Property

MIECO Chipboard Bhd (MCB) said that its wholly owned subsidiary, Seng Yip Furniture Sdn Bhd, has entered into a conditional sale and purchase agreement with Jin Ye Ye Sdn Bhd to dispose of two freehold industrial land parcels with buildings in Semenyih, Selangor, for RM57 million.

The properties, used for office, factory, and warehouse purposes, have a combined land area of about 68,532 sq m and built-up space of approximately 21,240 sq m.

The disposal is expected to generate an estimated net profit of RM11.27 million and strengthen MCB’s financial position by reducing borrowings by RM40 million and lowering its gearing ratio from 0.72 times to 0.58 times.

Proceeds will also be used for working capital and transaction-related costs.

The transaction is part of MCB’s ongoing asset rationalisation strategy to enhance operational efficiency, improve working capital, and ensure long-term viability amid challenging operating conditions.

Completion is expected in the second half of 2026. — TMR

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PUTRAJAYA — The Ministry of Housing and Local Government (KPKT) is stepping up efforts to strengthen governance in the real estate sector through its MADANI Housing Reform agenda, with a target of achieving zero sick projects by 2030.

Its minister,  Nga Kor Ming, said the reform focuses on improving systems, enhancing monitoring and increasing transparency to better protect homebuyers.

“This Housing Reform aims to strengthen governance in the housing sector to achieve zero sick projects by 2030, while ensuring more Malaysians can own safe and livable homes,” he said in a statement today.

Among the key measures implemented is the strengthening of the Housing Development Account (HDA) audit mechanism to ensure that buyers’ payments are fully utilised for project development.

Nga added that the Integrated Housing Monitoring System (HIMS) has been enhanced to enable real-time monitoring of project progress, financial flows and developers’ licence status.

The ministry has also upgraded the TEDUH system to make it easier for potential buyers to lodge complaints in cases of non-compliance by developers.

To widen regulatory coverage, the government has introduced the Real Property Development Act (RPDA), extending oversight to residential developments on commercial land.

In addition, the implementation of the e-SPA system aims to boost transaction transparency and prevent document manipulation or unnecessary delays.

“KPKT will continue to ensure that the housing sector not only grows in terms of transaction value, but also improves in development quality, system efficiency and the people’s quality of life,” he said.

Nga noted that Malaysia’s property sector remains strong, with total transaction value reaching a decade-high of RM241.87 billion in 2025, a 4.1 per cent increase from the previous year, involving 416,413 transactions.

He said the performance reflects strong investor confidence and the resilience of the country’s economic fundamentals, with the MADANI Government committed to further initiatives to improve access to housing and support sustainable growth in the real estate sector. — BERNAMA 

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PARAMOUNT Corporation Bhd is acquiring a 3.7-acre freehold commercial land parcel off Jalan Ampang for RM257.9 million, as it continues to secure prime urban sites with strong development potential.

The acquisition is being undertaken via its wholly owned unit Meridian Kuasa Sdn Bhd, which has entered into a sale and purchase agreement with IOI Properties Bhd.

The purchase will be funded through a mix of internally generated funds and bank borrowings.

The site, located within the prestigious U-Thant enclave near the Kuala Lumpur city centre, is currently vacant and surrounded by established residential and commercial developments.

It is also within close proximity to key amenities such as Suria KLCC, KLCC Park, the Kuala Lumpur Convention Centre, as well as major healthcare institutions and international schools.

Paramount plans to develop the land into two blocks of high-end serviced apartments, with an estimated gross development value (GDV) of RM1.1 billion.

The group will leverage an existing development order obtained by the vendor, enabling a faster time-to-market, with a targeted launch by end-2026 and an estimated six-year completion period.

Group CEO Jeffrey Chew said the acquisition builds on Paramount’s track record in the Jalan Ampang area, following the successful take-up of its earlier projects, The Ashwood and The Atrium.

Meanwhile, IOI Properties said the disposal aligns with its strategy to focus on integrated township developments and optimise capital deployment, with proceeds from the sale to be used to enhance its portfolio. — TMR

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by AKMAR ANNUAR

HOME financing has emerged as a growing challenge in Malaysia’s housing market, with the Real Estate and Housing Developers’ Association (Rehda) saying the highest loan rejection rates in the second half (2H) 2025 were recorded for homes priced between RM500,001 and RM700,000.

Rehda president Datuk Ho Hon Sang said the industry is entering 2026 with a cautiously neutral view, as developers continue to face weaker take-up, higher operating costs and tighter financing conditions.

