PROPERTY OUTLOOK ISKANDAR MALAYSIA
2019
By Sr. V. SivadasExecutive Director
PA International Property Consultants Sdn BhdJohor Bahru
This presentation is intended as general guideline only. While utmost care has been taken in its preparation and we believe the contents are accurate as at presentation time, the content does not represent any investment advice. PA International Property Consultants Sdn Bhd or person(s) involved in the preparation of this presentation slides do not give any warranty as to the contents nor accept anycontractual, tortuous or other form of liability for any consequences, loss or damage which may arise resulting from
any person acting on or using the statement, information or opinion contained in this presentation. All rights reserved. No part of this presentation slides may be reproduced or transmitted in any form by any person(s)without the permission of PA International Property Consultants Sdn Bhd.
AFFIN BANK SME BIZ CHAT 11 JULY 2019
AFFIN BANK SME BIZ CHAT 11 JULY 2019
PA International Property Consultants Sdn Bhd, originally formed as a soleproprietorship, is now full service real estate company registered with the Board ofValuers, Appraisers, Estate Agents and Property Managers, Malaysia.
Our Network Offices:1. Kuala Lumpur (HQ)2. Petaling Jaya, Selangor3. Johor Bahru4. Penang5. Klang, Selangor6. Ipoh, Perak7. Kluang, Johor8. Seremban, Negeri Sembilan9. Sungai Petani, Kedah 10. Ho Chi Minh City, Vietnam
(Representative Office)
Our Professional Services:1. Property Valuation2. Compulsory Land Acquisition and
Compensation3. Property Selling & Leasing4. Property Investment Consultancy5. Project Marketing6. Property Management7. Corporate & Advisory8. Property Market Research & Consultancy
Other associate companies:PA International Real Estate Sdn Bhd
PA International Property Management Sdn Bhd
Iskandar Malaysia Map Territory
AFFIN BANK SME BIZ CHAT 11 JULY 2019
ISKANDAR MALAYSIA IN NEWS
Source : The Star, 1 April 2019Source : The Star, 18 March 2019
Source : The Star, 22 February 2019
AFFIN BANK SME BIZ CHAT 11 JULY 2019
OVERALL MARKET PERFORMANCE IN ISKANDAR MALAYSIA (2009 – 2018)
Source : JPPH and PA International in-house analysis
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Total Volume 63,499 65,778 69,941 84,958 110,117 75,767 47,095 55,419 64,268 53,837Total Value (RM 'million) 17,496.36 21,446.81 27,815.56 48,390.08 79,620.38 52,065.72 31,808.66 32,956.18 32,994.57 30,365.04
0.00
10,000.00
20,000.00
30,000.00
40,000.00
50,000.00
60,000.00
70,000.00
80,000.00
90,000.00
0
20,000
40,000
60,000
80,000
100,000
120,000
RM 'mllionUnits
AFFIN BANK SME BIZ CHAT 11 JULY 2019
Residential Sub-sector Transaction in Iskandar Malaysia(2009 – 2018)
Source : JPPH and PA International in-house analysis
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Volume 13,589 13,966 14,575 18,003 23,375 16,547 10,291 12,212 14,346 11,745Value (RM 'million) 2,525.99 2,853.75 3,174.52 5,947.71 10,263.92 6,402 4,868 5,099 5,291 5,138
0.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
0
5,000
10,000
15,000
20,000
25,000
RM 'millonUnits
AFFIN BANK SME BIZ CHAT 11 JULY 2019
Residential Sub-sector Transaction in Iskandar Malaysia(Q1 2016 – Q1 2019)
Source : JPPH and PA International in-house analysis
Q1 2016 Q1 2017 Q1 2018 Q1 2019pVolume 3,139 2,821 2,556 1,293Value (RM 'million) 1,311 1,129 1,168 624
0
200
400
600
800
1,000
1,200
1,400
0
500
1,000
1,500
2,000
2,500
3,000
3,500
RM 'millonUnits
AFFIN BANK SME BIZ CHAT 11 JULY 2019
Commercial Sub-sector Transaction in Iskandar Malaysia(2009 – 2018)
Source : JPPH and PA International in-house analysis
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Volume 1,900 2,099 2,234 2,683 3,518 2,049 1,149 1,447 1,530 1,553Value (RM 'million) 1,249.60 1,632.74 2,193.74 4,197.61 6,446.06 4,057 1,333 2,023 1,713 1,609
0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
7,000.00
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
RM 'millionUnits
