Residential sector to remain resilient
PETALING JAYA: Real estate players believe that the property market, especially the residential sub-sector, is expected to demonstrate continued resilience, buoyed by steady demand and positive sentiment.
Sime Darby Property Bhd group managing director and chief executive officer Datuk Seri Azmir Merican said the group is well-positioned to sustain the company's momentum and launch pipeline for both residential landed and high-rise projects.
'Our strategically located townships, designed around urban biodiversity and sustainable living, continue to cater to evolving consumer preferences for connectivity and vibrant, lifestyle-driven communities.
'Commercial demand is also expanding as our townships mature, with consumers increasingly seeking a diverse range of offerings that prioritise convenience, lifestyle integration and modern amenities,' he said in the company's annual report.
Azmir added that the industrial segment is anticipated to experience sustained demand.
This is particularly for data centres as well as industrial and logistic hubs, driven by the ongoing shift towards cloud computing, artificial intelligence, increasing industrialisation and changes in supply chain and trade flows.
'We will continue to safeguard our margins by staying agile, maintaining a diversified product mix, and enhancing placemaking assets to strengthen our market positioning.'
Meanwhile, UEM Sunrise Bhd officer in charge and chief financial officer Hafizuddin Sulaiman said its priorities for the year will be to strengthen its financial position, unlock landbank value and deliver targeted launches in the central and southern regions, where the company sees sustained growth potential.
'For the southern region, where we hold over 4,700 acres of landbank, land monetisation will be a key lever.
'As the Johor-Singapore Special Economic Zone (JS-SEZ) gains traction, we are well-placed to activate high-impact developments and forge catalytic partnerships that will create long-term value.'
Hafizuddin said the company's industrial play strategy is accelerating in tandem with rising demand for logistics hubs, industrial facilities and technology-enabled solutions.
'This presents an opportunity for UEM Sunrise to not only serve the market, but to help shape its future.'
Separately, Hafizuddin said emerging trade tensions and reciprocal tariffs across major economies, particularly between the West and South-East Asia, present both risks and opportunities.
'While prolonged disputes could dampen global trade and investor sentiment, Malaysia stands to gain from supply chain diversification and trade redirection.'
For the property sector, he said rising impact costs could pressure development margins, but also drive demand for logistics and industrial real estate.
'UEM Sunrise is actively assessing these impacts, refining our procurement strategies and positioning our southern land-bank to support industrial relocation, in line with the momentum of the JS-SEZ and Malaysia's strategic manufacturing agenda.'
Looking ahead, Hafizuddin said the company aims to broaden its geographical footprint.
'While Malaysia remains our core, international expansion, especially in Australia, will be a growing focus, building on our strengthened reputation in key gateway cities.'
Meanwhile, Lagenda Properties Bhd chairman Tan Sri Ahmad Kamarulzaman Ahmad Badaruddin said the group remains confident of its growth prospects.
'We are well-positioned to leverage key government initiatives, particularly the RM10bil housing loan allocation for first-time homebuyers, which will help drive homeownership accessibility.'
Additionally, he said Lagenda's strategic expansion across multiple states, coupled with active land banking efforts, strengthens the group's ability to meet the growing demand for affordable housing, while ensuring a robust pipeline of future developments.
'We are especially excited about broadening our footprint into new regions, with particular focus on Sabah and Sarawak – especially Sarawak – as part of our long-term growth strategy.
'At the same time, with a strong pipeline of upcoming launches, including our highly anticipated Kulai township, we remain committed to growing our sales, reinforcing our financial stability and ensuring long-term sustainability.'
Meanwhile, Tambun Indah Land Bhd chairman Lai Fook Hoy expects ongoing challenges in the property market, particularly due to the complex global economic outlook and anticipated rise in construction costs.
'However, we remain cautiously optimistic about achieving a positive performance.'
Lai added that the group continues to adopt a careful approach in its launches, focusing on the affordable and mid-range segments to meet local demand.
