THE property market in Kelantan firmed up in the first half of last year (H1 2016), and is one of the states that recorded positive growth.
According to the “H1 2016 Property Market Report” published by the National Property Information Centre (Napic), there were 6,447 transactions recorded totalling RM651.23 million, up by 38.2 per cent and 17.8 per cent in volume and value, respectively, against H1 2015.
The agricultural sub-sector spearheaded the market performance with 44.5 per cent of the total market share, followed by residential, development land, commercial and industrial sub-sectors with 41.2, 10.2, 3.9 and 0.2 per cent of market share, respectively.
Market activity across all sub-sectors showed positive movements. The agricultural sub-sector recorded the highest increase of 69.1 per cent, followed by residential (21.9 per cent), commercial (16.7 per cent), development land (16.5 per cent) and industrial (9.1 per cent) sub-sectors. In terms of value, all sub-sectors except industrial sub-sector saw similar uptrend.
Prices for residential properties were generally stable with an upward trend noted in selected locations. Construction activity was livelier in the sub-sector as seen from the rising numbers of completions and starts.
Completions recorded 1,189 units, up by 59 per cent while starts increased by 57.4 per cent with 1,247 units. However, new planned supply chartered a 59.4 per cent reduction to 301 units.
Several upcoming residential projects in Kelantan are:
• Troika Residence, a condominium project in Jalan Sultan Ibrahim and Jalan Mahmood, Kota Baru.
• Tijani@Raja Dewa, a mixed development project in Jalan Kuala Krai, comprising serviced apartments , three-storey semi-detached and three-storey super link terraced houses.
• Prima Lagenda Lifestyle Apartment, a serviced apartment project in Bandar Baru Tunjong, Kota Baru.
• Al-Waqf Garden, a serviced apartment project in Jalan Kuala Krai adjacent to the proposed Mydin Mall site.
The 1Malaysia People’s Housing Programme (PR1MA) projects approved by the Federal Government in Kelantan are:
• Prima@Lubok Jong, Pasir Mas, built on 51.4ha Malay Reserve land with a leasehold of 99 years, which will comprise 1,669 units of single- and double-storey terraced houses, double-storey semi-detached houses and apartment units.
• Prima@Tok Bali, Pasir Puteh, built on 15.3ha of freehold land, comprises 500 units of single and double storey terraced houses.
• Prima@Kok Lanas Zon, Pasir Puteh.
The office sub-sector in the state sustained its firm performance as last year’s, with an overall occupancy of 97.1 per cent. New office developments comprised only one building (4,608 sqm) which has commenced construction. As at the end of H1 2016, there were 287 existing purpose-built offices (381,462 sqm) with the two other buildings (13,060 sqm) in the coming supply.
Similar to the previous year’s trend, office space on upper floors of suitably located traditional shophouses/shop offices remained the most preferred by tenants. The first floor rentals of traditional shophouses in Kota Baru ranged from RM10 to RM12 per sq m per month while the second floor rentals ranged from RM6 to RM8 per sq m per month. The upper floors rentals of purpose-built office buildings ranged from RM16 to RM27 per sqm per month (inclusive of service charges) depending on size, level and location.
In the shop sub-sector, prices and rentals of shops were generally stable. Prices of two- and three-storey shophouses located in the prime area of Kota Baru is in the region of RM500,000 to RM700,000 and RM900,000 to RM1,100,000, respectively, while prices of similar properties in secondary areas ranged from RM380,000 to RM450,000 and RM650,000 to RM750,000, respectively.
Rentals of ground floor shops ranged from RM2,500 to RM6,000 per month, or RM19 to RM46 per sqm, per month, with premium rental recorded in Jalan Pintu Pong and Jalan Parit Dalam.
In the retail sub-sector, the performance strengthened with an average occupancy rate of 91.6 per cent against 89.0 per cent in 2015.
The newly completed AEON Mall located in Kota Baru Waterfront City offers 66,877 sqm of new space into the market. As at the end of H1 2016, there were 24 existing shopping complexes with a nett lettable area (NLA) of approximately 287,447 sqm. The upcoming retail centres in Kelantan are:
• Lagenda Galleria with an NLA of approximately 200,000 sqf.
• Al-Waqf Garden Mall with an NLA of approximately 350,000 sqf.
• Giant Hypermarket@Bandar Baru Tunjong (NLA : not available).
• Che Siti Village Mall with an NLA of approximately 490,000 sf.
Generally, the retail rental market remained stable at last year’s level. Kota Bharu Trade Centre (KBTC), KB Mall, Tesco and Podium Block Kota Sri Mutiara registered higher rentals of over RM100 per sqm per month.
With no new supply of industrial sites, the industrial sub-sector has remained quiet for the year. Kelantan has only seven industrial estates located at Pengkalan Chepa, Lundang, Tanah Merah, Lubok Jong (Pasir Mas), Jeli, Kuala Krai and Gua Musang. Pengkalan Chepa is the largest estate covering a total area of about 240ha.
2017 MARKET OUTLOOK
Kelantan’s property market is expected to consolidate this year, backed by the infrastructure projects under the Economic Regional Programme of East Coast Economic Region.
These include the development of port in Tok Bali as well as the Pasir Puteh Integrated Development Project, the construction of Kota Baru-Kuala Krai Highway and a 600km railway line from Kuala Lumpur to Tumpat.
With the completion of these infrastructure projects, it is expected to invigorate the property market activity in the state.
**(Story courtesy of Henry Butcher Malaysia)