H 2021) (Source: JPPH)
(No. of rooms) (%)

Since the hard hitting point of the pandemic onto the hotel 20,000 40
sector of Kedah back in 1H2020, supply have held relatively
15,000 20
well, maintaining at 13,154 hotel rooms across Kedah and
an incoming supply of 756 new rooms in the pipeline. As 10,000 0
one of the key measures in fighting against Covid-19, the
5,000 -20
proactive distribution of vaccines to Malaysians has become
the enabler to reopen borders and interstate travel for all 0 -40
2017 2018 2019 2020 1H 2021
who have been fully vaccinated and deemed safe for social
exposure. This bodes well for the hotel and tourism sector Existing supply (LHS) % Change y-o-y (RHS)
as local tourists responded overwhelmingly well in being
able to travel again after being locked in for months and at “In less than 2 months of Langkawi’s
several periods.
reopening under the Travel Bubble
On 16th September 2021, as part of the government’s
pilot project to reopen the local tourism industry through
Programme, a total of 240,361 domestic
a selected and controlled ‘travel bubble states’ and allowing tourists have visited the island and
leisure activities to resume safely under appropriate Covid-19
SOP measures, Langkawi had reopened its doors to the
bringing in a revenue of RM240mil for
public. This saw an overwhelming interest surge in from the tourism industry”
locals after having being cocooned for more than a year.
With the added discounts, value-added packages and variant and a predicted 4th wave of new Covid-19 cases
complimentary features, hotels saw reservations increase have put a hold on such plans, as strict border controls
by 40% to 45% upon reopening and bookings made right are back in place to contain and prevent the spread of
into October, as stated by the Kedah/Perlis Malaysian the new variant coming in from other countries. For a full
Association of Hotels chairman Eugene Dass to the media. revival of Langkawi’s tourism sector as a long established
But as rooms were quickly filled up and tourists traffic going holiday destination, there is still the need for both local and
strong, Covid-19 infections were still happening as some international tourist traffic for a sustainable future recovery.
hotels were seen to have temporarily closed for sanitisation
purposes after a cluster was detected. This did not hamper A new development project involving land reclamation in
travelling sentiments, merely re-emphasising the importance Langkawi was announced in early 2021 with a joint venture
of adhering to SOP standards and measures during leisure between Widad Business Group (WBG) and Bin Zayed
activities. International (BZI) LLC. It has been named as Widad@
Langkasuka. Designed as a mixed development with an
In less than 2 months of Langkawi’s reopening under the estimated gross development value (GDV) of RM40 billion,
Travel Bubble Programme, a total of 240,361 domestic the project is expected to take a span of 15 to 20 years for
tourists have visited the island and brought in a revenue of its full construction and will comprise tourism components
RM240 million for the tourism industry, according to the such as 5 and 6-star resorts and hotels, an international golf
Langkawi Development Authority (LADA). Of these arrivals course and shopping malls among others.
into the island, 55.6% flew in by flight, 32.3% crossed in by
ferry from Kuala Kedah and Kuala Perlis, and the remaining On a different note, BDB Hotels in Bandar Darulaman,
12.0% arrived at Langkawi Port in Tanjung Lembung. Jitra will be changing its operations from a hotel to serviced
apartments when its operating license ends after having
Though plans have been made to extend the bubble range operated as a hotel for almost 15 years. This move was
to include the return of international tourist back into initiated in response to the challenges faced by the hospitality
Langkawi’s tourism scene, the emergence of a new Covid-19 industry due to the Covid-19 pandemic.
As one of the national projects under the Northern

a INDUSTRIAL Corridor Economic Region (NCER) Strategic Development
Plan 2021-2025 (SDP), the Kedah Rubber City (KRC)
development will be seeing its first and the world’s largest
Following the low point of 1H2020 after being hit hard by glove factory development next year. As at November 2021,
the disruptive pandemic impact, Kedah’s industrial sector KRC has achieved 85% construction progress on a land area
saw a positive growth of 13% in volume but a fall of 39% of 505.86 hectares and is expected to generate future job
in value to 86 transacted units worth RM81.14 million as at opportunities for residents surrounding KRC. Being the first
1H2021. This indicates that while number of transactions company to invest in KRC and have its factory construction
have gone up, average prices per transaction has fallen and is commencing in 2022, Hong Seng Industries Sdn Bhd will
yet to be seen if this downtrend value movement will persist be investing RM3 billion to build the world’s largest glove
or not as the sector is gradually pacing itself back up to post- (NBL) factory that is expected to be completed by 2024.
pandemic conditions. Hong Seng Industries had received an offer letter to re-lease a
sizable industrial land of 102.6 acres in KRC for a period of
On the supply segment, no new units were seen to enter 60 years for the construction of the nitrile butadiene rubber
the market within the review period and have maintained (NBL) manufacturing plant.
at 3,858 units for the whole state with most units being
concentrated in areas of Kota Setar, Kuala Muda and Kulim.
On the future front, 80 industrial units are in the pipeline
and are mostly of the terraced and semi-detached types,
mainly located in Kulim.
Number of Industrial Property Transactions in Kedah

(2017-1H 2021) (Source: JPPH)
• ECK Group of Companies (ECK) is entering a
(No. of units) (%) partnership deal with the Kedah State Government
to develop the Kulim International Airport
400 40
(KXP) project with their involvement being from
300 20 construction to commissioning – including the two
components of KXP being Kedah Aerotropolis and
200 0
Airport City in Sidam Kiri, Kuala Muda.
100 -20
0 -40
• Kampung Manggol Pauh will be welcoming the new
2017 2018 2019 2020 1H 2021 Hospital Pendang to its area, after some delays due
to the pandemic disrupting construction progress.
It will have a capacity of 126 beds.
Value of Industrial Property Transactions in Kedah
• Austria-based manufacturer AT&S Production
(2017-1H 2021) (Source: JPPH)
is setting up their new facility in Kulim Hi-Tech
Park to produce high-end printed circuit boards and
(RM Mil.) (%)
integrated circuit substrates. Construction began in
400 100
the later half of 2021.
300 50
• C hina-based Risen Energy Production is in
200 0
the process of investing RM42.2 billion over a
100 -50 span of 15 years to manufacture high-efficiency
photovoltaic modules in Kulim Hi-Tech Park. The
0 -100
2017 2018 2019 2020 1H 2021 plant construction is slated to complete by end
2021/early 2022.
PULAU
PINANG Key Facts (as at 1H 2021)
(Source: Rahim & Co Research, JPPH)
Capital: Georgetown
RESIDENTIAL
Est. Population: 1,774,400
Area (km2): 1,049
(Source: DOSM)
RETAIL
Rental Prime: RM4.00 – RM48.00psf
PURPOSE-BUILT OFFICE
SHOP OFFICE
HOTEL
Incoming Supply 5,921 rooms
INDUSTRIAL
The Penang Second Bridge

24 Northern Region | Pulau Pinang
Number of Residential Property Transactions in

a RESIDENTIAL Pulau Pinang (2017-1H 2021) (Source: JPPH)
(No. of units) (%)

As at 1H2021, the residential market of Pulau Pinang saw a 15,000 50
notable recovery growth recorded y-o-y at 41.3% in volume 12,000
25
and 55.3% in value to 6,065 transacted units worth RM2.61
9,000
billion. This in comparison to 1H2019’s performance of 0
6,000
6,056 transacted units worth RM2.46 billion has shown the
3,000 -25
state’s residential market to have successfully regained its
momentum back to pre-Covid-19 levels and going forward 0 -50
2017 2018 2019 2020 1H 2021
is about maintaining such momentum in order to keep on
the upward trend movement. 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
The supply side of the market saw a small increase of

2.9% which puts Pulau Pinang’s existing residential stock Value of Residential Property Transactions in
to 537,207 units, excluding the 6,614 units of serviced Pulau Pinang (2017-1H 2021) (Source: JPPH)
apartment and 2,614 units of SOHO. Combined, Pulau
(RM Mil.) (%)
Pinang’s dwelling stock as of 1H2021 is at 546,435 units
across the state. Between the mainland and island portion of 8,000 50
Pulau Pinang, dwelling stock is approximately 50:50 for both 6,000 25
and thus giving an equal housing capacity though mainland,
due to its larger land supply, offers more landed homes than 4,000 0
the island. 2,000 -25
0 -50
In the pipeline, there are 39,510 new dwelling units under 2017 2018 2019 2020 1H 2021
construction of which 51.9% are on the mainland and 48.1%
on the island. 23,991 incoming high-rise dwellings make up 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
Penang Island Residential Property Price Trend & House Price Index (2017-2021) (Source: Rahim & Co Research, IHRM)
2,000 250.0
1,800 1TH (LHS)
1,600 200.0 2TH (LHS)
1,400
1SD (LHS)
1,200 150.0
2SD (LHS)
1,000
800 100.0 Condo/
Apt/S.Apt
600 (LHS)
400 50.0
All house
200 price Index
(RHS)
0 0.0
2017 2018 2019 2020 2021
Selected Upcoming Landed Residential Properties in Pulau Pinang (Source: Rahim & Co Research)
No of Expected
Units Completion
Bertam Lakeview - Nyssa Bertam 1-sty Terraced 155 From RM329,000 2022
Viluxe Batu Kawan 2-sty Terraced 170 From RM750,000 2022
Sg Ara,
Casa Rica@ Setia Greens 3-sty Semi-Detached 38 From RM2.0 mil 2023
Bayan Lepas
2-sty Semi-Detached 363 From RM1.4 mil 2024
Eco Horizon @B andar Cassia Batu Kawan
2-sty Terraced 235 From RM773,000 2025
Selected Upcoming High-Rise Residential Properties in Pulau Pinang (Source: Rahim & Co Research)
No of Expected
Units Completion
Gem Residence Seberang Prai Serviced Apartment 978 From RM440,000 2022
Queens Waterfront
Bayan Lepas Condominium 450 From RM940,000 2022
Residences (Phase 2)
The Sky Urban Bukit Mertajam Condominium 560 From RM422,000 2023
Montage Sg Nibong Condominium 282 From RM748,000 2023
Vivo Executive Apartment Batu Kawan Serviced Apartment 1,005 From RM360,000 2023
One City Residences Juru Serviced Apartment 148 From RM397,000 2024
Iconic Regency Sg Nibong Serviced Apartment 268 From RM460,000 2024
Havana Beach Residence Bayan Lepas Condominium 1,342 From RM480,000 2024
Sinaran Residence Batu Kawan Serviced Residence 964 From RM382,000 2024
Royale Infinity @ Tambun
Tambun Condominium 223 From RM396,800 2024
Royale City (Phase 2)
the total incoming number and far surpasses the new landed the bigger price tagged high-rise units. As one of the top
home offerings, shifting the market even more to the high- destinations for MM2H participants, more progressive and
rise side of living. clearer guidelines on the revamped MM2H 2.0 programme
will fuel more interest from potential MM2H buyers to return
Pulau Pinang’s overhang status recorded 5,418 unsold units once the pandemic environment has subsided.
sitting idle in the market as of 1H2021, carrying a value of
RM4.33 billion. Of the overhang stock, 84.5% are of the 2021 saw the unveiling of Mezzo, the first residential
high-rise types and 57.5% are priced at above RM500,001 component of The Light City development located on the
including units going beyond RM1 million. eastern coast of the island. Positioning itself as a luxury
seafront condominium, Mezzo offers a total of 456 units
There is the risk of the overhang status to worsen, particularly within two 34-storey towers. The units will have built-ups
for the high-rise segment, should the entrance of new units of 1,033 sf to 1,367 sf and prices starting from RM900,000.
to the market further outpace market absorption. For the Completion is scheduled to be by 2025. Future residents of
higher end range of homes targeted to foreign buyers, the Mezzo will be able to enjoy the convenient access to The
success of the newly revamped MM2H 2.0 would be one Light City’s other components including a retail mall, the
of the key determinants to improving the take-up rates of Penang Waterfront Convention Centre and office suites. The
“Keeping to the affordable agenda, the Penang state government

through the State Housing Board (LPNPP) is planning 10
housing projects that will provide a total of 20,912 housing units
in five districts of the state”
entire development is served by the Tun Dr Lim Chong Eu

Expressway and in close proximity to the Penang Bridge, a RETAIL
Penang International Airport, Bayan Lepas Free Industrial
Zone and the ferry terminal.
As at 1H2021, Pulau Pinang’s retail segment of the market
Inspired by the co-living trend, EcoWorld had launched its saw its existing stock to have reached 20.22 million sf after an
first Co-Home units at Eco Horizon in Bandar Cassia in the increase of 3.0% y-o-y. Occupancy rate has fallen slightly by
first quarter of 2021. The stratified unit resembles more a 1.1% to 72.2% leaving 5.62 million sf of vacant retail mall
2-storey terraced house that has been split into two units, space in the market which brings concern when seeing the
with each occupying one floor and having similar blueprint. absolute number. By locality, Georgetown and Perai are the
Catering to the demand for more mid-priced landed homes, top areas with the highest concentration of retail complexes
the units are targeted at first-time homebuyers, and young with a combined supply size of 8.98 million sf.
and multigenerational families. Located within the Camdon
Collection, there are 459 units offered with built-ups of There are 1.81 million sf of new retail spaces in the pipeline
904 sf to 987 sf and price tags starting from RM447,000. and under construction as of 1H2021. The areas expecting
Completion is slated for 2024. these new entrants are Georgetown, Sungai Nibong, Air
Itam/Relau and Kepala Batas – each expecting 1 new retail
Keeping to the affordable agenda, the Penang state complex respectively. Due to Covid-19 that have caused
government through the State Housing Board (LPNPP) is disruption in construction progress, some completion targets
planning 10 housing projects that will provide a total of has been postponed to a later date, including Gem Megamall
20,912 housing units in five districts of the state. The first which is now slated for completion in 2023 from its initial
project to be rolled out will be 1,267 affordable home units 2021 target.
in Bukit Gedung, Bayan Lepas. Of the 1,267 units intended,
1,014 units will be affordable homes sized at 850 sf with a Recognised as one of the key components of the upcoming
price tag of RM270,000 and the remaining 253 units will The Light City integrated waterfront development in Gelugor,
be low-and-medium-cost homes sized at 700 sf and priced the retail component named The Waterfront Shoppes is a 1.5
at RM72,500. Construction is scheduled to commence in million sf sized retail mall offering new-to-market shopping,
2022 and completion slated for 2025. dining, entertainment and lifestyle experiences set against
the architectural heritage of Pulau Pinang. As part of Phase
From the federal government side, the Housing and 1 of The Light City development which also includes the
Local Government Ministry (KPKT) are also planning to Penang Waterfront Convention Centre (PWCC), a 34-storey
implement two People’s Housing Projects (PPR) in Pulau hotel, an office tower and the Mezzo residential development,
Pinang under the 12th Malaysia Plan. One will be built construction has commenced back in 2020 and is expected
on the mainland and the other on the island with the state to complete progressively from December 2024 onwards.
government having submitted five proposed locations.
Formerly known as Tesco Stores (Malaysia) Sdn Bhd, Lotus’s
Stores (Malaysia) Sdn Bhd has launched its second flagship
store in Malaysia with Lotus’s Penang E-Gate who has taken
the lead in bringing forward the Lotus’s brand within the
Northern Region.

Pulau Pinang (2017-1H 2021) (Source: JPPH)
(Mil.sf) (%)
25.0 100
20.0 80
15.0 60
10.0 40
5.0 20
0.0 0
2017 201 8 2019 2020 1H 2021
Existing supply (LHS) Space Occupied (LHS)

Occupancy rate (RHS)
In their efforts to better adopt the digitalisation of the retail

sector as part of their strategy to better support shoppers
Georgetown
and retailers amidst a pandemic environment, CapitaLand
Malaysia has brought onboard seven malls under its portfolio
onto Grab’s Malls by GrabMart platform – two of which
are Queensbay Mall and Gurney Plaza in Pulau Pinang. Following the success they’ve had with the first two Global
Through this strategic move, shoppers are now able to enjoy Business Services (GBS) buildings, the Penang Development
the convenience of shopping at CapitaLand malls within Corporation (PDC) is planning to set up two more GBS
the digital space right from the comfort of their own homes. buildings in Pulau Pinang to meet the growing needs of the
From the listed tenants of CapitaLand’s malls on GrabMart, GBS market – GBS being the evolution of Shared Services
shoppers are able to purchase from different stores of the & Business Process Outsourcing (BPO) which focuses on
same mall and have the items delivered under one delivery improving process efficiency and lowering costs. In addition
fee. to the existing GBS@Mayang and GBS@Mahsuri, the two
new buildings currently being planned is set to provide
Sunway Carnival Mall in Seberang Jaya will see the 300,000 sf of office space each with one to be located near
completion of its expansion works by March 2022 and be GBS@Mayang and the other in Bayan lepas industrial area.
reopened the following month. Originally a 4-storey retail The most recent GBS@Mahsuri was completed back in
sized at 500,000 sf back when it opened its doors in June October 2020 and is a 2-storey office building with a net
2007, the expansion effort will result in the doubling of the lettable area of 80,116 sf. Four prominent multinational
retail mall’s capacity size to 1 million sf and the number of corporations have fully occupied the building.
stores be increased by 60% to 350 lots.
Existing Supply & Occupancy Rate of Purpose-Built
Office in Pulau Pinang (2017-1H 2021) (Source: JPPH)
a PURPOSE-BUILT OFFICE
(Mil.sf) (%)
20.0 100
The PBO supply of office space in Pulau Pinang has 80
15.0
maintained at 11.88 million sf with occupancy rate having 60
slightly improved by 1.4% to 85.3% state wide. This indicates 10.0
40
a steady PBO market for Pulau Pinang as there is also just
5.0
short of 50,000 sf of new office space in the pipeline as 20
of 1H2021. This tenancy performance leaves 1.74 million 0.0 0

2017 2018 2019 2020 1H 2021
sf of vacant space combined which is relatively low when
compared to the other three major states of Malaysia; Johor, Existing supply (LHS) Space Occupied (LHS)
Kuala Lumpur and Selangor. Occupancy rate (RHS)
Number of Shop Office Property Transactions in Pulau

a SHOP OFFICE Pinang (2017-1H 2021) (Source: JPPH)
(No. of units) (%)

The shop office segment of Pulau Pinang’s property market 1,000 50
has seen promising improvements from 1H2020, registering
800
31.9% in volume and 25.4% in value to 343 transacted units 25
600
worth RM270.99 million – putting market performance 0
close to 1H2019 at 399 units worth RM334.44 million. This 400
bodes a better prospect for the shop office market to resume -25
200
back on its recovery path that has previously been disrupted 0 -50
by the pandemic in 2020. Minimal change is seen for the 2017 2018 2019 2020 1H 2021
supply side and is maintained at 31,163 units ranging from 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
pre-war to 6-storey types state wide. There are 677 new units
in the pipeline and are largely concentrated on the mainland
areas of the state.
Value of Shop Office Property Transactions in Pulau
Though having slightly increased from 78 units in 1H2020 to Pinang (2017-1H 2021) (Source: JPPH)
112 units worth RM80.78 million as at 1H2021, the overhang

(RM Mil.) (%)
stock of shop offices for Pulau Pinang remains manageable.
The unsold units are priced between RM300,001 to 1,000 100
RM600,000 and above RM1 million. 800 50
600
The Weld Heritage Square commercial development within 0
400
Pulau Pinang’s George Town UNESCO World Heritage -50
200
Site at Pengkalan Weld is expected to obtain its certificate of
completion and compliance in the first half of 2022 following 0 -100
2017 2018 2019 2020 1H 2021
its construction completion at end 2021. Constructed on a
2.1-acre land along Lebuhraya Merdeka off Pengkalan Weld, 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
this heritage commercial development is jointly developed

by Adat Makmur Sdn Bhd and Koperasi Gabungan Negeri is in compliance to the strict building height limit of below
Pulau Pinang with the former fully funding the project. The four storeys implemented for any developments within the
strata-titled project consists of 3 and 4-storey shop units that heritage buffer zone.
The return of local tourists following the lifting of the

a HOTEL interstate travel ban brings hope to the return of international
tourists once international borders have fully and safely be
reopened as well, ultimately driving the recovering boost for
The hotel sector of Pulau Pinang saw a small growth of 2.7% Pulau Pinang’s tourism industry.
in room supply, putting 1H2021’s supply at 22,406 rooms
state wide. As the pandemic situation had extended into 2021,
further news of closures, both temporary and permanently, Existing Supply of Hotels in Pulau Pinang
were seen in the media though not as prominent as 2020. (2017-1H 2021) (Source: JPPH)
The tourism sector for the state rebounded on the short

(No. of rooms) (%)
surge of local tourists during the short periods of borders
reopening. In the pipeline, there are 5,921 new hotel rooms 25,000 50
being constructed which indicates hotel operators and brands 20,000 25
to still see the business potential once Covid-19 subsides 15,000
effectively with vaccination rates progressing successfully 0
10,000
in 2021. -25
5,000
Another hotel establishment in Pulau Pinang had thrown in 0 -50

2017 2018 2019 2020 1H 2021
the towel and ceased operations due to the adverse business
conditions caused by the pandemic. The 5-star Hotel Existing supply (LHS) % Change y-o-y (RHS)
Equatorial Penang was effectively closed down on 31st March

2021 after being in operations for about 30 years.
On a more temporary note, the Singapore-owned Hotel Royal a INDUSTRIAL

Penang will cease its operations temporarily in November
2021 to undergo a restructuring exercise as notified by
the management through a notice of retrenchment. This Keeping to its strong recovery from 1H2020’s low point, the
decision came about as a result of the Covid-19 pandemic industrial sector of Pulau Pinang has also seen promising
that had continued to plague the market in 2021 and, like rebounds of 62.5% and 89.8% in volume and value
several others who had gone on similar paths, was deemed respectively to 247 transacted units worth RM775.61 million.
the right time to conduct such exercise. The 276-roomed This has placed 1H2021’s transaction performance higher
4-star business hotel is located along Jalan Larut and is one of than 1H2018 and 1H2019’s numbers. The performance
the properties owned by Hotel Royal Limited in Singapore, brings confidence in the market to keep its recovery pace
Malaysia and Thailand. and stay on the upward trend for the sector.
Selected Upcoming Hotels in Pulau Pinang (Source: Rahim & Co Research)
Expected
Development Location Star Ratings No of Rooms
Completion
Holiday Inn & Suites Juru 4 288 2022
Amari SPICE Penang Bayan Lepas 5 453 2022
Aloft Hotel Batu Kawan 4 308 2023

Number of Industrial Property Transactions in Pulau

Pinang (2017-1H 2021) (Source: JPPH)
(No. of units) (%)
500 50
400 25
300
0
200
-25
100
0 -50
2017 2018 2019 2020 1H 2021
Penang Hill
Value of Industrial Property Transactions in Pulau
Pinang (2017-1H 2021) (Source: JPPH)
(RM Mil.) (%)

The supply side of the sector saw a small increase of 3.6% 1,500 100
to 9,597 existing industrial units as at 1H2021 with 151 new
units currently in the pipeline. By locality, a sizable 82.1% 50
1,000
of the industrial stock are concentrated on the mainland 0
portion of Pulau Pinang due to the large supply of land and 500
industrial parks there. -50
0 -100
Looking forward, the state government continues to actively 2017 2018 2019 2020 1H 2021
expand the state’s industrial capacity so as to meet the future 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
needs of industrial players and be attracted to choose Pulau
Pinang as the top choice for industrial investments and
ventures in Southeast Asia.
Further helping to integrate Pulau Pinang into the global
In preparation for a new wave of industrial investments semiconductor value chain is the opening of Lam Research
anticipated to come into the state in the future, Penang Corporation’s new RM1 billion facility in BKIP in August
Development Corp (PDC) is in the midst of developing two 2021 which serves as a hub for its manufacturing operations
new industrial parks – Batu Kawan Industrial Park 2 (BKIP2) in Asia. Having positioned itself as the company’s latest and
and East Batu Kawan. Both will add a combined 1,500 acres largest manufacturing facility, the new manufacturing hub
of industrial land to the state and will be developed in stages has an 800,000 sf built-up area on a 34-acre site. As a global
and expected to come onstream from 2023 onwards. Set supplier of wafer fabrication equipment and services to the
to becoming Pulau Pinang’s 10th industrial park, BKIP2 semiconductor industry, the presence of Lam Research in
in Byram Estate is an important element to the state’s Malaysia will bring opportunities for the locals to learn new
industrialization journey for the next 10 to 20 years. The technical skills.
existing 9 industrial parks successfully established in Pulau
Pinang are Mak Mandin, Perai, Bayan Lepas, Seberang Jaya, More new industrial players set to enter BKIP in 2022 include
Bukit Tengah, Bukit Minyak, Penang Science Park, Penang the South Korea-based Simmtech and JHM Consolidation
Science Park North and Batu Kawan Industrial Park (BKIP). Bhd. Simmtech had announced in July 2021 of their decision
to choose an 18-acre site at BKIP for its first large-scale

factory in Southeast Asia with Phase 1 slated for operation Notable Announcements
commencement by the first half of 2022.
• Penang Port Sdn Bhd’s North Butterworth Container

JHM Consolidation Bhd has eyed a 9-acre piece of land in
Terminal (NBCT) was gazetted as a free commercial
BKIP as part of its expansion into the telecommunication
zone (FCZ) in February 2021, involving 10 lots of
equipment industry. It already has its own manufacturing
land covering the total area of 83.57 hectares.
operations in Sungai Petani and Kulim, Kedah serving the
automotive and industrial industries of its business. JHM
• Phase 1A of the Swettenham Pier Cruise Terminal
is expecting the new facility to be completed by the second
(SPCT) completed on 31st May 2021 and Phase
half of 2022.
1B is expected to commence in 2023. Both phases
involved the upgrading of the existing wharf to be
Bayan Lepas Industrial Park will also see the commencement
able to handle 50% more passengers and that the
of Intel Corporation’s (Intel) new production facility
terminal’s berthing area could accommodate two
expansion at the Free Trade Zone Phase 3 in 2024. As
Oasis class vessels simultaneously.
part of the Intel’s RM30 billion expansion project, the new
production facility will be done via multiple phases and
• The construction of the Air Itam – Tun Dr Lim
consist of several buildings.
Chong Eu Expressway bypass commenced on 1st
February 2021 and is slated for completion on
3rd January 2025. This bypass is Package 2 of the
PMRT project and will stretch at a length of
approximately 6km.
• A 2.8-hectare plot of land has been identified for

the development of Pulau Pinang’s own motorsport
racing circuit in Batu Kawan next to the Sate
Stadium complex.
• Ascott Gurney Penang will be launched in the first

quarter of 2022 once its refurbishment has been
completed with a new offering of 271 serviced
residence units. The new development is taking the
place of the former The Gurney Resort Hotel &
Residences.
32
PERAK
Darul Ridzuan
Key Facts (as at 1H 2021)
Capital: Ipoh
Est. Population: 2,508,900 RESIDENTIAL

Area (km2): 20,976
(Source: DOSM) Transaction Value RM2,344.38 mil. 10.2% y-o-y
RETAIL
SHOP OFFICE
HOTEL
INDUSTRIAL
Taiping Lake
Number of Residential Property Transactions in Perak

(No. of units) (%)