'To remain competitive, we will keep monitoring the market dynamics, understanding home buyers' needs and refining our strategies to suit evolving market conditions.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
an hour ago
- The Sun
Sun Bus Tech, JTDC to offer RM4,000 starting pay in talent drive
KULAI: Bus body manufacturer Sun Bus Tech has signed a memorandum of understanding (MoU) with the Johor Talent Development Council (JTDC) to launch an industrial talent development initiative, offering a starting salary of RM4,000 to newly skilled workers. State Education and Information Committee chairman Aznan Tamin, who is also JTDC chairman, said the collaboration reflects a proactive approach to enhancing local talent capabilities in support of Johor's development agenda. He said the company's commitment to providing both training and competitive salaries demonstrates how the private sector can lead in building a stronger future for the state. 'We hope this premium salary initiative sets a benchmark and encourages more companies in Johor to invest in talent development and create high-quality jobs. 'It aligns with our vision to retain skilled workers, strengthen the industrial base, and ensure Johor remains a prime destination for investment and innovation,' he said at the MoU signing ceremony here today. JTDC is a key initiative under the Johor-Singapore Special Economic Zone (JS-SEZ), aimed at producing highly skilled local talent to meet the growing needs of investors and industries in the state. It targets the creation of 20,000 high-income jobs, with phased implementation beginning this year. Aznan also noted that several companies have expressed interest in the initiative, with more MoUs and agreements currently being finalised. Meanwhile, Sun Bus Tech chief executive officer Shayn Pang said the company aims to hire about 200 workers through the programme, with 40 per cent of the positions already filled. The rest will be filled in stages through a screening and training process. The programme will focus on technical and manufacturing roles, such as skilled operators and technicians. 'This partnership not only provides tuition support, but also offers industrial exposure, hands-on training at our facilities, and a guaranteed career path upon graduation. 'It highlights the strong synergy between the Johor state government and industry players, and reinforces our commitment to positioning Johor as a hub for skilled talent in the mobility and manufacturing sectors,' she said. Sun Bus Tech, based in Senai Airport City, is a leading player in the transport industry, specialising in high-quality bus body construction for both conventional and electric vehicles.
New Straits Times
7 hours ago
- New Straits Times
PR frenzy, poor fundamentals: Disappointing IPO darlings
KUALA LUMPUR: Over the past 18 months, Bursa Malaysia witnessed a surge in new listings, many accompanied by high expectations and polished narratives. Behind the scenes, public relations consultants and investment advisors played pivotal roles organising media briefings, analyst meetings and investor briefings to generate interest and drive early demand. However, as the dust settles, some of these companies have fallen short of their promises, with share prices slipping below IPO levels despite the initial fanfare. Here are three companies that illustrate the disconnect between pre-listing optimism and post-listing realities: Alpha IVF Group Bhd •Recent Price: 28 sen (as of June 6) Alpha IVF, a fertility services provider, made its debut on Bursa Malaysia with a compelling narrative centred around expanding fertility awareness and clinical capabilities. The company positioned itself as a beacon of hope for couples struggling to conceive, backed by cutting-edge technologies and a regional footprint. Public relations consultants heavily promoted the IPO, emphasising emotional branding - stories of successful IVF journeys, warm imagery of smiling babies - and reassuring interviews with founders and doctors. Investor briefings were held, reinforcing the company's regional growth story. The IPO was oversubscribed, and the stock saw a slight uptick upon listing. However, the honeymoon phase was short-lived. Analysts began to question the valuation multiples, especially given the thin margins and rising operational costs of running fertility centres. The company's expansion plans, initially perceived as bold, began to look like expensive bets in a niche and price-sensitive market. Despite the promotional efforts, Alpha IVF's share price gradually declined, slipping below its IPO price and staying there. Notably, the IPO price of RM0.32 corresponded to a price-to-earnings (P/E) ratio of 21.92x, based on a net profit of RM54.79 million and earnings per share (EPS) of 1.46 sen for the financial year ended May 31, 2023. This valuation was higher than the industry's average P/E ratio, raising concerns about the company's valuation amidst the optimism. CPE Technology Bhd •IPO Price: RM1.07 •Recent Price: 71 sen (as of June 6) CPE's entry into Bursa was anything but quiet. As a precision engineering company with clients in the semiconductor, life sciences, and industrial