AFFIN BANK SME BIZ CHAT 11 JULY 2019
Commercial Sub-sector Transaction in Iskandar Malaysia(Q1 2016 – Q1 2019)
Source : JPPH and PA International in-house analysis
Q1 2016 Q1 2017 Q1 2018 Q1 2019pVolume 328 270 317 156Value (RM 'million) 295 201 466 108
0
50
100
150
200
250
300
350
400
450
500
0
50
100
150
200
250
300
350
RM 'millonUnits
AFFIN BANK SME BIZ CHAT 11 JULY 2019
Industrial Sub-sector Transaction in Iskandar Malaysia(2009 – 2018)
Source : JPPH and PA International in-house analysis
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Volume 627 697 903 859 1,027 634 391 456 474 496Value (RM 'million) 747.60 793.63 1,592.78 1,782.11 2,472.31 1,948 1,700 1,468 1,296 1,356
0.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
0
200
400
600
800
1,000
1,200
RM 'millionUnits
AFFIN BANK SME BIZ CHAT 11 JULY 2019
Industrial Sub-sector Transaction in Iskandar Malaysia(Q1 2016 – Q1 2019)
Source : JPPH and PA International in-house analysis
Q1 2016 Q1 2017 Q1 2018 Q1 2019pVolume 88 78 83 51Value (RM 'million) 271 143 473 119
0
50
100
150
200
250
300
350
400
450
500
0
10
20
30
40
50
60
70
80
90
100RM 'millonUnits
AFFIN BANK SME BIZ CHAT 11 JULY 2019
HOUSING SECTOR
AFFIN BANK SME BIZ CHAT 11 JULY 2019
Residential Transaction Volume in Iskandar Malaysia(by the Developer and Sub-sale)
Source : JPPH and PA International in-house analysis
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Residential (Developer) 4,148 3,891 1,788 5,204 9,133 4,769 2,463 2,774 1,310 579Residential (Sub-sale) 9,441 10,075 12,787 12,799 14,242 11,778 8,385 9,438 13,036 11,166
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Units
AFFIN BANK SME BIZ CHAT 11 JULY 2019
Source : JPPH and PA International in-house analysis
Price Level 2016 2017 2018
Below RM150,000 1,845 1,510 1,081
RM150,001 to RM500,000 6,936 7,610 7,264
RM500,001 to RM1,000,000 2,549 2,552 2,666
More than RM1,000,001 471 494 463
AFFIN BANK SME BIZ CHAT 11 JULY 2019
Residential Transaction Volume in Iskandar Malaysia(Distribution according to prices level)
Residential Transaction Value in Iskandar Malaysia(by the Developer and Sub-sale)
Source : JPPH and PA International in-house analysis
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Residential (Developer) 943.86 1,030.68 588.80 2,542.95 4,962.84 2,459 1,231 1,700 768 358Residential (Sub-sale) 1,582.13 1,823.06 2,585.71 3,404.76 5,301.08 3,943 3,637 3,399 4,523 4,780
0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00RM 'million
AFFIN BANK SME BIZ CHAT 11 JULY 2019
Source : State Exco, YB Sr Dzulkefly Bin Ahmad, EdgeProp
Unsold properties in Johor Q1 2019
Type Units Value (RM billion)
SoHo/Serviceapartment
30,127 20.78
Residential 17,462 10.95
Others (shop, industrial)
3,870 5.02
Total 51,459 36.75
AFFIN BANK SME BIZ CHAT 11 JULY 2019
For Johor Bahru district, the unsold properties are divided as follows:-
For Johor Bahru district, the unsold properties are divided as follows:-
Most of unsold:- 2 and 3 storey terrace houses above RM1 million- Condominium/Apartment above RM600,000
Source : State Exco, YB Sr Dzulkefly Bin Ahmad, EdgeProp
Type Unsold units
SoHo/serviced apartment 30,025
Residential 10,892
Shop lot 1,685
Industrial building 598
AFFIN BANK SME BIZ CHAT 11 JULY 2019
Challenges - Development charge policy by State- No revamp of state housing policies yet- Release of Bumiputra reserved units by State
inefficient- Unsold units are largely unaffordable
Housing Sector Outlook
AFFIN BANK SME BIZ CHAT 11 JULY 2019
Looking forward- Market is price sensitive- More than 10,000 units per annum transacted
in secondary market- The right product at the right location and
priced competitively will be sold- Huge unfulfilled demand for houses below
RM150,000 as well as below RM500,000
Housing Sector Outlook
AFFIN BANK SME BIZ CHAT 11 JULY 2019
OFFICE SECTOR
AFFIN BANK SME BIZ CHAT 11 JULY 2019
Between 2014 – 2018, about 7 new purpose-built office buildings completed whilst another 5buildings are incoming.