With an injection of 8,488 new units into Perak’s residential 30,000 50
market, existing supply of residential units as at 1H2021
24,000
stands at 503,003 units. With the inclusion of serviced 25
18,000
apartments and SOHOs which are under the commercial 0
category, the number is further boosted to 504,894 dwelling 12,000
units – placing Perak as the runner-up after the 4 major states 6,000 -25
of Malaysia in dwelling stock. Landed homes continue to 0 -50

be the biggest contributor to total supply, making up 94% 2017 2018 2019 2020 1H 2021
of dwelling supply. 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
Perak will be expecting the entry of 40,590 new dwelling Value of Residential Property Transactions in Perak
units that are currently under construction and out of this
(2017-1H 2021) (Source: JPPH)
incoming supply, 23% are high-rise units. Further adding on
to the pressure of the state’s market absorption capability (RM Mil.) (%)
to these incoming units are the readily-available presence 6,000 50
of overhang dwellings that are currently sitting vacant in 5,000
25
the market. As at 1H2021, the overhang stock for Perak has 4,000
shown improvement by 30% in negative growth which brings 3,000 0
the total overhang dwelling count down to 3,249 units worth 2,000
-25
RM1.03 billion though an overwhelming 84% of this are 1,000
priced between RM100,001 to RM400,000. 0 -50
2017 2018 2019 2020 1H 2021
This indicates that while the overall overhang number may 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
be deemed on the low side in comparison to other states, the
fact that the prices of most of the units are already within the With the supply side facing the challenge of matching the
affordable range shows demand is influenced by more than current housing demand, market demand maintains its
just affordable price but also location and product type; the steady pace after 1H2020’s minimal impact from last year’s
latter considering that a good third of the overhang stock heavy hitting pandemic situation. Transaction volume is
are condominiums/apartments. at 10,672 units worth RM2.34 billion from a growth of
Ipoh/Kinta Residential Property Price Trend & House Price Index (2017-2021) (Source: Rahim & Co Research, IHRM)
1,000 250.0
900 1TH (LHS)
800 200.0 2TH (LHS)

700
1SD (LHS)
600 150.0
2SD (LHS)
500
100.0 Condo/
400
Apt/S.Apt
300 (LHS)
200 50.0
All house
100 price Index
(RHS)
0 0.0
2017 2018 2019 2020 2021
34 Northern Region | Perak
Selected Upcoming Residential Properties in Perak (Source: Rahim & Co Research)
No of Expected
Units Completion
The Cove Hillside Residence Ipoh Condominium 380 From RM434,000 2022
Horizon Condominium Fair Park, Ipoh Condominium 253 From RM398,000 2022
Tiara Pengkalan
Tiara Lake Park – 10T 2-sty Terraced 120 From RM358,000 2022
Jaya, Ipoh
Gunung Lang,
Lang Avenue Residences 2-sty Terraced 25 From RM338,000 2022
Ipoh
Bandar Seri
Seri Teratai, Phase 6.2 2-sty Semi-Detached 51 From RM1.03 mil 2022
Botani, Ipoh
Desa Pengkalan Bandaraya Station 18, Ipoh 1-sty Semi-Detached 36 From RM365,000 2022
Sunway Onsen Suites Tambun, Ipoh Serviced Apartment 252 From RM430,000 2023
Anderson Condo Ipoh Condominium 1,030 From RM184,000 2023
Raia Gemilang Residences Gopeng 1-sty Terraced 34 From RM228,000 2023
1-sty Terraced From RM278,000 2023

Spanish Garden Batu Gajah 150
2-sty Terraced From RM358,000 2023
De-Aracdia @ Lawan Kuda

Gopeng 1-sty Semi-Detached 50 From RM278,000 2023
(Phase 1)
Raintree Villas Lang Valley, Ipoh 2-sty Semi-Detached 50 FromRM514,500 2023
Seri Raia Residence Simpang Pulai 1-sty Bungalow 70 From RM368,000 2023
Bemban Margosa Residence Batu Gajah 1-sty Bungalow NA From RM320,400 2023
11.5% and 10.2% respectively. This has brought the state’s

transaction performance back to 1H2018’s level and brings a a RETAIL
higher chance to finally seeing a sustaining upturn in market
activity movement.
The retail segment of Perak holds well in occupancy rate
Of the transactions, 79% were at price tags of up to throughout the pandemic period thus far, maintaining at
RM300,000 and by type, terraced units and vacant plots 84.5% overall from a total retail space of 10.29 million sf. No
remain as the popular choice of residential purchase. completions were recorded for the first half of the year but
Looking to new developments making their debut in the Existing Supply & Occupancy Rate of Retail Spaces in
market, Ageson Holdings Sdn Bhd has inked a development Perak (2017-1H 2021) (Source: JPPH)
rights agreement with Menteri Besar Inc (Perak) to develop
a mixed development on some 475 acres of land in Wilayah (Mil.sf) (%)
Sungai Kelian Baru, Batang Padang. This large-scale 12.0 100

development will be seeing a mixture of local authority 10.0 80
offices, commercial units and a variety of residential schemes 8.0
60
as part of the components. For the local authority, plans 6.0
40
are made to have a District Health Department Office, a 4.0
District and Land Office, a District Council Office and a 2.0 20
Community Development Department Tapah office built 0.0 0

2017 2018 2019 2020 1H 2021
within the development area. For its future residents, the
product type anticipated include 1,038 units of terraced Existing supply (LHS) Space Occupied (LHS)
homes, 332 units of semi-detached homes and 191 units of Occupancy rate (RHS)
detached homes.
an estimated 1.66 million sf of new retail space is currently of office space for potential private tenants, unlike the more
in the pipeline with the majority being in Ipoh. private-driven states such as Kuala Lumpur, Selangor and
Pulau Pinang. This lends a hand to maintaining healthy
In December 2021, Botani Village by Pinji Development saw occupancy rates despite the pandemic crisis.
its opening in conjunction with the opening of the largest
Econsave hypermarket in Malaysia. As the anchor tenant Following the announcement made by Companies
of the new commercial centre, the hypermarket has a floor Commission of Malaysia (SSM) back in 2017 on their plans
space of about 96,800 sf with other offerings including retail to construct their second self-owned building after Menara
shops, dining and leisure spaces. SSM in Kuala Lumpur, the SSM office of Perak has officially
moved into their newly completed Menara SSM Perak in
After some delays, the Silverlake Village Outlet by Silverland December 2021.
Capital Sdn Bhd in Batu Gajah is anticipated to open its
doors to the public in early 2022. Boasting a scenic view
by the lake banks, the new premium outlet will be offering
146 retail lots, an expansive food court and 20 bazaar-type a SHOP OFFICE
retail units.
Anticipated to come in 2023 is Sunway Bhd’s next retail mall Following the dampening impact Perak’s shop office market
venture in Perak. Located within Sunway’s own Sunway City suffered back in 2020 due to the pandemic, 1H2021 showed
Ipoh, Tambun, the new upcoming mall has been named the an encouraging recovery growth to 623 transacted units
Lost World Mall@Sunway Tambun. worth RM306.48 million – an increase of 21.0% and 17.4%
in transaction volume and value respectively. But there is still
room for improvement as it is still below 1H2019’s pre-Covid
a PURPOSE-BUILT OFFICE performance at 836 transacted units worth RM395.67 million.
On supply, the shop office segment saw a slight growth of just

As at 1H2021, the supply of Purpose-Built Office (PBO) in 1.1% to 59,073 shop office units by 1H2021. Aside from Kinta
Perak stands at 6.95 million sf after a small growth of 1.7% district having the largest concentration of shop office supply,
since 1H2020. Occupancy rates held relatively well despite other areas of notable supply size are Kampar, Larut Matang
the prolonged pandemic situation at 92.2%, equating to a and Manjung. In the pipeline, a total of 2,720 new shop office
total vacant space of 539,745 sf. units are currently under construction with more than 700 of
it being in Kuala Kangsar. Other areas expecting similar new
On the status of PBO buildings in Perak, 66% of the supply entrance are Larut Matang, Batang Padang and Selama.
226 PBO establishments are government-owned and the 82% of the incoming stock are 2-sty and 3-sty shop offices.
remaining being private – this has created a limited share
Existing Supply & Occupancy Rate of Purpose-Built Number of Shop Office Property Transactions in Perak
Office in Perak (2017-1H 2021) (Source: JPPH) (2017-1H 2021) (Source: JPPH)
(Mil.sf) (%) (No. of units) (%)

8.0 100 2,000 50
80
6.0 1,500 25
60
4.0 1,000 0
40
2.0 500 -25
20
0.0 0 0 -50
2017 2018 2019 2020 1H 2021 2017 2018 2019 2020 1H 2021
Existing supply (LHS) Space Occupied (LHS) 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
36 Northern Region | Perak
Selected Upcoming Shop Offices in Perak (Source: Rahim & Co Research)
No of Expected
Units Completion
Spanish Garden by the Water Batu Gajah 2-sty Shop Offices 15 From RM563,000 2022
Bandar Seri Botani Ipoh 3-sty Shop Offices 7 From RM1.10 mil 2023
Bond Square by Bond Holdings is a 3-sty shop office development

that had reached its completion with CCC obtained in June
“occupancy rates in Pangkor
2021. With an area built-up starting from 5,064 sf, Bond Square
offers a total of 18 units and is primely located along Jalan
Island had improved up to 78%
Sultan Azlan Shah, in close vicinity to Tesco Ipoh Garden and following the re-opening of
Aeon Kinta City.
interstate borders”
Other shop office developments completed in 2021 include
Soong Choon Business Centre in Lapangan Perdana and Pulai As the tourism segment makes its way back to recovery after a
Square in Simpang Pulai. The former is developed by Song prolonged closure period due to Covid-19, property developer
Choon Development with prices starting from RM413,000 Pangkor Venice World (PVW) has sealed a partnership
and the latter by Eterbina Development Sdn Bhd going from with Archipelago International through a memorandum
RM768,000. Both developments offer 2-sty shop office units. of understanding (MoU) to bring in the first 5-star Grand
Aston into the country. This being the developer’s effort to
reignite the tourism industry of Pulau Pangkor as one of
Value of Shop Office Property Transactions in Perak the popular tourist destinations of Malaysia. The Grand
(2017-1H 2021) (Source: JPPH) Aston will be one of the components to a mixed development
project on the island, with other offerings include a duty-
(RM Mil.) (%) free commercial complex, and an outdoor and indoor
1,000 50 theme park.
800 25
It was reported by the state’s Housing, Local Government
600
0 and Tourism Committee Chairman that the occupancy rates
400 in Pangkor Island had improved up to 78% following the
-25
200 re-opening of interstate borders and the return of domestic
0 -50 tourists from September onwards. This was taken as a positive
2017 2018 2019 2020 1H 2021
sign of the island’s revival and bring added value to boosting
1H (LHS) 2H (LHS) % Change y-o-y (RHS) Perak’s tourism industry back up on its feet.
Existing Supply of Hotels in Perak

(2017-1H 2021) (Source: JPPH)
a HOTEL
(No. of rooms) (%)
20,000 50
Within the review period, minimal change was seen for the
15,000 25
state’s supply of hotel rooms – maintaining at 16,313 rooms
state wide. Perak as a tourism destination is catered more 10,000 0
for domestic visitors than international visitors for its city 5,000 -25
hotels, but island destinations like Pangkor Island has a larger
international tourist share traditionally. From a room supply 0 -50
2017 2018 2019 2020 1H 2021
perspective, Perak’s total positions it on par with Melaka,
Kedah and Sarawak. Existing supply (LHS) % Change y-o-y (RHS)
Located in Chemor of Hulu Kinta, this new industrial park

a INDUSTRIAL will encompass a land area of 1,139 hectares and will be
Southeast Asia’s first Digital Disruptive Technology Park
that serves as a platform to facilitate the development of
For the industrial sector of Perak, transaction activities saw emerging applied technologies from concept to production.
improvements in volume and value after 2020’s depressing It is accessible strategically to Ipoh Cargo Terminal, Sultan
point but have yet to return back to pre-Covid performance Azlan Shah Airport, Penang Port and Port Klang.
level. As at 1H2021, industrial transactions were at 189 units
worth RM257.76 million after a growth of 37.0% and 96.9% In another mixed development project located in Batang
respectively. Padang, a development venture between Ageson Bhd and
Perak Menteri Besar Incorporated (MBI Perak) will bring 33
Existing supply maintains at 8,471 industrials units with the industrial lots with the intention of capitalising on the strong
highest concentration being in Kinta at a 74% supply share. demand for build-to-suit industrial properties. In October
There are 119 industrial units in the pipeline for the areas 2021, Ageson Bhd entered into a sale and development
of Kampar, Kinta and Larut Matang/Selama. agreement with ZheJiang GuoRong Digital Economy Group
Ltd (ZGDEG) for a plot of land at RM278 million.
Listed as one of the high impact projects under the Northern
Corridor Economic Region (NCER) Strategic Development
Plan (2021 – 2025), the highly anticipated Silver Valley
Technology Park (SVTP) is expected to drive the high-
technology manufacturing sector and be a catalyst for the
4.0 Industrial Revolution in Perak. Currently in its planning
stages, the mega project will be developed between 2021 and Notable Announcements
2024 by the Northern Corridor Implementation Authority.
• According to the Draft Ipoh City Local Plan 2035
Number of Industrial Property Transactions in Perak (Replacement) issued by the Ipoh City Council
(2017-1H 2021) (Source: JPPH) (MBI) in November 2021, there is a proposed
LRT system in the plans comprising two routes of
(No. of units) (%) 16 stations each, over a distance of 58km. The first
800 100 route connects Meru Raya to Batu Gajah while
the second route connects Bandar Sunway to
600 50
Simpang Pulai.
400 0 • The RM425 million Ipoh International Convention
Centre (IICC) began its operations at the start of
200 -50
2021 with expectation of attracting more business
0 -100 travellers to the city of Ipoh and create a new,
2017 2018 2019 2020 1H 2021
convenient commercial spot for its residents.
1H (LHS) 2H (LHS) % Change y-o-y (RHS) Located above the IICC is the still in construction
Bond Suites and further connected is the Ipoh
Value of Industrial Property Transactions in Perak International Convention Centre Co-Working
Space.
(2017-1H 2021) (Source: JPPH)
• The state government had announced the Perak
(RM Mil.) (%)
Sejahtera Economic Stimulus Package (PRE) back
in June 2021, valued at RM19.5 million. Part of
800 100
the incentives offered were rental exemption for
600 50 the Public Housing Programme, hotel license
renewal fee exemption for hotels registered with
400 0
Local Authorities, and a 1-month moratorium on
200 -50 Rumah Harapan and Amanjaya People’s Housing
scheme loan repayment.
0 -100
2017 2018 2019 2020 1H 2021

38
38
Kuala Lumpur
Selangor
Negeri Sembilan
CENTRAL
Region
Lintasan Saloma, Kuala Lumpur

40
KUALA
LUMPUR
Capital: Kuala Lumpur Key Facts (as at 1H 2021)
Est. Population: 1,746,600 (Source: Rahim & Co Research, JPPH)
Area (km2): 243 RESIDENTIAL

(Source: DOSM) Supply 502,168 units 1.9% y-o-y
RETAIL
HOTEL
Lake Gardens, Kuala Lumpur

Number of Residential Property Transactions in Kuala

a RESIDENTIAL Lumpur (2017-1H 2021) (Source: JPPH)
(No. of units) (%)

The residential market of Kuala Lumpur came through the 15,000 50
first half of 2021 with a positive growth of 19.8% and 25.5%
12,000
in transaction volume and value respectively, coming to 4,911 25
9,000
units worth RM3.91 billion. Despite the positive recovery, it 0
is still behind 1H2019’s performance of 5,289 units worth 6,000
RM4.17 billion before the pandemic hit in 2020. Looking 3,000 -25
back to 2020 where the second half saw a bigger portion 0 -50
of transactions recorded within the year, 2021 may see the 2017 2018 2019 2020 1H 2021
same due to the first half of the year experiencing the re- 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
implementation of two MCO phases and caused disruptions
to market activities.
On the supply side, Kuala Lumpur’s residential property

stock has hit the half million point at 502,168 units state wide Value of Residential Property Transactions in Kuala
though this excludes SOHO and serviced apartments which Lumpur (2017-1H 2021) (Source: JPPH)
are categorised as commercial properties. When combined,
(RM Mil.) (%)
the dwelling stock of Kuala Lumpur as of 1H2021 is at
590,391 units of which 68.5% are high-rise units. This comes 15,000 50
to no surprise as Kuala Lumpur’s land scarcity has pushed 12,000 25
new developments to be of the high-rise types for the sake 9,000
of feasibility and space maximisation. 0
6,000
-25
3,000
Looking at the overhang picture of Kuala Lumpur, the
unsold completed units stood at 8,080 worth RM7.27 0 -50
2017 2018 2019 2020 1H 2021
billion as at 1H2020. Following the same pattern as Kuala
Lumpur’s existing supply, 99.4% of the overhang dwellings 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
Kuala Lumpur Residential Property Price Trend & House Price Index (2017-2021) (Source: Rahim & Co Research, IHRM)
4,000 250.0
3,500 1TH (LHS)

200.0 2TH (LHS)
3,000
1SD (LHS)
2,500 150.0
2SD (LHS)
2,000
100.0 Condo/
1,500 Apt/S.Apt
(LHS)
1,000
50.0
All house
500 price Index
(RHS)
0 0.0
2017 2018 2019 2020 2021
42 Central Region | Kuala Lumpur
Selected Upcoming Residential Properties in Kuala Lumpur (Source: Rahim & Co Research)
No of Expected
Units Completion
Trinity Pentamont Mont Kiara Condominium 330 From RM1.2 mil 2022
PR1MA Residensi Brickfields Brickfields Apartment 920 From RM243,000 2022
Rumawip SkyAwani 3
Setapak Condominium 1,905 From RM300,000 2022
Residences
M Vertica (Tower A) Cheras Condominium 808 From RM480,000 2023
Sunway Belfield Residence

Jalan Belfield Serviced Apartment 880 From RM590,000 2024
(Tower A & B)
Oakwood Premier Jalan Hang

Serviced Apartment 348 N/A 2024
Kuala Lumpur Jebat
Jendala Residences @ KLGCC

Bukit Kiara Serviced Apartment 520 From RM1.25 mil 2024
Resort
Aetas Damansara @ Tropicana

Damansara Condominium 226 From RM1.9 mil 2025
Golf & Country Resort
Vista Danau Kota Setapak Apartment 910 From RM300,000 2025
Taman Tiara
ALAIA Titiwangsa Serviced Apartment 436 From RM380,000 2025
Titiwangsa
The Fiddlewoodz @
Jalan Dutamas Serviced Apartment 679 From RM850,000 2025
KL Metropolis
Verdura@Bangsar Hill Park Bukit Bangsar Condominium 812 From RM835,000 2025
SOHO & Serviced

Astrum Ampang (Phase 1) Jalan Jelatek 2,072 From RM230,000 2026
Apartment
are condominimum, serviced apartment and SOHO types. between 24 and 48 storeys high. Offering an overall total of
Known for its high property prices when compared to other 5,228 units of SOHO transit homes, Rumah Mampu Milik
states, the overhang dwelling stock has 76.2% of its stock (RMM) SOHO and serviced apartments, the development’s
priced above RM500,001 and demonstrates an overhang Phase 1 will comprise of 712 RMM SOHOs and serviced
market that faces a mismatch in prices and affordability. apartments and 1,360 SOHO transit homes. Prices start
from RM230,000 and completion of Phase 1 slated to be in
In the future pipeline, 173,503 new dwelling units are under 2026. Citadines Astrum Ampang Kuala Lumpur is the 230
construction with close to 70% being high-rise dwelling types. units of serviced residence that will be located in Tower M
While the residents of Kuala Lumpur have embraced high- and operated by The Ascott Limited of Singapore.
rise units as the normal house type to expect in the market,
the nature of high-rise developments of maximising quantity 2021 also saw the unveiling and pre-launch of Jendela
over a limited piece of land will result in the entrance of Residences at KLGCC Resort by Sime Darby Property
larger-scale property releases per project. Bhd. Situated on a 4.06-acre land within the KLGCC
Resort township, the luxury high-rise project will comprise
Setia Awan Group has launched its latest residential project, a of two 41-storey towers with a total 520 units. Built-up sizes
mixed development named Ampang Astrum located on Jalan range from 1,324 sf to 2,260 sf with price tags starting from
Jelatek in September 2021. Sitting on a 6.85-acre leasehold RM1.25 million. Being anchored by the exclusive golf course
parcel of land, the project comprises of six towers towering in Bukit Kiara and be treated to a mature green terrain of
KLGCC Resort, Jendela Residences is designed to exude a Existing Supply & Occupancy Rate of Retail Spaces in
sense of calm, splendour and grandeur upon its completion Kuala Lumpur (2017-1H 2021) (Source: JPPH)
in 2026.
(Mil.sf) (%)
PNB Merdeka Ventures Sdn Bhd has signed a management 40.0 100
agreement with Oakwood Premier Kuala Lumpur to 80
30.0
introduce the brand in one of its residential towers within 60
the Merdeka 118 development in Jalan Hang Jebat, Kuala 20.0
40
Lumpur. The partnership will bring 348 serviced residences
10.0
to complement the integrated mixed development’s appeal 20
to the international market. 0.0 0

2017 2018 2019 2020 1H 2021

a RETAIL Occupancy rate (RHS)
As at 1H2021, Kuala Lumpur’s supply of retail space in tenants are having to re-strategize their business position in
shopping complexes stands at 33.64 million sf at an occupancy order to cope with the losses faced and new tenants having
rate of 81.6% after having fallen slightly from 1H2020’s a wider choice of malls to choose from due to the highly
82.4%. Though the movement in tenancy performance is competitive environment.
small in its decrement, it still paints an overall downward
trend in the bigger picture. This bodes concern for its future As a sector of the property market that is directly impacted
performance as the market will be welcoming more new by the pandemic due to its reliance on physical presence of
complexes into its supply; ranging from smaller-scale malls customers in its physical establishments, the high vaccination
the likes of 8 Conlay and Oxley Tower’s retail component rates of the country achieved in 2021 saw the return of
to the bigger players of The Exchange TRX and Pavilion shoppers to retail malls as movement restrictions were
Damansara Heights. eased. Foot traffic of major malls had improved significantly,
especially during public holidays and national celebrations
While the 81.6% tenancy performance may seem moderately in the second half of 2021 as families and friends flocked to
good in percentage, this does leave 6.19 million sf of vacant the malls after being cooped up during MCO 2.0 and MCO
retail space sitting idle in the Kuala Lumpur’s retail mall 3.0. Yet the emergence of new Covid-19 variants and the
scene. And on its way to completion in the next coming years requirement of booster vaccine shots may indicate another
are another 6.95 million sf of new retail space recorded to possible slump period should the pandemic situation reach
be in the pipeline and under construction as of 1H2021. return to dangerous levels again.
It is still uncertain if the market’s absorption rate will be able The final month of 2021, saw the opening of the grand
to keep up with the large injection of new supply as with Pavilion Bukit Jalil mall, a superstructure with a 560-metre
the pandemic still present in 2021 and onto 2022, existing long façade and an estimated 1.8 million sf of retail space.
Selected Upcoming Retail Malls in Kuala Lumpur (Source: Rahim & Co Research)
Development Location Area (NLA/GFA) sf Completion

Pavilion Damansara Heights Damansara Heights 1.0 mil 2022
118 Mall @ Merdeka 118 Jalan Hang Jebat 850,000 2022
The Exchange TRX Mall Tun Razak Exchange 1.3 mil 2023
8 Conlay Kuala Lumpur City Centre 200,000 2023
Oxley Tower Kuala Lumpur City Centre 257,801 2023
The new retail landmark brings a whole new shopping Existing Supply & Occupancy Rate of Purpose-Built
experience on a massive scale to the residents of its Office in Kuala Lumpur (2017-1H 2021) (Source: JPPH)
surrounding areas including Sri Petaling, Puchong and Bukit

Jalil and thus providing a closer alternative of Pavilion option (Mil.sf) (%)
aside from Pavilion Kuala Lumpur. 120.0 100
80
90.0
Mitsui Shopping Park LaLaport KL has scheduled to open 60
its doors to the public on 20th January 2022, marking the 60.0
40
Southeast Asia debut of Lifestyle Shopping Mall LaLaport by
30.0
Mitsui Fudosan Co. Ltd.. Set to open in stages, approximately 20
400 stores will be opened in sequence with numerous Japan- 0.0 0

2017 2018 2019 2020 1H 2021
based brands making its first appearance in Malaysia. With
a built-up of 1.4 million sf with approximately 861,000 sf Existing supply (LHS) Space Occupied (LHS)
of net lettable area, it is one of Mitsui Fudosan’s largest Occupancy rate (RHS)
commercial facilities.
In adapting to a new environment, new work practices such

a PURPOSE-BUILT OFFICE as remote working and working from home (WFH) were
essential to keeping business going during MCO phases
and movement restrictions. As a result, demand for office
As the capital state of Malaysia, Kuala Lumpur holds the spaces had changed as companies, while maintaining the
highest supply of office space in PBO buildings amongst all importance of having physical office spaces, are now looking
states which, as of 1H2021, has reached 104.39 million sf to new concept of workplace design and structure that
with occupancy rate at 73.8%. Though office space may will complement the growing practice of remote working
have increased, tenancy performance has suffered as a result arrangements.
after dropping from 1H2020’s 77.2% and has been trending
so since 2018. The destructive pandemic had also worsened The challenge to surviving a highly competitive office market
an already challenging market environment as companies has taken a step higher as with the further fall in occupancy
now are pushed to rethink and re-strategize their business rate, Kuala Lumpur is now looking at an overwhelming 27.38
plans and workplace practices in order to operate within a million sf of vacant office space sitting empty in the market;
post-pandemic environment. not counting the future injection of another 11.78 million sf.
Selected Upcoming Purpose Built Offices in Kuala Lumpur (Source: Rahim & Co Research)

