GHAZIE YEOH ABDULLAH

Group Managing Director, Thriven Global Berhad

What are your thoughts on the Malaysian property market as a whole?

A property market ‘bubble burst’, which has been the talk of the town in recent years, will not ‘materialise’, the main reason being that the economic growth of Malaysia is supported by strong fundamentals – good infrastructure development, stable trade figures and consolidated financial institutions with strong balance sheets. Property developers in Malaysia are also governed by strict guidelines such as the detailed provisions of the Housing Development Act, a matured banking system with pretty fair value of lending rates, and, most importantly, we are still the cheapest property market in this region. Hence, foreign investment interest in Malaysia is still very strong. Once major infrastructure developments, such as the High-Speed Rail connecting Kuala Lumpur with Singapore and the MRT lines, are fully completed, connectivity will be enhanced, spurring further economic expansion. With all these favourable growth impetuses in place, Malaysia’s property market is poised for continuous growth.

How do think the market will fare this year?

The Malaysian General Election will be held in 2018 and, as with past election years, all businesses would experience a slowdown as people adopt a wait-and-see approach before committing to major investment and business ventures. I believe the property market will pick up postelection, with strong demand for housing from population growth and supported by improving economic conditions. It’s also important to remember that property is a non-perishable, long-term investment, and historical data has shown that property value always appreciates over time. Hence, property ownership will always be a reliable mode of investment and the safest choice to hedge against inflation.

How has the recent restrictions placed on approvals for luxury property developments by the government affected your business?

Despite it being a soft market for both luxury and affordable segments, we are glad to see robust sales for all our ongoing projects. In this buyers’ market, discerning purchasers have more options, thus only properties with the right value proposition, good specifications and at favourable locations will be able to ride out the storm. We at Thriven take extra effort and diligence during the planning stage and only develop land in good locations. For example, our key projects in the Central Region are all situated in prime, matured neighbourhoods, with vital infrastructure all in place, such as schools, hospitals and malls. Our eNESTa Kepong serviced apartments and RUMAWIP Residensi Enesta Kepong are linked by an overhead bridge to the under-construction MRT Line-2 Jinjang Station, while Lumi Tropicana at Persiaran Tropicana has a LRT Line-3 station at its doorstep. This strategy has been bearing fruit for us, and we will continue to offer products with high value propositions at prime locations.

Finally, what can we expect from Thriven Global Bhd in shaping the Malaysian property market for the future?

As a responsible developer, Thriven doesn’t just focus on building, selling and leaving after handover, but also going through the whole cycle from building to maintaining. Our core businesses form a complete ecosystem, from property development and investment holding of developed projects, to undertaking facility management and providing hospitality services as well as lifestyle retail operations.

This business model is not new in foreign countries, but is a fresh approach in Malaysia. Here, many local developers build and leave after the development is completed, whereas our objective is to stay and ensure long-term facilities management and upkeep. This is an important aspect that has been most ignored in Malaysia, compared to neighbouring countries that have emphasis on the importance of sustainability and maintenance.

Furthermore, we are building communities with lush greenery and providing amenities catered towards different age groups of our purchasers. With all these ingredients in place, there will be more demand in the secondary market once the project is completed. We are confident of seeing this happening with all our projects, with higher capital appreciation compared to surrounding developments.