PETALING JAYA: Heading into the property market of 2025, urban lifestyle developer Titijaya Land Bhd 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.
In releasing its market outlook for 2025 today, Titijaya said in a statement that it aims to provide shareholders and industry stakeholders with 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.
Titijaya group mananging director Datuk Lim Poh Yit 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.”
He added that they also see the wave of public transport infrastructure projects being developed or planned across Malaysia, such as the Klang Valley Double Track Phase 2, the East Coast Rail Link, Circle Line MRT 3, Light Rail Transit 3 and Kuala Lumpur-Singapore High Speed Rail, as tailwinds for the ToD segment.
More importantly, he said, the ToD concept aligns with their commitment to environmental, social and governance practices within their 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,” said Lim.
In anticipation of this trend, in 2019 they embarked on Riveria City, a flagship integrated ToD development in KL Sentral. The first phase of Riveria City, The Riv, has been completed and fully sold and they have launched Phase 2, The Ria.
Riveria City is an RM1.5 billion gross development value (GDV) project in KL Sentral, just 100 metres from the Tun Sambanthan Monorail Station and within walking distance of the KL Sentral transport hub.
Jointly developed by Titijaya and Prasarana Integrated Development Sdn Bhd, Riveria City is set to become a landmark integrated development, blending riverfront retail spaces, modern office suites, and luxury serviced apartments across three towers.
Phase 1 of Riveria City, The Riv, is a 54-storey tower block comprising 784 office suites. With a GDV of RM374 million, The Riv has been completed and fully sold.
Building on the success of The Riv, Titijaya launched Phase 2 of Riveria City – The Ria – in July 2024. The Ria has a GDV of RM588 million and is slated for completion in first-quarter 2028. The 63-storey development has 752 units in two- to three-bedroom configurations, with built-ups ranging between 650 and 800 sq ft and priced from RM685,000 upwards.
Lim said: “The increase in OPR (Overnight Policy Rate) 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.
With concerns over rising inflation, subsidy rationalisation and a potential rate hike in 2025, buyers are tightening their belts, Lim noted.
He said RM500,000–RM700,000 used to be a range that was favoured 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 favoured units priced at RM500,000 are now looking for units priced at RM300,000.
“Our focus in FYE2024 was on clearing our inventory, with the successful handover of multiple developments. FYE2025 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,” said Lim.