Felcra Tower Jalan Sultan Yahya Petra 1.12 mil 2022
Merdeka 118 Jalan Hang Jebat 1.65 mil 2022
The MET Corporate Towers KL Metropolis 628,000 2022
UOB Tower 2 Jalan Raja Laut 377,200 2022
Pavilion Embassy Corporate Towers Jalan Ampang 720,000 2022
Aspire Tower KL Ecocity KL Eco City 687,000 2022
Daya Bumi (Phase 3) Jalan Sultan Hishamuddin 1.50 mil 2023
CITITOWER Persiaran KLCC 1.72 mil 2023
PHB Bangsar 61 Bangsar 548,000 2024
Oxley Tower Jalan Ampang 346,000 2024
a HOTEL
Though 2021 still saw the enforcement of two MCO phases

in the first half of the year, openings and upcoming launches
of new hotel establishments persisted as operators and
developers were confident of the tourism market to make a
return with the high vaccination rates and reopening of travel
borders. With the ease of movement restrictions in the second
half of the year, local traveling resumed and booking rates
were seen to have improved, especially during the holiday
Petaling Street seasons and weekends for those going on staycation.
1H2021 saw no new completions of hotels as the market

was enduring through MCO 2.0 and 3.0 but news of new
The market will take some time before a new equilibrium hotel establishment in the works were seen in the media.
can be reached as demand is still struggling to cope with the Kuala Lumpur’s hotel room capacity as of 1H2021 is at
uncertain economic conditions yet new supply keeping its 40,897 rooms with an incoming stock of 8,396 new rooms
pace to entering the market. in the pipeline.
2021 saw the completion of several new PBO buildings in The opening of Fairfield by Marriott Kuala Lumpur in
Kuala Lumpur, namely Menara IQ (formerly known as December 2021 marks the second Fairfield by Marriott hotel
HSBC Tower) at TRX, Menara Great Eastern 2, Permata in Malaysia; the first being Fairfield by Marriott Bintulu
Sapura (formerly known as Lot 91) and TS Law Tower. Paragon back in December 2019. It is located along Jalan
Pahang and just a few minutes’ walk to the Monorail Chow
Set to be the new economic catalyst for Kuala Lumpur and Kit Station, sitting right next to the Grand Seasons Hotel.
the next iconic landmark of the city, Merdeka 118 will be The 186-room new establishment is developed by Johawaki
the tallest building in Southeast Asia and the second tallest Holdings Sdn Bhd’s wholly-owned subsidiary JH Hospitality
in the world at a height of 678.9 metre tall. It is the first Sdn Bhd, with a hotel management agreement with Marriot
tower in Malaysia to receive triple platinum green ratings International.
in international sustainability certification as well as the
prestigious WELL certification. Despite facing the challenges City Motors Group is venturing into the hospitality business
of the pandemic, Merdeka 118 is on track to completion by with one of its two projects being the Holiday Inn Kuala
late 2022. Spanning over 3.1 million sf of floor area, the
tower includes 1.7 million sf of net lettable area of Premium Existing Supply of Hotels in Kuala Lumpur
Grade-A rentable office space.
(2017-1H 2021) (Source: JPPH)
International Workplace Group plc (IWG) has launched two (No. of rooms) (%)
new flexible workspace centres in Kuala Lumpur; Spaces 50,000 50
Exchange 106 and Regus Bukit Bintang City Centre. Located 40,000 25
on the 23rd floor of The Exchange 106 at TRX, Spaces
30,000
Exchange 106 offers 38,309 sf of customisable and flexible 0
workplace solutions with a 360-degree panoramic view of 20,000
-25
Kuala Lumpur’s skyline, fitting a total of 124 private offices 10,000
and 3 meeting rooms. Regus Bukit Bintang City Centre is 0 -50
2017 2018 2019 2020 1H 2021
to be located in The Stride of BBCC and will officially be
launched in February 2022. Existing supply (LHS) % Change y-o-y (RHS)
Selected Upcoming Hotels in Kuala Lumpur (Source: Rahim & Co Research)
Expected
Development Location Star Rating No of Rooms
Completion
Pan Pacific Serviced Suites Kuala Lumpur Bukit Bintang N/A 210 2022
Parkroyal Collection Kuala Lumpur Bukit Bintang 5 535 2022
Kempinski Hotel Kuala Lumpur Jalan Conlay 5 260 2022
Park Hyatt Kuala Lumpur Jalan Hang Jebat 5 232 2023
Conrad Kuala Lumpur Jalan Sultan Ismail 5 544 2024
Canopy by Hilton KL Bukit Bintang Bukit Bintang 4 456 2024
Holiday Inn Kuala Lumpur Bangsar Jalan Maarof 4 220 2024
Hotel Indigo Kuala Lumpur on the Park Jalan P Ramlee 5 180 2025
Kimpton Kuala Lumpur Tun Razak Exchange 5 471 2025
Lumpur Bangsar which will be part of the hotel-cum-serviced

apartment tower named Alfa Bangsar. InterContinental Notable Announcements
Hotels Group has been chosen to operate the 220-room
upper-midscale hotel component. Construction of the entire
• Zepp Kuala Lumpur by Japan-based Zepp Hall
development is scheduled to be completed in 2023. The Network Inc. will open its concert hall in 2022 as part
second project by the group is the Bukit Bintang Gateway of the Bukit Bintang City Centre (BBCC) development,
which is still in its early stages with construction scheduled covering almost 70,000sf with a capacity size of
to begin in 2022 after receiving development approval from 2,500 people.
the Kuala Lumpur City Council (DBKL). • 3 residential towers will be launched in 2023 as part
of the Merdeka 118 mixed-use development, two of
Pan Pacific Hotels Group will also be launching the first of which are Merdeka Residences and Oakwood Premier
their two hotel franchises in Kuala Lumpur in 2022. Set to Serviced Residence.
• 15 public housing sites that are dilapidated and
open in June 2022 is the Parkroyal Collection Kuala Lumpur
unsuitable for occupation have been identified for
with an offering of 535 guestrooms – replacing Parkroyal redevelopment and are included in the draft of the
Kuala Lumpur which was closed in 2020 for renovation Kuala Lumpur Development Plan 2040.
purposes. Following that, in October 2022, will be the opening • The opening of MRT2 Phase 2 (Kampung Batu
of Pan Pacific Serviced Suites Kuala Lumpur offering 210 -Putrajaya Sentral) is on track for January 2023, but the
luxury suites for its guests. Both establishments will be located MRT2 Phase 1 (Kwasa Damansara-Kampung Batu)
in a mixed-use complex owned by the Singapore-listed has been delayed to the second quarter of 2022.
UOL Group Limited, the parent company of Pan Pacific • T he Kampung Baru Redevelopment initiative
Hotel Group. continues with the land inquisition inquiry postponed
to 2022, to enable negotiating discussions between the
developer, land owners, and unit owners of the Sungai
2021 saw the closure of three hotel establishments, namely Baru PKNS flats.
the Silka Maytower Kuala Lumpur on 29th January 2021, the • A proposed draft of the Kampung Baru Land Bill
Royal Chulan Bukit Bintang Hotel on 11th February 2021 is expected to be tabled in Parliament early 2022 in
and Hotel Istana Kuala Lumpur on 1st September 2021. hopes to provide a lifetime protection to Kampung
Reasons of these closures vary but the destructive impact the Baru landowners by preventing any party who wishes
pandemic has wrought on the tourism scene has undeniably to change the status of the land.
worsened an already difficult market environment. • T he 49-year-old Plaza Batai retail shoplots in
Damansara Heights has been acquired from Selangor
Properties Bhd and is planned to be redeveloped into
a serviced apartment by Motif Budi Sdn Bhd.
• Johor based co-working operator is expanding its
INFINITY8 outlets into Kuala Lumpur with the
opening of a new outlet in MYTOWN, Cheras, taking
up 11,000sf of space.
SELANGOR
Darul Ehsan
Capital: Shah Alam Key Facts (as at 1H 2021)

Est. Population: 6,555,400 (Source: Rahim & Co Research, JPPH)
Area (km2): 7,951 RESIDENTIAL

(Source: DOSM) Supply 1,613,669 units 2.1% y-o-y
RETAIL
HOTEL
INDUSTRIAL
Kanching Eco Forest Park Waterfall

48 Central Region | Selangor
Value of Residential Property Transactions in Selangor

a RESIDENTIAL
(2017-1H 2021) (Source: JPPH)
(RM Mil.) (%)

As the state with the highest dwelling stock (including serviced 40,000 50
apartment and SOHO types), the market size of Selangor’s
transaction activities are also the biggest in the country. As at 30,000 25
1H2021, residential transactions have grown by 38.0% and 20,000 0
47.1% in volume and value respectively to 23,711 transacted
units worth RM12.41 billion. In comparison to pre-pandemic 10,000 -25
levels, 1H2021 has proven itself to rebound relatively well as 0 -50

it is not far behind from 1H2019’s 24,044 transacted units 2017 2018 2019 2020 1H 2021
worth RM11.68 million. The market has a good chance to 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
getting back on the recovery track that had been disrupted
in 2020 after 2019’s promising numbers.
Of Selangor’s residential transaction numbers, 65.9% are for
units priced below RM500,000 while RM500,001 to RM1.0
Number of Residential Property Transactions in million accounts for 24.7% and the remaining 9.4% are of
Selangor (2017-1H 2021) (Source: JPPH) prices above RM1.0 million. This shows demand, while still
holding strong to the more affordably priced homes, are also
(No. of units) (%) looking to products with high price tags.
80,000 50
Supply wise, unlike Kuala Lumpur’s predominantly high-
60,000 25
rise stock, is leaning more to landed types due to the supply
40,000 0 of land still available, though those would be located on the
suburban or the outskirts of the city area. In the pipeline,
20,000 -25
there are another 174,922 incoming dwelling units at various
0 -50 stages of construction. High-rise dwelling has a slightly
2017 2018 2019 2020 1H 2021
higher incoming stock of 64.4% and landed homes (terraced,
1H (LHS) 2H (LHS) % Change y-o-y (RHS) semi-detached and detached) with 33.4% stock share.
Petaling Jaya Residential Property Price Trend & House Price Index (2017-2021) (Source: Rahim & Co Research, IHRM)
3,000 250.0
1TH (LHS)
2,500
200.0 2TH (LHS)
2,000 1SD (LHS)

150.0
2SD (LHS)
1,500
100.0 Condo/
1,000 Apt/S.Apt
(LHS)
50.0
500 All house
price Index
(RHS)
0 0.0
2017 2018 2019 2020 2021
Selected Upcoming High-Rise Properties in Selangor (Source: Rahim & Co Research)
No of Expected
Units Completion
Atwater Section 13, Petaling Jaya Serviced Apartment 493 From RM588,000 2022
Sunway Serene Kelana Jaya Serviced Apartment 894 From RM670,000 2022
Taman Megah,
Megah Rise Serviced Apartment 228 From RM894,800 2022
Petaling Jaya
The Amber Residence Kota Kemuning Serviced Apartment 596 From RM490,000 2022
Jalan PJS 2,
Verando Residence Condominium 1055 From RM460,000 2023
Petaling Jaya
Tuai Residence Bandar Setia Alam Condominium 330 From RM493,000 2023
Jalan Harapan,
Tropicana Miyu Condominium 271 From RM780,000 2024
Petaling Jaya
Kita Ria Apartment @
Dengkil Serviced Apartment 690 From RM343,800 2024
Cybersouth
The Pulse Residence Bandar Puteri Puchong Service Residence 580 From RM628,000 2024
Aetas Damasara Tropicana, Petaling Jaya Condominium 226 From RM1.6 mil 2025
Selected Upcoming Landed Residential Properties in Selangor (Source: Rahim & Co Research)
No of Expected
Units Completion
Verna @ Serene Heights Semenyih 2-sty Terraced 72 From RM652,800 2022
Greenwoods Cendana Bandar Baru Salak Tinggi 2-sty Terraced 237 From RM540,000 2022
The Starling @ Bandar

Teluk Panglima Garang 2-sty Terraced 183 From RM1,003,800 2022
Rimbayu (Parcel 12D)
Iris Hillpark Puncak Alam 2-sty Terraced 241 From RM671,000 2022
Myra Alam (Phase 3) Puncak Alam 2-sty Terraced 52 From RM480,000 2022
Dahlia Sari @ Saujana

Sungai Buloh 2-sty Terraced 120 From RM528,800 2023
Perdana
Aster (Phase 1) @
Kundang 2-sty Terraced 96 From RM429,000 2023
Myra Gardens
Hayla (Daunan) Alam Perdana 2-sty Terraced 155 From RM580,000 2023
Dahlia Sari Saujana Perdana 2-sty Terraced 120 From RM587,000 2023
Enso Woods (Phase 1) @

Dengkil 2 & 3-sty Terraced 203 From RM580,000 2024
Gamuda Cove
Regent @ EcoGrandeur Puncak Alam 2-sty Terraced N/A From RM683,000 2024
The overhang picture for Selangor as of 1H2021 is at 7,007 Existing Supply & Occupancy Rate of Retail Spaces in
unsold units worth RM4.92 billion, coming in third after Selangor (2017-1H 2021) (Source: JPPH)
Johor and Kuala Lumpur. 75.0% are high-rise dwellings and

18.6% are landed homes. By price bracket, 3,120 units are (Mil.sf) (%)
between RM400,000 and RM600,000. 50.0 100
40.0 80
Despite Covid-19 having spilled over into 2021 with new 30.0 60
variant waves calling for reimplementation of MCO phases,
20.0 40
new launches and unveilings were still seen happening by
developers with many utilising virtual and online means to 10.0 20
conduct their launch. 0.0 0

2017 2018 2019 2020 1H 2021
Eco World Development Group Bhd (EcoWorld) had Existing supply (LHS) Space Occupied (LHS)
launched Phase 1 of Cheerywood in its Eco Majestic Occupancy rate (RHS)
township in Semenyih in 2021. Sitting on a 48.7-acre
freehold land, Cheerywood will comprise of 576 2-storey sf of new retail space currently in the pipeline and scheduled
units of Park Homes, Classic Homes and Garden Homes. to come online in the next coming years.
Phase 1 consists of 346 units while the remaining 230 units
will be launched in Phase 2. In keeping to the low-density Similar to the rest of the country, Selangor saw pandemic
theme, the development has only 12 units per acre. The disruptions in the first half of the year that saw the
units of Phase 1 will have built-up areas ranging from 1,553 enforcement of two MCO phases including an almost
sf to 2,530 sf with selling prices starting from RM665,000. 2-month long ‘lockdown’ period during MCO 3.0. But things
Completion is scheduled to be in 2024. seemed brighter following that as the second half of 2021
saw the lifting of movement restrictions and reopening of
Two new landed projects by Sime Darby Property Bhd was interstate borders, thus re-allowing interstate travelling. This
unveiled in 2021 within its own township City of Elmina in had resulted in the return of shoppers to the malls for those
Shah Alam. The launches involve 224 units of which 124 who were fully vaccinated.
units of semi-detached dubbed Hevea at Elmina Gardens
and the other 208 units of linked homes Elmina Green Five. But due to Kuala Lumpur’s geographical position being
The landed units of Elmina Green Five will have its built-up engulfed by the state of Selangor and hence both often
sizes ranging between 2,478 sf to 2,841 sf at selling prices referred to as Klang Valley, the prospect of Selangor’s retail
from RM940,000. Hevea saw the launch of its Phase 1 back market is also heavily influenced by Kuala Lumpur’s retail
in December 2020 and Phase 2 later in April 2021. The semi- performance. And with the country’s capital state also
detached units of Hevea are designed with a bigger built-up expecting a large supply of new retail spaces making its way
area of up to 3,430 sf and as such, come with a high price into the market, competition to retaining existing and finding
tag of RM1.8 million and above. new tenants are even higher.
The new wing of Setia City Mall was completed and opened
a RETAIL in the first quarter of 2021, adding another 450,000 sf of
retail space to the existing 730,000 sf which makes the mall,
as at its expansion completion, the largest shopping mall in
As at 1H2021, the retail segment of Selangor has an existing Shah Alam. The expansion phase has also added another
supply of 39.94 million sf of retail space with an overall 1,800 parking bays to the current 2,500 bays.
occupancy rate of 78.8%; having dropped below 1H2020’s
80.0%. As tenancy performance have been on a downward The eCurve shopping mall in Petaling Jaya has temporarily
trend in the past 5 years, the concern of oversupply has closed its establishment on 31st March 2021 to pave way for
risen another notch with Selangor’s occupancy rate to now a new redevelopment plan and usher in a new beginning for
be below 80%. At 78.8% occupancy, there are 8.48 million eCurve after 14 years on operations. While eCurve undergoes
sf of vacant retail space combined sitting empty across the the redevelopment works, The Curve mall remains in
state. And adding further pressure to this is the 5.15 million operation as usual.
Selected Upcoming Retail Malls in Selangor (Source: Rahim & Co Research)

KSL Esplanade Mall Klang 650,000 2022
Datum Jelatek Mall Keramat 491,484 2022
EcoHill Walk Mall Semenyih 280,000 2022
Phase 2 of IOI City mall in Putrajaya may likely take the Existing Supply & Occupancy Rate of Purpose-Built
reign as the largest shopping mall in Selangor as it will be Office in Selangor (2017-1H 2021) (Source: JPPH)
adding an additional 1 million sf of net lettable space to the

existing 1.5 million sf. Combined, IOI City Mall will stand (Mil.sf) (%)
at 2.5 million sf of retail space as of June 2022, the expected 50.0 100
completion date for Phase 2 after having postponed from 40.0 80
the original target of November 2021 due to Covid-19. The 30.0 60
current biggest shopping mall at the moment is 1 Utama at
20.0 40
2.19 million sf.
10.0 20
0.0 0
2017 2018 2019 2020 1H 2021
The PBO market of Selangor is facing similar challenges to
its other half of Klang Valley as competition grows tougher
with falling occupancy rates against rising supply of office
spaces. As at 1H2021, the state’s office supply on PBO spaces Menara Sumurwang in i-City Shah Alam will be
stands at 46.14 million sf with an occupancy performance welcoming its anchor tenant Maybank Banking Bhd who
of 68.4% - a further fall from 1H2020 and has now gone will be occupying 14 floors of the smart officer tower. With
into the 60% range. At this tenancy level, Selangor is looking Maybank’s entrance into the tower, Menara Sumurwang
at 14.57 million sf of vacant space. Adding more pressure will be renamed as Mercu Maybank and will feature the
to market absorption of office spaces is the incoming 4.44 Maybank signage on the building’s rooftop. The financial
million sf of new PBO spaces currently in the pipeline as hub of i-City, of which Menara Sumurwang is a part of,
at 1H2021. will be linked to the i-City LRT Station set to open in 2023.
Influenced by the need of social distancing and growing For the state of Selangor, completions of new PBO buildings
practice of remote working, the demand for office space in 2021 noted of were the HCK Tower at Empire City and
continues its shift to a new set of preference and design the Imazium at Damansara Uptown.
as companies look to restructure and re-innovate a more
productive and efficient workplace environment.
Selected Upcoming Purpose-Built Offices in Selangor (Source: Rahim & Co Research)

Atwater (Tower A & B) Section 13, Petaling Jaya 366,870 2022
KDDC Office Tower@Kwasa Damansara City Centre Kota Damansara 219,400 2022
Existing Supply of Hotels in Selangor

(No. of rooms) (%)
As the pandemic continued into 2021 with two MCO 30,000 50

phases implemented in the first half of the year, the hotel 25,000
25
sector in Selangor continues to face the disruptive impact 20,000
Covid-19 had on the tourism sector. But some relief was 15,000 0
felt in the second half of the year as interstate borders were 10,000
-25
reopened and interstate travelling allowed thanks to the high 5,000
vaccination rates achieved nationwide. 0 -50
2017 2018 2019 2020 1H 2021
Selangor’s hotel room capacity as of 1H2021 stands at Existing supply (LHS) % Change y-o-y (RHS)
23,002 rooms with an addition of 2,143 new rooms in the

pipeline and under construction.
a INDUSTRIAL
Tradewinds Corp Bhd has launched it latest hotel
establishment in Shah Alam, a resort-styled sanctuary named
Glenmarie Hotel & Golf Resort in 2021. The 260-room The industrial market of Selangor had shown encouraging
resort overlooks the prestigious golf courses of Glenmarie recovery in 1H2021 with a 34.6% and 6.1% increase in
Golf & Country Club and is located just 30 minutes away volume and value respectively, coming to 915 transacted
from Kuala Lumpur International Airport and 10 minutes units worth RM3.46 million. This growth has brought the
from Subang SkyPark Airport. Its strategic location and transaction performance closer to 2019’s pre-pandemic levels
diverse offerings of facilities and amenities makes Glenmarie and bodes good news at seeing the market’s return to stability.
Hotel & Golf Resort an ideal choice for a short staycation
getaway destination or business stay. As the biggest holder of industrial property stock nationwide,
Selangor’s supply as at 1H2021 is at 41,178 units with the top
I-Berhad’s flagship mixed development i-City, will be seeing districts being Hulu Langat, Klang and Petaling. Incoming
the opening of its second hotel DoubleTree by Hilton i-City supply adding to the existing number is at another 1,289
Hotel in 2022. The 300-room new addition to Hilton’s industrial units that are currently under construction. A
Malaysian portfolio in 2022 will integrate itself as part of notable portion of the new supply are in Klang, Kuala
the 43-storey skyscraper with the premium Hill10 Residence Selangor and Petaling districts.
taking up the upper levels of the tower. The entrance of
DoubleTree by Hilton i-City is set to be a game changer Asia Pacific logistics property specialist LOGOS SE Asia Pte
for the hotel scene and be the new benchmark for luxury Ltd has entered a joint venture with Global Vision Logistics
hotels in its surrounding area. Other components in Sdn Bhd to develop a RM1.5 billion sustainable logistics,
close-reaching distance from the hotel are Central i-City warehousing and e-commerce hub in Section 16, Shah Alam.
mall, the i-City convention centre and the 33-storey The project will be constructed in phases on three pieces of
Sumurwang Tower. land collectively measuring to about 71 acres and consist of
a total development area of 8.01 million sf as well as a gross
Holiday Villa Hotel & Conference Centre Subang has ceased leasable area of 5.43 million sf in five warehouse blocks.
its operations on 1st October 2021 though IJM Land Bhd,
as the owner, may not likely opt to put the hotel up for sale LOGOS SE Asia Pte Ltd has also joined a JV with Sime
as market conditions are not at its optimum for getting the Darby Property Bhd to establish a fund management platform
best price. Instead, other options will be examined to boost for the logistics sector – making Sime Darby Property the
the property’s value up. Situated on a 2.75-hectare land on first public listed company in Malaysia to venture into the
Jalan SS12/1, the 309-room hotel had first opened its doors creation of development funds within the industrial and
in 1988 and mainly saw its customers coming in from Subang logistics sector. A 117-acre site within Sime Darby Property’s
International Airport (now Sultan Abdul Aziz Shah Airport) own Bandar Bukit Raja township in Klang has been allocated
which is just about 8km away. for this initiative and the focus to be on ‘build-to-suit to lease
or sell’ assets targeted primarily at clients in the logistic sector.
Number of Industrial Property Transactions in The 58.84-acre Compass SME Precinct will comprise of
Selangor (2017-1H 2021) (Source: JPPH) 81 units of ready-built factories and logistics facilities with
selling prices of RM1.5 million to RM22 million. They are
(No. of units) (%) slated for completion in 2023.
2,500 50
The Compass Industrial and Logistics Hub sits on a 161.22-
2,000 25 acre site and will offer the option to design and build
1,500
0 warehouses and manufacturing facilities according to the
1,000 customer’s specifications. The factory sizes can range from
-25
500 100,000 sf to 1 million sf. This component is expected to
0 -50 reach completion by 2024.
2017 2018 2019 2020 1H 2021
Value of Industrial Property Transactions in Selangor

(2017-1H 2021) (Source: JPPH)
(RM Mil.) (%) Notable Announcements

10,000 50
8,000 • LRT Shah Alam Line, the third LRT project by

25
Prasarana, will be running 37.8km through 20
6,000
0 stations and linking Bandar Utama in Petaling Jaya
4,000
to Johan Setia in Klang. Operations is slated to
-25
2,000 commence in February 2024.
0 -50 • MSekin Wonderland, Sekinchan’s first water park
2017 2018 2019 2020 1H 2021
has finally opened in the fourth quarter of 2021
1H (LHS) 2H (LHS) % Change y-o-y (RHS) after being forced to postpone due to the pandemic.
• The once scrapped Petaling Jaya Dispersal Link
(PJD Link) highway project is in talks to be revived
by a private construction company. It will run
Tri-Mode System (M) Bhd has signed an agreement with 34.3km long and will link several areas starting from
Pulau Indah Industrial Park (PIIP) master developer Central Bandar Utama to bandar Kinrara, and ending at
Spectrum (M) Sdn Bhd for the purchase of a piece of Bukit Jalil Technology Park.
land, Phase 3C of PIIP Phase 3, sizing approximately 5.38 • The township of Setia Alam will have its own
acres. Plans have been made to construct Tri-Mode’s third specialist hospital. Built on a 90,900sf of land, it will
warehouse cum distribution hub on the newly purchased be developed by Setia Alam Specialist Hospital Sdn
piece of land with a built-up area of approximately 150,000 Bhd, a wholly-owned subsidiary of Sena Healthcare
sf with a total investment value of RM42 million. Services Sdn Bhd. The hospital will be 9 storeys
high with a 131-bed capacity and a gross floor area
Taking up 220 acres of the 2,600-acre Kota Seri Langat of about 393,000sf.
master development is the upcoming Compass Industrial • I-Berhad has been given the approval to build
Park developed by MIDF Property Bhd, a wholly-owned two Tier 3 data centres with a combined space
subsidiary of Permodalan Nasional Berhad (PNB), KWEST of 200,000sf on 6 acres of land within the i-City
Sdn Bhd as the a wholly-owned subsidiary of Kumpulan Golden Triangle development.
Wang Persaraan (KWAP) and AREA Group of Companies • KL East is expected to welcome the KL East
via a joint-venture agreement. The Compass Industrial Park International School by 2022.
is divided into two components – Compass Industrial and
Logistics Hub; and Compass SME Precinct.
54
NEGERI
SEMBILAN
Darul Khusus Key Facts (as at 1H 2021)
Capital: Seremban RESIDENTIAL

Est. Population: 1,129,100 Transaction Volume 5,139 units 24.9% y-o-y
Area (km2): 6,656
(Source: DOSM)
RETAIL
SHOP OFFICE
HOTEL
INDUSTRIAL
Seri Menanti, Kuala Pilah
Number of Residential Property Transactions in Negeri

a RESIDENTIAL Sembilan (2017-1H 2021) (Source: JPPH)
(No. of units) (%)

In its recovery from 2020’s hard hit year, Negeri Sembilan 20,000 50
saw the residential market making a moderate comeback
in transaction activities with a growth of 24.9% in volume 15,000 25
and 34.2% in value to 5,139 transacted units worth RM1.64 10,000 0

billion for 1H2021. In comparison to 2019, 2021’s first half
performance had fallen slightly short and it is observed that 5,000 -25
the residential market had been on a consistent downward 0 -50

trend annually from 2017. It would need a strong second 2017 2018 2019 2020 1H 2021
half performance to pull in a much larger number to put 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
the market on a recovery pace.
Of the transacted properties in 1H2021, 84.1% were priced

below RM500,000 which indicates the market’s demand to
still stay strongly within the affordable range. Landed homes Value of Residential Property Transactions in Negeri
also remain as the top choice of home purchase with high- Sembilan (2017-1H 2021) (Source: JPPH)
rise units of condominium/apartment type only contributing
(RM Mil.) (%)
4.2% of transaction share.
5,000 50
On the supply side, the same preference and popularity 4,000 25
of landed homes in transaction is reflected in the stock of 3,000
existing homes for the state. Contributing a large share of 0
2,000
77% in stock, landed homes comprising of terraced, semi- -25
1,000
detached and detached types make up the bulk of Negeri
Sembilan’s residential offering. The house prices of landed 0 -50
2017 2018 2019 2020 1H 2021
homes here is a more affordable alternative while being in
easy reach to the Klang Valley region. 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
Seremban Residential Property Price Trend & House Price Index (2017-2021) (Source: Rahim & Co Research, IHRM)
1,200 250.0
1TH (LHS)
1,000
200.0 2TH (LHS)
800 1SD (LHS)

150.0
2SD (LHS)
600
100.0 Condo/
400 Apt/S.Apt
(LHS)
50.0
200 All house
price Index
(RHS)
0 0.0
2017 2018 2019 2020 2021
56 Central Region | Negeri Sembilan
Selected Upcoming Residential Properties in Negeri Sembilan (Source: Rahim & Co Research)
No of Expected
Units Completion
Rimbun Jasmine Seremban 2 2-sty Linked 129 From RM480,000 2022
Celyn (Phase 1) @ Bayu Sutera Bandar Sri Sendayan 2-sty Terraced 325 From RM529,000 2022
Damaris @ Ara Sendayan Bandar Sri Sendayan 2-sty Terraced 244 From RM839,888 2022
Dwi @ Rimbun Kasia Nilai Apartment 382 From RM250,000 2022
PR1MA Residensi Seremban

