15/01/2026

PROPERTY THURSDAY | JAN 15, 2026

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Rehda forecasts modest price movements this year

Construction sector to enter high-value growth phase, says Nippon Paint KUALA LUMPUR: Malaysia’s construction industry is expected to enter a new phase of high-value growth in 2026, driven by infrastructure completion, industrial expansion, and rising lifecycle demands from ageing buildings, according to Nippon Paint Malaysia. According to the Department of Statistics Malaysia, the value of construction work done increased by 12.9% year-on-year in Q2’25, indicating healthy activity across the infrastructure, commercial, and residential segments. Furthermore, economic forecasts indicate that the Malaysian construction sector is projected to sustain robust growth of approximately 6.1% in 2026. This upward trend, coupled with the strategic direction and capital expenditure allocated under the 13th Malaysia Plan (2026-2030), points to another promising period, characterised by a pivot towards high value, specialised projects. “Nippon Paint Malaysia foresees steady growth in 2026, underpinned by infrastructure projects reaching key milestones, industrial expansion and advanced manufacturing, and continued demand for residential refurbishment,” said general manager Tay Sze Tuck. He added that as Malaysia continues to urbanise and attract foreign investment, their focus is on providing integrated Total Coating & Construction Solutions (TCCS) that meet the sector’s evolving needs, from durability and safety to sustainability and long-term performance. Government policies on infrastructure, industrialisation, and sustainability continue to spur growth. Large-scale projects such as the East Coast Rail Link and Rapid Transit System Link are advancing into final structural, finishing, and systems phases, where demands evolve beyond civil works to specialised materials. Tay shared, “As these mega-projects progress, they require reliable drymix mortars, waterproofing systems, flooring, architectural and protective coatings, and sealant adhesive fillers that must work as a compatible, engineered system.” Budget 2026 allocates RM81 billion towards public development, reinforcing demand for materials that reduce long-term maintenance costs and support Total Cost of Ownership objectives. Malaysia’s industrial property segment spanning manufacturing, warehousing, and cold-chain logistics is accelerating in line with the country’s ambitions to strengthen supply chain resilience and advanced processing. integrated, transit-oriented developments within mature townships, while our expansion into George Town reinforces our confidence in Penang’s continued growth as a regional hub for investment and tourism,” he said. The group said all projects will be guided by its design and development architecture framework, which incorporates sustainability, innovation, health and wellness, and lifestyle considerations. “Sunway will collaborate closely with local stakeholders and planning authorities to ensure the projects meet the highest benchmarks of quality, safety, and environmental responsibility, in line with the group’s vision of creating thriving, future-ready communities,” it said. – Bernama

PETALING JAYA: Malaysia’s property sector is expected to see modest price movements in 2026, as developers grapple with rising construction costs while remaining cautious about affordability and buyer sentiment, according to Rehda Malaysia president Datuk Ho Hon Sang. Speaking on the sidelines of the Rehda Institute CEO Series 2026 briefing recently, Ho said most residential developers are unlikely to pass on the full extent of cost increases to buyers, given financing constraints and market realities. “Based on feedback from our members, it is not easy to simply increase selling prices. Developers have to consider affordability, bank support and whether buyers can actually secure financing,” he said. Ho estimated that construction costs could rise by about 2% to 3% due to a combination of factors, including higher operational costs, enforcement against overloaded lorries, and regulatory measures such as the expanded sales and service tax. However, he said, selling prices are likely to increase by a more subdued 1% to 2%, depending on project type, location and individual developers’ business models. “Certainly not 10% or 20%. Perhaps 1% to 2% is enough to cover additional costs, depending on circumstances,” he said. Ho noted that Malaysia remains relatively fortunate in terms of construction material availability, as most materials used in standard projects are sourced domestically. “Most construction materials are easily available locally,” he said, adding that domestic supply has generally supported industry needs. Nevertheless, he acknowledged concerns raised by the prime minister regarding potential cartels and rising material costs, which could affect end-product affordability. In response, the government has indicated o Residential developers mindful of affordability and sentiment, unlikely to pass on higher costs in full to buyers, says president Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

