The need for world-class industrial parks in Malaysia, and more news

For PropertyGuru’s real estate news roundup, Malaysia needs world-class industrial parks. In other stories, Thailand’s government is advised to ease lending restrictions and reduce interest rates. Lastly, the persistent issue of housing stock shortages continues to challenge the Australian housing market, despite government assistance.

The case for world-class industrial parks in Malaysia

Thirty years ago, in 1994, the Suzhou Industrial Park was established as a joint venture between the governments of China and Singapore. Despite some initial hiccups, this industrial park is widely seen as a success story in putting Suzhou on the international map with many multinational corporations (MNCs) setting up shop there. World-class industrial parks can similarly be an important positioning feature in the Johor-Singapore Special Economic Zone (JSSEZ) to attract new MNC investments to this area. With a better-coordinated marketing strategy by the relevant investment promotion agencies and strategic partnerships facilitated by industrial park developers, such developments have the potential to change the manufacturing landscape in southern Johor. They can also catalyse the development of related service capabilities that can be deployed to other parts of the country and potentially as exports.

According to Ong Kian Ming in The Edge Malaysia, the current quality of industrial parks in Malaysia suffers from a wide variance, with many of the older industrial parks facing serious challenges of poor infrastructure which have not been properly maintained as a result of ineffective management. Some of the older industrial parks that are located close to residential areas have not been “legalised” and as such, do not even have public amenities such as fire hydrants. As it stands, there is no proper classification framework for industrial parks.

Thailand: Call for looser real estate lending rules

The government is advised to ease lending restrictions and reduce interest rates as newly completed condo units worth more than 86 billion baht are awaiting transfer in the fourth quarter, which could lift both the property sector and the entire economy, says the Thai Condominium Association.

Prasert Taedullayasatit, president of the association, said the transfer value in the fourth quarter alone could be equivalent to the total value from the first three quarters combined. “This figure only accounts for large developers, excluding small ones,” he said in Bangkok Post. “It’s a significant amount that will help revive the property market and ultimately stimulate the economy through the sector’s multiplier effect.”

Housing affordability crisis persists despite Australian government assistance – REIA

Despite the positive impact of the Home Guarantee Scheme (HGS) on first home buyers, the Real Estate Institute of Australia (REIA) emphasises that the persistent issue of housing stock shortages continues to challenge the Australian housing market.

REIA President Leanne Pilkington stated that while HGS has been beneficial for first home buyers, the lack of housing stock remains Australia’s key issue with REIA’s latest Housing Affordability Report showing the average loan repayment now amounts to 48.1 percent of the median family income, 1.3 percentage points more than last quarter.

“The HGS has helped many Australians into home ownership, but high interest rates and inflation continue to pose significant challenges,” Ms Pilkington said in The Real Estate Conversation. “REIA’s latest HAR showed the number of first home buyers increased to 30,636—an 18.6 percent rise from last quarter, and 7.2 percent more than in June 2023. First home buyers now make up 36.6 percent of owner-occupier dwelling commitments, a slight decrease of 0.1 percentage points over the quarter but a 0.1 percentage point increase over the year.”

Ms Pilkington acknowledged, however, that “while this is good news, many Australians are still struggling.”

The Property Report editors wrote this article. For more information, email: [email protected].