12/16/2016

ModerategrowthseenforindustrialpropertysectorBusinessNews|TheStarOnline

Moderate growth seen for industrial property sector

by eugene mahalingam

Ongoing work: Aerial view of the construction of Pan Borneo Highway at the Nyabau-Bakun Sibu-Bintulu junction. It is among the
infrastructure developments that will help spur the industrial property segment. Bernama

PETALING JAYA: The industrial property sub-sector is anticipated to grow moderately this year,
boosted by ongoing Government initiatives to boost investments and stable opportunities within this
segment.

According to the National Property Information Centres (Napic), the establishment of the Principal
Hub initiative that offers multiple advantages to multinational corporations that uses Malaysia as a
base for their regional and global business operations, will entail better prospects for the industrial
sub-sector.
The exibility of the scheme that allows companies to decide on the locations of their presence is
another plus point for the sub-sector, said NAPIC.
Implemented on May 1, 2015, the Principal Hub initiative for industrial area management provides
100% tax exemption on statutory income for ve years starting from the date the company begins its
activities.
One property consultant noted that upcoming infrastructure developments will help to drive the
industrial property segment over the next few years.
Among the notable highlights was the RM12.8bil funding for the Pan Borneo Highway, beginning with
the construction of the route linking Sindumin in the west coast to the east coast of Tawau.
A proposed rapid bus transit system had also been announced for Kota Kinabalu. Also outlined were
the proposed highways of DASH and West Coast and light rapid transit line 3.
He added that rental rates for industrial property sectors also tend to be more stable compared with
other sub-sectors.
Its because people dont speculate to ip, like the residential sector. People buy or rent into the
sector for their own personal use.
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12/16/2016

ModerategrowthseenforindustrialpropertysectorBusinessNews|TheStarOnline

Meanwhile, according to Napics 2015 Property Market Report, the positive performance recorded in
the rst half of 2015 did not sustain until the end of the year.
It said the industrial property sector recorded 7,046 transactions worth RM11.97bil in 2015, down
13% in volume and 17.5% in value from 2014.
Selangor continued to dominate the market with 28.9% of the nations volume, followed by Johor and
Perak, each with 16.1% and 9.6% market share respectively.
Napic said the industrial overhang saw a slight increase to record 243 units worth RM240.57mil, up
by 7.5% in volume and nearly triple the value of 2014.
The signicant increase in value was contributed by cluster industrial property, which accounted for
45.6% of the national overhang value and were solely in Johor.
The unsold under construction also observed a similar trend, up by 29.7% to 1,731 units, whereas
the unsold not constructed reduced to 87 units, down by 41.2%.
Napic said the sectors construction front was sluggish compared to 2014.

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