These days, we are having an overdose of negative real estate related news right? Now I will share something positive and it is definitely related real estate as well. Let’s talk about the construction industry Malaysia. In 2015, the value of construction jobs in Malaysia was RM124 billion. In 2016, this is expected to hit RM150 billion. According to Penang Master Builders and Building Materials Dealers’ Association (PMBBMDA) immediate past president Datuk Lim Kai Seng, this will help create more than 7,000 jobs this year compared to 6,885 in 2015. More jobs = more people with money to buy properties? Not necessarily but definitely good when more people have jobs.
Datuk Lim added, “The projected increase in value and the number of jobs takes into consideration new mega infrastructure schemes like the light rail transit, mass rapid transit, West Coast Expressway, Central Spine Road, and Pan Borneo Highway in Sabah.” This forecast is in line with the forecast of Works Minister Datuk Seri Fadillah Yusuf who said who expected the growth of the construction industry to be between 8% and 10% in 2016.
According to Chief Minister Lim Guan Eng, Penang would also be having MORE construction jobs to be tendered out and thus creating more jobs. However, value wise it is LOWER because most of the new developments are in the lower gross development value (GDV). Some of the Penang property developers with huge GDVs include Ideal Property (RM4.38bil GDV), Ivory Properties Group Bhd (RM1.8bil GDV), Eastern & Oriental Bhd (RM1bil GDV), and IJM Land Bhd (RM400mil GDV). There are also others such as Eco World Development Group Bhd and Mah Sing Group Bhd and affordable projects by others developers for first-time house buyers.
I think it’s clear that the economy is still moving and the current rout in both the stock market and the ringgit is likely to be triggered by external factors instead our own. In this case, the “awesome” Brexit vs Bremain referendum. Oh yeah, there’s now an online petition for ANOTHER referendum to determine if the first one should be abandoned. Well, for those happily searching fora new home, all the best year. Yes, banks are still approving loans as long as we are not spending more than necessary. Happy believing.
written on 27 June 2016
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