Ho (right) says developers remain cautious about passing on higher construction costs to buyers, with home prices expected to see only small increases this year. – BERNAMAPIX

to afford the units,” he said. Ho also touched on urban renewal, noting that Rehda has submitted a position paper to the government outlining its views on the Urban Renewal Act. He stressed that urban renewal should be owner-driven rather than developer-centric, with property owners playing a central role in determining outcomes through engagement with local authorities. “The key consideration for owners is whether they are getting the best value for their property. Developers should only come in at the back end, after owners have set their terms,” he said. According to Ho, mischaracterising the URA as a developer-driven initiative risks undermining efforts to address deteriorating urban housing stock, particularly for owners trapped in ageing and dilapidated buildings. “If you require 100% consent, there is no way out for many of these owners. They will remain stuck in unsafe conditions indefinitely,” he said. Looking ahead to 2026, Ho said, the property sector’s performance will hinge on cost discipline, financing support and broader economic stability, with developers prioritising sustainability over aggressive expansion. “The focus now is on resilience, affordability and long-term viability,” he said.

The group said the land, which has direct access to the Damansara-Puchong Expressway and Shah Alam Expressway, is earmarked for a mixed-use development with an estimated GDV of RM770 million, comprising serviced apartments and neighbourhood retail components. Separately, Sunway via its wholly owned unit Rich Worldclass Sdn Bhd, acquired a 0.45ha freehold parcel in USJ 1 for RM21 million. The group said the parcel adjoins its existing 0.81ha of freehold land in the area, allowing it to consolidate about 1.26ha of land near the USJ 1 Bus Rapid Transit (BRT) station. “The consolidation allows Sunway to plan a comprehensive, transit-oriented development it may consider relaxing import rules for certain essential construction materials to introduce price competition and ease cost pressures. “The purpose of allowing imports is to put a lid on high local prices. If imported materials are more competitive, it helps keep construction costs under control,” Ho explained. He said materials such as steel bars and cement, which are widely used in construction, could potentially be sourced more competitively from abroad, depending on country of origin, quality standards and regulatory approvals. “At this stage, it’s difficult to quantify the exact price differential. It depends on quality, certification and where the materials are sourced from,” he said. Ho also cautioned that importing materials may ultimately serve as a signal to local producers to remain competitive, rather than becoming a permanent solution. Turning to the broader outlook, Ho said developers are taking a highly measured approach to pricing decisions, particularly in the residential segment, as banks remain cautious and buyers remain sensitive to price changes. “This is a live business environment. If prices are pushed too high, banks may not support financing and buyers may not be able

Sunway buys land in Selangor, Penang for RM180 million KUALA LUMPUR: Sunway Bhd has acquired three land parcels in Selangor and Penang for RM179.8 million as part of efforts to replenish its development landbank and strengthen its future project pipeline. acquire a 2.74ha leasehold parcel in Puchong, Selangor, for RM97.3 million. that enhances liveability, connectivity, and long term community value,” it said. In George Town, Penang, Sunway via its unit Sunway Bintang Sdn Bhd acquired a 0.42ha freehold parcel along Jalan Pangkor for RM61.45 million.

In a recent statement, the group said the acquisitions involved sites in Puchong and USJ 1 in Selangor, as well as George Town in Penang, with a combined land area of about 3.62ha and an estimated GDV exceeding RM1 billion. “The acquisitions align with Sunway’s strategy to expand its footprint in high-demand urban centres and deliver well-connected, sustainable communities,” it said. Sunway via its subsidiary Sunway Kiara Sdn Bhd has entered into a sale and purchase agreement with Glomac Al-Batha Sdn Bhd to

The group said the site, located about 500m from Gurney Bay, has an estimated GDV of approximately RM274 million and is intended for a mixed-use development comprising serviced apartments and retail components. Sunway Property managing director Chung Soo Kiong said the acquisitions are part of the group’s long-term strategy to strengthen its presence in key growth corridors while replenishing its landbank. “Puchong and USJ 1 will allow us to introduce

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