17/07/2025

PROPERTY THURSDAY | JULY 17, 2025

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Homebuyers redefine value amid shift in mindset

SSF Home posts softer full-year financial results

diversification, and sustainability, positioning ourselves to adapt swiftly and effectively to market changes,”Tan said. On shareholder returns, he said the company was actively reviewing its capital allocation strategy, including the possible introduction of a structured dividend policy, balancing prudent reinvestments with shareholder rewards. “Despite global economic uncertainties, we remain optimistic about Johor’s property market outlook, driven by sustained regional growth initiatives. PGB remains committed to resilience, diversification, and sustainability, positioning ourselves to adapt swiftly and effectively to market changes,” concluded Tan. Looking ahead, the group stays cautiously optimistic, backed by 6% growth in Malaysia’s services sector in Q1’25. The ongoing improvement in wage levels and household incomes, alongside fiscal support such as the civil servant salary revisions and higher minimum wages, is expected to sustain consumer spending momentum. SSF will continue capitalising on this favourable environment through rebranding, store modernisation, and digital outreach. KUALA LUMPUR: SSF Home Group Bhd, a retailer in furniture, home décor, and home living products, recently announced its financial results for the fourth quarter ended April 30, 2025 (Q4’25), concluding the financial year with total revenue of RM152.5 million and rofit after tax (PAT) of RM5.9 million. In Q4’25, the group posted revenue of RM50.9 million, a slight improvement from RM50.6 million in the corresponding quarter last year. This growth was mainly attributed to increased contributions from newly launched outlets. PAT for the quarter stood at RM5.95 million, marginally lower than RM6.2 million in Q4’24, impacted by changes in sales mix and higher depreciation charges from Right-of-Use assets arising from new store openings. Despite a more moderate full-year perfor mance, SSF continued to advance operationally in FY25, supported by resilient consumer demand, strategic pricing, and effective marketing execution. Revenue for the year declined slightly by 7.3% from RM158.9 million in FY24, mainly due to a softer first half. Correspondingly, PAT eased to RM5.9 million from RM7.2 million previously. On a quarter-on-quarter basis, SSF delivered robust growth across all key metrics. Revenue increased by 28.3% to RM50.61 million in Q4’25, compared to RM39.45 million recorded in the immediate preceding quarter (Q3’25), primarily driven by festive season demand and contributions from newly opened stores. PAT jumped 643.8% to RM5.95 million from RM0.8 million in Q3’25. This strong performance reflects the group’s ability to leverage seasonal momentum, expand its retail footprint, and enhance operational efficiencies. Throughout FY25, SSF expanded its store network to more than 40 outlets nationwide, including the launch of its Glenmarie flagship SSFHOME Garden outlet, which reflects its vision to transform the home retailing experience through immersive, lifestyle-driven formats. SSF Home Group Bhd executive director Lok Kok Khong said,“FY25 has been a year of resilience and recalibration for SSF. While the operating environment presented challenges, we continued executing our strategic plans, expanding into key urban centres, uplifting the retail experience, and aligning closely with evolving consumer behaviours. Our performance reflects strong value positioning and rising brand relevance in Malaysia’s home living market.”

AT FIRST glance, Malaysia’s residential property market may appear quiet, but beneath the surface, a meaningful transformation is under way: a fundamental shift in how Malaysians approach property ownership. Today’s buyers are intentional, value focused, and sharply attuned to economic signals. The optimism of past years has given way to a more measured mindset shaped by global volatility, domestic caution, and a widening disconnect between asking prices and buyer expectations. This is not a retreat from the market; it is a recalibration. Malaysians are still buying, but with greater purpose and scrutiny. Supply expands, buyer expectations refocus According to the Property Market Q1’25 Snapshots by National Property Information Centre (Napic), residential construction jumped by 30.2% year-on-year (YoY), an expression of developer confidence. Yet, transaction volume and value fell 6.2% and 8.9%, respectively, highlighting a growing misalignment between supply and demand. This shift is not rooted in economic weakness. With policy interest rate steady at 3% and inflation down to 1.4% in April, Malaysia’s fundamentals remain stable. But instead of acting on optimism, buyers are choosing caution. It is a clear signal: affordability today is no longer just about price; it’s measured by perceived value. Bridging the price gap through buyer alignment Differences between current residential offerings and evolving buyer preferences are becoming more noticeable across key regions. In Kuala Lumpur, high-rise homes took the biggest hit, with prices dropping 7.3% quarter on-quarter, which was the steepest decline among property types. According to Napic, overhang grew 14.8% year-on-year, with unsold units mostly being condominiums priced between RM200,000 to RM300,000. However, data from PropertyGuru Malaysia for April 2025 indicates that the condominium market is stabilising towards an equilibrium, showing only a slight month-on-month decrease in demand of 0.7% for condo miniums.