*Not included Forest City Source : Property Market Report 2018 and PA International research
Status Purpose-Built Office NLA/GFA(square feet)
Older purpose-built office
113 units 10,391,182
2014 - 2018 Medini 6Medini 7Medini 9Afiniti Corporate Training CentreImperia Tower Wisma Muafakat BSNMenara JLand
80,000144,000407,01167,096
170,824550,000251,481
Incoming Supply* Medini 10D’Pristine TowerMenara MBJBUMCity Premium Corporate Office Tower, MediniCoronation Square, IIBD
415,578200,000445,848
N/A
N/A
AFFIN BANK SME BIZ CHAT 11 JULY 2019
Supply and Occupancy Rate of Purpose-Built Office in Johor (2014 – 2018)
2014 2015 2016 2017 2018Total Space (square metres) 1,036,720 1,080,843 1,083,867 1,137,938 1,195,057Occupancy Rate (%) 77.5 79.9 80.37 80.5 75.9
73
74
75
76
77
78
79
80
81
950,000
1,000,000
1,050,000
1,100,000
1,150,000
1,200,000
1,250,000
Occupancy Rate (%)Total Space (s.m.)
Source : Property Market Report 2018
AFFIN BANK SME BIZ CHAT 11 JULY 2019
Occupied Space of Purpose-Built Office in Johor (2014 – 2018)
Source : JPPH and PA International in-house analysis
AFFIN BANK SME BIZ CHAT 11 JULY 2019
Year Space (square metres)
Difference (square metres)
% increase per annum
2014 803,458 - -
2015 863,594 60,136 7.5
2016 871,104 7,510 0.9
2017 916,040 44,936 5.2
2018 907,048 -8,992 -1.0
Rental levels for Purpose-Built Office
Type Rental (RM / per square feet per month)
New office buildings 3.50 to 5.50
Older office buildings 1.50 to 3.00
Source : PA International research
AFFIN BANK SME BIZ CHAT 11 JULY 2019
INDUSTRIALSECTOR
AFFIN BANK SME BIZ CHAT 11 JULY 2019
Industrial Sub-sector Transaction in Iskandar Malaysia(2009 – 2018)
Source : JPPH and PA International in-house analysis
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Volume 627 697 903 859 1,027 634 391 456 474 496Value (RM 'million) 747.60 793.63 1,592.78 1,782.11 2,472.31 1,948 1,700 1,468 1,296 1,356
0.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
0
200
400
600
800
1,000
1,200
RM 'millionUnits
AFFIN BANK SME BIZ CHAT 11 JULY 2019
Volume for industrial properties in Iskandar Malaysia(2017 and 2018)
Source : JPPH and PA International in-house analysis
2017 2018Vacant Land 96 58Terrace Factory 136 184Semi-D/Cluster Factory 148 195Detached Factory 68 67
0
50
100
150
200
250Units
AFFIN BANK SME BIZ CHAT 11 JULY 2019
Value for industrial properties in Iskandar Malaysia(2017 and 2018)
Source : JPPH and PA International in-house analysis
2017 2018Vacant Land 350 462Terrace Factory 101 137Semi-D/Cluster Factory 320 406Detached Factory 480 431
0
100
200
300
400
500
600RM 'million
(RM 'million) (RM 'million)
AFFIN BANK SME BIZ CHAT 11 JULY 2019
SHOPOFFICE / SHOPHOUSE
SECTOR
AFFIN BANK SME BIZ CHAT 11 JULY 2019
Volume for shopoffice / shophouse in Iskandar Malaysia(2017 and 2018)
Source : JPPH and PA International in-house analysis
2017 20182 storey 458 5803 and 4 storey 286 358
0
100
200
300
400
500
600
700
Units
AFFIN BANK SME BIZ CHAT 11 JULY 2019
Value for shopoffice / shophouse in Iskandar Malaysia(2017 and 2018)
Source : JPPH and PA International in-house analysis
2017 20182 storey 340 4313 and 4 storey 410 489
0
100
200
300
400
500
600
RM 'million
(RM 'million) (RM 'million)
AFFIN BANK SME BIZ CHAT 11 JULY 2019
SHOPPING MALL SECTOR
AFFIN BANK SME BIZ CHAT 11 JULY 2019
In the past 3 years, 9 new malls supplied additional 5.607 million square feet retail space inIskandar Malaysia.