Seremban Apartment 1,504 From RM192,960 2022
Sentral
PR1MA Residensi Bandar Ekar

Seremban 2-sty Terraced 756 From RM165,000 2022
(Phase 1)
PR1MA Residensi Port Dickson Port Dickson 2-sty Terraced 658 From RM238,950 2022
Celyn (Phase 2) @ Bayu Sutera Bandar Sri Sendayan 2-sty Terraced 255 From RM609,888 2023
Clover (Phase 2) Bandar Sri Sendayan 2-sty Terraced 183 From RM628,000 2023
Rimbun Kiara (Phase 1) Seremban 2 2-sty Terraced 110 From RM531,720 2023
Rimbun Kiara (Phase 2) Seremban 2 2-sty Terraced 145 From RM504,720 2023
Rimbun Aman Seremban 2 1-sty Terraced 304 From RM350,000 2023
Erama (Phase 8A) @ Iringan 1-sty Semi-

Seremban 180 From RM534,420 2023
Bayu Detached
Erama (Phase 8B) @ Iringan 2-sty Semi-

Seremban 142 From RM680,000 2023
Bayu Detached
Ara Serviced Residence Serviced

Nilai 546 From RM279,720 2024
(Phase 1) @ Myra Impian Apartment
Looking at the high-rise segment, Negeri Sembilan has a 2021 may have seen Covid-19 continuing its stay in the
growing presence of condominium/apartment and serviced country but thanks to progressive vaccination rates and a
residence units in its market supply – both at 16,208 units persevering market sentiment, the residential sector came
and 11,285 units respectively while SOHO is still on the through with new launches seen and ongoing developments
small scale of just 104 units. back on track to completion. For homebuyers looking to opt
for landed home and not mind being a further bit out from
While the demand is in favour of landed homes, stronger the Klang Valley limits, the areas of Seremban and Nilai are
attractions are needed for better sales in the high-rise ideal for such home seekers as developments of new landed
segment as there are another 8,071 new incoming units of residential offerings are expected to continue at relatively
condominium/apartment and serviced apartment combined. more affordable prices.
The overhang figure as at 1H2021 recorded a total of 999
dwelling units (including serviced apartment & SOHO units) One such is Matrix Concepts Holdings Bhd who is well
worth RM608.41 million – a relatively moderate number known through its self-sustaining integrated township Bandar
when compared to other states. Of the unsold, high-rise Sri Sendayan. 2021 saw the launch and reveal of several new
dwellings are at 222 units. phases in Bandar Sri Sendayan. Clover is a landed residential
“For homebuyers looking for a

landed home and do not mind a RETAIL
being a bit further from the In 1H2021, the retail segment of Negeri Sembilan’s
Klang Valley limits, the areas commercial property market saw no changes to its supply
of retail space, keeping to 6.43 million sf at an occupancy
of Seremban and Nilai are rate of 66.3% after a further fall of 3.1% from 1H2020. This
raises concern after having seen occupancy to have further
ideal as developments of new fallen after going below the 70% mark in 2020, despite no
new addition of space in the past few years.
landed residentials are expected
to continue at relatively more At this level in tenancy, there are 2.16 million sf of vacant
space in retail complexes combined across the whole of
affordable prices” Negeri Sembilan. Though there is some relief to there being
only less than 60,000 sf of new spaces in the pipeline at
the moment, the worrying issue of a dropping take-up of
development sitting on a 30-acre freehold parcel next to the retail spaces remain. The challenge to overcome so may be
Sendayan Merchant Square, offering a total 366 2-storey more difficult in the current times of a pandemic that is still
terraced homes in two phases. In December it was reported causing the occasional health scare and the possible risk of
that Phase 1 has been sold out and Phase 2 now open for sale. reimplementation of movement restriction measures, should
Covid-19 cases surge dangerously high.
Another new development unveiled in Bandar Sri Sendayan
is the Celyn@Bayu Sutera which also offers 2-storey terraced
homes suited for multi-generational families. Also within the
township, Ara Sendayan saw the announcement of its final Negeri Sembilan (2017-1H 2021) (Source: JPPH)
collection Damaris, offering 244 freehold 2-storey link homes (Mil.sf) (%)
to be launched in two phases.
8.0 100
IJM Land Bhd is yet another developer who has been 80

6.0
establishing their presence in Negeri Sembilan’s property 60
4.0
scene with their own 1,520-hectare self-contained township 40
Seremban 2. Having its roots laid down way back in 1995, 2.0 20
Seremban 2 has asserted itself as one of the top progressive
0.0 0
and successful township developments in the state. New 2017 2018 2019 2020 1H 2021
launches were seen for the township including Rimbun
Aman@Seremban 2 Heights and Rimbun Kiara.
Rimbun Aman was launched in May 2021 and offers a total

of 304 units of 1-storey terraced homes with prices starting
from RM350,000. Rimbun Kiara offers a bigger home with
255 2-storey linked homes at a higher price of RM504,720 a PURPOSE-BUILT OFFICE
onwards. Both developments are slated for completion
in 2023.
A more positive performance is seen for the PBO segment of
On the affordable segment, there are currently 3 PR1MA the property market as Negeri Sembilan sees its occupancy
projects currently under construction, 2 of which have been rate to have improved a slight 1.2% and brought the state’s
sold out. They are Residensi Seremban Sentral, Residensi market performance up to 91.1% occupancy rate as at
Bandar Ekar and Residensi Port Dickson. 1H2021 out of the 3.68 million sf of existing PBO space.

Office in Negeri Sembilan (2017-1H 2021) (Source: JPPH)
(Mil.sf) (%)
5.0 100
4.0 80
3.0 60
2.0 40
1.0 20
0.0 0
2017 2018 2019 2020 1H 2021

Masjid Sri Sendayan, Seremban
With Seremban being the capital city of Negeri Sembilan, Number of Shop Office Property Transactions in
58% of the PBO space supply are concentrated in the capital Negeri Sembilan (2017-1H 2021) (Source: JPPH)
alone with other areas having smaller yet still notable supply
– being Port Dickson, Putra Nilai and Seremban 2. (No. of units) (%)
1,000 50
In the pipeline, there are 95,056sf of new PBO space on its 800 25
way to completion and makes up to 3 new buildings. All 3
600
are located in Seremban 2 alone. As a PBO market that has 0
more than half of its building being government-owned and 400
-25
tend to be fully occupied for a consistent period, occupancy 200
rates have been steadily high. 0 -50
2017 2018 2019 2020 1H 2021

a SHOP OFFICE
Feeding to the demand of shop offices is a supply size of
1H2021 saw the shop office market of Negeri Sembilan 26,639 units ranging from pre-war to 6-storey types with
recovering back up in transaction activities by 18.3% in just over half being 2-storey units alone. By locality, districts
volume and 38.4% in value to 259 transacted units worth with notable shop office stock are Seremban, Jempol, Port
RM162.31 million. Of the shop office units transacted, 57% Dickson and Tampin though Seremban’s shop office supply
are 2-storey offices and despite overall performance ending is far in the lead at 17,076 units. There are 886 new units in
on a positive note, pre-war type saw a big drop of 71% y-o-y the pipeline and 2-storey units still being the popular type
to just 6 units transacted. released with 74% incoming supply share.
Selected Newly Completed Shop Offices in Negeri Sembilan (Source: Rahim & Co Research)
No of
Units
Oakland Lifestyle Retail Shops Seremban 4-sty Shop Office 86 From RM303,900
Pusat Komersial Lobak 2 Seremban 2&3-sty Shop Office 14 From RM1.79 mil
Tiara Biz @ Tiara Sendayan Seremban 2-sty Shop Office 50 From RM836,000
“Despite the lack of tourists

and temporary closure periods
throughout the pandemic
period thus far, all 35 hotel
establishments have remained
in operation.”
Incoming supply has remained the same at 1,588 hotel rooms

in the pipeline which makes up to 6 new hotel establishments
though the pandemic will likely have caused delays in
Value of Shop Office Property Transactions in Negeri construction progress and opening schedules for the time
Sembilan (2017-1H 2021) (Source: JPPH) being.
(RM Mil.) (%) Malaysia Association Hotels Negeri Sembilan (MAH NS) has
500 50 made a statement in the media that none of the 35 hotels
400
registered under them had ceased operations since MCO
25
1.0 back in 2020. Despite the lack of tourists and temporary
300
0 closure periods throughout the pandemic period thus far, all
200 35 hotel establishments have remained in operation.
-25
100
0 -50 Though surviving through had cost the operators a major

2017 2018 2019 2020 1H 2021
financial setback, strong hopes and anticipation were held for
1H (LHS) 2H (LHS) % Change y-o-y (RHS) the gloomy period to end soon enough with the mobilisation
of vaccination centres nationwide, thus enabling borders to
reopen and economic activities to resume. And in September
Overhang numbers of shop offices have increased slightly of 2021, with the reopening of interstate borders and
to 373 units worth RM266.11 million from 340 units worth businesses around, Port Dickson became one of the popular
RM235.4 million in 1H2020. The top two districts holding holiday destinations locals had flocked to, particularly those
these unsold units are Seremban (161 units) and Tampin from the Klang Valley due to its relatively close distance for
(150 units). a weekend getaway.
Existing Supply of Hotels in Negeri Sembilan

(No. of rooms) (%)
Within the review period, no changes were noted of in the 15,000 50

supply of hotel rooms for Negeri Sembilan despite Covid-19 12,000 25
having continued on into 2021 and even having the country 9,000
undergone two more MCO phases in the first half of the 0
6,000
year. Being more of a local tourism destination than a -25
3,000
globally known destination such as Langkawi and Melaka,
the hotel establishments of Port Dickson and Seremban are 0 -50
2017 2018 2019 2020 1H 2021
mainly reliant on weekend tourists and business travellers as
their source of traffic. Existing supply (LHS) % Change y-o-y (RHS)
Number of Industrial Property Transactions in Negeri

a INDUSTRIAL Sembilan (2017-1H 2021) (Source: JPPH)
(No. of units) (%)

The industrial sector of Negeri Sembilan has shown positive 500 50
growth y-o-y by 51.3% in volume and 25.0% in value to 174 400 25
transacted units worth RM273.59 million. While this is still
300
behind 2019’s higher market performance, the increase is 0
still seen as a good start for the market to get back up on its 200
-25
feet after 2020’s hard hitting year. 100
0 -50
2017 2018 2019 2020 1H 2021
Industrial supply for the state has maintained at 5,528
units with most of the existing properties concentrated in 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
Seremban but other areas to note on a smaller scale are
Jempol, Port Dickson and Tampin. There are 105 new
industrial units in the pipeline and are located in Jempol Value of Industrial Property Transactions in Negeri
and Seremban. Sembilan (2017-1H 2021) (Source: JPPH)
The overhang picture for Negeri Sembilan shows (RM Mil.) (%)
improvement from its already small size, coming to just 59 800 100
units worth RM36.83 million at 1H2021. These units are
mainly priced between RM500,000 to RM600,000 and 600 50
above RM1 million. All 59 units are located in Jempol. 400 0
On 26th October 2021, Sime Darby Property Bhd had 200 -50
launched Hamilton City in Nilai as part of their commitment 0 -100

to developing the new growth corridor of the state and 2017 2018 2019 2020 1H 2021
the country, Malaysia Vision Valley 2.0 (MVV 2.0). As an 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
integrated economic region that is designed to complement
the development of Greater Kuala Lumpur, it aims itself to
be a global industrial player that is spurred by four economic
drivers – high-technology manufacturing, wellness tourism,
skill-based education and research. Being part of this large-
“Industrial supply for the
scale development, Hamilton City is strategically located in state has maintained at 5,528
Nilai as an attractive option for businesses seeking efficient
production or warehousing options outside of the Klang units with most of the existing
Valley region.
properties concentrated in
In addition to its convenient access to the North-South
Expressway (NSE) and NSE Central Link (ELITE) as Seremban but other areas to
well as the upcoming Nilai-Labu Expressway (NLE), these
expressways further connects the township to major logistics
note on a smaller scale are
hubs such as the Kuala Lumpur International Airport
and Port Klang. Hamilton City will be developed in four
Jempol, Port Dickson and
phases – Phase 1, 2 and 4 focusing on medium and heavy
industrial activities while Phase 3 on specifically light industry
Tampin”
comprising of detached and semi-detached factories with
a managed industrial park concept. Soon after its launch,
Phase 1 saw all of its 42 freehold industrial lots sold, its
land sizes ranging from 1 to 9 acres and prices starting from
RM3.0 million.
Vizione Holdings Bhd has inked a memorandum of

collaboration with Negeri Sembilan government agency NS
Corp for the development of MVV 2.0. Discussions of the
collaboration centres on a development, done by stages, with
it’s Phase 1 involving an international high-speed processing,
logistics and distribution hub (IPLD hub) that will be part of
a proposed free trade zone. This is intended to cater for the
existing demand for such facilities and the opinion that free
trade zones are one of the best catalysts for regional economic
development. This collaborative effort will see the industrial
facilities of MVV 2.0 be equipped with artificial intelligence,
internet of things deployment, electronic data interchange
framework, high speed connectivity and automation features.
• The estimated 15,400-acre Parcel C of MVV 2.0 is
slated to be an aerospace and logistics hub named
NS Aerospace Valley. It is strategically located
within proximity to the Kuala Lumpur International
Airport (KLIA), Port Klang and the North-South
Expressway (NSE). It is currently at the feasibility
study stage.
• As part of the requirements for MVV 2.0, a 16.82km

road connecting Nilai, Labu to Bandar Enstek is
currently under construction since 2017, and is slated
for completion by 2022 for the Jalan Labu section,
and 2023 for the Jalan Nilai section. Construction
cost is estimated to be at RM415 million.
• Dutch Lady Milk Industries Bhd (DLMI) has

contracted Royal Haskoning DHV to develop
DLMI’s new environmental-friendly and innovative
production facility at Bandar Enstek. It will help
increase the state’s competitiveness in attracting
new investments and create new spin-off economic
benefits to the local economy.
• Gemas, Negeri Sembilan will be the northern

starting point of the upcoming 192km Gemas-Johor
Bharu electrified double-tracking project (EDTP)
and is slated for completion by October 2022.
62
62
Melaka
Johor
SOUTHERN
Region
Sungai Johor Bridge, Senai-Desaru Expressway

64
MELAKA
Capital: Kota Melaka Key Facts (as at 1H 2021)
Est. Population: 937,500 (Source: Rahim & Co Research, JPPH)
Area (km2): 1,720

RESIDENTIAL
(Source: DOSM)
RETAIL
SHOP OFFICE
HOTEL
INDUSTRIAL
Red Clock Tower, Melaka

a RESIDENTIAL Melaka (2017-1H 2021) (Source: JPPH)
(No. of units) (%)

As at 1H2021, the residential sector of Melaka saw its 12,000 50
transaction activities grew by 10.4% in volume and 17.5%
9,000 25
in value to 4,123 transacted units worth RM1.14 billion.
This has shed some relief but is still throttling to return to its 6,000 0
recovering pace before Covid-19 swept through the country
3,000 -25
and the world.
0 -50
2017 2018 2019 2020 1H 2021
Of the transactions recorded, an overwhelming 89.7% were
transacted below the RM500,000 mark and shows Melaka’s 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
residential market purchasing power to still be heavily within
the affordable range and not on the higher end. Landed
homes remain the popular choice in demand which correlates
to the existing supply stock as 87.6% are of landed homes. Value of Residential Property Transactions in Melaka
(2017-1H 2021) (Source: JPPH)
The high-rise supply was recorded at 19,402 units, i.e.

(RM Mil.) (%)
condominiums/apartments and serviced apartments
combined. No SOHO has yet to enter the market at this 4,000 50
point but there are 352 new units in the pipeline. 3,000 25
2,000 0
As there are another 22,869 new units of residential
properties currently under construction and on its way to 1,000 -25
completion in the next few years, there are budding concerns
0 -50
on whether Melaka’s transaction pace will be able to keep 2017 2018 2019 2020 1H 2021
up. Already on the ground are a total of 704 overhang
units worth RM277.64 million sitting idle and though
Melaka Residential Property Price Trend & House Price Index (2017-2021) (Source: Rahim & Co Research, IHRM)
1,000 200.0
900 180.0 1TH (LHS)
800 160.0 2TH (LHS)
700 140.0
1SD (LHS)
600 120.0
2SD (LHS)
500 100.0
400 80.0 Condo/
Apt/S.Apt
300 60.0 (LHS)
200 40.0
All house
100 20.0 price Index
(RHS)
0 0.0
2017 2018 2019 2020 2021
66 Southern Region | Melaka
Selected Upcoming Landed Residential Properties in Melaka (Source: Rahim & Co Research)
No Of Expected
Units Completion

Taman Warisan Masjid Tanah 2022
Scientes Durian Tunggal

From RM320,000 2022
2 - Jade
Durian Tunggal 2-sty Terraced 430
Scientes Durian Tunggal
From RM255,600 2023
2 - Pearl
Taman Muzaffar Shah Ayer Keroh 1&½-sty Terraced 27 From RM390,000 2022
Krubong Heights Krubong 2-sty Terraced 76 From RM412,500 2022

Molek Residence Ayer Molek 2024
2-sty Semi-Detached 26 From RM1.33 mil
Selected Upcoming High-Rise Residential Properties in Melaka (Source: Rahim & Co Research)
No Of Expected
Units Completion
Amber Cove @ Impression City Kota Laksamana Serviced Apartment 838 From RM387,300 2022
The Dawn @ Impression City Kota Laksamana Condo Hotel 648 From RM455,500 2022
Bali Residences Bandar Melaka Condominium 811 From RM350,000 2022
Admiral Residences (Phase 1) Kota Laksamana Condominium 1440 From RM347,000 2022
Sri Melaka Residensi

From RM258,000 2022
(Block A & B)
Bukit Serindit Condominium 2,070
Sri Melaka Residensi
From RM264,000 2023
(Block C, D & E)
PR1MA Residensi A'Famosa

Alor Gajah Condominium 475 From RM125,685 2022
(Phase 1)
PR1MA Residensi Klebang 2 Bandar Melaka Condominium 800 From RM167,306 2022
Satori Residences Pulau Melaka Serviced Residence 192 From RM326,000 2023
PR1MA Residensi Bukit Katil Bukit Katil Condominium 527 From RM208,300 2023
PR1MA Residensi Melaka

Bandar Melaka Condominium 980 From RM109,440 2023
Tengah 2
Bandar Hilir
Embique Condotel Serviced Residence 152 From RM424,800 2025
Melaka
While some could be attributed to the Covid-19 situation

putting a big dampener on the market, this downtrend was
already seen in 2019 before the pandemic made headlines.
From a total retail space stock of 6.84 million sf, the current
occupancy rate has left 2.51 million sf of vacant space
in the market. And further on its way are 1.38 million sf
currently in the pipeline, making up 4 new retail complexes
for the state of Melaka. Oversupply is a notable concern
A‘Famosa with the millions of sf of retail space to be absorbed in a
market where demand is on its downtrend pace. Part of the
factors contributing to this overabundant retail situation is
the presence of large retail malls in most of the upcoming
this may seem a relatively small number at the moment, mixed developments, each boasting its own retail element as
future influx may bring more concern to the state if supply the means to attract tenants and visitors.
exceeds demand.
For the retail component of The Sail Melaka project by
As one of the active developers in Melaka, Teladan Setia Sheng Tai International Sdn Bhd, the developer has signed a
Group Bhd has several ongoing projects currently being MoU with KenTeam International Sdn Bhd in setting it up to
constructed in Melaka. The Bali Residences in Kota be a duty-free hub. Of the different phases planned for The
Syahbandar is a mixed-use development comprising of 830 Sail Melaka to be constructed, Phase 2 involves a 362,938 sf
serviced apartment units within two 38-storey towers and of cultural space and Phase 3 a 1 million sf shopping mall
18 retail shops. The price tags for the residential units starts as a duty-free zone.
from RM350,000. Taman Desa Bertam on the northern
side of the city centre offers 2-storey terraced and semi- One upcoming retail component wihtin an integrated
detached units priced from RM438,800. Taman Belimbing development is the Terraz Square Retail Mall in Impression
Setia offers a more exclusive collection of 1-storey bungalow City by Yong Tai Bhd. Located in Kota Laksamana, this
units located near the state government’s administrative area 7-storey new retail mall is sized at 962,923sf of nett lettable
and its prices start from RM418,800. One of its more recent
venture is the plan to develop a mixed-use integrated urban
development in Jasin on 136.92 hectares. Existing Supply & Occupancy Rate of Retail Spaces in
Melaka (2017-1H 2021) (Source: JPPH)
On the affordable segment, there are currently 4 ongoing
PR1MA residential developments listed on PR1MA’s website (Mil.sf) (%)
which are Residensi Melaka Tengah 2, Phase 1 of Residensi 8.0 100

A’Famosa, Residensi Klebang 2 and Residensi Bukit Katil. 80
6.0
60
4.0
40
a RETAIL 2.0 20
0.0 0
2017 2018 2019 2020 1H 2021
The retail segment of Melaka’s property sector continues to
be challenged in keeping tenancy levels as occupancy rate Existing supply (LHS) Space Occupied (LHS)
is seen to further decrease to 63.3% from 1H2020’s 67.5%. Occupancy rate (RHS)
area (NLA). Terra Square is positioned next to Encore designed to cater to the needs of business owners looking
Melaka with a sky bridge linking both buildings over the for office spaces as the entire tower is capable of housing up
saltwater canal. to 1,000 businesses. Measuring at 350,000 sf in nett lettable
area (NLA), the selling price of the business suites is averaged
Despite activities and interests by developers, the retail sector at RM1,500 psf. Estimated to have a gross development value
at present sees a challenging environment. Some existing (GDV) of RM1 billion, the tower is slated for completion in
malls face low occupancy despite being several years in 2026. Shen Tai International has also signed an agreement
operation. with global workspace provider International Workplace
Group (IWG) to open 3 co-working centres, one of which
will be in The Sail Melaka set to open in 2025.
a SHOP OFFICE
No change in supply were noted of in 1H2021 for the
PBO sector, keeping Melaka’s existing stock of office space
at 4.42 million sf with an occupancy rate of 83.0% - an While other sectors have shown improvements in transaction
improvement of 1.6% from 1H2020. This is an encouraging activities for 1H2021, the shop office sector of Melaka had
move considering the market is still in its recovery phase after shown a slight drop of 1.0% in volume and 9.4% in value to
having endured through an unprecedented 2020. 205 transacted units worth RM106.29 million. This brings
a more subdued sentiment as chances of recovering back to
No new PBO supply were recorded which gives the PBO 2019’s upward pace has gotten slimmer and while there may
scene of Melaka likely another quiet year in development still be the second half to pull through, it would require a
activities. The steady occupancy rate can also be attributed to significant number to make up for it. By type, transactions
41% of the 81 PBO buildings in Melaka to be government- were mainly seen for the 1-storey, 2-storey and 3-storey shop
owned which are typically close to or 100% occupied office units.
consistently.
Ranging from pre-war to 6-storey types, Melaka’s supply is
While not officially categorised as a PBO establishment, at 21,231 existing units with the highest concentration of
Sheng Tai International, the developer of The Sail Melaka, stock being in Melaka Tengah. 2-storey units dominate the
has unveiled the Maritime Cultural Tower which is one of market as the most common type to be developed and the
nine towers of The Sail Melaka to offer spaces suited for same pattern is seen for incoming units as 66% of the 1,174
office needs in the form of suites. The 61-storey tower is new units are 2-storey units.
Existing Supply & Occupancy Rate of Purpose-Built Number of Shop Office Property Transactions in
Office in Melaka (2017-1H 2021) (Source: JPPH) Melaka (2017-1H 2021) (Source: JPPH)
(Mil.sf) (%) (No. of units) (%)

5.0 100 800 50
4.0 80
600 25
3.0 60
400 0
2.0 40
1.0 20 200 -25
0.0 0 0 -50
2017 2018 2019 2020 1H 2021 2017 2018 2019 2020 1H 2021
Existing supply (LHS) Space Occupied (LHS) 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
Selected Upcoming Shop Offices in Melaka (Source: Rahim & Co Research)
No of Expected
Units Completion
Taman Bertam Impian Tanjung Minyak 2-sty Shop Office 123 From RM538,000 2022
Gangsa Jaya Batu Berendam 2-sty Shop Office 34 From RM580,000 2023
Value of Shop Office Property Transactions in Melaka of patrons being fully vaccinated. After having endured
(2017-1H 2021) (Source: JPPH) months of close to zero business and reimplementation of
MCO phases, bookings began to stream in for the last 3
(RM Mil.) (%) months of the year following the interstate border reopening
500 100 announcement made by the government in September 2021.
400 50
As at 1H2021, Melaka’s supply of hotel rooms state wide
300
0 stands at 17,031 rooms, making up a total of 173 hotel
200 establishments of various star ratings. And in the pipeline,
-50
100 incoming supply maintains at 1,456 new hotel rooms
0 -100 currently under construction though its completion are most
2017 2018 2019 2020 1H 2021
likely affected by the disruptive pandemic period, as no major
1H (LHS) 2H (LHS) % Change y-o-y (RHS) updates were announced thus far for the year.
Much improvement was seen for the overhang situation of

shop offices in Melaka as numbers had dropped to a much Existing Supply of Hotels in Melaka
smaller 141 units worth RM71.30 million – coming from (2017-1H 2021) (Source: JPPH)
1H2020’s 653 units worth RM287.76 million. Most of the

(No. of rooms) (%)
unsold stock are located in Melaka Tengah.
20,000 50
15,000 25
a HOTEL
10,000 0
5,000 -25
Being one of the top popular tourist destinations locally and
internationally, it was a sigh of relief for the operators and 0 -50
2017 2018 2019 2020 1H 2021
service providers in Melaka when borders were reopened
and local tourism activities were allowed on the condition Existing supply (LHS) % Change y-o-y (RHS)
Selected Upcoming Hotels in Melaka (Source: Rahim & Co Research)
Expected
Completion
Melia Melaka Bandar Melaka 4 250 2022
Park Hotel Melaka Kota Laksamana 4 245 2022
Sheraton Melaka Hotel Klebang 5 300 2023

