Petaling Jaya: Looking ahead to the property market in 2025, urban lifestyle developer Titijaya Land Bhd is expected to see a growing demand for transit-oriented development (TOD) projects as well as a growing appetite for affordable properties with prices ranging from RM300,000 to RM500,000 in response to concerns. Is visible. On inflation and high living costs.
Releasing its market outlook for 2025 today, Titijaya said in a statement that it aims to provide shareholders and industry stakeholders with information on key real estate market trends as well as the group’s strategic direction.
The Group believes it is well-positioned to respond to these key market trends, thanks to its strategic portfolio of ongoing projects and land banks, as well as its focus on innovative and customer-centric real estate developments .
Titijaya Group managing director Datuk Lim Poh Yit said: “As we enter 2025, we see a growing demand for TOD projects, especially among the dynamic young generation of city workers. Well-designed TOD projects offer a vibrant mix of urban living and work experiences that have proven popular in major urban areas in Japan, Hong Kong and Singapore.
He said he is also seeing a wave of development or planning of public transport infrastructure projects across Malaysia, such as the Klang Valley Double Track Phase 2, East Coast Rail Link, Circle Line MRT 3, Light Rail Transit 3 and the Kuala Lumpur-Singapore Highway. Speed Rail as tailwind for TOD segment.
More importantly, he said, the TOD concept is in line with their commitment to environmental, social and governance practices within their development portfolio.
“By concentrating offices, retail and residences within the catchment area of transit stations, TOD projects make public transportation more attractive and efficient, reduce reliance on private vehicles and promote shorter trips. As a result, ToD generally translates into higher productivity and smaller carbon footprint,” Lim said.
In anticipation of this trend, in 2019 they launched Riveria City, a major integrated TOD development in KL Sentral. Phase 1 of Riveria City, The Riv, is completed and completely sold out and they have launched Phase 2, The Ria.
Riveria City is a RM1.5 billion gross development value (GDV) project in KL Sentral, just 100 meters from Tun Sambanthan Monorail Station and walking distance to KL Sentral Transport Hub.
Jointly developed by Titijaya and Prasarana Integrated Development Sdn Bhd, Riveria City is set to become a landmark integrated development, comprising riverfront retail space, modern office suites and luxury serviced apartments across three towers.
Riveria City, Phase 1 of The Riv, is a 54-storey tower block containing 784 office suites. With a GDV of RM374 million, The Riv is completed and fully sold out.
Building on the success of The Riv, Titijaya launches Phase 2 of Riveria City – The Rivia – in July 2024. Ria’s GDV is RM588 million and is expected to be completed in the first quarter 2028. The 63-storey development has 752 units in two to three bedroom configurations, with built-ups between 650 and 800 sq ft and prices ranging from RM685,000 onwards.
Lim said: “The increase in the OPR (overnight policy rate) in 2023 will result in higher monthly mortgage payments for many Malaysian property buyers. Bank Negara has increased the OPR five times, a total of 125 basis points, from May 2022. Generally, people who have taken larger loans, especially those who have availed floating-rate loans, will be most affected by the higher OPR.
Lim said with concerns over rising inflation, rationalization of subsidies and a possible rate hike in 2025, buyers are tightening their belts.
He said RM500,000-RM700,000 used to be a range preferred by local property buyers, but this has changed due to lower than expected spending power and higher living expenses. As a result, buyers who previously preferred units priced at RM500,000 are now looking for units priced at RM300,000.
“Our focus in FYE2024 was on clearing our inventory, with the successful handover of several developments. FYE2025 will see the launch of several new projects, including Phase 2 of the residential development at Newton @ Jalan Ampang and the residential project of Seri Residency in North Klang.
“The Group delivered a stable performance in FYE2024 that was mostly in line with our expectations. However, we are confident that we will see strong growth in FYE2025, particularly driven by our strategic focus on ToD growth,” Lim said.
