Market Review – Retail Mid 2011
Despite recording only a moderate performance at the beginning of 2011, the local property market has come up to speed with most other economic sectors since March. Reassurances from industry experts and analysts on the fact that there are no indicators of a property bubble burst in Malaysia and the rest of Asia – Pacific over the next two years played a Significant role in boosting the confidence of the property market players as well as investors.
Throughout the first half of 2011 (1 H 2011), all sub-sectors within the Malaysian property market witnessed improved economic activities. More significantly, the market continues to be abuzz over the proposed MRT development that promises to better integrate the Klang Valley’s public transportation system and pave the way towards reducing our carbon footprint in the nation’s capital.
For this issue of PPC’s Property Market Review covering the period from January to June 2011, our focus will be mainly on the retail sub-sectors located in the Klang Valley, Penang and Johor Bahru.
At a glance, below are the major highlights of the Klang Valley’s residential and commercial sub-sector’s performance and activities generally
Backed by overall stable economic expansion in the recent past, especially with commendable GDP growth, shopping malls in the country remained highly robust. Malls in strategic locations continued to attract shoppers throughout the year as the population feels more optimistic about financial and job prospects under the present political leadership.
Our retail industry recorded sales growth of 8.5 in the last quarter of 2010 due to rising prices of retail goods and year-end holidays.
Malaysia has been classified as an upper-middle – income country where more than 50 of total households are estimated to be middle-income households and about 65 of the population are categorised as urban population, by the World Bank.
With urban population estimated to spend on average 1.8 times more than the rural population, this is expected to contribute positively to the growth of retail sales over the years.