Heading into the property market of 2025, Titijaya Land Berhad sees growing demand for transit-oriented development (ToD) projects, as well as increased appetite for affordable properties with prices ranging from RM300,000 to RM500,000 in response to concerns over inflation and higher living costs.
The developer released its market outlook for 2025, giving its shareholders and industry stakeholders insights into key real estate market trends as well as the strategic direction of the Group.
The Group believes it is well-positioned to respond to these key market trends, thanks to its strategic portfolio of ongoing projects and land bank, as well as its focus on innovative and customer-centric real estate developments.
Datuk Lim Poh Yit, Group Managing Director of Titijaya Group, said: “As we enter 2025, we see rising demand for ToD projects, particularly among the dynamic younger generation of city workers. Well-designed ToD projects deliver a vibrant blend of urban living and work experiences that has proven popular in major city areas across Japan, Hong Kong and Singapore.
We also see the wave of public transport infrastructure projects being developed or planned across Malaysia, such as the Klang Valley Double Track (KVDT) Phase 2, the East Coast Rail Link (ECRL), Circle Line MRT 3, Light Rail Transit 3 (LRT 3) and Kuala Lumpur-Singapore High Speed Rail (HSR) project, as a tailwind for the ToD segment.
Importantly, the ToD concept aligns with our commitment to ESG within our development portfolio. By concentrating offices, retail, and residences within the catchment area of transit stations, ToD projects make public transport more attractive and efficient, reducing dependence on personal vehicles and promoting shorter commutes. As a result, ToD typically translates into higher productivity and a smaller carbon footprint.
Datuk Lim Poh Yit said: “The increase in OPR rates in 2023 resulted in higher monthly mortgage repayments for many Malaysian property buyers. Bank Negara has increased the OPR five times, totalling 125 basis points, since May 2022. Typically, those who have taken larger loans, particularly those who obtained floating-rate loans, will be impacted the most by higher OPR rates.
With concerns over rising inflation, subsidy rationalisation and a potential rate hike in 2025, buyers are tightening their belts. RM500,000 – RM700,000 used to be a range that was favored 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 favored units priced at RM500,000 are now looking for units priced at RM300,000.
“Our focus in FYE2024 (Financial Year Ending 30 June 2025) was on clearing our inventory, with the successful handover of multiple developments. FYE2025 (Financial Year Ending 30 June 2025) will see the launch of several new projects, including Phase 2 of the residential development at Newton @ Jalan Ampang, and the Seri Residency landed residential project in North Klang.
FYE2024 saw the Group deliver a stable performance that was mostly in line with our expectations. However, we are confident that we will see stronger growth in FYE2025, driven particularly by our strategic focus on ToD development.”
