It’s good to note that while the sentiment among first-time home buyers is not that positive, there are many investors holding a firm belief in the long-term potential of the Malaysian property market.
For instance, Indonesia’s property developer Riyadh Group is to invest US$450 million (RM1.88 billion) into two projects – revamping a mall in Shah Alam and several developments of over 10.35 ha of land in Serenia City, Sepang.
According to an article in TheStar, This will be done via a joint venture with two local firms – Mainstay Holdings Sdn Bhd and Pembinaan Tetap Teguh Sdn Bhd (PTT). Riyadh will hold a 65% stake in the JV.
A look at the two projects
The mall in Shah Alam is pretty empty even if location wise, it’s very accessible and could cater to the working population nearby. The revamp is expected to be completed in six months.
Riyadh Group’s president director, Bally Saputra said that they plan to create a “Little Indonesia” within the mall, featuring popular Indonesian cuisine, and boutiques selling Indonesian clothing designers, among others. The mall will also be renamed “Maha Karya Town Square”.
The second project with a gross development value of RM1.7 bil, is an enhancement of the planned Horizon Village Outlet development in Sepang.
Bally said, “The plans consist of a two-storey premium outlet village and six tower blocks which will house two hotels, high-end serviced apartments, as well as a Riyadh International Islamic Hospital.”
The article also quoted Bally as saying that entering the Malaysian property market when it was slow was a good opportunity.
He added, “Malaysia also has very good tourist arrivals, and we expect our project based in Sepang, being near the airports, to benefit from this.”
It’s very common for many new investments into Malaysia to start within the Greater Kuala Lumpur property market scene. This is where most of the action is.
What is important is that once these start to bear fruit, the investments should move into other major cities or towns too.
A slow market represents a great opportunity, this is true. Growth comes slowly, usually. And speculation is rife. This is the reason why developers think 10, 15 and even 20 years ahead when they buy land and build townships.
What’s missing today is a focused development of affordable homes to house as many Malaysian households as possible so that they do not miss out on property investment opportunities.