Jiankun International Bhd has inked a reclamation and their manufacturing facility in Alor Gajah Industrial Estate
development agreement (RDA) with the Melaka state with completion slated in April 2022. The director general
government to the reclamation and development of a of Malaysian Nuclear Agency noted that the new irradiation
12.14-hectare land in Bandar XLIV located in central Melaka facility will mark Malaysia’s step forward to increasing
district. The commercial development will include hotels the local production of high value products through high
& resorts, business premises and residential developments technology, particularly for the wire and cable industry.
as the company ventures into the tourism segment, seeing
as Melaka is one of the top popular tourist destinations in
Malaysia. The project is expected to be developed within Number of Industrial Property Transactions in Melaka
a 12-month period which puts the resort’s opening to be (2017-1H 2021) (Source: JPPH)
sometime in 2023.
(No. of units) (%)
500 50
a INDUSTRIAL 400 25
300
0
1H2021 saw improvements in transaction activities 200
-25
following 2020’s unprecedented year, with notable increase 100
of 34.9% in volume and 82.3% in value to 170 transacted 0 -50
2017 2018 2019 2020 1H 2021
units worth RM156.20 million. The increase had even
positioned 1H2021’s transaction performance at a higher 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
level than 1H2019’s performance (158 transacted units worth
RM149.67 million) which is considered the pre-pandemic
benchmark. While there is still the second half performance Value of Industrial Property Transactions in Melaka
yet to be registered to know the true extent of recovery (2017-1H 2021) (Source: JPPH)
Melaka’s industrial sector has achieved for 2021, a strong
comeback in the first half sets a brighter tone to the state’s (RM Mil.) (%)
future prospect. 500 100
400
Supply has relatively maintained at 7,158 industrial units 50
with a minimal growth of 0.5% as at 1H2021. Of the state’s 300
0
existing supply, 5,576 units are located in Melaka Tengah 200
and 1,165 units in Alor Gajah. These are primarily terraced, -50
100
semi-detached and detached homes. Overhang numbers for 0 -100
the state is on the low side at just 22 units worth RM18.54 2017 2018 2019 2020 1H 2021
million and are all located in Melaka Tengah. 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
LBS Bina Group Bhd has signed a reclamation and

development agreement (RDA) with the Melaka government
to reclaim and develop a land area spanning 1,200 acres in
Tanjung Bruas. The intended land will be developed into an
“1H2021 saw much
industry hub with port facilities and is part of the Melaka
Waterfront Economic Zone (M-WEZ). The industry hub
improvement in transaction
will include logistic and warehouse, manufacturing, liquefied
natural gas and port-related businesses. The reclamation
activities following 2020’s
phase is to be carried out within five years upon being unprecedented year, with
granted approval and following that is the development of
the industry hub within 15 years from the reclamation period. notable increase of 34.9% in
Ta Win Holdings Bhd has begun construction of Malaysia’s
first local privately-owned electron beam irradiation plant at volume and 82.3% in value”
• M elaka’s new economic corridor, the Melaka • The existing Melaka Sentral in Bandar Peringgit will
Waterfront Economic Zone (M-WEZ), was officially be undergoing a redevelopment and transformation
launched in April 2021 with the aim to establish itself process to become a new landmark for the state. The
as a “maritime hub of Malaysia” and completion is RM3.5 billion project development agreement was
expected by 2035. It is one of the main pillars in the signed between Melaka Sentral Sdn Bhd (MSSB) and
Melakaku Jaya 2035 Strategic Plan, and will cover developer Goodyield Development Sdn Bhd (GDSB).
an area of 25,000 acres along 33km of the state’s The entire redevelopment project will be implemented
coastline. There will be five zones which are the through five sectors and will be completed in stages,
Melaka Harbourfront, Smart Logistic Nucleus, Digital ending fully in 2029:
Satellite Township, Central Eco Business Park and the • First Sector – a main terminal building, a
Trade Nucleus New Township. condominium block, a hotel, a 18-hall cinema and
• Sand Nisko Capital Bhd (SNC) has signed a joint a commercial lot with completion slated in 2024.
venture agreement (JV) with Mutiara Mahajut Sdn • Second Sector – the southern region express
Bhd (MMSB) for a dual-phase development on a terminal, a block of condominiums, an
162-acre land in Alor Gajah. With the focus being on entertainment zone and commercial space with
agriculture and property development, Phase 1 entails completion slated by June 2025.
the right to plant oil palm, rubber trees, fruit trees or • Third Sector – the central region express terminal,
forest tress while Phase 2 will see the construction of two blocks of condominiums and a commercial lot
a mixed development project. slated completion by December 2026.
• Nexgram Holdings Bhd is acquiring a 10.03-hectare • Fourth Sector – the northern region express
piece of leasehold land in Bukit Baru, Melaka Tengah terminal, a block of condominium and commercial
from Melaka State Development Corporation for space to be ready by 2028.
RM61.53 million to be developed into a mixed • Fifth Sector – the eastern region express terminal,
development complex that promotes medical tourism a mosque, a block of condominium, a monorail
and foreign residence in the state. The main medical hub, a banquet hall and commercial space to be
component of the project is the Melaka Lifecare ready in 2029.
Specialist complex.
• After having experienced a setback in development
progress of the 100-acre Impression City , Yong Tai
Bhd has received backing from new partners from
China to resume construction in fulfilling Yong
Tai’s vision of transforming Melaka city into an
international tourism hub.
72
JOHOR
Darul Takzim
Capital: Johor Bahru

Area (km2): 19,166
(Source: DOSM) Transaction Value RM3,899.85 mil. 15.8% y-o-y
RETAIL
SHOP OFFICE
HOTEL
INDUSTRIAL
Kota Iskandar, Iskandar Puteri
Number of Residential Property Transactions in Johor

(No. of units) (%)

As at 1H2021, the residential sector of Johor has seen a 40,000 50
growth y-o-y of 4.8% in volume and 15.8% in value to
10,681 transacted units worth RM3.90 billion. While it is 30,000 25
encouraging to see some upward movement following 2020’s 20,000 0

fall, there is still some ways to go for the market to regain
its recovery momentum seen in 2019 before the pandemic 10,000 -25
hit the country and the world. Of the transactions recorded 0 -50
in 1H2021, the sub-half million ringgit bracket still runs 2017 2018 2019 2020 1H 2021
strong for the market as 80.9% were transacted below the 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
RM500,000 mark.
The supply side of the residential market saw minimal

growth of just 2.1%, putting Johor’s existing residential
stock at 867,070 units, excluding the 85,551 units of serviced Value of Residential Property Transactions in Johor
apartment and 2,843 units of SOHO. Combined, this puts (2017-1H 2021) (Source: JPPH)
Johor’s total dwelling count to 955,464 units – slowly inching
(RM Mil.) (%)
its way to the 1 million mark.
12,000 50
Moving alongside the demand trend that is still finding its way 9,000 25
back on track to a higher pace, is the 74,391 dwelling units in
the pipeline as of 1H2021 of which 43% are condominiums, 6,000 0
service apartments and SOHOs combined. With such a large 3,000 -25
incoming volume to be carried by the market in the next few
years, there is concern that the overhang picture will worsen, 0 -50
2017 2018 2019 2020 1H 2021
should demand for high-rise units to remain soft as opposed
to the high stock of incoming high-rise units. 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
Johor Bahru Residential Property Price Trend & House Price Index (2017-2021) (Source: Rahim & Co Research, IHRM)
1,800 250.0
1,600 1TH (LHS)
1,400 200.0 2TH (LHS)
1,200 1SD (LHS)

150.0
1,000 2SD (LHS)
800 Condo/
100.0
Apt/S.Apt
600
(LHS)
400 50.0
All house
200 price Index
(RHS)
0 0.0
2017 2018 2019 2020 2021
74 Southern Region | Johor
Selected Upcoming Landed Residential Properties in Johor (Source: Rahim & Co Research)
No of Expected
Units Completion
Adinia 2 @
Pulai 2-sty Terraced 138 From RM480,000 2022
Bandar Baru Kangkar Pulai
Senadi Hills Iskandar Puteri 2-sty Terraced 112 From RM656,700 2022
Sunway Citrine Lakehomes

Iskandar Puteri 2sty Cluster 64 From RM955,000 2022
(Phase 3)
The Maris Residence Desaru 2-sty Semi-Detached 66 From RM630,000 2022
Serenita 2 @
Desaru 2-sty Terraced 228 From RM588,000 2022
Taman Sri Penawar
Sebana Cove,
Suria 2 @ The Botany 2-sty Terraced 84 From RM546,000 2022
Pengerang
Elona @ Setia Eco Garden Iskandar Puteri 2-sty Terraced 94 From RM658,000 2022
Kyra @ Setia Eco Garden Iskandar Puteri 2-sty Terraced 106 From RM768,000 2022
Taman Mount Austin Tebrau 2-sty Terraced 52 From RM598,000 2023
Seri Austin @ Mount Austin Tebrau 3-sty Bungalow 40 From RM2.10 mil 2023
Erica Residence @
Pasir Gudang 2-sty Terraced 155 From RM425,000 2023
Meridin East
Selected Upcoming High-Rise Residential Properties in Johor (Source: Rahim & Co Research)
No of Expected
Units Completion
Grid Residence @
Iskandar Puteri Serviced Residence 501 From RM427,000 2022
Sunway Iskandar
Residensi Taman Pelangi

Ulu Tiram Serviced Residence 720 From RM246,368 2022
Indah
Paradigm Residence Johor Bahru Serviced Apartment 263 From RM383,000 2022
Veranda Residences Taman Pelangi, JB Condominium 600 From RM400,000 2022
Sky Trees Bukit Indah Serviced Residence 484 From RM420,000 2023
Amber Heights @
Masai Condominium 240 From RM250,000 2023
Bandar Seri Alam
Optimus Medini Medini Serviced Apartment 316 From RM374,000 2023
Prima Larkin Indah Larkin Apartment 1,074 From RM300,000 2023
Space Residency Johor Bahru Serviced Apartment 995 From RM490,000 2024
As of 1H2021, there are already 23,679 unsold units a RETAIL

worth RM19.70 billion sitting idle in the market of which
81.3% are high-rise units (condominiums/apartments &
serviced apartments). By price bracket, 59.5% are between As at 1H2021, there were 26.6 million sf of retail space
RM500,001 to RM900,000. for the retail segment of Johor and has maintained so
from the previous period. Of this supply, occupancy rate
A new record was made with the official launch of Astaka is at 73.4% after a decrease of 4.7% from 1H2020. The
Holdings Ltd’s tallest residential building in Southeast Asia, decrease in tenancy despite supply maintaining, though small
The Astaka @ One Bukit Senyum on 20th December 2021. in percentage, has ultimately left 7.08 million sf of vacant
Standing at 65 and 70-storey tall for each of the two towers, retail space in the market. The absolute number paints a
the entire development offers a total of 435 luxury residential more severe picture of oversupply considering the market
units with a stunning view of the Johor and Singapore’s is still struggling to recover from the worst hits felt by the
skyline. destructive pandemic impact.
On a more luxury scale, Anantara Desaru Coast Residences As a state that is also reliant on the movement of visitor
offers 20 seaside pool villas ranging from 3,100 sf to 6,426 traffic to and from its next door neighbour Singapore, tightly
sf with prices starting from RM7.5 million up to the most regulated and monitored border controls and the looming
expensive being RM15.5 million. This high-end resort threat of new Covid-19 variants put a dampening effect on
residences is developed by both Themed Attractions Resorts the potential recovery pace for the tourism sector.
& Hotels (TAR&H), a subsidiary of Khazanah Nasional Bhd,
and Minor International, the brand owner of Anantara itself. In the pipeline, there are 548,001 sf of new retail space under
Anantara Desaru Coast Residences is the group’s flagship construction in 3 new retail establishments. All incoming
project in Malaysia with the villas managed and serviced spaces are concentrated in Johor Bahru alone. The relatively
year-round by the adjacent 5-star Anantara Desaru Coast small incoming supply gives the market some room to breathe
Resort & Villas that had been operational since December and work to achieving a more healthy take-up rate and lessen
2019. the vacant space stock.
TA Global Bhd has unveiled its maiden project outside of A new shopping mall that will soon open its doors to the
Klang Valley, called Idaman Hills in Kluang, Johor. It is public is the Eco Galleria @ Eco Botanic in Iskandar Puteri.
located on a 95.16-acre freehold land near Gunung Lambak With a total NLA of 680,000 sf, the shopping mall will be
and will feature 6 phases comprising 545 homes. The first having University of Southampton as its anchor tenant –
collection of Idaman Hills, Aspen Residences, was also occupying 15,000 sf of space.
launched. It comprises of 66 units of 2-storey terraced houses
with built-ups starting from 2,439 sf. The first phase is slated Existing Supply & Occupancy Rate of Retail Spaces in
for completion in 2023. Johor (2017-1H 2021) (Source: JPPH)
In addressing the long standing issue of affordable housing, (Mil.sf) (%)
the state government intends to collaborate with property 30.0 100

developers to build up to 115,000 affordable homes across the 25.0 80
state and that the effort will be mobilised through the Special 20.0
60
Johor Housing Programme. This programme is aimed to 15.0
40
ensure the long pending 115,000 affordable homes be built 10.0
5.0 20
successfully and that the prices will range between RM80,000
to RM300,000. 0.0 0
2017 2018 2019 2020 1H 2021

As part of the retail component of the Coronation Square Existing Supply & Occupancy Rate of Purpose-Built
development in the prestigious Ibrahim International Office in Johor (2017-1H 2021) (Source: JPPH)
Business District (IIBD) of Johor Bahru by Johor Corporation

(Mil.sf) (%)
(JCorp), a 7-storey retail mall sized approximately at 1.2
million sf is in the pipeline with the entire mixed integrated 20.0 100
development spanning over a 7-year construction period 15.0 80
from 2017 to 2023. 60
10.0
40
The current environment of new mall entrants coupled with 5.0 20
a still challenging market condition has put more obstacles
and difficulty on the possibility of reviving long abandoned 0.0 0
2017 2018 2019 2020 1H 2021
malls in Johor Bahru. One such establishment is the once
iconic 5-storey Water Front City mall which is located in Existing supply (LHS) Space Occupied (LHS)
a prime location overlooking the Straits of Johor along Occupancy rate (RHS)
Persiaran Tun Sri Lanang in Kebun Merah. It had been

shuttered back in 2003, just three years into its operation. its appearance on the Johor Bahru skyline is the 35-storey
Two other abandoned malls in Johor Bahru are Pacific Mall Bank Rakyat Tower that will see its completion by end 2021.
and Danga City Mall. Coronation Square is the first project under the Ibrahim
International Business District (IIBD) transformation plan.
a PURPOSE-BUILT OFFICE The 2 office towers at Mid Valley Southkey is expected to

reach its completion by end of the year and will be adding
new spaces into the cumulative PBO space supply of Johor
The PBO sector of Johor grew by 6.1% to 14.78 million sf for 2022.
of office space as at 1H2021 with occupancy rates having
dropped slightly by 1.2% to 72.7% – putting the state’s
tenancy performance at the lower to mid – 70% mark since
dropping below 80% in 2018. a SHOP OFFICE
At this occupancy rate, there are 4.04 million sf of vacant
office space sitting idle in the market as of 1H2021 and Johor’s supply of shop office ranging from pre-war units
when combined with incoming new supply of 2.30 million to 6-storey units stands at 85,481 units as at 1H2021 after
sf already in the pipeline, concern is felt for how the market a slight increase of 2.7% y-o-y. The supply stock is largely
would be absorbing these spaces with occupancy rate being dominated by 1 to 3-storey types at a supply share of 88.9%.
on the downtrend trend for last few years. In the pipeline, there are 7,125 new shop office units being
constructed with just over half located in Johor Bahru alone.
As a PBO market that leans more to privately-owned
buildings than government-owned buildings, occupancy Against a slower supply growth, demand for shop offices
rates would be more susceptible to economic impacts as have improved by 22.8% and 35.6% in volume and value
opposed to the more stable government occupants. With new respectively, coming to 899 transacted units worth RM851.25
workplace arrangements and practices being embraced as million from 1H2020. But despite such improvements, it
result from living through a pandemic environment, demand is still not up to par with 1H2019’s performance of 1,131
for office spaces may see some changes to the preference transacted units worth RM929.19 million which indicates
and requirements by existing and potential tenants, such as more room for growth in transaction activities in order for
flexible leasing arrangements and customisable space designs the market to regain its pre-Covid-19 momentum.
to suit a new workforce arrangement.
On the ground, Johor’s overhang situation for the shop office
Dubbed by some as Johor Bahru’s own KLCC landmark, the segment is notable with an unsold stock of 1,535 units worth
currently under construction Coronation Square is a mixed RM1.44 billion sitting idle in the market after an increase
integrated development comprising of a retail shopping mall of 8.0% from 1H2020. More than 90% of the unsold stock
and six high-rise towers of which two are office towers. One are priced above RM500,001 and are pre-dominantly of
of the office towers that is steadily taking shape and making the 2 and 3-storey type.
Selected Upcoming Shop Offices in Johor (Source: Rahim & Co Research)
No of Expected
Units Completion
Impian Link 38 @
Skudai 2-sty Shop Office 38 From RM850,000 2022
Taman Skudai Impian
Aspira Square Gerbang Nusajaya 2&3-sty Shop Office 59 From RM878,000 2023
Senadi Square Iskandar Puteri 2-sty Shop Office 20 From RM780,000 2023
Emerald Crest Austin Mount Austin 3-sty Shop Office 161 From RM1.6 mil 2024
Business Boulevard Central

Tampoi 3&4-sty Shop Office 68 From RM1.9 mil 2024
Park
Number of Shop Office Property Transactions in The Bukit Indah township of Johor Bahru will be seeing a
Johor (2017-1H 2021) (Source: JPPH) new commercial development by S P Setia that was virtually
launched on 31st October 2021. Indah Prime is designed
(No. of units) (%) to be modern and low in density, with an offering of 40
3,000 50 exclusive 3-storey and 4-storey shop office units with built-
2,400
ups ranging from 4,907 sf to 10,601 sf.
25
1,800
0
1,200
600 -25
a HOTEL
0 -50
2017 2018 2019 2020 1H 2021
1H (LHS) 2H (LHS) % Change y-o-y (RHS) As at 1H2021, there are 31,066 hotel rooms for the state of
Johor after a small increase of 0.9% y-o-y. With the tourism
sector facing another difficult period with the enforcement
Value of Shop Office Property Transactions in Johor of two MCO phases in the first half of 2021, recovery was
(2017-1H 2021) (Source: JPPH) very challenging until travel bans were lifted later in the year.
In the pipeline, 3,154 hotel rooms are under construction
(RM Mil.) (%) though the prolonged pandemic environment may cause
2,500 50 further delays to the completion of new hotel establishments.
2,000
Yet some have defied the gloomy sentiment with their
25
openings seen in 2021 based on confidence felt for the local
1,500
0 tourists to return upon the lifting of interstate travel ban.
1,000
-25
500 Sunway Bhd’s Sunway Hospitality had the soft opening
0 -50 of its RM160 million Sunway Hotel Big Box as part of
2017 2018 2019 2020 1H 2021
their preparation to welcome domestic tourists following
1H (LHS) 2H (LHS) % Change y-o-y (RHS) the reopening of interstate travel. Being Sunway Bhd’s first
hotel in southern Peninsular Malaysia, it aims to be a new
haven of nature and adventure with a total offering of 284
A newly completed commercial development was noted of guestrooms. Situated in the integrated township of Sunway
for the year, called Oasis 3 in Permas Jaya and is part of the City Iskandar Puteri, guests are able to enjoy the surrounding
Tropicana Danga Cove. There are 180 units of 3-storey and amenities and offerings such as the X Park and Sunway Big
4-storey shop offices with prices starting from RM1.1 million. Box Retail Park.
Selected Upcoming Hotels in Johor (Source: Rahim & Co Research)
Expected
Completion
Pan Pacific Serviced Suites Iskandar Puteri 5 205 2022
Ozo Medini Medini Iskandar 5 198 2022
Hyatt Palce JB Johor Bahru 5 200 2023
Citadines Medini Iskandar Puteri 5 214 2023
The Datai Desaru Desaru 5 N/A 2025
The fourth quarter of the year also saw the opening of guests to Johor’s tourism scene as hotel bookings surged up
Marriott International Inc’s latest addition to their portfolio, upon the reopening of interstate travelling, the threat of
Four Points by Sheraton Desaru amidst the ongoing pandemic yet another Covid-19 wave still looms. One new initiative
environment. The opening of this venture by Marriott was that has been launched to help revive the struggling sector
in partnership with Continental Management Sdn Bhd, a is the Land Vaccinated Travel Lane (VTL) which allows
member of the SKS Group. Under this agreement, SKS fully vaccinated travellers to travel between Singapore and
Group had refurbished and converted the existing 311-room Malaysia but are subject to Covid-19 tests in lieu of serving
Amansari Residence Desaru property into the new Four quarantine or a stay-at-home notice. At time of print, this
Points by Sheraton Hotel. has been temporarily suspended.
On a less fortunate note, 2021 also saw the permanent closure

of another long-standing hotel establishment who had fallen a INDUSTRIAL
victim to the devastating impact of Covid-19 that had caused
an almost complete shutdown of the tourism sector during
the MCO phases. Johor Bahru’s first 4-star hotel Mutiara The industrial sector of Johor has seen encouraging recovery
Johor Bahru, initially called Holiday Inn, closed its doors growths in transaction activity from 1H2020’s low point,
permanently on 1st June 2021 as it was no longer financially registering 33.7% growth in volume and 22.9% rise in
viable due to the prolonged pandemic period. value to 337 transacted units worth RM859.18 million. But
compared to pre-Covid-19 performance levels, it is still behind
News of closures and ceased operations have brought 1H2019’s numbers of 527 units worth RM1.03 billion.
worry to hotel operators in Johor on their future prospect
to survive through the prolonged pandemic period. While it Even so, the industrial sector as a whole is seen to be one
was a relief for many to see the return of local tourists and of the steadier sectors in overall performance and outlook
as logistics and warehousing gets its boost from the surge of
Existing Supply of Hotels in Johor e-commerce services and manufacturing investments and
(2017-1H 2021) (Source: JPPH) ventures making a comeback once physical movement has
been reallowed with the successful vaccination rates.
(No. of rooms) (%)
40,000 50 The supply of industrial properties in Johor is at 18,179 units

and are mainly concentrated in the areas of Johor Bahru,
30,000 25
Batu Pahat and Kulaijaya. Another 1,070 new industrial
20,000 0 units are in the pipeline and also mostly located in Johor
10,000 -25
Bahru and Kulaijaya.
0 -50 The overhang situation for Johor’s industrial sector stands

2017 2018 2019 2020 1H 2021
at 462 unsold units worth RM962.66 million with 81.2% of
Existing supply (LHS) % Change y-o-y (RHS) the stock priced above RM1 million.
German automaker Volkswagen Group has chosen Port

of Tanjung Pelepas as their new regional parts distribution
centre, providing a genuine parts supply chain to 21 markets
in Asia Pacific. Spanning over 538,200 sf, the new distribution
centre can store 65,000 genuine parts of the group’s brands • As part of the strategy to create ECER Dairy
of Volkswagen passenger cars, Audi, Skoda and Volkswagen Valley, a collaboration agreement was signed
commercial vehicles. This will mark Johor’s second global between the ECER Development Council and
carmaker presence in the state with the first being BMW the Johor State Government on 8th September
Group Malaysia back in 2017 who opened their regional 2021 to develop the Jemaluang Dairy Valley (JDV)
parts distribution centre at the Free Industrial Zone of the in Mersing, Johor. Full operations is expected to
Senai International Airport. be in 2023.
• T he Gemas-Johor Bahru Electrified Double
Number of Industrial Property Transactions in Johor Track project is slated for completion by
(2017-1H 2021) (Source: JPPH)
October 2022. This 192km track with 11 stations
starting from Gemas in Negeri Sembilan will pass
(No. of units) (%) through several areas in Johor including Bandar
1,200 50
Segamat, Kluang, Bekok and Kulai.
• T he RM2.56 billion Iskandar Malaysia Bus
900 25 Rapid Transit (BRT) system in Johor with a
600 0
development progress reaching 22% as of April
2021, is scheduled for completion and will begin
300 -25 operation by end 2023. The BRT system will
0 -50 cover a total of 2,043km through three main lines;
2017 2018 2019 2020 1H 2021 namely Iskandar Puteri, Skudai and Tebrau, with
44 direct routes and 55 feeder routes.
• Following the resumption of the Johor Bahru-
Singapore Rapid Transit System (RTS) in July
Value of Industrial Property Transactions in Johor 2020, a Link grantor agreement has concluded
(2017-1H 2021) (Source: JPPH)
between the two governments in November 2021
which stipulates the responsibilities of the two
(RM Mil.) (%) grantors in carrying out their roles and obligations
in relation to the concession agreement. Passenger
2,500 50
service is slated for operation by end 2026.
2,000 25 • The Sungai Pulai Bridge connecting Gelang
1,500 Patah in Johor Bahru to Tanjung Bin in Pontian
0
1,000 is expected to cut the commute duration from
500 -25 an hour to just 15 minutes and open up more
opportunities for new industries around Tanjung
0 -50
2017 2018 2019 2020 1H 2021 Bin. Completion is slated in October 2022.
• Bridge Data Centre, a subsidiary of ChinData, is
planning to build a new data centre called MY06
in the KIDEX Sedenak business park. This new
data centre is set to be the largest of its kind in
Malaysia. Phase 1 is slated to open by end 2022
and Phase expected shortly thereafter.
• The 26,000sf Angry Birds Activity Theme Park
located in Komtar Johor Bahru City Centre
(JBCC) mall has closed its doors for good on 5th
April 2021 after operating for 6 years.
80
Kelantan
Terengganu
Pahang
EAST COAST
Region
Cameron Highlands, Pahang

82
KELANTAN
Darul Naim
Capital: Kota Bharu (Source: Rahim & Co Research, JPPH)
Est. Population: 1,928.8 RESIDENTIAL

Area (km2): 15,040 Supply 86,210 units 2.8% y-o-y
(Source: DOSM)
RETAIL
SHOP OFFICE
HOTEL
INDUSTRIAL
Gua Musang, Kelantan

a RESIDENTIAL Kelantan (2017-1H 2021) (Source: JPPH)
(No. of units) (%)

1H2021 saw Kelantan’s residential market improve in its 8,000 50
transaction activities, coming to 2,614 transacted units worth
RM428.66 million after a growth of 16.6% in volume and 6,000 25
22.8% in value respectively. But in comparison to pre-Covid 4,000 0

performances in 1H2019, transaction activities are still
slightly lower. 2,000 -25
0 -50
By price tag, the residential properties transacted remain 2017 2018 2019 2020 1H 2021
primarily under the RM500,000 mark with 50% below 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
RM100,001 and 48% up to RM500,000. This is much
influenced by the fact that the Kelantan market is still in
favour of purchasing vacant plots as opposed to ready-made
houses as evidenced by the 58% contribution in transactions.
Value of Residential Property Transactions in Kelantan
Condominiums/Apartments remain as the less popular (2017-1H 2021) (Source: JPPH)
choice of residential property purchase as land and landed
(RM Mil.) (%)
homes are still ample in supply for the state, resulting in just
1.6% of transaction volume. This is further supported by 1,000 50
the number of overhang units recorded as at 1H2020, 363 800 40
dwelling units worth RM145.08 million of which 95% are 600 30
high-rise including serviced apartments.
400 20
200 10
If this slow pace in demand for high-rise persist, Kelantan
may likely be looking at a bigger overhang burden as 2,757 0 0
2017 2018 2019 2020 1H 2021
new units of condominium/apartments and 500 new units
of serviced apartments make its way into the market. It is 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
Kota Bharu Residential Property Price Trend & House Price Index (2017-2021) (Source: Rahim & Co Research, IHRM)

1TH (LHS)
700 250.0
2TH (LHS)
600
200.0 1SD (LHS)
500 2SD (LHS)

