Singapore property magnate Kwek Leng Beng is in discussions to sell a parcel of land in Malaysia that could be the most expensive in the country’s history, the Malaysian Business Times has reported. The roughly 32,000 square foot parcel owned by Beng’s City Developments Ltd in Jalan Bukit Bintang, Kuala Lumpur could go for as much as RM3,000 (US$953) per square foot
Singapore property magnate Kwek Leng Beng is in discussions to sell a parcel of land in Malaysia that could be the most expensive in the country’s history, the Malaysian Business Times has reported.
The roughly 32,000 square foot parcel owned by Beng’s City Developments Ltd in Jalan Bukit Bintang, Kuala Lumpur could go for as much as RM3,000 (US$953) per square foot. Currently the most expensive land deal recorded in Malaysian history is Sunrise Bhd’s purchase of Wisma Angkasa Raya in Jalan Ampang, Kuala Lumpur for RM2,588 (US$822) per square foot.
At RM3,000 per square foot, the land in Jalan Bukit Bintang would fetch RM96 million (US$30.5 million).
The land is located between the Grand Millennium Kuala Lumpur hotel, which City Developments Ltd also owns, and the Pavilion Kuala Lumpu shopping centre. The owner of the Pavilion is believed to be interested in purchasing the adjacent plot, as well as YTL Group.
The land was originally slated to be developed into the Millennium Residences, a 42-storey luxury condo development, but construction stalled after starting in 2008, the Business Times reported.
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Many Real estate developers in Thailand have developed and implemented market research technologies and monitor the market closely.
Any fall in domestic savings will impact Thai Real Estate Market corporate funding and investment. Mortgage loans will be more difficult to obtain : The slowing economy will force Thailand’s banks to be more restrictive in their lending practices. Mortgage loans will be more difficult to acquire with rejection rates rising. Lower supply : Responding to slowing market conditions, developers will lower their risks by building fewer homes and reducing supply. New housing supply will also be reduced because developers will have more difficulty obtaining equity, bond and credit market financing because of the global financial crisis. Investors earn income from rentals. If the economy turns bad, rental rates and occupancy rate in Thailand may fall, forcing many investors to become sellers. When speculators and investors become sellers, extra supply is thrown into the market. Demand and supply pressure are exerting negative sentiments on the Thai real estate market in 2008-2009. However, some developers view the situation as an opportunity. Small developers will react immediately to the negative consumer sentiment by reducing new housing construction, providing larger developers an opportunity to gain market share in the Thai real estate market for 2009. Large development companies with strong reputations, strong balance sheets, and higher operational efficiencies will the first to benefit once the market turns around.