November 20, 2018
It’s always good to note that while sentiment among the first-time home buyers are not that positive, there are a lot of investors who have a firm belief with the long term potential of the Malaysian property market. Earlier article here: RM10 billion by CPCG into the Malaysian property market Now, we have another one. Indonesia’s property developer Riyadh Group will be investing US$450 million (RM1.88 billion) into two projects; revamping a mall in Shah Alam and several developments over 10.35 ha of land in Serenia City, Sepang. 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. Here’s that article in TheStar.com.my
About the first project. This is the revamp of a 55,000 sq m Space U8 in Bukit Jelutong. (I have been there twice when I visited a customer nearby. It’s pretty empty even if location wise, I think it’s very accessible and could cater to the working population nearby) This revamp is expected to be completed in 6 months. Riyadh Group’s president director, Bally Saputra said that they planned to create a “Little Indonesia” within the mall, featuring popular Indonesian cuisine, and boutiques selling Indonesian brands of clothing, among others. The mall will also be renamed to “Maha Karya Town Square”.
Second project with a GDV of RM1.7bil, 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.” Bally also shared that entering the Malaysian property market during a slow market is a good opportunity. He shared, “Malaysia also has very good tourist arrivals, and we expect our project based in Sepang, being near the airports, to benefit from this.” Here’s that article in TheStar for reference.
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 investments start to bear fruit, the investments would start to move into other major cities or towns too. A slow market represents a great opportunity, this is true. Growth comes slowly, usually. Speculations come and go extremely fast. This is the reason why the 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. Happy following.