2018马来西亚房地产市场展望（英文版）_110页-10mb

2018 Asia-Pacific Real Estate Market Outlook: Malaysia

Core Content and Key Information

This report provides an outlook on the Malaysia real estate market for 2018, highlighting the joint venture between CBRE and WTW, which combines WTW's local expertise with CBRE's global reach. The report also outlines key economic and market trends, as well as regulatory changes and major projects impacting the real estate landscape.

Main Points

Joint Venture Overview

• CBRE and WTW formed a joint venture in May 2016 to offer a comprehensive range of real estate services.
• The partnership includes WTW's subsidiaries in East Malaysia such as C H Williams Talhar Wong & Yeo Sdn Bhd, C H Williams Talhar & Wong (Sabah) Sdn Bhd, and C H Williams Talhar & Wong (Brunei) Sdn Bhd.
• The current managing directors of the joint venture are Mr. Foo Gee Jen (CBRE | WTW), Mr. Leong Shin Yau (WTW Sabah), and Mr. Robert Ting Kang Sung (WTW Sarawak).

Market Overview for 2017

• The overall property market remained soft in 2017 but showed better performance than expected.
• In the first half of 2017, over 153,000 transactions worth RM67 billion were recorded, with a 6% decline in volume but a 5% increase in value compared to 1H 2016.
• The residential sector remained the largest contributor, accounting for 61.8% of volume and 48.4% of value.
• Residential transaction volume declined by 14.5% y-o-y in 1H 2016, but dropped only to a single-digit decline of 7% in 1H 2017, indicating a strategic shift by developers to more affordable pricing.

Economic and Market Trends

• Malaysia's economy showed strong momentum in 2017, with real GDP growth of 5.8% in 2Q 2017.
• GDP per capita growth outpaced inflation, indicating economic stability.
• Construction sector experienced the highest growth at 8.3% in 2Q 2017, driven by increased production of construction materials and strong export demand.
• Private consumption rose by 7.1%, while public consumption growth moderated to 3.3%.

Key Sectors Outlook

• Residential: The market showed a slight decline in transaction volume but an increase in value. There was an overhang of unsold units, and developers adjusted their strategies to address price-income mismatches.
• Office: The Klang Valley office vacancy rate was 23.6% in 1Q 2017 and could rise to 32% by 2021 due to incoming supply.
• Retail: The government recommended a freeze on retail developments due to concerns over over-supply and high vacancy rates.
• Hotel and Industrial: These sectors are expected to have a more optimistic outlook, driven by tourism growth and the Industrial Revolution 4.0 initiatives. The government's focus on infrastructure development, including the East Coast Rail Link (ECRL) and KL-Singapore High Speed Rail (HSR), is expected to enhance Malaysia's connectivity and boost the industrial sector.

Regulatory Environment

• Cooling measures were introduced to curb speculation, including Real Property Gains Tax, foreign ownership restrictions, and a freeze on development approvals for luxury properties.
• The Special Financing Scheme for PR1MA (SPEF) aims to support affordable housing by considering EPF contributions and offering interest-free loans for the first five years.

Market Challenges

• Political uncertainty, including the upcoming General Election, may affect market confidence.
• The weakening Ringgit against major currencies could influence property investment decisions.
• Economic uncertainty and rising living costs may deter households from long-term commitments such as property purchases.

Major Projects and Infrastructure

• Several infrastructure projects are under development, including rail lines, highways, and ports, which are expected to enhance connectivity and support economic growth.
• The '2020 Visit Malaysia Year' and international summits are anticipated to boost the tourism sector.

Conclusion

Despite challenges, the Malaysia real estate market is expected to show some recovery in the second half of 2018, especially in the hotel and industrial sectors. The residential market, however, is likely to remain cautious due to overhang and affordability issues. The government's regulatory actions and focus on affordable housing and infrastructure development will play a crucial role in shaping the market's future.