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Centre for Real Estate Research (CRER)
Real estate is one of the valuable assets owned by the government and public. However, the rapid urbanization has intensified the complexity in real estate management which subsequently require professional skills in property valuation and development, real estate agency practice and property management. The proposed research centre would explore the opportunities of providing consultancy services and establishing collaborative partnership with academics, practitioners, organisations or professional bodies. In addition, the Centre also provides research related training to FOBE staff and students in order to cultivate a strong research culture in the Faculty.
Vision
The Centre strives to become a premier research centre in the areas of real estate and policy and collaborate with world leading research centres in producing top tier research findings.
Objectives
CRER aims to produce high quality and impactful research for strengthening the knowledge and skills among the real estate profession by:
Research and Development - To conduct research relating to real estate management; to secure internal and external research grant; to explore the opportunities for external collaborations.
Training and Consultancy - To provide consultancy services to private sector and various industries in terms of relevant market-driven, and business-related projects; to facilitate conferences, workshops and seminars to public or organization.
Industry-oriented Education - To develop several areas of excellence which will bring distinctiveness to the work of the faculty, the programmes that the faculty offers and the wider community; to invite prominent speaker and subject experts from academics/industry practitioners (national and international) to share their experience; and to facilitate relevant talk/seminar/symposium/workshop/colloquium.
Our Focus & Activities
The main focus of the Centre is to produce high research output and promote external collaboration. Hence, members of the Centre will actively participate in group research depending on their areas of specialization. Research, consultancy and training in real estate management will be the main theme of the Centre’s activities.
Projects
Publications
2024
TAR UMT Unveils Inaugural Malaysian House Price Index Forecast
TAR UMT Unveils Inaugural Malaysian House Price Index Forecast
SOURCE: Malay Mail; Nanyang Property
AUTHORS: Prof. Sr Ts. Dr Ting Kien Hwa and Assoc. Prof. Ts. Dr Cheng Chin Tiong
SDG: 11
ABSTRACT:
The inaugural Malaysian House Price Index (MHPI) from the Centre for Real Estate Research at Tunku Abdul Rahman University of Management and Technology (TAR UMT) has made significant contributions to understanding Malaysia's housing market dynamics. Published in a major newspaper such as Malaymail and Nanyang Siang Pau, this impactful research forecasts a varied growth across different types of residential properties for 2024. It predicts an appreciation in terrace homes by 2.77%, closely aligning with the inflation rate, while projecting a decline in detached homes by 1.62%. The report also estimates slight growths for semi-detached and high-rise homes. Utilizing the ARIMA forecasting model, this research provides crucial insights that can guide investors, homebuyers, and policymakers in making informed decisions, thus highlighting its relevance and utility in public discourse and policy formulation.
This research also aligns with the Sustainable Development Goals (SDGs), particularly Goal 11 which aims to make cities and human settlements inclusive, safe, resilient, and sustainable. By providing detailed forecasts on housing market trends, the MHPI helps policymakers and stakeholders develop strategies that could lead to more sustainable urban planning and development. The insights from the index can be used to address affordable housing challenges, manage urban sprawl, and promote environmentally responsible construction practices. This contributes to better informed regulatory frameworks and investment strategies that support sustainable development in Malaysia's rapidly urbanizing landscape.
SOURCE: Case Studies in Thermal Engineering
AUTHORS: Woei-Chyi Chai, Kuen-Wei Tham, Chin Tiong Cheng, Kim Wing Chong, Kai Yun Yeoh
SDG: 8, 11
CITATION: Chai, W.-C., Tham, K.-W., Cheng, C.T., Chong, K.W. and Yeoh, K.Y. (2024), "Impacts of macroeconomic factors during COVID-19 pandemic on property loan impairments and overhang: case study of Malaysia", International Journal of Housing Markets and Analysis, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJHMA-04-2024-0056
ABSTRACT:
The COVID-19 pandemic has profoundly impacted the global economy, disrupting supply chains, causing job losses and altering consumer demand. In Malaysia, the real estate sector has been notably affected, with increased property impairments and overhang due to unprecedented uncertainty. Understanding these effects is crucial for policymakers and investors to prevent real estate and banking crises. This study aims to analyse the relationships between macroeconomic factors during the pandemic on property impairments and overhang, providing insights for maintaining macroeconomic stability. The findings will inform strategies for mitigating economic shocks, identifying opportunities, and guiding real estate policies in Malaysia and potentially globally.
