Perennial Holdings Private Limited - Annual Report 2024
74 PERENNIAL HOLDINGS PRIVATE LIMITED Real Estate Business Review Malaysia 1 Trading Economics (https://tradingeconomics.com/malaysia/gdp-growth-annual) 2 Market Research Malaysia (https://marketresearchmalaysia.com/uncovering-real-estate-trends-malaysia-in-2024/) 3 Market Research Malaysia (https://marketresearchmalaysia.com/uncovering-real-estate-trends-malaysia-in-2024/) 4 New Straits Times, (Jan 2024) (https://www.nst.com.my/property/2024/01/1002317/positive-outlook-real-estate-market-2024) 5 My MRT (https://www.mymrt.com.my/projects/lrt-mutiara-line/) 6 Penang Today, (Oct 2024) (https://penangtoday.my/transportation/5209/penangs-long-awaited-lrt-project-set-to-break-ground-in-december/) OVERVIEW Perennial Holdings’ portfolio in other markets, beyond the core markets of Singapore and China, includes two key growth Southeast Asian markets: Indonesia and Malaysia. In Indonesia, the largest economy in Southeast Asia, the Company is focused on developing a luxurious landed residential development (“The Sanctuary Collection”) in Bogor Regency, while in Malaysia, the Company is focused on a mixed-use integrated development (“The Light City”) in Penang. The Light City, an iconic waterfront development in Penang, is designed to cater to both business and leisure needs, offering convenience, accessibility and a vibrant community environment. MARKET OUTLOOK In 2024, Malaysia's Gross Domestic Product (“GDP”) grew to 5.1%, up from 3.6% in 2023, exceeding the government's forecasted range of 4% to 5%. The economic growth was propelled by improvements in several areas driven by higher private consumption, robust investment and increased trade. The country also experienced a rise in foreign direct investment, reflecting sustained confidence in its economic prospects. Meanwhile, inflation has moderated to 1.8% and the unemployment rate held steady at 3.1% in December 2024. The positive growth was mirrored in the real estate sector, with a growth rate of 5.3% Year-on-Year in 3Q 2024, compared to 3.8% in 20231. This positive trend is supported by increased transaction values, which rose from RM42.31 billion in Q1 2023 to RM56.53 billion in Q1 20242. Positive market sentiments are reflected in the increased investor confidence, with 76 Strait of Malacca 马六甲海峡 Penang Bridge 槟城大桥 Penang Second Bridge 槟城第二大桥 Penang Strait 槟城海峡 Tun Dr Lim Chong Eu Expressway 林倉祐大道 Gurney Drive 新关仔角 Jalan Sultan Azlan Shah 苏丹阿兹兰莎路 North-South Expressway Northern Route 南北大道北段 ButterworthKulim Expressway 北海–居林大道 North-South Expressway Northern Route 南北大道北段 Butterworth Outer Ring Road 北海外环公路 Penang Strait 槟城海峡 Penang Island 槟岛 Butterworth 北海 Bukit Mertajam 大山脚 George Town 乔治市 Raja Tun Uda Ferry Terminal 乔治市码头 Penang Sentral 槟城中环广场 Swettenham Pier Cruise Terminal 槟城瑞天咸 邮轮码头 Sungai Nibong Bus Terminal 双溪里蒙 巴士总站 Prai Free Industrial Zone 北赖自由贸易 工业区 Bayan Lepas Free Industrial Zone 峇六拜自由 贸易工业区 Permatang Pauh 峇东埔 Perai 北赖 Batu Maung 峇都茅 Gelugor 牛汝莪 Tanjung Tokong 丹绒道光 Tanjung Bungah 丹绒武雅 Batu Ferringhi 峇都丁宜 The Light City Penang Hill 升旗山 Jerejak Island 木寇山岛 Aman Island 安曼岛 Gedung Island 葛东岛 Penang International Airport 槟城国际机场 Map of The Light City, Penang Perennial Holdings’ Owned Asset 鹏瑞利的自有资产 Expressway 高速公路 Airport 国际机场 Bus Terminal 巴士总站 Transportation Hub 交通枢纽 Cruise Terminal 邮轮码头 Ferry Terminal 渡轮码头 out of 100 property counters on Bursa Malaysia seeing share price increases from January 2023 to June 20243. Additionally, government policies such as the reduction of interest rates and its resolve to revive abandoned projects have further bolstered the real estate sector4. A key transformative initiative in Penang is the implementation of the Light Rail Transit (“LRT”) system, with the construction of the Mutiara Line5 that will connect the island to the mainland. Spanning 29.5 kilometres (“km”), the Mutiara Line will have 21 stations strategically placed across the Penang Island to the mainland, enhancing connectivity across key areas, including George Town, Bayan Lepas and Penang International Airport6. Scheduled for completion by 2030, the project aims to significantly improve public transportation, reduce traffic congestion and promote green mobility initiatives. Complementing this development is the
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