Bahru, aimed at enhancing customer engagement and centralising sales activities across its diverse project portfolio. Tan highlighted the strategic advantage of Paragon Globe’s industrial projects – Desa 27 and Desa 100 – which are ideally located to leverage the Johor-Singapore Special Economic Zone (JS SEZ). These projects have attracted prominent multinational tenants, including Hunter Amenities International and Meiban Technologies. Despite global economic uncertainties, Tan expressed optimism about Johor’s property sector, buoyed by initiatives such as the JS-SEZ and the Johor-Singapore Rapid Transit System Link. “PGB remains committed to resilience, 0 Selangor is a standout. Terraced homes continue to outperform, with demand rising 2.7% year-on-year and overhang falling 40%, according to Napic. This points to a healthy alignment between supply and real buyer appetite. 0 In Penang, condominium interest surged 9.1% year-on-year, buoyed by better connectivity and more competitive pricing, highlighting the positive impact of infrastructure upgrades like the upcoming LRT Mutiara Line. 0 Meanwhile, in Johor, the story is more nuanced. Napic data shows a 3.2% year-on year increase in the All-Housing Price Index, led by high-rise and terraced homes. However, the price growth appears to be dampening sentiment, with declining demand suggesting that affordability concerns are weighing buyer decisions. These shifts tell us something important: buyers haven’t exited the market. They are just more focused on finding real value. Developers are reimagining value in real time As buyers become more measured and data driven, developers are also evolving their strategies to stay aligned. The traditional playbook of driving volume or focusing solely on premium segments is being rebalanced to meet a market increasingly shaped by value conscious demand. Success now lies in realistic pricing, particularly in the resilient RM500,000 to RM800,000 bracket. Homes within this range continue to see steady interest, especially when paired with strong connectivity and well-designed, liveable environments. Transit oriented developments and communities with integrated green spaces are emerging as long term favourites among buyers. Equally important is understanding the new pace of decision-making. Buyers are being more deliberate, investing time in research, comparisons, and consultations before committing. In this era of intentional ownership, developers who align with value driven demand through realistic pricing, livability, and accessibility are well-positioned to thrive. At PropertyGuru, we continue to support our partners with timely market insights and actionable data to help them better anticipate buyer behaviour, optimise offerings, and drive stronger outcomes across all segments. This article is contributed by

practical homes. Across most segments, caution dominates mark-to-market activity amid ongoing economic uncertainty. Penang continues to attract attention, especially in the condominium segment. PropertyGuru Malaysia’s April 2025 data showed a 9.1% increase in condominium listing views, driven by infrastructure developments such as the LRT Mutiara Line. However, Napic data indicates a decline in transactions for homes priced above RM1 million, reflecting growing resistance to premium price points. Johor is shaping up as a market where rising prices are starting to test buyer patience. Napic reports an 8.7% year-on-year increase in high rise prices for Q1’25. Correspondingly, PropertyGuru Malaysia’s April 2025 data shows a 19.5% year-on-year decline in interest for serviced residences, with overall views for non-landed homes also trending downward. Like the non-landed property types, demand for landed property types also decreased YoY. The rise of the value-conscious buyer A dip in the demand index does not mean buyers have disappeared. In fact, they are just more selective.

Selangor, meanwhile, tells a different story. According to Napic data, the price gap is widening in the apartment and serviced residence segments, but savvy buyers remain active when value aligns with expectations. Overhang fell nearly 40% year-on-year, signalling strong movement in well-priced, Paragon Globe eyes strong growth from industrial, residential segments According to April 2025 data from PropertyGuru Malaysia, apartment views fell 14.1% while semi-detached homes dropped 21.4% year-on-year. Yet, property types that strike a smart balance between price, location, and lifestyle are defying the trend. Some even gain traction. PropertyGuru & iProperty country manager Malaysia, Kenneth Soh (pix).

PETALING JAYA: Johor-based property developer Paragon Globe Bhd is positioning itself for sustained growth in the industrial and residential sectors, supported by strategic projects and the state’s buoyant economic prospects, following a record-breaking financial performance in its recently concluded financial year. For the financial year ended March 31, 2025, Paragon Globe achieved a net profit of RM105.6 million, reversing the previous year’s net loss of RM1.2 million. Revenue surged to RM306.3 million from RM51 million the year before, primarily driven by strategic land disposals and robust industrial property sales. Paragon Globe executive chairman Datuk

Seri Edwin Tan Pei Seng said the strong performance was largely attributable to a RM337.3 million disposal of 67.6 acres of industrial land at Desa Cemerlang to Bridge Data Centres. “Apart from strategic land sales, we experienced high demand for industrial developments at Pekan Nenas, significantly contributing to our earnings,” he added. “Looking ahead, our growth will be underpinned by residential launches such as Calia Residences and The Iconic at Stulang Laut, along with continued industrial projects.” Paragon Globe recently opened its flagship RM10 million PGB Experience Gallery in Johor

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