150.0 1D (LHS)
400
2D (LHS)
300 100.0
Condo/
200 Apt/S.Apt
50.0 (LHS)
100
All house
0 0.0 price Index
2017 2018 2019 2020 2021 (RHS)
84 East Coast Region | Kelantan
Selected Upcoming Residential Properties in Kelantan (Source: Rahim & Co Research)
No of Expected
Units Completion
Sireh Residence Kota Bharu Apartment 1,500 From RM274,600 2022
19 Residensi Kota Bharu Serviced Apartment 182 From RM293,000 2022
Taman Baiduri Machang 1-sty Terraced 63 From RM218,000 2022
Teluk Panji Kota Bharu 1-sty Bungalow 6 From RM485,000 2022
Taman SBJ Sri Sering 2 Pulau Belanga 3-sty Terraced 13 From RM575,000 2022
Perumahan Rantau Baru Rantau Panjang 1-sty Terraced 30 From RM229,000 2023
Taman Kota Jembal Kota Bharu 1-sty Bungalow 34 From RM426,500 2023
Taman Kemunin Huwainaa Pengkalan Chepa 2-sty Terraced 13 From RM401,000 2023
Taman Sri Ayu Tanjung Mas 2-sty Terraced NA From RM390,000 2023
Bandar Baru Setia Hartamas Pasir Pekan 1-sty & 2-sty Terraced 2,000 From RM245,000 N/A
still a challenge for the developers in Kelantan to persuade Existing Supply & Occupancy Rate of Retail Spaces in
buyers to consider high-rise units for a change against a Kelantan (2017-1H 2021) (Source: JPPH)
market that favours landed homes.
(Mil.sf) (%)
Within the review period, new launches were on the low side 5.0 100
as the market was still trying to recover after a hard hit by 4.0 80
the pandemic. One noted new residential project launched
3.0 60
is the D’Anggun Melawi Residence in Bachok by Anggun
Armada Holdings Sdn Bhd. Offering a total of 28 units 2.0 40
consisting of 1-sty semi-detached and 1-sty detached homes, 1.0 20

with prices starting from RM314,000. 0.0 0
2017 2018 2019 2020 1H 2021
In observing the transacted prices of 2021, landed homes Existing supply (LHS) Space Occupied (LHS)
were seen to have positive capital appreciation and in Occupancy rate (RHS)
particular, 2-sty detached homes in Telok Bharu, Taman
Uda Murni and Mentuan. This price movement further
adds weight to Kelantan’s strong demand for landed homes This comes after a sustaining occupancy performance of
as high-rise, on the other hand, relatively maintained in 91.4% in the past 5 years, indicating that despite Kelantan
transacted prices for the year. having held well at above 90% in the previous years, further
addition of new retail mall spaces have disrupted the balance
achieved between demand and supply. It may be even more
a RETAIL difficult to recover to post-pandemic occupancy performance
as physical retail presence and shoppers are still being
threatened by the oncoming waves of Covid-19.
Of the three states in the East Coast region, Kelantan has
the second highest supply of retail space at 4.10 million sf, A new retail complex that will open its doors to the public
coming just behind Pahang’s 4.61 million sf. But despite is the MYDIN Mall Tunjong in Bandar Baru Tunjong. Set
seeing growth in supply by 11.5%, equivalent to over to be the biggest MYDIN mall in Kelantan, this new retail
400,000 sf from 1H2020, demand growth was slower hence complex will be offering an array of retail brands and services
occupancy rate was negatively affected and had dropped to to the locals, adding yet another sizable retail landmark for
80.1%. the state.
The purpose-built office (PBO) segment of Kelantan’s

property market maintains its supply at 4.21 million sf and
on occupancy rate, albeit a slight drop yet keeping above the
90% mark, at 93.7% as at 1H2021. 70% of the PBO spaces
Istana Jahar, Kota Bharu
are concentrated in Kota Bharu.
The high occupancy rate is credited to the PBO buildings

in Kelantan being 57% government-owned office buildings Number of Shop Office Property Transactions in
which are typically 100% occupied and consistently remains Kelantan (2017-1H 2021) (Source: JPPH)
so over time, lending a big hand to the stable demand

performance for the state in PBO real estate. (No. of units) (%)
200 50
No new supply of office spaces are recorded for the state
150 25
and has been so for the past few years, keeping PBO supply
steady at its current level. It is yet to be seen if new working 100 0
norms and practices post-pandemic would have any impact
50 -25
on the state’s demand of PBO spaces.
0 -50
2017 2018 2019 2020 1H 2021
Office in Kelantan (2017-1H 2021) (Source: JPPH) 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
(Mil.sf) (%)
Value of Shop Office Property Transactions in Kelantan
5.0 100
(2017-1H 2021) (Source: JPPH)
4.0 80
3.0 60 (RM Mil.) (%)

2.0 40 160 100
1.0 20
120
50
0.0 0
2017 2018 2019 2020 1H 2021 80
0
Existing supply (LHS) Space Occupied (LHS) 40
0 -50
2017 2018 2019 2020 1H 2021
a SHOP OFFICE 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
In supply, Kelantan has 13,341 units of shop offices in stock

The shop office market of Kelantan remains on the small ranging from pre-war to 6-storey units. By type, 2 and 3-storey
side in volume with just 94 units transacted at a value of units are in the most abundant in supply and aside from Kota
RM71.4 million though both registering solid growth of Bharu with the largest stock concentration, other areas with
46.9% and 93.6% respectively – even surpassing 1H2019’s prominent shop office presence include Gua Musang, Kuala
transaction performance. Past transaction patterns have Krai, Tanah Merah and Tumpat.
shown the second half of the year to be pulling in bigger
sales volume and should the same apply in 2021, we may There are 1,255 new shop office units currently in the
see a strong recovery growth in 2021 after 2020’s depressing pipeline and the areas expecting most of this new stock are
market situation. Bachok, Kota Bharu and Kuala Krai.
86 East Coast Region | Kelantan
The supply side of the industrial market remains flattish with

a HOTEL just a small growth of 1.2% in stock, coming to 613 industrial
units in total. By locality, prominent supply concentration is
seen for the areas of Kota Bharu, Gua Musang, Kuala Krai
Between the three states of the East Coast region, Kelantan and Tanah Merah. In the pipeline, only 25 new industrial
has the lowest number of hotel rooms at 4,360 rooms as at units are currently under construction and almost all will be
1H2021 with most hotel establishments being on the lower in Kota Bharu. Nationwide, Kelantan’s industrial segment
star-rating scale. Kelantan’s tourism scene is predominantly remains on the lower side in capacity in comparison to other
supported by local tourists and while a mixture of states such as Selangor, Johor and Sarawak where large-scale
international tourists made up the traditional profile for its industrial hubs are found.
island resorts, the state would rely more on major catalysts
being added to boost the state’s tourism pace. Post-MCO Listed under the 12th Malaysia Plan (12MP) with an
recovery was rather immediate following the lifting of allocation of over RM70 million, Malaysia’s first ever
interstate borders. Industrial Building System (IBS) industrial park will be
developed in Sungai Bagan, Machang on a 200-acre plot
Within the review period, no new openings and completions that has been donated by the state government. This new
were noted and incoming supply maintains at 144 hotel industrial landmark will serve as a one-stop reference centre
rooms currently under construction. to increase the capacity and capability of industrial buildings,
especially on the East Coast region. Completion of the
Existing Supply of Hotels in Kelantan industrial complex is estimated to be within 24 months.
(2017-1H 2021) (Source: JPPH)
Number of Industrial Property Transactions in

(No. of rooms) (%)
Kelantan (2017-1H 2021) (Source: JPPH)
5,000 50
4,000 (No. of units) (%)

25
3,000 50 200
0
2,000 40 100
-25 30
1,000
0
0 -50 20
2017 2018 2019 2020 1H 2021 -100
10
Existing supply (LHS) % Change y-o-y (RHS)
0 -200
2017 2018 2019 2020 1H 2021

a INDUSTRIAL
Value of Industrial Property Transactions in Kelantan
(2017-1H 2021) (Source: JPPH)
Due to its rather small market scale with yearly transactions
going at 40 units and below in the past few years, changes in (RM Mil.) (%)
between have been quite volatile. Both 1H2018 and 1H2020 250 1000
saw significantly low transaction performances of below
200
10 units, with the latter due to Covid-19, 1H2021 pulled 500
through strongly with 7 transacted units worth RM8.11 150
million, though there is still some room to go to having a 100

0
repeat of 2019’s booming performance. While volume had 50
drastically increased, value on the other hand suffered a fall 0 -500
of 47.1% which indicates that the industrial units transacted 2017 2018 2019 2020 1H 2021
are going at a lower price for 1H2021. 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
• Kelantan’s section of the upcoming Central
Spine Road Highway (CSR) will run for 107km
from Kuala Krai to Jambatan Sungai Lakit, Gua
Musang, and will connect to Pahang at Kampung
Relong. Full completion is scheduled to be in 2026
after some pandemic-due delays.
• The construction of the Palekbang Bridge that
connects Tumpat to Kota Bharu is scheduled to
begin by end 2021 at an estimated cost of RM300
million.
• Phase 2 of the Laman Warisan Kampung Laut
redevelopment that aims to transform Kampung
Laut into a thriving tourism and cultural destination
will be completed in March 2022.
• As part of the East Coast Railway Line (ECRL),
Kelantan will be looking forward to having two
stations located within its state, namely Pasir Puteh
and Kota Bharu.
• T he Sultan Ismail Petra Airport (LTSIP) in
Pengakalan Chepa is currently undergoing
upgrading and expansion works costing about
RM440 million and involves a new terminal
building, 2-sty parking space, and new arrival and
departure halls. Upon its expected completion
in 2024, the airport will be able to cater to an
estimated 4 million passengers annually.
• The Kota Bharu-Kuala Krai Highway which
is currently under construction is targeted for
completion by 2025, spanning a distance of 74km.
• With construction beginning in August 2021 and
expected to take up a period of 2 and a half years
till completion, the upcoming Kuala Nal-Pasir
kelang Bridge crossing over the Sungai Kelantan
will be 100m in length at a cost of RM25 million.
• Once abandoned, the incomplete Hospital Bachok
has now resumed its construction progress in
October 2021 and is expected to complete within
24 months.
88
TERENGGANU
Darul Iman
Capital: Kuala Terengganu (Source: Rahim & Co Research, JPPH)

Area (km2): 13,052 Supply 104,978 units 2.2% y-o-y
(Source: DOSM) Transaction Value RM786.11 mil. 12.8% y-o-y
RETAIL
SHOP OFFICE
HOTEL
INDUSTRIAL
Terengganu Drawbridge

a RESIDENTIAL Terengganu (2017-1H 2021) (Source: JPPH)
(No. of units) (%)

The residential transaction market of Terengganu saw 2,000 50
a slight improvement in volume of transaction following
1H2020’s most challenging period at 1.8% though value 1,500 25
improved at a higher 12.8%, coming to 5,678 transacted 1,000 0

units worth RM786.11 million.
500 -25
By price tag, Terengganu’s residential transactions are still 0 -50

within the range of below RM400,000 which makes up 96% 2017 2018 2019 2020 1H 2021
of the total residential transaction. Of that, 3,314 residential 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
properties transacted were priced below RM100,000 and
mainly comprised of vacant plots.
On the supply side, Terengganu’s residential stock stands at

104,978 units as at 1H2021 after a small increase of 2.2% Value of Residential Property Transactions in
y-o-y. By type, detached units come on top with the biggest Terengganu (2017-1H 2021) (Source: JPPH)
supply contribution of 31%, followed by terraced units at
(RM Mil.) (%)
27%. High-rise units remain a minority with just 1% supply
share and only a small stock of 132 serviced apartments at 2,000 50
the moment. 1,500 25
In the pipeline, Terengganu will be expecting the completion 1,000 0

of 18,526 new units that are currently under construction 500 -25
and, just as with the transaction trend, most are of the landed
homes. No new serviced apartment units were recorded. The 0 -50
2017 2018 2019 2020 1H 2021
top three areas expecting these incoming units are Kuala
Nerus, Kuala Terengganu and Kemaman. 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
Kuala Terengganu Residential Property Price Trend & House Price Index (2017-2021) (Source: Rahim & Co Research, IHRM)
600 200.0
180.0 1TH (LHS)
500
160.0 2TH (LHS)
140.0
400 1SD (LHS)
120.0
2SD (LHS)
300 100.0
80.0 1D (LHS)
200
60.0 2D (LHS)
40.0 All house
100
20.0 price Index
(RHS)
0 0.0
2017 2018 2019 2020 2021
90 East Coast Region | Terengganu
Selected Upcoming Residential Properties in Terengganu (Source: Rahim & Co Research)
No of Expected
Units Completion
Taman Serai Impian Dungun 1-sty Terraced 29 From RM230,000 2022
Taman Desa Buchu Batu Rakit, Kuala

Utama Nerus
Taman D'Jaya Jerteh 2-sty Terraced 20 From RM299,000 2022
Taman Desa Mariam Besut 1-sty Semi-Detached 12 From RM289,000 2022
Kg Padang Mengkuang Marang 1-sty Terraced 26 From RM245,000 2022
Kuala Terengganu Golf

Kuala Terengganu 2-sty Bungalow 13 From RM727,000 2023
Resorts
Taman S'Kepas Putera Jerteh 1-sty Bungalow 40 From RM383,000 2023
Taman Nusa Idaman Kuala Ping 1-sty Terraced 118 From RM188,500 2023
Taman Sabadin Bandar Permaisuri 1-sty Bungalow 22 From RM238,000 2023
Overhang stock in Terengganu is at a moderate 545 units

worth RM209.53 million as at 1H2021. 96% of that are a RETAIL
priced between RM200,001 to RM500,000 and are mostly
landed homes although it is to note that there are 101
overhang units of serviced apartments for the state as well. The retail sector in Terengganu stands at 2.08 million sf as
of 1H2021 with an overall occupancy rate of 78.5% - an
In effort to drive the state’s economic recovery for the improvement from 1H2020. KTCC Mall which opened in
construction sector, the state government has awarded Ireka early 2020 is operating at full tenancy since then.
Development (Terengganu) Sdn Bhd (IDTSB) to be the
developer of affordable and mixed housing developments in
both Bandar Kerteh Jaya (200 acres) and Kampung Semayor Existing Supply & Occupancy Rate of Retail Spaces in
(11.55 acres). A bulk of the development will be focusing on Terengganu (2017-1H 2021) (Source: JPPH)
affordable housing with 90% of the units being built to be
priced at below RM300,000. Overall construction period (Mil.sf) (%)
is estimated to take up to 6 years and broken into 4 phases. 2.5 100
2.0 80
Another developer looking to contribute to the affordable 1.5 60
homes segment is Syarikat Perumahan Negara Bhd (SPNB)
1.0 40
who has identified a land in Kampung Tok Jembal, Kuala
Nerus as the site for their upcoming “Kediaman SPNB” 0.5 20
project – this being one out of three in the overall plan, the 0.0 0
2017 2018 2019 2020 1H 2021
other two are in Kuala Lumpur and Sabah. Keeping to the
affordable range, these new apartment units will be sold at Existing supply (LHS) Space Occupied (LHS)
below RM300,000. Occupancy rate (RHS)
Kuala Nerus is also anticipating its own administrative centre

that is currently still under construction with Phase 1 and
Phase 3 involving road and infrastructure works. Phase 2
will include the construction of an administrative complex
Pulau Redang
comprising of a District Office building, a Dewan Perdana,
the Bangunan Gunasama, a mosque and a promenade.
Acting as the district’s main town area, the administrative
No new injection of retail complex space were recorded centre has been officiated as Bandar Al-Wathiqu Billah back
within the review period though 1.36 million sf are currently in 2015.
in the pipeline. The two areas expecting these new spaces
are Kuala Terengganu and Besut. Existing Supply & Occupancy Rate of Purpose-Built
Office in Terengganu (2017-1H 2021) (Source: JPPH)
Previously reported to reach completion in 2021, the
upcoming Mayang Mall by Pelaburan Hartanah Bhd (PHB) (Mil.sf) (%)
is now looking at its completion in the third quarter of 2022. 5.0 100
Located within the city of Kuala Terengganu, the new mall 4.0 80
is constructed in two phases with Phase 1 consisting a 15-sty
3.0 60
serviced apartment block and a 6-sty shopping mall boasting
2.0 40
a net lettable area of approximately 715,000 sf. SOGO KL
has been chosen as the anchor tenant for Mayang Mall. 1.0 20
0.0 0
2017 2018 2019 2020 1H 2021
a PURPOSE-BUILT OFFICE Existing supply (LHS) Space Occupied (LHS)

The purpose-built office (PBO) segment of Terengganu’s

property market is at 3.88 million sf in stock across the a SHOP OFFICE
state with 78% of the office space concentrated in Kuala
Terengganu alone. Occupancy rate maintains strong at
96.4% despite having endured a prolonged pandemic period 1H2021 saw Terengganu’s shop office market maintaining at
but this is due to the nature of Terengganu’s PBO buildings 86 transacted units worth RM52.33 million from 1H2020,
where almost 70% of them are government-owned buildings. though value had experienced a drop of 19.4%. As a market
As government-owned buildings are typically close to or that is relatively small in transaction volume, Terengganu
fully occupied consistently, this lends a big hand to keeping had shown marked improvement in market activity for 2018
Terengganu’s demand level for PBO spaces steady for the and 2019 but the pandemic had brought it down since 2020.
past years. There is still hope for bigger improvements in the second
half of 2021 but it has yet to be seen if Terengganu’s shop
In the pipeline, only one new PBO building is recorded office market will resume its upward pace as new supply are
which is the government-owned Menara MBKT in Kuala coming into the pipeline regardless.
Terengganu town with an expected size of 686,382 sf.
Though there has been a debate on changing the name to The shop office stock for the state for types ranging from
Menara Darul Iman, the state government has decided on pre-war to 6-sty units is at 7,797 for the review period. By
keeping to the original Menara MBKT on costing reasons. locality, Dungun, Kemaman and Kuala Terengganu holds
Initially expected to finish in 2020, construction works were the highest concentration in supply and of the total stock,
still observed at the time of writing. Going at a height of 71% are 2-sty and 3-sty shop office units. As at 1H2021,
31-storeys tall, the upcoming Menara MBKT is set to be the there are a total of 934 new units in the pipeline with most
tallest building in Terengganu upon its completion. concentrated in Hulu Terengganu and Kemaman.
92 East Coast Region | Terengganu
Number of Shop Office Property Transactions in Existing Supply of Hotels in Terengganu

Terengganu (2017-1H 2021) (Source: JPPH) (2017-1H 2021) (Source: JPPH)
(No. of rooms) (%)

(No. of units) (%)
12,000 80
250 50
60
200 9,000
25
40
150 6,000
0 20
100
3,000
-25 0
50
0 -20
0 -50
2017 2018 2019 2020 1H 2021 2017 2018 2019 2020 1H 2021

Value of Shop Office Property Transactions in

“Targeting 1.5 million tourist
Terengganu (2017-1H 2021) (Source: JPPH)
arrivals by end December 2021,

(RM Mil.) (%)
200 50 the state’s Tourism Culture and

150 25 Digital Technology Committee
100 0
are optimistic on Terengganu’s
50 -25
tourism revival”
0 -50
2017 2018 2019 2020 1H 2021

(Terengganu Inc.), as the developer, will be looking for a hotel
operator to manage the new establishment in the first quarter
of 2022. Terengganu Inc. is also hoping to have the future
a HOTEL hotel operator manage the Kenyir Waterpark, previously
closed due to renovation works, that will be reopened by
mid-2022.
The hotel sector of Terengganu saw no changes to its hotel
room supply, maintaining at 10,718 hotel rooms across the As part of the reopening efforts for the revival of the tourism
state and making up 241 hotel establishments of various star- sector, Terengganu officially opened its borders for fully
ratings. Of this stock, 33 establishments are rated 3-stars and vaccinated local tourists beginning 1st September 2021 with
some of the luxury hotels and resorts found in Terengganu activities such as snorkelling and diving allowed to resume –
include Tanjong Jara Resort in Dungun, the Taara Beach a popular recreational activity for Terengganu thanks to its
& Spa Resort on Redang Island and the BuBu Long Beach popular islands and beaches.
resort on Pulau Perhentian Kecil.
Targeting 1.5 million tourist arrivals by end December
A new 3-star hotel will be seeing its completion in 2022 2021, the state’s Tourism Culture and Digital Technology
as construction progress has reached more than 90% as at Committee are optimistic on Terengganu’s tourism revival
December 2021. Located on Pulau Poh in Tasik Kenyir, this after the hard-hitting pandemic period. Encouraging
upcoming hotel establishment is set to revive the tourism bookings were received by tourists and hotel operators due
scene of Tasik Kenyir. Standing at 8 storeys high, it will offer to pent-up demand from local tourists after being confined
a total of 150 rooms and Terengganu Incorporated Sdn Bhd for more than a year.
Value of Industrial Property Transactions in

a INDUSTRIAL Terengganu (2017-1H 2021) (Source: JPPH)
(RM Mil.) (%)

Contrary to other states who saw a recovery in 1H2021, 80 100
Terengganu’s industrial sector fell by 46.7% in volume and
65.0% in value to 8 transacted units worth RM8.39 million. 60 50
This coming after an increase was seen in 1H2020 despite 40 0

pandemic conditions and so it may be interpreted as the
pandemic impact only being felt in 2021. It should be noted 20 -50
that the large percentage change is due to the low base effect. 0 -100
2017 2018 2019 2020 1H 2021
Supply has maintained at 866 industrial units with a 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
small stock of 76 new units in the pipeline for the areas of
Kemaman and Kuala Nerus.
After the completion of Kerteh Biopolymer Park’s (KBP)

Phase 3 construction, it is now currently undergoing
expansion works for Phase 3B and Phase 4. 50-acres of
land in KBP has been leased over to Greenverse Sdn Bhd Notable Announcements
(GVSB) from Lembaga Tabung Amanah Warisan Negeri
Terengganu (LTAWNT) to develop an integrated scheduled
waste management plant – further boosting Terengganu’s • The 871m tunnel in Dungun, Terengganu which
Oil, Gas & Petrochemical sector with the plant targeted to is part of the East Coast Railway Line (ECRL)
be in operation by January 2025. achieved a successful breakthrough 6 months ahead
of schedule. Overall infrastructure works for the
LBS Bina Group Bhd’s subsidiary, MGB Bhd has signed a tunnel is expected for completion by 2Q 2022.
turnkey construction agreement with Retro Court Sdn Bhd
to jointly develop an industrial land sizing at about 1,000 • As part of the East Coast Railway Line (ECRL),
acres in Kertih. This is part of the Kertih Biopolymer Park Terengganu will be looking forward to having six
which will be Asia’s largest second-generation bio-refinery stations located within its state, namely Chukai,
complex with a GDV of RM680 million. Kemasik, Dungun, Kuala Terengganu, Bandar
Permaisuri and Jerteh, with a possible 7th being
Number of Industrial Property Transactions in Pengkalan Berangan.
Terengganu (2017-1H 2021) (Source: JPPH)
• Two new hospitals are expected to begin operation
(No. of units) (%)
in 2022, namely the 200-bed capacity Hospital
Pengajar Universiti Sultan Zainal Abidin (UniSZA)
40 50
in Kuala Nerus and the 110-bed capacity Hospital
30 25 Dungun.
20 0
10 -25
0 -50
2017 2018 2019 2020 1H 2021

94
PAHANG
Darul Makmur
Capital: Kuantan
RESIDENTIAL
Area (km ): 35,965

2 Transaction Volume 5,080 units 26.1% y-o-y
(Source: DOSM)
RETAIL
SHOP OFFICE
HOTEL
INDUSTRIAL
Cherating Beach, Pahang

a RESIDENTIAL Pahang (2017-1H 2021) (Source: JPPH)
(No. of units) (%)

Following the difficult year of 2020 as the country was 15,000 50
caught by surprise, Pahang’s residential sector has shown
12,000
encouraging positive growth (after 1H2020’s fall), registering 25
9,000
an increase of 26.1% and 38.7% in volume and value 0
respectively to 5,080 transacted units worth RM1.19 billion. 6,000
Though still slightly behind 2019’s half year performance, 3,000 -25
there is better potential of upward movement from here on 0 -50

out, yet there is still the lingering risk of recurring movement 2017 2018 2019 2020 1H 2021
restrictions should the latest Covid-19 variant proves to be 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
too dangerous for the local community.
Affordable price tags continue to dominate buyers’

preference, more so with the pandemic having tightened Value of Residential Property Transactions in Pahang
most wallets, as evidenced by the largely 77% of residential (2017-1H 2021) (Source: JPPH)
transactions to be below RM300,000. Landed homes also
(RM Mil.) (%)
continue to hold its popularity in preferred house type and
high-rise developments having yet to gain enough traction 4,000 50
state wide, though city and highland resort areas have seen 3,000 25
the start of the shift.
2,000 0
As construction activities were much affected by the 1,000 -25
recurrence of lockdown periods in 2020 and 2021, growth in
supply are at a minimal with just 2.5% in 1H2021, bringing 0 -50
2017 2018 2019 2020 1H 2021
the state’s residential stock to 291,534 units excluding 6,398
serviced apartment units. No SOHO stock have yet to be 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
recorded thus far but 48 units are listed under the incoming
supply category, signalling the first entry of SOHO units apartments) are mostly found in the district of Bentong,
into Pahang’s property market, specifically in Cameron Cameron Highlands and Kuantan. 16,377 dwelling units
Highlands. These high-rise dwellings (including serviced are in the pipeline.
Kuantan Residential Property Price Trend & House Price Index (2017-2021) (Source: Rahim & Co Research, IHRM)

1TH (LHS)
1,200 200.0
180.0 2TH (LHS)
1,000
160.0 1SD (LHS)
140.0
800 2SD (LHS)
120.0
1D (LHS)
600 100.0
80.0 Condo/
Apt/S.Apt
400
60.0 (LHS)
40.0 All house
200
20.0 price Index
(RHS)
0 0.0
2017 2018 2019 2020 2021
96 East Coast Region | Pahang
Selected Upcoming Residential Properties in Pahang (Source: Rahim & Co Research)
No of Expected
Units Completion
SpringVale2 KotaSAS 1½-sty Terraced 133 From RM450,000 2022