“While the sign of optimism is positive, it should be noted that these surveys were conducted prior to the current situation in the Middle East,” he said at a media briefing today.

The association’s Property Industry Survey, which covered 166 members in Peninsular Malaysia, showed that 61 respondents launched projects in 2H 2025, with total units launched rising 0.6% to 17,971 units.

Sales, however, fell sharply to 3,784 units from 6,762 in 1H 2025, dragging the take-up rate down to 21% from 38%.

The figures point to a market where the issue is no longer just supply, but whether buyers can secure loans under current lending conditions.

Rehda immediate past president Datuk N K Tong said the issue should be viewed carefully, but acknowledged signs of a mismatch in the market.

“I say that very cautiously, because the way we do our industry is not actually market driven,” he said.

He said cross-subsidy requirements in housing development can distort pricing by pushing some units beyond what buyers can comfortably afford, especially after banks apply stricter credit assessments.

The survey showed that 72% of respondents faced financing issues in 2H 2025, with 83% specifically citing end-financing difficulties.

Developers identified ineligible buyer incomes, adverse credit history and inadequate financial documentation as the main reasons applications were rejected.

Rather than being concentrated in the high-end segment, the heaviest loan rejection rates were reported in the RM500,001 to RM700,000 range, where most respondents saw rejection rates of between 31% and 45%.

That is significant because the survey showed the market is still largely being built around lower- and mid-priced homes.

Thirty-six per cent of launches were priced at RM500,000 and below, while another notable share was in the RM500,001 to RM700,000 range.

At the same time, 26% of launches were concentrated in the RM1,000,001 to RM2.5 million bracket, especially in Shah Alam, Iskandar Puteri and Tebrau.

Rehda’s survey also found that 60% of respondents had unsold completed residential units as at Dec 31, 2025.

Two- to three-storey terrace houses made up the largest share at 26%, followed by serviced residences at 19% and single-storey terrace houses at 18%.

Respondents cited end-financing loan rejection, high prices and low demand or interest as the top three reasons for those unsold units.

Tong said this should prompt a broader rethink of how the financing system supports home ownership.

“Buyers have difficulty accessing financing, so as a thought experiment, if developers are required to cross subsidise housing, should we not do the same for home loans?” he said.

The pressure is also building on the cost side. 74% of respondents said their cost of doing business rose in 2H 2025, with nearly half reporting increases of between 3% and 6%.

Another 65% faced construction challenges linked to building material prices, supply shortages, labour costs and skill shortages.

Meanwhile, 43% said economic conditions had already forced them to take measures such as freezing recruitment, reducing benefits, rescheduling launches and cutting the scale of projects.

The separate Property Industry Sentiment Survey showed that 52% of respondents plan to freeze hiring in the next 12 months, while 55% intend to expand their land bank and 45% expect capital expenditure other than land to increase.

This suggests developers remain cautious on staffing and costs, but are not stepping back from longer-term positioning.

Another notable shift is where developers now see momentum. 32% of respondents identified industrial development as the current trend in the property sector, ahead of residential development.

That suggests capital and confidence may be tilting towards industrial-linked demand even as the housing segment remains constrained by financing friction.

On artificial intelligence, Rehda deputy secretary-general and Rehda WP chairperson Carrie Fong said the technology is more likely to help developers make better decisions than replace workers.

“We’re definitely moving into a more data driven market,” Fong told The Malaysian Reserve.

She said AI could help developers read local and international trends more effectively, but added that strategy and product planning still depend on human judgement.

“I don’t foresee it really replacing the workforce. I think we will use it to help us make more informed decisions,” she said.

Ho shared a similar view, saying AI could support predictive analysis and improve market studies, while digital tools such as building information modelling could help reduce cost overruns before construction begins.

The survey also found that 69% of respondents agreed green building certification improves environmental performance and helps drive sales.

The main perceived benefits were energy savings and lower operating costs, stronger project branding and eligibility for financing incentives.

At the same time, developers said wider adoption remains held back by cost concerns, lack of government incentives and limited public awareness.

Operationally, external policy changes are also affecting project costs.

Rehda’s presentation showed that 75% of respondents said Road Transport Department (JPJ) overloading enforcement had affected their projects, mainly through higher transportation costs, delays and increased material handling expenses.

For 1H 2026, 47% of respondents plan to launch projects, comprising 5,015 landed units and 12,669 strata units.

Most expect sales performance to improve from below 25% at the three-month mark to between 25% and 50% after six months.

