DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/2f92b9/malaysia_real_esta) has announced the addition of the "Malaysia Real Estate Report Q2 2012" report to their offering.
A big driver for growth in construction is the government's Economic Transformation Programme (ETP), launched in December 2010. The government identified 131 projects with a total investment value of MYR794.5bn. Exactly 46 projects, with an investment value of MYR95bn have been confirmed.
MYR36.6bn of this is for investment in the Mass Rapid Transport (MRT) programme and MYR28bn (30%) is for investment in the oil, gas and energy sector.
The subdued optimism in the real estate sector reflects BMI's estimated moderation in GDP growth to 4.8% in 2011, from the strong showing of 7.2% in 2010. Our forecasts remain below-consensus, but we do believe that a slowdown in external demand is being offset by growth in private consumption and investment.
Key Opportunities In The Real Estate Sector:
- It is hoped that overseas investors will be targeting Malaysia in the coming months. Markets like Malaysia are appealing to Middle Eastern companies aiming to avoid the US and eurozone amid debt fears. The country is also marketing its potential to Chinese investors.
- Infrastructure plans formed by the ETP will boost the profile of a number of local companies involved in their development. These are also serving to increase investor perception of Kuala Lumpur and its surrounding area in particular.
Key Risks To The Real Estate Sector:
- Moderation of growth in the economy could cause a slowdown in investment, while companies wait for conditions to improve at a better rate.
- A number of Malaysian property developers are looking overseas, following rising domestic land costs that hamper their ability to find new development opportunities.
- A number of sources are warning that Malaysia is set to experience an oversupply in office property in 2012, which could damage rental levels that have hitherto remained fairly buoyant.
Companies Mentioned:
AZRB
IJM Corporation Berhad
MRCB
WCT Berhad
For more information visit http://www.researchandmarkets.com/research/2f92b9/malaysia_real_esta