automation sectors, it was touted as a proxy for Malaysia's high-tech ambitions. The IPO narrative leaned heavily on its global supply chain connections, particularly its exports to the US, Europe and China. In the weeks leading up to its listing, CPE's name was everywhere. PR consultants rolled out a carefully staged campaign: glossy investor kits were circulated, media interviews were arranged with top executives, and photos of high-tech assembly lines flooded financial pages. There were even organised tours for analysts and key fund managers to CPE's Johor-based facilities, complete with safety helmets, walkthroughs, and sales pitch presentations over coffee. The message was clear: CPE was not just another component maker - it was a growth story in a fast-evolving tech ecosystem. Investors initially responded with enthusiasm. The IPO was oversubscribed, and there was buzz about CPE being well-positioned to ride the next wave of industrial demand. But reality, as it often does, proved more complicated. Just a few quarters in, cracks began to appear. Order flows from major clients slowed as the global tech sector cooled. Margins came under pressure, not least due to rising raw material costs and a strong US dollar. Earnings missed early projections, and suddenly, the glow around CPE started to fade. The same analysts who had attended the factory tours began to revise their outlooks. Despite the polished communications campaign and well-managed listing strategy, CPE's share price drifted below its IPO level. The company had a credible story - but not enough momentum to keep the market convinced. DXN Holdings Bhd •IPO Price: 70 sen •Recent Price: 50 sen (as of June 6) DXN's return to the stock market after years in private hands was framed as a rebirth. PR consultants spoke of a "new chapter" for the direct-selling giant, with aggressive outreach to media and investor groups. Yet, cracks began to appear when earnings underwhelmed and overseas sales growth slowed. Despite the well-orchestrated relisting campaign, investors began to question whether DXN's golden era was behind it. Conclusion: Hype Fades, Fundamentals Remain Industry observers said new IPOs often arrive on a wave of excitement, backed by slick presentations, aggressive PR campaigns, and promises of untapped potential. But investors must learn to separate story from substance. Just because a stock is trending or being heavily marketed doesn't mean it's a good buy. PR blitzes can create temporary buzz, but they can't sustain valuations if earnings disappoint and growth stalls. The observers said the message is clear: don't get carried away by headlines or hype, and stick to fundamentals, scrutinise the financials and invest with discipline.
New Straits Times
3 days ago
- New Straits Times
Hafizuddin: Future-proof homes in demand as buyers look beyond aesthetics
KUALA LUMPUR: Analysts expect continued demand for premium landed homes, particularly within growth corridors like Cyberjaya in the Greater Klang Valley, as homebuyers increasingly prioritise space, privacy, and lifestyle-oriented amenities. "With interest rates stabilising and consumer confidence on the rise, the outlook for upscale landed developments remains optimistic heading into the second half of 2025," said one market analyst. Reflecting this sentiment, UEM Sunrise Bhd reported a strong response during the first day of its sales preview for Allegro, a premium freehold landed development within the company's Symphony Hills township in Cyberjaya. The preview, held on May 31, saw 23 out of 68 semi-detached villas taken up, representing a 34 per cent take-up rate and generating RM46.8 million in sales. This marks a robust start toward the development's total gross development value (GDV) of RM142 million. The performance of Allegro underscores a resilient appetite for high-quality, landed homes in gated, low-density communities, especially those integrated with lifestyle infrastructure. Demand is being driven by rising household affluence, a growing preference for multi-generational living, and a shift toward future-proof, wellness-centric homes in the post-pandemic landscape. "This encouraging response reflects a growing demand for premium homes in established, lifestyle-driven townships like Symphony Hills. Today's buyers are more discerning," said Hafizuddin Sulaiman, officer-in-charge and chief financial officer of UEM Sunrise. "They seek homes that go beyond aesthetics to offer future-proof spaces, multigenerational comfort and a deeper connection to nature." Allegro comprises 68 low-density, gated villas, with generous built-ups ranging from 2,866 to 5,115 sq ft. Each unit is thoughtfully designed for extended families, featuring resort-style bathrooms, EV-ready car porches, and private lifts in selected homes. Slated for completion in 2027, Allegro forms part of UEM Sunrise's ongoing initiative to revitalise the 98-acre Symphony Hills township, first launched in 2011. As part of this revitalisation, UEM Sunrise will reopen the Opera House clubhouse this month with upgraded lifestyle amenities including a swimming pool, poolside café, mini mart, gymnasium, pickleball courts, and a multipurpose hall.