Most states are expected to see launches concentrated in the RM300,001 to RM500,000 range, although WP Kuala Lumpur and Selangor are skewing higher at RM500,001 to RM700,000, while Johor remains concentrated in the RM1,000,001 to RM2.5 million range.

That suggests the market is not freezing, but operating in a more guarded environment where financing access, cost control and product targeting will matter more than raw optimism.

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by AKMAR ANNUAR

GEOPOLITICAL tensions may begin to weigh on Malaysia’s property sector through higher construction costs, supply disruptions and slower project delivery if the conflicts persist.

Real Estate and Housing Developers’ Association (Rehda) president Datuk Ho Hon Sang said a survey conducted from March 6 to 9 among 55 respondents showed developers were already expecting pressure on material prices, logistics costs and project timelines.

“While these signs of optimism are positive, it should be noted that the surveys were conducted prior to the current situation in the Middle East,” he said in Rehda’s Property Industry Survey for the second half of 2025 and Property Market Outlook for 2026 today.

The findings suggest the industry is not yet facing a full-blown disruption, but sentiment has clearly turned more cautious as global tensions add another layer of uncertainty to an already cost-sensitive business environment.

In the survey, 42.6% of respondents said geopolitical conflicts would have a moderate impact on the property development and construction sector in Malaysia. Another 29.6% said the impact could be significant, while 24.1% viewed it as slight.

Only a small minority said it was too early to assess the situation.

Respondents pointed to construction material prices and availability as areas likely to be hit first.

This was followed by shipping and logistics costs, contractor tender pricing, the cost of imported building systems and equipment, and the delivery timeline for imported materials and machinery.

That points to a sector that is not only worried about raw input prices, but also about how quickly key materials and systems can move through the supply chain.

On building materials specifically, 37.4% of respondents said geopolitical developments could have a significant impact on prices or supply in Malaysia. Another 38.2% expected a moderate impact, while 14.5% anticipated a slight effect.

No respondents said there would be no impact at all.

The survey also showed that delays are becoming a growing concern if tensions remain unresolved where 36% of respondents said moderate delays in project completion were possible.

Another 32.3% expected minor delays, while 13.3% said significant delays could not be ruled out and only 8.3% said they did not expect any delays.

The results suggest developers are preparing for operational disruption even if the effects have yet to fully flow through to ongoing projects.

Ho said the industry is still monitoring the situation closely and has not yet seen a major jump in costs directly linked to the conflicts.

He said developers remain vigilant as the external risks could still spill over into local construction activity through imported materials and broader market uncertainty.

That caution is important because the property sector is already dealing with cost pressures from domestic issues such as transport enforcement, labour constraints and uneven supply conditions.

A fresh geopolitical shock would therefore come on top of existing pressures rather than in isolation.

The survey offers an early indication that developers are bracing for a more difficult operating climate in the months ahead.

Even if the direct effects remain limited for now, the expectation of higher material costs and slower project delivery could still affect planning, tendering and pricing decisions across the sector.

For the industry, the message is not that the market has stalled. It is that developers may need to work through another round of external volatility at a time when margins are already under strain and visibility remains limited.

As Ho put it, the sector must be prepared for different possibilities if global tensions continue.

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PUTRAJAYA — The government has agreed to standardise application procedures and technical requirements for renovation works involving residential and commercial premises nationwide.

The Ministry of Housing and Local Government (KPKT) said the National Council for Local Government (MNKT) approved the guidelines regarding the matter at its 87th meeting today, which was chaired by Deputy Prime Minister Datuk Seri Fadillah Yusof (picture).

“These guidelines provide clarification to building owners on the work scope that is permitted without without compromising structural safety, natural ventilation and the harmony of urban planning,” it said in a statement today.

The MNKT meeting is a forum for the formulation of policies and legislation related to local government matters between the Federal and state governments.

 Issues discussed at this meeting will be brought to the attention of the state governments before being officially implemented at the local authority level nationwide. 

Also present were the Minister of Housing and Local Government, Nga Kor Ming; state government executive councillors; the relevant Federal ministers; and senior government officers.

According to the KPKT, the meeting also agreed to a community service order for the offence of littering as an educational and behavioural correction approach for offenders, which needs to be implemented as deemed appropriate at the State and Federal Territory levels.

“Its implementation not only aims to increase the level of urban cleanliness, but also to instil a sense of responsibility among the community to maintain the cleanliness of public environment,” it added.

The KPKT also called for stronger enforcement at the local government level to ensure that every policy, regulation and guideline formulated can be implemented more consistently, wisely and effectively. — BERNAMA

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