Priya Scheme Kuantan Penor 2022
Bandar Kuantan Putri Kuantan 1-sty Terraced 25 From RM232,000 2022
Kempadang Bay Tanjung Lumpur 1-sty Terraced 85 From RM222,000 2022
Serene Residence KotaSAS 2-sty Terraced 85 From RM582,222 2023
Majestic Homes KotaSAS 1½-sty Semi-Detached 44 From RM800,000 2023
Central Residence KotaSAS 1½-sty Terraced 84 From RM508,888 2023
Grand Icon Majestic Genting Highlands Serviced Apartment 1,885 From RM480,000 2023
Impiana Residences
Cherating Serviced Residence 257 From RM475,000 2023
Cherating
Baluk Baru (Ph 3) Baluk 1-sty Terraced 122 From RM245,000 2023
Geo Antharas Genting Highlands Serviced Residence 476 From RM520,300 2024
Pahang’s overhang situation is at a moderate level with Following the completion of Kuantan Waterfront Resort
1H2021 having 1,443 overhang units worth RM605.78 City’s (KWRC) Phase 1 construction, Bina Puri Holdings
million. 53% of this unsold stock are priced between Bhd is now looking to launch Phase 1B of the integrated
RM300,001 to RM500,000 and 2 to 3-storey terraced homes development which comprises of one serviced apartment
and condominium/apartment units being the top two by tower and 17 units of 2-storey sea-facing shoplots that will be
type. This indicates a combination of mismatch in product retained by the developer. A total of 456 serviced apartment
preference and the price tag that is on the higher end of the units will be on offer in Phase 1B, adding on to the already
affordable spectrum. completed serviced apartment developments in Phase 1,
Imperium Residence and Swiss-Belhotel Kuantan.
As part of Tropicana Corp Bhd’s latest product, the upcoming
Tropicana Grandhill in Genting Highlands is one of the
two resort-themed products under the Tropicana Journey a RETAIL
Collection product line with the other being Tropicana
Cenang in Langkawi. Sitting on a 112-acre site and is part Tenancy levels in retail complexes for the state of Pahang has
of the larger master development called Tropicana WindCity, been stable in the past 5 years. As at 1H2021, total existing
Tropicana Grandhill will be the developer’s first township space stands at 4.61 million sf with occupancy rate falling
foray in Genting Highlands and to be developed in three slightly by 1.6% to 71.8%. This tenancy performance leaves
phases. Phase 1 will feature the TwinPines Serviced Suites, 1.30 million sf of vacant space in the market.
an international school, retail facilities and a wellness hub.
Offering a total of 1,443 serviced apartment units within two In adding to the already sizable vacant retail stock is another
towers, the unit built-up ranges from 379 sf to 1,330 sf and, 227,129 sf of new space currently in the pipeline – making
at its estimated completion in May 2026, will be priced from up 3 new retail complexes located in Kuantan, Raub and
RM397,000. Two other developments making up Tropicana Cameron Highlands. Though interstate borders have
WindCity are Tropicana Paradise and Tropicana Avalon of reopened and movement resumed thanks to the successful
which both are still in the planning stages. vaccination rates, commercial spaces still face the challenge
Existing Supply & Occupancy Rate of Retail Spaces in Another 391,537sf of new office space is in the pipeline and
Pahang (2017-1H 2021) (Source: JPPH) currently under construction, leaving the PBO market some
space to regain an even better equilibrium between supply
(Mil.sf) (%) and demand.
5.0 100
4.0 80 Set to be an iconic architectural structure in Kota SAS,

3.0 60
Kuantan, the Sultan Ahmad Shah Administration Centre
(PPSAS) which is still under construction, will comprise of a
2.0 40
4-sty Dewan Undangan Negeri, a 7-sty Menteri Besar and
1.0 20 State Secretary Office, a 7-sty State Building Office and a
0.0 0 7-sty Federal Building Office.
2017 2018 2019 2020 1H 2021
Existing supply (LHS) Space Occupied (LHS) Existing Supply & Occupancy Rate of Purpose-Built
Occupancy rate (RHS) Office in Pahang (2017-1H 2021) (Source: JPPH)
of a highly competitive market condition coupled with the (Mil.sf) (%)
e-commerce segment having gained much more traction as 5.0 100

the new way to shop post-pandemic. 4.0 80
3.0 60
KIP Group of Companies has entered into a partnership
2.0 40
with Lotus’s Stores (Malaysia) Sdn Bhd in opening a new
Lotus’s store in Bandar Indera Mahkota, Kuantan. Aside 1.0 20
from having Lotus’s as its anchor tenant, the 1-sty mall will 0.0 0
2017 2018 2019 2020 1H 2021
also have 1 mini anchor tenant, 22 retail and F&B shops, 23
promo counters and 1 food court. Operations of the new Existing supply (LHS) Space Occupied (LHS)
mall is expected to commence in June 2022. Occupancy rate (RHS)
8th January 2021 saw the official opening of the state’s

second Mydin Mall located in Bandar Tun Razak. Dubbed a SHOP OFFICE
as Mydin Mall Jengka, the new retail complex is sized at
289,161 sf of net lettable area (NLA) and offers a variety of
retail and F&B options for visitors to choose from aside from At a market supply size of 24,494 shop office units, ranging
the Mydin store itself. Mydin Mall Jengka is Pahang’s third from pre-war to 6-storey high units, Pahang saw barely any
Mydin store establishment, the other two being in Kuantan growth to its stock, yet 1,313 new units are in the pipeline
and Pekan which have smaller NLA and not a retail complex and under construction. Completion expectations have been
of its own. affected by the recurring movement restriction orders in
the past 2 years. Districts having more than 100 new units
in the pipeline are Bera, Jerantut, Kuantan, Maran, Raub
a PURPOSE-BUILT OFFICE and Temerloh.
Number of Shop Office Property Transactions in

Pahang’s PBO market in 1H2021 has held up relatively well Pahang (2017-1H 2021) (Source: JPPH)
following 2020’s extra challenging year and Covid-19 still
plaguing the market in 2021, keeping to the relatively high (No. of units) (%)
88.4% after a small drop of 1.4% y-o-y. At this tenancy 800 50
level, there is a total 524,633sf of vacant office space left in
600 25
the market.
400 0
PBO buildings in Pahang are mostly government-owned with
200 -25
83 buildings out of the total 154 buildings state wide. This
has helped keep occupancy rates healthy as government- 0 -50
owned buildings tend to remain close to, if not consistently 2017 2018 2019 2020 1H 2021
fully occupied. 1H (LHS) 2H (LHS) % Change y-o-y (RHS)

98 East Coast Region | Pahang
Selected Newly Completed Shop Offices in Pahang (Source: Rahim & Co Research)
No of
Units
MH Tanjung Lumpur (Ph 3) Kuantan 2-sty Shop Offices 15 From RM588,000
Taman MH Kg Padang Kuantan 2-sty Shop Offices 12 From RM600,000
Cameron Centrum Precinct 1 Cameron Highland 2, 4 & 5-sty Shop Offices 58 From RM290,000
Taman Armani Kuantan 2-sty Shop Offices 7 From RM418,000
Value of Shop Office Property Transactions in Pahang The first phase of the theme park spanning over a 60-acre
(2017-1H 2021) (Source: JPPH) valley is scheduled for completion within the first half of
2023. While it will be the first European-themed park offering
(RM Mil.) (%) an outdoor ski attraction within an equatorial climate, Escape
600 50 Cameron Highlands is the third Escape brand theme park
in Malaysia after Escape Penang, and Escape Challenge in
25
400 Petaling Jaya, Selangor.
0
200 May 2021 also saw the soft opening of Zenith Cameron, the
-25
third hotel establishment by Zenith Hotels & Resorts; with
0 -50 the other two being Zenith Kuantan and Zenith Putrajaya.
2017 2018 2019 2020 1H 2021
Situated on a 3.43-acre land in Cameron Highlands, the
1H (LHS) 2H (LHS) % Change y-o-y (RHS) eco-conscious hotel comprises of 175 guestrooms including
22 suites and stands at 9 storeys tall.
On the demand side, transaction activities have improved Pahang’s other popular highland holiday destination Genting
from the previous period though not as much as some other Highlands also saw the soft opening of a new hotel, Scapes
states. 1H2021 registered a growth of 33.3% in volume and Hotel @ Midhills by LBS Bina Group, in February 2021.
10.4% in value to 244 transacted units worth RM171.93 At 10 storeys high, the first flagship hotel under LBS Bina
million. There is still room for recovery to bring the market Group offers 176 guestrooms and is within close distance to
back up to pre-Covid-19 levels and hopefully onwards to the top tourist attractions in Genting Highlands.
upward cycle of the property market.
After delays, the highly anticipated Genting Skyworld theme
park has finally opened its doors to the public on 10th
a HOTEL December 2021. With a total of 9 uniquely-themed worlds
within the 26-acre theme park, Genting SkyWorlds is slated
to be a top-choice holiday destination. As of December, not
As at 1H2021, the hotel sector in Pahang saw no changes to all sections of the theme park has fully opened.
its existing hotel room supply, maintaining at 25,375 hotel
rooms state wide with 222 new rooms in the pipeline. Existing Supply of Hotels in Pahang
(2017-1H 2021) (Source: JPPH)
Being a popular local weekend getaway destination, both

(No. of rooms) (%)
Cameron Highlands and Genting Highlands saw an influx
of visitors when interstate borders were reopened after 40,000 50
MCO 3.0.
30,000 25
Cameron Highlands will be welcoming a new recreational 20,000 0

attraction, Escape Cameron Highlands. This upcoming 10,000 -25
nature-based adventure theme park developed by Sim
Leisure Group is designed to be a ‘zero-energy facility’ and 0 -50
2017 2018 2019 2020 1H 2021
will be relying fully on renewable energy.
Impiana Hotel Bhd has commenced the development of The existing supply of industrial units saw no changes
its upcoming Impiana Resort & Residences in Cherating, between the review periods, with areas having notable
Kuantan. Covering a beach front land area of 30 acres, presence of industrial property stock in Bentong, Jerantut,
Impiana Cherating will be developed in three phases and Lipis, Rompin and Temerloh aside from Kuantan. There are
is expected to be completed by 2023. Strong interest was 106 new industrial units currently in the pipeline which are
expressed for Phase 1 as the entire 144 units and 8 villas mostly located in Bentong, Kuantan and Rompin.
were taken up by two buyers. For the development of Phase
2 and 3, Impiana Hotel will be joining hands with Artha
Global Sdn Bhd.
a INDUSTRIAL Notable Announcements

• The Pahang section of the East Coast Railway Line
As at 1H2021, Pahang saw some improvement to its industrial (ECRL) will have seven stations namely Bentong,
market with a growth of 26.3% in volume but a fall of 9.2% Temerloh, Maran, Paya Besar, KotaSAS, Kuantan
in value to 72 transacted units worth RM48.76 million. This Port City and Cherating.
indicates that the industrial properties purchased though • As one out of the two states involved in the Central
increased in number, have slightly reduced in price on average. Spine Road (CSR) Highway, the Pahang stretch
will have roads passing through Kampung Relong,
Of the transacted industrial properties, 50% were vacant Raub, Bentong and ends at Simpang Pelangai, with
plots whereas 23.6% were terraced factories/warehouses. a total distance of 240km.
• A 2.3km bridge crossing over Sungai Pahang
in Temerloh is one of the unique features of
Number of Industrial Property Transactions in the ECRL section running from Paya Besar to
Pahang (2017-1H 2021) (Source: JPPH) Lanchang. Construction began in March 2021
and is scheduled for completion in December 2023.
(No. of units) (%) • The Yang di-Pertuan Agong Al-Sultan Abdullah
250 50 Ri’ayatuddin Al-Mustafa Billah Shah has officiated
200
the opening of Kuantan’s new landmark Menara
25
Kuantan 188, which is aimed to enhance the
150
0 Kuantan waterfront as a tourist destination.
100 • The new Jambatan Putra, a 451m long bridge
-25
50 connecting Tanjung Lumpur to Kuantan city will
0 -50 help reduce congestion for daily commuters.
2017 2018 2019 2020 1H 2021
• One of the high-impact mega projects currently
1H (LHS) 2H (LHS) % Change y-o-y (RHS) in the planning is the development of an
Aerospace City in Gebeng which will see an
overall construction period between 2022 to 2026.
Value of Industrial Property Transactions in The existing Sultan Haji Ahmad Shah Airport
Pahang (2017-1H 2021) (Source: JPPH) will be moved to this new location as well as the
construction of a modern international airport.
(RM Mil.) (%) • On 21st February 2021, Kuantan was officially
500 400
proclaimed as a city.
• WZ Satu Bhd has signed a joint development
400
200 agreement with PR1MA Corp to develop 763
300 affordable homes under the Phase 2 of PR1MA
200 0 D’Marina Residency in Kuantan.
100
0 -20
2017 2018 2019 2020 1H 2021

100
100
EAST MALAYSIA Sabah
Region
Sarawak
Kota Kinabalu, Sabah

102
SARAWAK
Bumi Kenyalang
Capital: Kuching
RESIDENTIAL
Area (km2): 124,450
(Source: DOSM)
RETAIL
SHOP OFFICE
HOTEL
INDUSTRIAL
Bako National Park

a RESIDENTIAL Sarawak (2017-1H 2021) (Source: JPPH)
(No. of units) (%)

Similar to its other half of the East Coast region, Sarawak 12,000 20
has also seen much positive growth for 1H2021 in transaction
9,000 10
activity for the residential sector – registering 49.4% and
62.9% in volume and value respectively to 4,843 transacted 6,000 0
units worth RM1.56 billion. Though falling just slightly
3,000 -10
behind 1H2019’s transaction performance (4,963 units worth
RM1.38 billion), there is potential for the market to maintain 0 -20
its recovery pace though the ongoing presence of Covid-19, 2017 2018 2019 2020 1H 2021
still holds a risk to another possible market set back in the 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
event of yet another Movement Control Order.
Preference of demand remains strongly in housing properties

priced below RM500,000 as evidenced by the overwhelming Value of Residential Property Transactions in
87% transaction of units priced at such. By type, landed Sarawak (2017-1H 2021) (Source: JPPH)
homes maintain its popularity for the local buyers as high-rise

(RM Mil.) (%)
units make up a smaller portion of the market volume scale,
though interest is gradually shifting as more new high-rise 4,000 50
units are making its way into the market. 3,000 40
30
Despite the pandemic having brought fear of demand to be 2,000
20
reduced significantly due to job losses and business closure 1,000 10
risk, the immediate response of bottled-up demand released
once movement restrictions were lifted proves that demand 0 0
2017 2018 2019 2020 1H 2021
has remained in the market.
Kuching Residential Property Price Trend & House Price Index (2017-2021) (Source: Rahim & Co Research, IHRM)
1,000
900 1TH (LHS)
800 2TH (LHS)
700
1SD (LHS)
600
2SD (LHS)
500
400 Condo/
Apt/S.Apt
300 (LHS)
200
All house
100 price Index
(RHS)
0
2017 2018 2019 2020 2021
104 East Malaysia Region | Sarawak
Selected Upcoming Residential Properties in Sarawak (Source: Rahim & Co Research)
No of Expected
Units Completion
Landeh Heights 2 Kuching 2-sty Terraced 57 From RM458,000 2022
Urban Residences Kuching Condominium 132 From RM878,000 2022
Armadale Residence Kuching Serviced Apartment 141 From RM590,000 2022
GEM Suites Kuching SOHO 198 From RM444,000 2022
Alyvia Residence @ NorthBank Kuching 3-sty Townhouse 102 From RM625,000 2022
Exodus Moyan Kuching 2-sty Terraced 46 From RM488,000 2022
Uni Central (Phase 15) Kota Samarahan 2-sty Terraced 109 From RM570,000 2022
Doncaster Residence Kuching Serviced Residence 216 From RM474,300 2023
Lumos Residence Kuching Serviced Apartment 72 From RM715,000 2023
D'Millenia Kota Samarahan Condominium 400 From RM260,000 2023
2-sty Terraced &

From RM638,000
Ava Grove @ Stapok Kuching Kuching Semi-Detached 60 2023
Avona Residence @ Northbank Kuching Apartment 298 From RM533,000 2023
The Glen Kuching Apartment 628 From RM250,000 2023
Urban Heights Kuching 2-sty Terraced 66 From RM709,800 2023
Milano Eight Kuching Condominium 780 From RM398,000 2024
Sarawak’s overhang situation, though having grown

incrementally since 2017’s 1,358 overhang count, is still at
By type, landed homes
a controllable level as 1H2021 registered 2,315 overhang
units worth RM885,71 million including serviced apartment
maintain its popularity for the
and SOHO types. Of this unsold stock, 55% are solely local buyers as high-rise units
condominium/apartment units which is considerably high
when compared to the combined share of landed homes make up a smaller portion of
(terraced & semi-detached) of 33%. It appears that the
overhang is most likely due to mismatch in location or type the market volume scale
as 75% of the unsold stock are priced below RM500,000.
outdoor spaces. The month of October 2021 saw the official
As at 1H2021, there are a total of 15,560 dwelling units launch of Renna Residence, the second high-rise apartment
(including serviced apartment and SOHO) in the pipeline unveiled for township after Avona Residence. This 13-storey
and are already under construction. Combining this to the apartment offers a total of 296 units of various design types
moderate overhang situation, Sarawak will need to maintain with prices starting from RM325,300 and completion is
its recovery pace in order to be able to absorb these units expected to be by May 2025.
in the future.
The next residential component to be launched in November
2021 saw several more launches for The NorthBank – a 2021, by way of virtual platform, is the luxury homes of
self-sustaining, integrated township by Ibraco Bhd that Crestwood Estates. Offering 36 units of 3-storey semi-
comprises a mix of residential, education, healthcare and detached properties, these luxury homes come with a price tag
commercial components surrounded by greeneries and of RM2.64 million onwards. The units have been designed
Existing Supply & Occupancy Rate in Retail Spaces in

Sarawak (2017-1H 2021) (Source: JPPH)
(Mil.sf) (%)
12.0 100
to cater for a multi-generational family and provide sufficient 10.0 80
spaces for comfort and privacy, more so with working from 8.0
60
home being the new norm, post-pandemic. 6.0
40
4.0
Facilities contributing to making The NorthBank a self- 2.0 20
sustaining township includes Kuching’s earliest international 0 0

2017 2018 2019 2020 1H 2021
school Tunku Putra-HELP School, the upcoming 8-storey
NorthBank Specialist Hospital targeting for completion in Existing supply (LHS) Space Occupied (LHS)
2023, and the NorthBank Business Exchange (NBX). Occupancy rate (RHS)
The Sarawak branch of Syarikat Perumahan Negara Bhd

(SPNB) has opened an office in Kuching as part of their a PURPOSE-BUILT OFFICE
rebranding initiative of the agency in Sarawak in April
2021. Having built 2,904 housing units thus far for the state,
future launches by SPNB include another 2,187 units for the As at 1H2021, Sarawak’s PBO market holds a total existing
districts of Miri and Kuching. supply of 8.80 million sf after an increase of 10.9% y-o-y.
Occupancy rate is at 90.7% and had held steady from the
previous period. This leaves about 800,000 sf of vacant office
a RETAIL space in the market.
In the pipeline, another 613,026 sf of new office space

The retail segment of Sarawak saw a supply growth of is currently under construction and are concentrated in
4.0% from the previous period, pushing the state’s existing Kuching. As a state that leans more to privately-owned PBO
retail space up to 11.23 million sf with an occupancy rate buildings than government-owned buildings, it is encouraging
performance of 74.7%. This comes after yet another fall to see a healthy tenancy level despite the prolonged pandemic
that has been consecutively so since 2018, now putting period but there is still time to see how the office market would
the occupancy rate to below the 80% mark. This leaves settle itself to post-pandemic, as new norms in workspace
2.84 million sf of vacant retail space in the market and design and practices are gradually embraced and sought after.
looking at this with the decreasing demand bodes worry for
future absorption rate and adding more to the oversupply Existing Supply & Occupancy Rate of Purpose Built
phenomenon. Less than 500,000sf is in the pipeline at the Office in Sarawak (2017-1H 2021) (Source: JPPH)
moment.
(Mil.sf) (%)
La Promenade Mall by Hock Seng Lee (HSL) officially 10.0 100

opened for business in January 2021 with the anchor 8.0 80
tenant being the 10,000 sf Choice Supermarket’s flagship 6.0 60
outlet, named as Choice La Promenade. The new 4-storey
4.0 40
commercial development is located along the Kuching-
Samarahan Expressway and is part of the new HSL Tower 2.0 20
complex – a 10-storey office block housing the headquarters 0 0

2017 2018 2019 2020 1H 2021
of the multidisciplinary construction specialist. Both the
office tower and retail mall are built to the latest Green Existing supply (LHS) Space Occupied (LHS)
Building Index standards and are 25% more energy efficient. Occupancy rate (RHS)
a SHOP OFFICE
Despite being hit hard by the pandemic wave in 2020, the

shop office segment of Sarawak’s property market saw
significant improvement in demand with an increase of
58.6% in volume and 57.5% in value to 758 transacted units
worth RM404.60 million as at 1H2021. However this is still
behind 2019’s recovering performance before the pandemic
swept in.
Kuching Waterfront
Supply relatively maintained at 33,062 units after a small
increase of 1.9% y-o-y, ranging from pre-war to 6-storey
shop office units. Further adding to this existing stock in the Value of Shop Office Property Transactions in
next few years are another 1,158 new units that are currently Sarawak (2017-1H 2021) (Source: JPPH)
under construction. Miri and Kuching being the two top
districts holding the highest incoming stock at 399 units and (RM Mil.) (%)
300 units respectively. 1,000 100
800 50
The overhang picture for Sarawak’s shop office segment is
600
on the moderate side at 361 units worth RM425.02 million 0
though the larger incoming supply may be at risk of adding 400
-50
to the overhang number should demand not pick up and 200
instead fall behind. 0 -100
2017 2018 2019 2020 1H 2021
Number of Shop Office Property Transactions in 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
Sarawak (2017-1H 2021) (Source: JPPH)
(No. of units) (%) a HOTEL

2,000 50
1,500 25 No changes were seen in either the existing or incoming

1,000 0
supply of hotel rooms in Sarawak, maintaining at 19,954
rooms currently in the market with 318 in the pipeline.
500 -25
0 -50
The struggle to recover back from 2020’s hard hit remains as
2017 2018 2019 2020 1H 2021 international borders are still restricted and just at the end of
2021, a new variant was discovered which brought in the risk
Selected Upcoming Shop Office Properties in Sarawak (Source: Rahim & Co Research)
No of Expected
Units Completion
Pine Square @ Eden Parade,

Kuching 2 & 3-sty Shop Offices 266 From RM600,000 2022
Batu Kawa
Parkway @ Stutong Baru Kuching 4-sty Shop Offices 33 From RM1.45 mil 2023
The NorthBank - Phase 2 Kuching 3-sty Shop Offices 49 From RM1.62 mil 2023
by the Sarawak Tourism Board. This virtual platform acts

as the middle ground to connect Sarawak’s own local travel
and tour service sellers to travel buyers from Peninsula, Sabah
Existing Supply of Hotels in Sarawak and even countries within the ASEAN region. In addition to
(2017-1H 2021) (Source: JPPH) immediate access and sharing of information, both parties
were also able to engage in conversations pertaining to future
(No. of rooms) (%)
tourism-related plans under the new normal environment.
25,000 40
20,000
20
15,000
10,000
a INDUSTRIAL
0
5,000
0 -20
The demand market of Sarawak’s industrial sector saw
2017 2018 2019 2020 1H 2021
some improvements from 1H2020 though not high enough
Existing supply (LHS) % Change y-o-y (RHS) to confidently signal a change in market movement but
there may still be a chance for overall annual recovery
should the second half of 2021 pull through with a much
of yet another Covid-19 wave to the country. Hotel operators higher increase. Registering a small growth of 2.9% in
have been hard at work adapting and surviving during the volume and a higher 31.3% in value to 213 transacted
pandemic but there is still the need for a full resumption of units worth RM206.25 million as at 1H2021, there is still
tourist movement, both local and international to reboot the some ways to go to getting back to 1H2019’s pre-Covid-19
tourism sector back on track. market performance.
In December 2021, Daesim Group of Companies had the Supply of industrial units for the state has relatively
soft opening of Starlink Hotel, their first foray into the hotel maintained at 7,347 units with a minor increase of just 3.2%.
business. Located along Jalan Tunku Abdul Rahman in Pekan Another 230 new industrial units are in the pipeline in areas
Sibu, the 11-storey hotel offers a total of 144 guestrooms with of Kuching, Miri and Sibu. The same three areas also have
five different room types to choose from. the most concentrated of industrial stock as well as Bintulu.
The overhang situation is worth to take note of as there
With the acceptance by Unesco as a member of the Unesco is a moderately sizable 326 unsold industrial units worth
Creative Cities Network (UCCN) in the field of gastronomy, RM220.89 million currently sitting idle in the market.
Kuching has become Malaysia’s first city to be admitted
to the list. It is deemed as an outstanding achievement Sarawak Petrochemical Hub (SPH) in Tanjung Kiduron of
as this will increase the state and country’s image on the Bintulu will be expecting its first plant to be in operation by
international stage. late 2023 – a methanol plant by Sarawak Petchem Sdn Bhd
in partnership with Samsung Engineering Co. Ltd. and Air
In the state’s effort to revive the tourism sector of Sarawak, one Liquide SA. The Sarawak Methanol Project is believed to be
of the initiatives done is the hosting of the Sarawak Tourism a catalyst to further transform Bintulu into a petrochemical
Virtual Product Update which is a B2B platform organised hub with future added value downstream activities.
“The industrial sector

registered a small growth
of 2.9% in volume and a • The 33.65km Serian Section alignment of Work
Three Package of the Pan Borneo Highway was
higher 31.3% in value to fully completed on 4th December 2021, connecting
Bulatan Serian to Balai Ringin.
213 transacted units worth • The completed 28.5km Julau alignment of Work
Contract Package 07, connecting Sibu town to
RM206.25 million as at Pantu and Miri was open for public use as at 28th
October 2021.
1H2021” • The Autonomous Rapid Transit (ART) system in
Kuching which is developed by Sarawak Metro
Number of Industrial Property Transactions in Sarawak Bhd, a subsidiary of the Sarawak Economic
(2017-1H 2021) (Source: JPPH)
Development Corporation (SEDC) is in its design
stages and construction is expected to begin in
(No. of units) (%) 3Q2022.
800 50
• The proposed link road stretching a distance of
4.5km from Jalan Johari Sunam to the new Jalan
600 25 Kemena in Bintulu has begun construction.
400 0
• The Kuala Kemena Jepak Bridge in Bintulu with
a length of 1.28km, and costing RM467 million is
200 -25 scheduled for completion in 2023.
0 -50
• Mukah’s new airport, bringing a new capacity of
2017 2018 2019 2020 1H 2021 264,000 passengers per annum, replaces the nearby
STOLport. It has opened for operation in June
2021 since its construction in August 2017.
• As the final link to completing the alternative 896km
Value of Industrial Property Transactions in Sarawak coastal highway linking Kuching to Samarahan,
(2017-1H 2021) (Source: JPPH)
the 1.28km cable-stayed bridge crossing over
Sarawak River at Sejingkat is under construction
(RM Mil.) (%) and expected to complete by July 2023.
800 100 • Sarawak state government is working towards
making Sibu the state’s third town to be declared
600 50
a city by 2031. Driving this aim is several projects
400 0 currently in the pipeline including the redevelopment
plan of Bukit Assek and the expansion of Sibu’s
200 -50
urban and commercial areas, to be implemented
0 -100 within the Post Covid-19 Development Strategy
2017 2018 2019 2020 1H 2021
2030 (PCDS 2030) long term plan.
SABAH
Negeri Di
Bawah Bayu (Source: Rahim & Co Research, JPPH)
RESIDENTIAL
Capital: Kota Kinabalu
Est. Population: 3,833,000 Transaction Volume 2,226 units 34.8% y-o-y

Area (km ): 73,904
2
(Source: DOSM) RETAIL

SHOP OFFICE
HOTEL
INDUSTRIAL
Floating Mosque, Kota Kinabalu
110 East Malaysia Region | Sabah
Number of Residential Property Transactions in Sabah

(No. of units) (%)

