Malaysia property investments hit highest quarterly volume since 2020

Transactions grew by 22% to MYR3.5b in Q3.

According to a Savills report, major capital transaction values in Malaysia for the third quarter of 2022 improved by 22% YoY and 125% QoQ to MYR3.52 billion (Q3/2022: MYR2.88 billion, Q2/2023: MYR1.57 billion), the highest in a single quarter since 2020. 

The increase in capital transaction volumes was driven by a few significant land acquisitions, particularly by key industrial players, with individual deals exceeding MYR200 million. Notably, most of these transactions were concentrated in the Greater KL and Johor regions. 

Here’s more from Savills:

The largest transaction in the reviewed quarter involved Scientex Berhad acquiring eight freehold land parcels in Tebrau, Johor from SP Setia Bhd for MYR547.7 million. Scientex Bhd plans to build 12,000 affordable homes on this land, covering a total of 960 acres. Additionally, Scientex Bhd purchased 550 acres of land from Seriemas Development Sdn Bhd in Kulai, Johor for MYR299.8 million, with plans to develop 7,000 affordable homes. These acquisitions are part of Scientex Group’s landbank expansion strategy, aligning with their goal to build 50,000 affordable homes nationwide by 2028. 

The next three highest transactions took place in Greater KL. Sentral REIT acquired Menara CelcomDigi in Petaling Jaya, Selangor, from Malaysian Resources Corp Bhd (the REIT’s sponsor) for MYR450.0 million. This 27-storey purpose-built office building has a NLA of about 450,000 sq ft, with six podium levels and three basement parking levels. In Kuchai Lama, Kuala Lumpur, Ajinomoto Bhd disposed of six contiguous land parcels with redevelopment potential to Paragon TSL Sdn Bhd, part of the TS Law Group, for MYR408.0 million. 

The food producer is selling the plots, which currently host its corporate offices and factories, as they can no longer accommodate further capacity expansion. Lastly, Puncak Niaga Holdings Bhd sold three parcels of leasehold land in Selangor measuring over 166 acres for MYR306.0 million to sister companies Alpha Galaxy Sdn Bhd and Alpha Galaxy 1 Bhd. 

Moving back to Johor, a leading property developer, Eco World, acquired 404 acres of freehold land in the Kulai area for MYR211 million from IOI Prima Property Sdn Bhd. The group plans to develop a business park (“Eco Business Park VI”) catering to medium and light industrial businesses. This quarter’s elevated activity, headlined by some of the best-known industry players, indicates growing confidence in market prospects as we head into the final quarter of 2023 and into 2024.