Status Shopping Malls NLA/GFA(square feet)
Older Malls 88 Malls 18,531,662
2016 - June 2019 Tasek CentralAEON Bandar Dato OnnParadigm MallCapital CityMid Valley Southey MegamallR & F Princess MallIkea TebrauSunway Citrine Hub
400,000600,000
1,300,000755,554
1,507,000532,000512,81571,000
Incoming Beletime Danga BayLarkin Junction MallToppen Shopping CentreD’Pristine @ MediniSunway Big Box VillageEco Galleria
600,000248,224
1,100,000200,000400,000680,000
Source : Property Market Report 2018 and PA International research
AFFIN BANK SME BIZ CHAT 11 JULY 2019
HOTEL SECTOR
AFFIN BANK SME BIZ CHAT 11 JULY 2019
Guests arrivals in Johor (2010 – 2018)
Source : Tourism Malaysia
AFFIN BANK SME BIZ CHAT 11 JULY 2019
Average Occupancy Rates (AOR) of Hotels in Johor (2010 – 2018)
Source : Tourism Malaysia
AFFIN BANK SME BIZ CHAT 11 JULY 2019
New supply hotels within Iskandar Malaysia last few years
NAME OF HOTEL NO. OF ROOMS
Capri By Fraser Hotel Residences, Johor Bahru 316 Rooms
Fraser Place, Puteri Harbour 297 Rooms
Phoenix Hotel, Forest City 283 Rooms
Ramada Meridin, Medini 752 Rooms
Trove, Johor Bahru (refurbished hotel) 283 Rooms
Pinetree Marina Resort, Iskandar Puteri 107 Rooms
Amari, Johor Bahru 242 Rooms
Impiana Hotel, Senai 172 Rooms
KSL Hot Spring Resort, Taman Daya 308 Rooms
Source : PA International research
AFFIN BANK SME BIZ CHAT 11 JULY 2019
Incoming supply of hotels within Iskandar Malaysia
NAME OF HOTEL NO. OF ROOMS
Holiday Inn, Johor Bahru 318 Rooms
Hyatt Place @ Paradigm Mall, Johor Bahru 200 Rooms
Novotel @ D’Pristine, Medini 285 Rooms
Tropical Inn (Rebranding / Refurbishment) 172 Rooms
Pan Pacific Serviced Suites, Puteri Harbour 205 Rooms
OZO Medini Iskandar, Medini 198 Rooms
Hilton Garden Inn, Johor Bahru 315 Rooms
Cititel Johor Bahru, Southkey, Johor Bahru 675 Rooms
Boulevard Hotel, Southkey, Johor Bahru 450 Rooms
The Gardens Hotel, Southkey, Johor Bahru 450 Rooms
Source : PA International research
AFFIN BANK SME BIZ CHAT 11 JULY 2019
QUESTIONS?
AFFIN BANK SME BIZ CHAT 11 JULY 2019
THANK YOUPA INTERNATIONAL PROPERTY
CONSULTANTS SDN BHDSUITE 1101, 11th FLOOR, JOHOR TOWER,
15, JALAN GEREJA, 80100 JOHOR BAHRU,
JOHOR
TEL : +607-2232 762 FAX : +607-2241 780WEBSITE : www.pa.com.my
AFFIN BANK SME BIZ CHAT 11 JULY 2019