KUALA LUMPUR: Affordability remains a major issue in the property market, with the median house price at RM335,000 while average monthly salary at around RM3,000 to RM3,500.

Kenanga Investment Bank Bhd (Kenanga Research) said in its note that this gap challenges many Malaysians, particularly first-time home buyers under 35 years of age.

National Property Information Centre’s (Napic) data in the second quarter of this year shows that residential overhang is now at 127,180 and concentrated in Johor, Kuala Lumpur, and Selangor.

This is a 3.0 per cent increase from 125,362 units in the first quarter.

While 63 per cent of new properties are priced below RM500,000, a significant portion of overhang units are priced below RM300,000.

“This suggests that despite the efforts to introduce more affordable housing options, many Malaysians, particularly younger buyers, still face challenges in purchasing homes due to insufficient income levels, difficulty in securing home loans, and rising cost-of-living expenses,” Kenanga Research said in a note.

According to the firm, increasing overhang units, particularly those priced below RM300,000, highlights the affordability crisis even in this lower price range.

It added that the concentration of overhang units in Johor, Kuala Lumpur, and Selangor suggests that the imbalance in housing demand and supply is more pronounced in urbanised regions, where land costs and demand pressures are higher.

Therefore, Kenanga Research noted that the gap between available housing and what first-time homebuyers can afford may call for more targeted government interventions.

Source: NST Online

The head of U.S.-based industrial real estate developer Panattoni has urged India to streamline its land acquisition processes which he said make it difficult for developers to cash in on a warehousing boom in the country.

Foreign and domestic real estate developers are building more warehouses in India to cater to growing storage demand of companies, but land acquisition is often a sticking point in a country where multiple farmers or other people can own a piece of land, and transfer processes are complex and take time.

While India offers opportunities for expansion, “the biggest challenge is land itself – permissions (and) availability of data to acquire land,” said Robert Dobrzycki, CEO of Panattoni, which owns large industrial real estate assets in the U.S., Canada and Europe and entered the Indian market in 2022.

“We would like to do more and more. We would like to maximize the presence. But we are usually limited by external factors” like land availability, Dobrzycki told Reuters in an interview on Friday.

Panattoni has plans to invest $100 million annually in India over the next 2-3 years and is hopeful of signing 3-4 land transactions in 2024. It has previously said it took eight months to complete acquisition formalities for its first complex near New Delhi where construction will start in the coming weeks.

India’s infrastructure drive fuels high demand for land, leaving few plots in good locations, and surging prices hit developers’ returns as rentals fall behind, executives say.

There has been a rush for leased modern warehouse space which hit a two-year peak in the final quarter of 2023, according to real estate firm Colliers, as India’s economic growth continues to outstrip many advanced nations.

Panattoni has embarked on a “west-to-east expansion” starting with India and hopes to also enter Japan, Australia over the next two years, Dobrzycki added.
As well as Panattoni, a Blackstone Indian joint venture and U.S.-based Prologis are also expanding in India.

Source: NST Online

The Philippines aims to have commercially operational nuclear power plants by 2032, with at least 1,200 megawatts (MW) initially entering the country’s power mix, the Philippines’ Department of Energy said Wednesday.

The Philippines unveiled its nuclear energy roadmap at 68th General Conference of the International Atomic Energy Agency (IAEA) held in Vienna, Austria, last week, the department said in its press release.

During the high-level general debate of the IAEA conference, Philippine Energy Undersecretary Sharon Garin described 2024 as a landmark year for the Philippines with the release of its nuclear roadmap, which outlines the country’s path forward using the IAEA’s milestones approach to develop a
nuclear program.

“We aim to have commercially operational nuclear power plants by 2032, with at least 1,200 MW initially entering the country’s power mix, gradually increasing to 4,800 MW by 2050,” Garin said.

Garin emphasized that the Philippines has been actively working to establish an independent nuclear regulatory authority to oversee the safe and secure development of the country’s nuclear energy program.

She further noted that the government is giving high priority to the passage of key legislation focused on nuclear safety, ensuring that the legal and regulatory frameworks are in place to safeguard public health, environmental protection, and national security as the country moves toward harnessing nuclear power.

In November, the Philippines will host the International Nuclear Supply Chain Forum in Manila, bringing government and private sector stakeholders to explore partnership opportunities in nuclear energy.

Source: Xinhua

Food and beverage giant Thai Beverage (ThaiBev) has announced an expansion plan worth 18 billion baht, targeting alcoholic and non-alcoholic drinks, dairy products, food, and sustainability operations.

During a press briefing in Bangkok on Tuesday, chief executive Thapana Sirivadhanabhakdi outlined the company’s six-year strategy, dubbed “Sustainable Growth to Passion 2030”, which focuses on consumer reach and digital transformation.

The first focus, “Reach Competitively”, aims to satisfy customers who tend to switch providers if they have to wait longer than 30 seconds.

The second focus, “Digital for Growth”, aligns with the rising use of smartphones.

Starting next year, ThaiBev will boost investment from 7-8 billion baht to 18 billion baht, said Prapakon Thongtheppairot, president and head of the spirits business.

Of this budget, 9.5 billion baht is earmarked for the non-alcoholic drinks segment, which includes the 8-billion-baht flagship Agri Valley Farm in Malaysia for
dairy production, he said.

ThaiBev will also invest 3 billion baht to establish a beer factory in Cambodia with initial capacity of 50 million litres, and 2.5 billion baht in the spirits business, said Prapakorn.

Finally, 1 billion baht will be used to expand the food business and 2 billion baht for
the group’s sustainability operations.

Songwit Sritham, chief executive of beer business (Thailand), said the Thai beer market is expected to recover to pre-Covid levels of 2 billion litres in 2025, thanks to the rapidly rebounding tourism industry.

“ThaiBev aims to maintain its market leader position next year by expanding its product portfolio to a mass premium group, including Chang Cold Brew, Federbräu, and Chang Unpasteurized,” he said.
Aggressive marketing with innovative technology would place Chang as the No 1 beer in the Thai market, he predicted.

Kosit Suksingha, chief executive of non-alcoholic beverage (Thailand), said he expected to see 2-digit annual growth for ThaiBev following investment in the Agri Valley Farm, citing the high profit margin for dairy products in Thailand and neighbouring countries.

He added that ThaiBev will next year introduce health products under the brand “F&N Nutriwell”, while launching its Oishi green tea and Tea Pot milk brands in Cambodia.

Source: The Nation