By Sharen Kaur
sharen@nstp.com.my
Published in NST on December 31, 2012
sharen@nstp.com.my
Published in NST on December 31, 2012
HOME DRIVEN: Sector expected to do better next year, thanks to domestic investments
PROPERTY developers are general optimistic on the property market outlook for 2013, as Malaysia targets a five per cent growth in gross domestic product (GDP) despite weak exports.
Bank Negara Malaysia governor Tan Sri Zeti Akhtar Aziz has reiterated her optimism that the economy will continue to do well in 2013 despite challenges in the global economy.
The GDP growth target of five per cent will be made possible by the resilience displayed by the domestic economy, fuelled by local private investments.
Mah Sing Group Bhd group managing director Tan Sri Leong Hoy Kum is certain that the overall property industry will do better next year as it is highly dependent on the domestic market.
"As long as the properties have good concepts, are in the right location, and they cater to market demand, it will do well. We are supported by young demographics which continue to form new households, high savings rate and low unemployment rate.
"As long as income remains intact and properties remain affordable, the local property market should continue to remain resilient and serve as a hedge against inflation," Leong told Business Times.
He expects the residential market to continue being the main driver for property sales next year, similar to previous years' trends.
Leong said Mah Sing will be focusing on landed residential projects and niche size high-rise projects, which amounts to 77 per cent of the group's RM3 billion sales target for 2013.
In the commercial segment, he said retail offices in good schemes, smaller SoHo (small office/home office) and SoVo (small office/versatile office) properties would also do well due to the affordable price points and lack of supply in selected locations, especially in integrated development projects.
"We are also confident about mass market housing for the middle-income class where there is a pent-up demand for basic shelter. Mah Sing will continue its land banking exercises next year," Leong said.
Mah Sing is one of the more active developers in terms of landbanking. It set a RM5 billion gross development value landbanking target for 2012 but had exceeded that by 18 per cent.
Meanwhile, Sunway REIT Management Sdn Bhd chief executive officer Datuk Jeffrey Ng expects the office sub-sector to remain challenging as a result of oversupply situation and stiff competition.
He said rentals are expected to remain stagnant or on a declining trend.
On demand side, it will be driven by relocation of tenants from older office buildings to newer towers with better specifications.
Ng also expects more competition in the hospitality sector with the incoming supply of five-star hotels such as St Regis and Banyan Tree.
"More supply equates to more competitive environment. Under such circumstances, it is the survival of the fittest where hotel operators with strong brandname and track records will have competitive advantage over other hotel operators," he said.
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Bank Negara Malaysia governor Tan Sri Zeti Akhtar Aziz has reiterated her optimism that the economy will continue to do well in 2013 despite challenges in the global economy.
The GDP growth target of five per cent will be made possible by the resilience displayed by the domestic economy, fuelled by local private investments.
Mah Sing Group Bhd group managing director Tan Sri Leong Hoy Kum is certain that the overall property industry will do better next year as it is highly dependent on the domestic market.
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"As long as income remains intact and properties remain affordable, the local property market should continue to remain resilient and serve as a hedge against inflation," Leong told Business Times.
He expects the residential market to continue being the main driver for property sales next year, similar to previous years' trends.
Leong said Mah Sing will be focusing on landed residential projects and niche size high-rise projects, which amounts to 77 per cent of the group's RM3 billion sales target for 2013.
In the commercial segment, he said retail offices in good schemes, smaller SoHo (small office/home office) and SoVo (small office/versatile office) properties would also do well due to the affordable price points and lack of supply in selected locations, especially in integrated development projects.
"We are also confident about mass market housing for the middle-income class where there is a pent-up demand for basic shelter. Mah Sing will continue its land banking exercises next year," Leong said.
Mah Sing is one of the more active developers in terms of landbanking. It set a RM5 billion gross development value landbanking target for 2012 but had exceeded that by 18 per cent.
Meanwhile, Sunway REIT Management Sdn Bhd chief executive officer Datuk Jeffrey Ng expects the office sub-sector to remain challenging as a result of oversupply situation and stiff competition.
He said rentals are expected to remain stagnant or on a declining trend.
On demand side, it will be driven by relocation of tenants from older office buildings to newer towers with better specifications.
Ng also expects more competition in the hospitality sector with the incoming supply of five-star hotels such as St Regis and Banyan Tree.
"More supply equates to more competitive environment. Under such circumstances, it is the survival of the fittest where hotel operators with strong brandname and track records will have competitive advantage over other hotel operators," he said.
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