Emkay to launch three projects with RM4.8bil GDV

CYBERJAYA: Property developer EMKAY Group has three new development projects in the pipeline this year, with a combined gross development value of RM4.8 billion.

These include affordable homes, mid-range landed-residential project and a commercial development project, all within Cyberjaya.

The affordable homes project will be the first to be launched, within the next few months, followed by the other two, said Mazrita Mazlan, chief operating officer of Emkay Group.

She said the group currently has a 80-ha landbank in Cyberjaya with very targeted development plans, and it is continuously on the lookout for viable plots of land within the Klang Valley.

Mazrita said this when speaking to the media at Emkay Group's Chinese New Year celebration, where the group's founder Tan Sri Mustapha Kamal was present at the "yee-sang lou sang" (tossing and mixing of yee sang) ceremony as well as witnessed the performance by a lion dance troupe.

At the same event, property consultant Previndran Singhe presented a talks on the property market outlook, where he highlighted that the property sector will experience a soft first quarter this year.

However, he is confident that despite the slowdown due to the implementation of the likes of the real property gains tax and Bank Negara Malaysia's 2013 guidelines to curb household loans, the price of properties will remain buoyant.

"The reason the government has put in these measures in place was to control the escalating property prices. I don't think these measures are going to do anything because it is not answering the fundamental question of the market, which is supply," he said.

Previndran's solution to bringing property prices down is to flood the market with houses.

The massive MRT project in Klang Valley is also expected to have a big, positive impact on the Klang Valley market as it boosts property prices around locations near the stations.

Similarly, the proposed high speed rail between Singapore and Malaysia is also expected to increase demand for properties.

On the commercial property front, Previndran said new office spaces will continue to enjoy a good take-up rate as tenants -- both new (e.g. financial services, oil and gas services) and established businesses -- will prefer moving into new office buildings and abandon old office buildings.

Interestingly, an increasing number of old office buildings, he noted, are being converted into hotels and budget hotels (e.g. Wolo Hotel) in Klang Valley or being renovated into new office building.