The residential sector of Sabah’s property market had pulled 8,000 50
through after 1H2020’s low point with a recovery of 34.8%
in volume and 61.0% in value, coming to 2,226 transacted 6,000 25
units worth RM905.98 million. While it may be slightly lower 4,000 0

that 1H2019’s transaction performance, this recovery growth
bodes well for the state to be back on its track from here 2,000 -25
onwards. 0 -50
2017 2018 2019 2020 1H 2021
Of the residential units transacted, 80.8% are below the 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
RM500,000 mark and the popular product type include
terraced houses, semi-detached houses and condominiums/
apartments – the latter having a notable share of 27% in
transaction volume as a singular property type. Though high-
rise units continue to hold a moderate share in preference by Value of Residential Property Transactions in Sabah
type, prices are still mainly within the affordable range as seen (2017-1H 2021) (Source: JPPH)
by the 64% of condominium/apartment units transacted
(RM Mil.) (%)
being below RM300,000.
2,500 100
With an even tighter wallet and job securities at its highest 2,000 50
risk, buyers have been on a ‘wait & see’ mode for the best 1,500
bargains to be offered, as financial priorities and spending 0
1,000
patterns have taken a change for longer sustainability. -50
500
International buyers have been affected in their investment
appetite due to recurring border restrictions in response to 0 -100
2017 2018 2019 2020 1H 2021
the Covid-19 waves that have hit over several times in the
past year or so. 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
Kota Kinabalu Residential Property Price Trend & House Price Index (2017-2021) (Source: Rahim & Co Research, IHRM)
1,400 200.0
180.0 1TH (LHS)
1,200
160.0 2TH (LHS)
1,000 140.0
1SD (LHS)
120.0
800
2SD (LHS)
100.0
600 Condo/
80.0
Apt/S.Apt
400 60.0 (LHS)
40.0
200 All house
20.0 price Index
(RHS)
0 0.0
2017 2018 2019 2020 2021
Selected Upcoming Residential Properties in Sabah (Source: Rahim & Co Research)
No of Expected
Units Completion
Jesselton Twin Tower @

Kota Kinabalu Serviced Suites 819 From RM650,000 2022
Jesselton Quay
Sri Indah Condominium Sandakan Condominium 480 From RM400,000 2022
Parklane @ Taman Bukit

Kota Kinabalu 2-sty Terraced 115 From RM648,000 2022
Sepangar
Vision Garden Elite (also known Penampang,

as Taman Wawasan Mahandoi) Kota Kinabalu
K Avenue Kepayan Kota Kinabalu Condominium 563 From RM486,000 2022
Taman Beringgis 1 Kota Kinabalu 2-sty Terraced 264 From RM295,360 2022
Rimbayu Indah (ph 1D) Sandakan 2-sty Terraced 57 From RM544,000 2023
Coral Bay @ Sutera Habour Kota Kinabalu Condominium 460 From RM2.9 mil 2023
Forest Hill Residences Bundusan Condominium 396 From RM450,000 2023
313 Suites Kota Kinabalu Serviced Suites 226 From RM345,000 2023
Alam Pesona Putatan Condominium 400 From RM268,800 2023
Residensi Fantasi Likas Condominium 60 From RM630,000 2023
Vetro II Designer Suite Kota Kinabalu Serviced Apartment 260 From RM370,000 2023
Eco Peak Residences Donggongon Condominium 321 From RM350,000 2023
Taman Sri Suria Jaya 2 (Phase 1) Tuaran 1-sty Terraced 92 From RM290,000 2023
Accacia @ Menggatal Menggatal Aparment 288 From RM317,000 2024
The supply segment of the market saw minimal growth 27,824 total incoming dwelling units. On the overhang side,
of just 2.6% to 227,339 residential units state wide, Sabah’s unsold stock of completed units at 1H2021 stands
excluding serviced apartment and SOHO types with each at 2,361 dwelling units worth RM841.99 million. This adds
at 1,215 units and 340 units respectively as both are of the a challenge to the potential market absorption rate of these
commercial category. incoming high-rise dwelling units. In addition to the new ones
coming in, there is already 1,891 condominium/apartment
Aside from Kota Kinabalu, the next top three districts units completed yet unsold sitting in the market – this number
with notable high concentration of residential stock are making 80% of the total overhang count. As a whole, further
Penampang, Sandakan and Tawau. As the capital city acceleration is needed for Sabah’s residential market to be
of Sabah, a significant portion of the high-rise dwellings able to absorb and be on par with the new supply coming
(including Serviced Apartments and SOHOs) are found in online into the market in the next few years or be at the risk
Kota Kinabalu though there is also a notable stock of 17,547 or further adding weight to its overhang situation.
units of condominium/apartment in Penampang. SOHO
types are currently exclusively found in Kota Kinabalu at MARA Corporation Sdn Bhd (MARA Corp) through its
this point. subsidiary MARA Incoporated Sdn Bhd (MARA Inc) will
be making their debut in Sabah with the development of a
Moving forward, high-rise dwellings make up the bulk of condominium at Signal Hill in Kota Kinabalu. Comprising of
incoming units in the pipeline as at 1H2021 with more than 441 units spread across two residential towers, the residential
half the share – 16,090 high-rise dwelling units out of the development is aimed to attract potential participants of
“International buyers have been affected in their investment

appetite due to recurring border restrictions which have been
placed in response to the Covid-19 wave that have hit over
several times in the past year or so”
the Malaysia My 2nd Home (MM2H) program looking to Existing Supply & Occupancy Rate of Retail Spaces in
make Kota Kinabalu as their alternate place of residence
Sabah (2017-1H 2021) (Source: JPPH)
– Sabah having to offer much in the natural flora & fauna
environment. (Mil.sf) (%)
10.0 100
KTI Sdn Bhd and the Housing and Town Development 8.0 80
Board (LPPB) has embarked on a JV partnership to develop
6.0 60
a high-profile mixed development project in the suburb of
Luyang and aims to transform a once derelict land into an 4.0 40
upscale residential, commercial and lifestyle hub. The Logg 2.0 20

is funded by Sabah Development Bank (SDB) and targeted 0.0 0
for completion in the next 4 years. The project as a whole 2017 2018 2019 2020 1H 2021
will comprise of two luxurious condominium towers named Existing supply (LHS) Space Occupied (LHS)
Shore and Astoria, a shopping boulevard, a 4-star hotel and Occupancy rate (RHS)
an apartment block.
more hold of the convenient purchasing element of the retail

a RETAIL industry. Only 1 new retail complex is recorded to be in
the pipeline but there is a possible lag in data update as at
1H2021 as several complexes were noted to be coming online
As at 1H2021, Sabah’s retail segment stands at 8.18 million in the next two years.
sf of space state wide, mostly concentrated in Kota Kinabalu,
a sizable 5.93 million sf. Occupancy rate has continued its After a delay in its opening due to Covid-19 back in 2020,
incremental decline in 1H2021, coming to 77.9% which Inanam finally saw the opening of its first ever retail mall in
leaves 1.81 million sf of vacant retail space. their neighbourhood, aptly named Inanam Mall. Spanning
over 80,000 sf of retail space, the 3-floor mall (including
With consideration to a market environment that has basement) offers a total of 170 retail units. Developed by
become even more competitive and challenging to navigate Upyield Progress Sdn Bhd since 2016, the new mall is aimed
around, demand for physical retail space has now taken a for residents living in the areas of Kolombong, Inanam,
more experiential approach with e-commerce steadily taking Telipok and Meggatal.
Selected Upcoming Retail Malls in Sabah (Source: Rahim & Co Research)

The Shore Mall Kota Kinabalu N/A 2022
360 Boulevard Retail Budusan 538,000 2022
PacifiCity Lifestyle Mall Likas 620,000 2023
a PURPOSE-BUILT OFFICE a SHOP OFFICE
As at 1H2021, the PBO market of Sabah stands at 8.91 Following the contraction in transaction activity for the shop
million sf after a slight increase of 3.5% y-o-y and occupancy office segment of Sabah back in 1H2020, the market has seen
rate performance falling slightly by 2.6% to 87.8%. Despite a recovery with a growth of 28.0% and 55.8% in volume and
so, tenancy levels are still on the healthy scale but that still value respectively to 238 transacted units worth RM157.41
leaves 1.08 million sf of vacant PBO space currently in million; ranging from pre-ware units to 6-storey shop office units.
the market.
By type, demand is prominently seen for the 2-storey and
Similar to other major states, the nature of PBO buildings 3-storey units which matches the supply side as both types are
in Sabah are more in favour of the privately-owned than also the top two in number of stock; making up 73% of total
government owned; 69 of the 103 PBO buildings being existing stock. Aside from Kota Kinabalu, other districts with
privately owned. This lends encouraging news as to Sabah’s noteworthy stocks are Beaufort, Keningau, Lahad Datu, Papar,
capability of holding up healthy occupancy rates and not Penampang, Sandakan and Tawau.
relying on government-owned buildings to do so.
There are 1,756 new shop office units in the pipeline with
Only one new PBO building is recorded to be in the pipeline 83% consisting of 2-storey and 3-storey types. Alongside these
according to public data provided, set to bring in 74,949 incoming units are also 517 overhang units worth RM454.06
sf of new PBO space into the market at its completion. In million already sitting vacant in the market. This may add a
addition, there are two new PBO establishments noted that concern to the absorption performance of the incoming units
are scheduled for completion in 2022. and the success will rely much on the unique selling points,
match to price and location of the units when competing against
Existing Supply & Occupancy Rate of Purpose-Built completed yet unsold units.
Office in Sabah (2017-1H 2021) (Source: JPPH)
2021 saw the completion of Seri Putatan Commercial Centre

(Mil.sf) (%) located in Putatan, offering 22 units of 2-storey and 3-storey
9.5 100 shop offices. Developed by Excel Pave Sdn Bhd, prices of the
9.0 80 shop office units start from RM899,880.
8.5 60
Another commercial development looking to its completion
8.0 40
right at the end of 2021 is Plaza Legacy by Legacy Group
7.5 20 Development, a commercial development located along Jalan
7.0 0 Sulaman in Tuaran that offers 53 units of 2-storey shop offices
2017 2018 2019 2020 1H 2021
with price tags starting from RM748,000.
Selected Upcoming Purpose-Built Office in Sabah (Source: Rahim & Co Research)
Development Location Completion

Pacific Enterprise Likas 2022
360 Boulevard Office Tower Bundusan 2022
a HOTEL
Coming into 1H2021, the hotel sector of Sabah held

relatively well despite the prolonged pandemic situation, as
supply has maintained at 22,799 though incoming supply
has reduced by 11.2% to 1,975 rooms in the pipeline.
Kota Kinabalu
At almost 2 years into the pandemic, though vaccination

rates have been successful and borders reopened for travel,
Number of Shop Office Property Transactions in Sabah the hotel sector is still struggling to get their feet back on the
(2017-1H 2021) (Source: JPPH) ground and recover from the major loss incurred during the
long closure periods. While some have found relief in influx
(No. of units) (%) of guests when movement restrictions were lifted, others are
800 50 still having a hard time gaining enough visitors to keep them
afloat as fixed costs remain, regardless.
600 25
400 0 As a state that relies mostly on flight travelers coming in, the
return of local and international tourists is dependent on the
200 -25
current policy and regulations of airline travels which would
0 -50 require a different set of SOPs to adhere to. Much recovery
2017 2018 2019 2020 1H 2021 is still to be done whilst keeping the required SOPs in place
1H (LHS) 2H (LHS) % Change y-o-y (RHS) as Covid-19 has yet to reach its end in 2021 and threats of
new Covid-19 waves possibly hitting the country inciting a
new bout of fear within the communities.
Value of Shop Office Property Transactions in Sabah
(2017-1H 2021) (Source: JPPH) Through a joint venture between Pavilion’s affiliate Tegas
Bangsa Sdn Bhd and Yayasan Sabah Group, a mega
(RM Mil.) (%) development is in the works to add value to Sabah’s tourism
500 100 sector as well as creating about 5,000 job opportunities upon
400
its completion. Named the Lok Kawi Resort City, it is nestled
50
on a 166-hectare site in Kampung Meruntum, Lok Kawi
300
0 and will be developed in phases across a 15-year construction
200 period. The RM7 billion project will feature resort hotels,
-50
100
0 -100 Existing Supply of Hotels in Sabah

2017 2018 2019 2020 1H 2021
(2017-1H 2021) (Source: JPPH)

(No. of rooms) (%)
Kinarut will be expecting a new business hub into the area 30,000 50
with WSG Group having soft launched their recent project 24,000 25
Rose Avenue Plaza. Set to be part of a bigger development 18,000
which includes the 1-storey Servay Hypermarket and the 328- 0
12,000
unit offering Rose Avenue Condominium. The upcoming -25
6,000
commercial plaza is offering 20 units of 2-storey shoplots that
are priced from RM988,000. Construction will commence in 0 -50
2017 2018 2019 2020 1H 2021
January 2022 and completion expected in June 2024.
Selected Upcoming Hotels in Sabah (Source: Rahim & Co Research)
Expected
Development Location Star-Rating No. of Rooms
Completion
Jen Hotel Likas 3 440 2022
Citadines Waterfront Kota Kinabalu Kota Kinabalu 4 222 2022
Crowne Plaza Kota Kinabalu Waterfront Kota Kinabalu 5 367 2022
Hyatt Centric Kota Kinabalu 5 226 2022
Avani Hotels & Resorts Jalan Lintas 4 378 2023
Club Med Borneo Kuala Penyu NA 400 2023
New World Kota Kinabalu Karamunsing 5 400 NA
Doubletree by Hilton Kota Kinabalu 5 237 NA
a theme park, a shopping mall, residential properties and Number of Industrial Property Transactions in Sabah
commercial blocks. Recognised as an initiative to bring a (2017-1H 2021) (Source: JPPH)
positive impact to the tourism sector, Lok Kawi Resort City
serves as the latest tourism product for the state and a tool (No. of units) (%)
to further spur Sabah’s economy. 300 50
250
25
Another mega development coming in, though still in the 200
early stages, is the redevelopment of the Tanjung Aru Eco 150 0
Development (TAED) with a new concept and master plan. 100
-25
Components of this redevelopment effort includes hotels & 50
resorts, residential and commercial areas with public parks 0 -50
and recreational areas adding the green value to the whole 2017 2018 2019 2020 1H 2021
development. 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
a INDUSTRIAL
Value of Industrial Property Transactions in Sabah
(2017-1H 2021) (Source: JPPH)
Contrary to other sectors having seen improvements in
1H2021 as the market gradually adjusted to operating in a (RM Mil.) (%)
pandemic environment, the industrial sector of Sabah has 400 100
notably fallen by 21.4% in volume, yet increased by 75.5%
in value to 92 transacted units worth RM217.05 million 300
50
within the review period. This signals a situation of less 200
industrial properties being purchased but at a higher price 0
tag on average. 100
0 -50
The supply side has maintained at 6,212 industrial units with 2017 2018 2019 2020 1H 2021
an additional 301 new units being in the pipeline to complete 1H (LHS) 2H (LHS) % Change y-o-y (RHS)
in the next few years. By locality, districts aside from Kota
Kinabalu with stock higher than 500 units are Lahad Datu,
Penampang, Sandakan and Tawau.
“The industrial sector of Sabah
has notably fallen by 21.4% in • The construction of the Labuan-Menumbok Bridge
will commence in July 2022 and provide a convenient
volume yet increased by 75.5% and shorter commute between the island and Sabah’s
mainland via Membedai and Tanjung Aru.
in value to 92 transacted units • One of the four projects to be continued under
the 12th Malaysia Plan is Phase 1 of Labuan
worth RM217.05 million Smart City. This project, in collaboration with the
Malaysian Meteorological Department, involves the
within the review period” construction of a siren and smart pole system in 13
areas which channels updated weather information
and natural disasters to locals.
• The state government launched the Sabah Maju
The overhang picture shows things to be on the low side for
Jaya (SMJ) Roadmap in March 2021 which consist
Sabah with just 92 unsold units worth RM148.17 million
of 573 initiatives to help revive the economic sectors
currently sitting idle in the market. Coupled with the
after being badly affected by the pandemic. The three
relatively moderate incoming supply, Sabah is looking at a
main sectors in focus are agriculture, industry and
more subdued industrial market at the moment.
tourism.
• A memorandum of understanding (MoU) was
An investment of RM4.2 billion was successfully secured
inked between Qhazanah Sabah Bhd (QSB) and
at the Kota Kinabalu Industrial Park (KKIP) by the state
Berjaya Land Bhd to develop a new Information and
government following a land lease agreement that was
Technology driven satellite township to help stimulate
signed between KKIP Sdn Bhd and South Korea’s SK
growth in Sabah’s northern region and enhance Kota
Nexilis Malaysia Sdn Bhd. The agreement was on building
Belud’s position as a tourism town. Named Bandar
a copper foil manufacturing facility at KKIP with an annual
Digital Tun Said, it is located 5km from Kota Belud.
production capacity of 50,000 tonnes. This will be SK
• Kota Kinabalu may be welcoming their own Skytrain
Nexilis’s first overseas production based in Malaysia with
rapid transit system that will link the airport to the
commercial operations scheduled to commence by 2023.
city centre. A MoU was signed between 4 parties;
Qhazanah Sabah Bhd, Warisan Harta Sdn Bhd,
Bina Puri Holdings Bhd has signed a power purchase
Vizione Construction Sdn Bhd, Sycal Skycity Sdn
agreement (PPA) with Sabah Electricity Sdn Bhd (SESB) to
Bhd and Guangcai China (M) Sdn Bhd. Developed
develop a five-megawatt alternating current (MWac) large
in two phases, Phase 1 will involve a 10.5km link at
scale solar photovoltaic (PV) plant in Kunak. Commercial
a cost of RM1 billion.
operation is scheduled to begin in June 2023.
• AP Holdings Bhd (APHB) has entered a JV deal
with Chase Perdana Sdn Bhd to develop a mixed
development project on a land area of 25 acres in
Kota Kinabalu which comprises of home offices,
shopping complexes, luxury condominiums and
bungalows.
• On 6th November 2021, the Prime Minister launched
the Sabah Eastern Zone Pan Borneo Highway for the
Sandakan-Kinabatangan- Beluran-Telipid alignment
that will stretch over 58km. Construction began in
November 2021 and is expected complete in October
2024.
• Suria Capital Holdings Bhd and Gabungan AQRS
Bhd have forgo plans to develop the One Jesselton
Waterfront in Kota Kinabalu, six years after the
agreement was first inked, as the project is no longer
viable under the current economic and market
condition.
GLOSSARY
For the purposes of this publication, except where the context otherwise requires, the
following words and abbreviations shall have the following meaning:
1TH Single storey terraced house JPPH Jabatan Penilaian & Perkhidmatan Harta,
2TH Double storey terraced house Kementerian Kewangan Malaysia
1SD Single storey semi-detached house Km² Square kilometre
2SD Double storey semi-detached house LHS Left hand scale
1D Single storey detached house Mil Million
2D Double storey detached house N/A Not Available
1TF Single storey terraced factory NLA Net lettable area
2TF Double storey terraced factory PBO Purpose built office
1SF Single storey semi-detached factory Pop Population
2SF Double storey semi-detached factory Psf Per square foot
1DF Single storey detached factory Psf pm Per square foot per month
2DF Double storey detached factory Q1/1Q First quarter
1H/H1 First half Q2/2Q Second quarter
2H/H2 Second half Q3/3Q Third quarter
All House All House Price Index as published by JPPH Q4/4Q Fourth quarter
Price in their publication entitled ‘Indeks Harga q-o-q Quarter on quarter
Index Rumah Malaysia’ RHS Right hand scale
Apt Apartment RM Ringgit Malaysia
BNM Bank Negara Malaysia S.Apt Serviced apartment
Condo Condominium sf Square feet
CPI Consumer Price Index SOFO Small office flexible office
DOSM Department of Statistics Malaysia SOHO Small office home office
FDI Foreign Direct Investment SOVO Small office versatile office
GDP Gross Domestic Product Sty Storey
IHRM Indeks Harga Rumah Malaysia / Malaysia y-o-y Year on year
House Price Index
EXPLANATORY NOTE
#1 : Graphs are constructed based on selected sampling which may differ from the projects sampled for the graphs in previous
issues. The sampling revision is based on a growing and evolving list of popular and established developments or schemes in
the relevant towns with the intention of providing a general overview of the price trend movements. The new graph as presented
in this publication overwrites/supercedes the graphs presented in the previous issue.
118
DIRECTORY OF
OFFICES
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T +(60 3) 2691 9922 T +(60 4) 422 1619 10050 Penang
F +(60 3) 2691 9992 F +(60 4) 422 1718 T +(60 4) 229 9913 / 229 9013
E kl@rahim-co.com E sp@rahim-co.com F +(60 4) 227 3326
E penang@rahim-co.com
Cheras KELANTAN - Kota Bahru
118-1, Jalan Cerdas, 3486-J/A, 1st Floor Butterworth
Taman Connaught, 56000 Cheras Jalan Sultan Ibrahim No 73-1, Jalan Todak 6
Kuala Lumpur 15050 Kota Bharu, Kelantan Pusat Komersial Sunway Perdana
T +(60 3) 9100 5007 T +(60 9) 748 1252 13700 Seberang Jaya, Penang
F +(60 3) 9100 5008 F +(60 9) 748 5824 T +(604) 384 2036 / 2096
E cheras@rahim-co.com E kb@rahim-co.com F +(604) 384 2001
E butterworth@rahim-co.com
Kepong MALACCA
9-1 Jalan Rimbunan Raya 1 351-C, Jalan Ong Kim Wee TERENGGANU
Laman Rimbunan, 52100 Kepong 75200 Melaka Kuala Terengganu
Kuala Lumpur T +(60 6) 284 8237 / 7286 PT 4037 (1), 1st Floor
T +[603] 6241 0840 F +(60 6) 283 0134 Perkedaian Ladang Tok Pelam
F +[603] 6242 8444 E malacca@rahim-co.com Jalan Sultan Zainal Abidin
E kepong@rahim-co.com 20000 Kuala Terengganu, Terengganu
NEGERI SEMBILAN – Seremban T +(60 9) 622 7508
SELANGOR 124, Ground Floor F +(60 9) 623 5126
Petaling Jaya Jalan Dato’ Bandar Tunggal E kt@rahim-co.com
36A, 1st Floor, Jalan Yong Shook Lin 70000 Seremban, Negeri Sembilan
Seksyen 52, 46200 Petaling Jaya T +(60 6) 763 2492 / 764 8151 Kemaman
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F +(60 3) 7956 5386 24000 Cukai Kemaman, Terengganu
E pj@rahim-co.com PAHANG T +(60 9) 859 3887 / 1887
Kuantan F +(60 9) 859 6887
Klang A51, 2nd Floor, Jalan Tun Ismail 1 E kemaman@rahim-co.com
No 2, 3rd floor Kuantan Perdana
Jalan Tiara 2A, Bandar Baru Klang 25000 Kuantan, Pahang SABAH
41150 Klang, Selangor T +(60 9) 513 6633 Kota Kinabalu
T +(60 3) 3344 7579 F +(60 9) 513 1575 Unit C-04-03 & C-04-04
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E klang@rahim-co.com Jalan Tun Fuad Stephens
Temerloh 88000 Kota Kinabalu, Sabah
Subang Jaya 19, 1st Floor, Jalan Ahmad Shah T +(60 88) 484 995 / 996
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UEP Subang Jaya 28000 Temerloh, Pahang E kk@rahim-co.com
47610 Subang Jaya, Selangor T +(60 9) 296 5044
T + (603) 8081 0201 F +(60 9) 296 5642 Tawau
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E subangjaya@rahim-co.com Sabindo Square, Jalan Dunlop
PERAK - Ipoh 91000 Tawau, Sabah
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Jalan Dato’ Abdullah Tahir T +(60 5) 249 5586 / 5587 / 5588 E tawau@rahim-co.com
80300 Johor Bahru, Johor F +(60 5) 249 5585
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F +(60 7) 331 7201 2nd Floor, 14 Jalan Kulas 1
E jb@rahim-co.com PERLIS – Kangar Lot 373 Section 11
No. 36, 1st Floor 93400 Kuching, Sarawak
KEDAH Kompleks Perniagaan Pertiwi Indah T +(60 82) 235 998 / 236 998
Alor Setar Jalan Kangar – Alor Setar F +(60 82) 237 998
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05000 Alor Setar, Kedah T + (604) 970 5613
T +(60 4) 732 0177 / 0178 F + (604) 970 5614
F +(60 4) 732 0185 E kangar@rahim-co.com
E as@rahim-co.com
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PROPERTY

KEY ECONOMIC INDICATORS

(%) (RM billion) (mil) (%)

-10 -50 31.6 0.0

Net FDI GDP Growth CPI Growth Population Unemployment

KEY PROPERTY MARKET INDICATORS

260 100 1.6

Malaysia Kuala Lumpur Selangor Household Debt-to- Impaired Loans Ratio of

Central Region RETAIL

a 50.7% a -1.0% a -11.6% a stable INDUSTRIAL

KEDAH KUALA LUMPUR

PULAU PINANG SELANGOR Increase Stable Decrease

a 41.3% a 1.4% a -1.1% a 62.5% a 38.0% a -3.0% a -1.2% a 34.6% a a a

Southern Region East Coast Region East Malaysia Region

MELAKA KELANTAN SARAWAK

JOHOR TERENGGANU SABAH

Central Region INDUSTRIAL

a 69.8% a 28.9% a 14.9% Note: Changes recorded based on

PULAU PINANG SELANGOR a a a

PERAK NEGERI SEMBILAN

Southern Region East Coast Region East Malaysia Region

MELAKA KELANTAN SARAWAK

a 17.5% a -10.4% a 82.3% a 22.8% a 92.0% a -47.1% a 62.9% a 121.2% a 31.3%

JOHOR TERENGGANU SABAH

a 15.8% a 18.3% a 22.9% a 12.8% a -65.7% a -65.0% a 61.0% a 53.4% a 75.5%

2021 IN REVIEW &

“Although the year was disrupted with more lockdowns

Lebuh Armenia, Pulau Pinang

Area (km2): 816 RESIDENTIAL

Taman Melati, Perlis

Number of Residential Property Transactions in Perlis

(No. of units) (%)

(RM Mil.) (%)

Price ‘000 (RM) Price Index

“On transaction activities, the market had recovered from the

Taman Indah Kayang Kangar 2-sty Semi-Detached 20 From RM488,000 2022

1-sty Semi-Detached From RM379,800

2-sty Semi-Detached From RM499,570

2-sty Detached From RM798,000

Taman Saujana Idaman Arau 1&½-sty Terraced 58 From RM278,000 2023

1-sty Terraced 30 From RM258,000

to maintain its supply at 601,401 sf with 191,210 sf of Occupancy rate (RHS)

The supply of hotel rooms in Perlis have maintained at 1,245

at RM1 million and above.

1H (LHS) 2H (LHS) % Change y-o-y (RHS)

Number of Industrial Property Transactions in Perlis

1H (LHS) 2H (LHS) % Change y-o-y (RHS)

Est. Population: 2,194,100 Key Facts (as at 1H 2021)

Value of Residential Property Transactions in Kedah

(RM Mil.) (%)

Kedah’s residential market, as at 1H2021, saw its existing 4,000 40

houses at 30% and semi-detached at 22%. High-rise units 1,000 -20

Price ‘000 (RM) Price Index

Selected Upcoming Residential Properties in Kedah (Source: Rahim & Co Research)

This JV project, in collaboration with the Langkawi

Existing supply (LHS) Space Occupied (LHS) 1,000 40

taking up 57% of the supply followed by 1-sty types at 22%

Transaction activities have shown promising recovery growth 500 40

Existing Supply of Hotels in Kedah

• Penang Port Sdn Bhd’s North Butterworth Container

• A 2.8-hectare plot of land has been identified for

• Ascott Gurney Penang will be launched in the first