Melaka Property Market Review 2016/2017
RAHIM & CO INTERNATIONAL SDN BHD reports market activity and trends for both the residential and office sub-sectors in 2016/2017.
Supply of residential units in Malacca slightly dropped by 0.1% in the first three-quarters of 2016 compared to a similar period in 2015. A smaller decrease was recorded in transaction value at 18.1% in 3Q 2016 in comparison to the drop experienced in 3Q 2015 which was recorded at 24.6%. In line with the slowdown of transaction volume, its v alue also followed with a 9.2% decrease. Prices have shown some increase whereby a 1-storey terraced house in Melaka Tengah averages from RM200,000 to RM250,000 and above in good locations.
Limited new developments are seen within the Melaka old town since it is gazetted as a UNESCO World Heritage Site to preserve its historical value. Being a long-running popular tourist spot in Malaysia, Melaka old town is well known amongst the local and international tourists as a must-visit destination. An established residential scheme found nearby is Kota Laksamana Raya where a 2-storey terraced house is currently selling at RM450,000 to RM600,000 depending on its built-up area.
A similar type in other areas such as Bukit Katil, Batu Berendam and Cheng could fetch between RM300,000 to RM400,000. Prominent landed schemes to note are Taman Kota Laksamana, Taman Ozana Impian and Taman Saujana.
A few high-rise residential could be found in the new town near Mahkota Parade and Bandar Hilir. Some established schemes include Costa Mahkota, Garden City Apartments and Casa Lago Condominiums.
Prices for Costa Mahkota condominium are able to reach RM300,000 to RM330,000 whilst Garden City Apartments ranges from RM210,000 to RM230,000. Several projects currently under construction are taking place outside the heritage boundary especially those near to the shores of Malacca Straits and fronting beaches.
A few significant projects to note are Hatten City in Malacca city centre, Melaka Gateway and Harbour City in Pulau Melaka. There are other large projects seen in Klebang along the coastal line such as Marina Point and Cheng Ho City. Recently, Silverscape Condominium within Hatten City was newly completed and currently asks for about RM450,000 for its smaller units of 515 sq ft.
In Alor Gajah, Eco Kasa Heights was completed in 2016 with more than 300 units including 2-storey cluster houses and 2-storey semi-detached houses. Each of these 2 types is selling from RM376,000 and RM410,000 respectively.
The state is currently targeting a total of 57,503 affordable homes or also called “Rumah Mampu Milik” (RMM) by 2023. Of the total amount, about 27,000 units of the RMM homes will be constructed by state government agencies while another 30,000 more will be completed by private developers. To date, it was announced that 10,704 units were being constructed while 5,929 units have been completed.
Overall, the supply of shop offices in Malacca remains unchanged in the first three-quarters of 2016. Transaction activities of shop offices have slowed down as reflected by the 26.2% drop in the same period.
The main thriving commercial spot remains in Malacca new town whereby a 2-storey shop office in the prime area is currently tagged around RM400,000 to RM630,000. In other areas, prices of a similar type would range from RM250,000 to RM300,000.
Currently, there is limited new supply observed on the ground as most new commercial projects involve retail centres and hotels.
High rise office market in the state remains stagnant with total supply maintaining at 4.29 million sq ft. Due to limited high-rise office spaces, the average occupancy rate of these offices is able to fetch a stable rate of 81.4%. Several high-rise offices are noticed along Jalan Hang Tuah, Jalan Tun Seri Lanang and within Ayer Keroh town.
Rental rate of offices within these areas can reach an average of RM1.60 PSQ FT to RM2.20 PSQ FT whilst higher ranges are found for those in Ayer Keroh, commanding between RM2.50 PSQ FT to RM3.00 PSQ FT