JOHOR REAL ESTATE MARKET OUTLOOK

2018

PREPARED BY:

LIEW TOH SENMABEST PROPERTIES

• 9 major towns in Johor• 4 major towns in Iskandar

Malaysia (IM) – Red dotted Line

KULAI

Number And Percentage Of Transactions By Price Range For The Principal Property Sub-Sectors Q3 2016 vs Q3 2017

PRICE RANGE QUARTER Residential Commercial Industrial Agricultural Development Others Total

No. %

0 - 50,000 Q3 2016 282 5.0 13 1.5 2 1.4 294 15.3 58 18.8 0 ND 649

Q3 2017 298 5.3 48 5.6 43 30.1 265 13.8 45 14.6 0 ND 699

50,001 - 100,000 619 11.0 27 3.2 0 0.0 382 19.9 43 14.0 0 ND 1,071

826 14.7 58 6.8 0 0.0 315 16.4 59 19.2 0 ND 1,258

100,001 - 150,000 549 9.8 178 20.8 3 2.1 258 13.4 28 9.1 0 ND 1,016

629 11.2 91 10.7 2 1.4 241 12.5 37 12.0 0 ND 1,000

150,001 - 200,000 535 9.5 79 9.3 5 3.5 200 10.4 17 5.5 0 ND 836

574 10.2 50 5.9 10 7.0 195 10.1 17 5.5 0 ND 846

200,001 - 250,000 544 9.7 70 8.2 3 2.1 131 6.8 7 2.3 0 ND 755

549 9.8 50 5.9 4 2.8 151 7.8 20 6.5 0 ND 774

250,001 - 300,000 522 9.3 34 4.0 2 1.4 123 6.4 13 4.2 0 ND 694

582 10.4 49 5.7 3 2.1 120 6.2 6 1.9 0 ND 760

300,001 - 400,000 912 16.3 80 9.4 7 4.9 153 8.0 23 7.5 0 ND 1,175

937 16.7 80 9.4 10 7.0 219 11.4 32 10.4 0 ND 1,278

400,001 - 500,000 618 11.0 74 8.7 9 6.3 113 5.9 18 5.8 0 ND 832

686 12.2 84 9.8 12 8.4 120 6.2 15 4.9 1 ND 918

500,001 - 1,000,000 897 16.0 196 23.0 23 16.1 193 10.0 32 10.4 0 ND 1,341

892 15.9 182 21.3 48 33.6 252 13.1 55 17.9 0 ND 1,429

1,000,001 & Above 133 2.4 103 12.1 89 62.2 77 4.0 69 22.4 0 ND 471

156 2.8 99 11.6 88 61.5 80 4.2 76 24.7 1 ND 500

Total 5,611 854 143 1,924 308 0 8,840

6,129 791 220 1,958 362 2 9,462

% Change Number of Transactions by Price Range for the Prinsipal Property Sub-Sectors Q3 2016 vs Q3 2017

PRICE RANGE QUARTER Residential Commercial Industrial Agricultural Development Others Total

0 - 50,000 Q3 2016/Q3 2017 5.7 269.2 2,050.0 -9.9 -22.4 ND 7.7

50,001 - 100,000 33.4 114.8 ND -17.5 37.2 ND 17.5

100,001 - 150,000 14.6 -48.9 -33.3 -6.6 32.1 ND -1.6

150,001 - 200,000 7.3 -36.7 100.0 -2.5 0.0 ND 1.2

200,001 - 250,000 0.9 -28.6 33.3 15.3 185.7 ND 2.5

250,001 - 300,000 11.5 44.1 50.0 -2.4 -53.8 ND 9.5

300,001 - 400,000 2.7 0.0 42.9 43.1 39.1 ND 8.8

400,001 - 500,000 11.0 13.5 33.3 6.2 -16.7 ND 10.3

500,001 - 1,000,000 -0.6 -7.1 108.7 30.6 71.9 ND 6.6

1,000,001 & Above 17.3 -3.9 -1.1 3.9 10.1 ND 6.2

Total 9.2 -7.4 53.8 1.8 17.5 ND 7.0

Positive trend for 500k and below

•There is an increase in number of residential property transactions in the price range of RM 500k and below

•The only downtrend is in the range from RM500k to RM 1 million but by a minimal margin of 0.6%

•Properties priced above RM 1 million are also seeing a positive increase in numbers

•Overall we are seeing a growth in 2017 in comparison with 2016

Residential65%

Commercial8%

Industrial2%

Others25%

COMPOSITION OF REAL PROPERTY TRANSACTION IN Q3 2017

Residential Commercial Industrial Others

• Residential properties is the most preferred choice for the real estate purchasers and investors.

• 25% of other transactions consists of Agricultural and Development properties.➢ Indicate a strong

interest in land bank acquisition for potential future development and investment.

Iskandar Malaysia

65%

Batu Pahat11%

Muar8%

Others16%

MARKET SHARE BY TOWNS FOR RESIDENTIAL PROPERTIES IN Q3 2017

• Out of the residential property market, Iskandar Malaysia* emerged top at 65% with 3855 transactions for the quarter.

• Population growth in IM due to:➢ Inflow of other states and countries➢ More business and job opportunities

in IM➢ Preferred investment location

comparing with neighbouring countries due to attractive incentives offered by govt.

• Batu Pahat and Muar stands at 19% with 1127 transactions.➢ Stipulated by HSR City

Transformation Program (CTP), briefings and workshops on Apr –Sep 2017.

*Total number of residential property transactions = 6,129 unitsIskandar Malaysia (IM) -> Johor Bahru (3,118), Kota Tinggi (154), Kulaijaya (451), Pontian (132)

50k - 300k57%

300k - 500k26%

500k - 1M15%

1M above2%

PRICE RANGE OF RESIDENTIAL PROPERTIES TRANSACTED IN Q3 2017

• As smaller size housing such as studio units, 1 bedroom and affordable housing such as PR1MA emerging from the market, there is a bigger take up rate for the pricing range from 50k to 300k.

• Property price range from 400k to 700k in Johor is still high in demand as the public is recognizing as the affordable and acceptable purchase price level.% of change in price range (Q3-2016 vs Q3-2017)

300k to 400k 11%500k to 1 Million 7%> 1 Million 5%

Iskandar Malayisa

53%Muar18%

Batu Pahat12%

Others17%

MARKET SHARE BY TOWNS FOR COMMERCIAL PROPERTIES IN Q3 2017

• Iskandar Malaysia (IM) is at the top of the commercial property transactions with mainly 2 to 3.5 storeys shop offices representing the numbers and a portion are from Hotels

• Muar is at second position purely with shop offices transactions

• Batu Pahat’s commercial market seems to slow down with only 12% market share

• Shop offices are still the core of the total transactions in the commercial properties segment

• Contributing Factors:➢ HSR➢ Increase in Job Opportunities➢ Increase in Economic Activities

Iskandar Malaysia

52%Batu Pahat20%

Muar24%

Others4%

MARKET SHARE BY TOWNS FOR INDUSTRIAL PROPERTIES IN

Q3 2017

• Breakdown on types of Industrial Properties:➢ 39% - Semi Detached and

Detached Factories➢ 28% - Terrace Factories➢ 33% - Industrial Vacant Lands

• Comparing to Q3 2016, there is an increase of 54% in total industrial transactions:➢ 7 times increase in number of

industrial vacant land in Muar➢ 4 times increase in number of

Detached Factories in BatuPahat

➢ 100% increase in number of Terrace Factories in IM

2018 MARKET O U TLO O K

Iskandar Malaysia

23,91225,681

14,54713,556

10,5708,701

2013 2014 2015 2016 3Q2016 3Q2017

33,454

28,052

24,439

20,411

15,11913,675

2013 2014 2015 2016 3Q2016 3Q2017

O V ERALL PRO PERTY M ARK ET PERFO RM AN CE

YoY Changes 9.6% YoY Changes 17.7%

Volume of Transactions Value of Transactions

I S K A N D A R M A L A Y S I A

Column1

1,3481,151

Commercial

3,741

3,024

2,379

1,903

21,22819,385

16,281

12,14910,856

Residential

26,489 896

811 796

509

336 364

Industrial

V O LU M E O F TRAN SACTI O N S

YoY Changes 10.6% YoY Changes 14.6% YoY Changes 8.3%

I S K A N D A R M A L A Y S I A

10,335

5,428

2,6062,166

1,738 1,813

7,063 6,8966,203

4,561 4,407

Residential Commercial

11,079

1,9171,834

1,713

1,2621,097

Industrial

2,354

V ALU E O F TRAN SACTI O N S

YoY Changes 3.4% YoY Changes 4.3% YoY Changes 13.1%

I S K A N D A R M A L A Y S I A

Commencement of the

KL-SG HSR

Launching of the first

HSR Express service

which will reduce

journey time from Kuala

Lumpur to Singapore to

only 90 minutes.

Year

2026

HSR KL-SG

I S K A N D A R M A L A Y S I A

I S K A N D A R M A L A Y S I A

Singapore & Malaysia

ministers agree to start

MRT service by 2024, and

to jointly appoint an

operating company to run

and maintain the cross

border line’s operating

systems, which include its

trains, tracks and signaling

system.

The RTS can carry up to

10,000 passengers an

hour in each direction

RTS Singapore - JB

Landed

Resi

High

Rise

Resi

Purpose

Built

Office

Shop

officeRetail Hotel Industrial

OVERALL MARKET OUTLOOK FOR ISKANDAR MALAYSIA IN 2018

2017

2018 UPTREND

DOWNTREND NEUTRALDOWNTREND NEUTRALNEUTRAL NEUTRALNEUTRAL

NEUTRAL NEUTRAL NEUTRAL NEUTRAL UPTRENDDOWNTREND

Landed

Resi

High

Rise

Resi

Purpose

Built

Office

Shop

officeRetail Hotel Industrial

OVERALL MARKET OUTLOOK FOR JOHOR IN 2018

2017

2018 UPTREND

UPTREND NEUTRALDOWNTREND NEUTRALNEUTRAL NEUTRALNEUTRAL

NEUTRAL NEUTRAL DOWNTREND NEUTRAL UPTRENDDOWNTREND

CONCLUSION• Properties located at high density population and matured areas are still well sought

after despite market slow down for the past 2 years

• Property buyers and Investors are regaining confidence and market showing positive sentiments

• Property market movement starts to pick up with positive uptrend however at a slow and steady pace

• Commercial and Industrial properties are picking up as property investors are refocusing back onto their own business expansions

• Good potential and prospect in the long term future

• Johor’s property market outlook will be even more positive with mega infrastructure developments i.e HSR & RTS in place

I S K A N D A R M A L A Y S I A