The Impacts of Urban Design on Community Well-Being with The Smart City Integration
The Impacts of Urban Design on Community Well-Being with The Smart City Integration
SOURCE: Global Business and Management Research: An International Journal
AUTHORS: Intan Nazuha Abdullah, Alan Chong Kim Wing, Cheng Chin Tiong
SDG: 11
CITATION:
ABSTRACT:
Purpose: The primary purpose of this paper is to discuss the impact of urban design on community well-being and the integration of smart cities to emphasise long-term community planning. Design/methodology/approach: A comprehensive literature search was conducted to identify publications addressing smart city integration’s effects on community well-being concerning urban design. SpringerLink, ScienceDirect, Google Scholar, and ScienceDirect were accessed for relevant information, and fifty publications were evaluated in total. The publications contain various kinds of literature on the impacts of urban design on community well-being with smart city integration. The period of the review is from 2019 to 2023. After a thorough review, we will filter out literature with redundancy and deemed unsuitable. Findings: The findings revealed that community well-being focuses on urban people’s overall quality of life. In contrast, urban design emphasises urban areas’ physical layout and organisation to increase livability, and smart cities use technology to improve urban services and sustainability. Research limitations/implications: Through a rigorous, comprehensive review, this study depicts the impact of urban design on community well-being and the integration of smart cities to emphasise long-term community planning. Practical implications: This study offers several components used in community well-being, the impact of urban design and the integration of smart cities in the community. Originality/value: To the best of the author’s knowledge, little effort has been devoted to the impact of urban design on community well-being with the smart city integration. This research helps to close the gap.
SOURCE: Social Sciences and Humanities Open
AUTHORS: Chin Tiong Cheng, Hong Kok Wang, Gabriel Hoh Teck Ling, Phui Fung Wong, Felicia Yan Yan Yong, Chee Fui Wong
SDG: 11
CITATION: Chin Tiong Cheng, Hong Kok Wang, Gabriel Hoh Teck Ling, Phui Fung Wong, Felicia Yan Yan Yong, Chee Fui Wong, A systematic review of social capital in low-cost housing: A conceptual framework and lessons learned, Social Sciences & Humanities Open, Volume 10, 2024, 101089, ISSN 2590-2911, https://doi.org/10.1016/j.ssaho.2024.101089.
ABSTRACT:
There are perennial challenges facing the self-organisation (collective action) of low-cost (social) housing, particularly socioeconomic constraints, complexity in management, and insufficient stakeholder support. Despite numerous housing research focusing on the physical and institutional aspects to address the collective action dilemmas, detailed analyses of the roles of social capital are relatively few. Thus, this review attempts to elucidate and synthesize significant insights utilising Schwitter's social capital framework, focusing on factors conducive to the effective self-organisation of low-cost housing communities. To this end, the review process adhered to Preferred Reporting Items for Systematic Reviews and Meta-Analysis (PRISMA) guidelines, where twenty-eight (28) studies were ultimately selected for in-depth analysis. The review suggested that social capital, primarily discussed at two levels (individual and community) encompassing social networks, trustworthiness, and obligations, the collective impact of system control, system trust, and system morality, plays a role in overcoming poverty, overcoming passivity due to individual apathy, assisting local management in rules enforcement, cultivating social relations to transcend market-oriented organisation, and fostering collaboration with external stakeholders in community development. Apart from conceptualising social capital theories in low-cost housing, the findings offer policy insights and practical strategies to policy-makers and local communities.
SOURCE: International Journal of Housing Markets and Analysis
AUTHORS: Woei-Chyi Chai, Kuen-Wei Tham, Chin Tiong Cheng, Kim Wing Chong, Kai Yun Yeoh
SDG: 11, 16
CITATION: Chai, W.-C., Tham, K.-W., Cheng, C.T., Chong, K.W. and Yeoh, K.Y. (2024), "Impacts of macroeconomic factors during COVID-19 pandemic on property loan impairments and overhang: case study of Malaysia", International Journal of Housing Markets and Analysis, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJHMA-04-2024-0056
ABSTRACT:
Purpose – The COVID-19 pandemic has profoundly impacted the global economy, disrupting supply chains, causing job losses and altering consumer demand. In Malaysia, the real estate sector has been notably affected, with increased property impairments and overhang due to unprecedented uncertainty. Understanding these effects is crucial for policymakers and investors to prevent real estate and banking crises. This study aims to analyse the relationships between macroeconomic factors during the pandemic on property impairments and overhang, providing insights for maintaining macroeconomic stability. The findings will inform strategies for mitigating economic shocks, identifying opportunities, and guiding real estate policies in Malaysia and potentially globally. Design/methodology/approach – This research article uses a time series ARDL regression analysis to examine pivotal macroeconomic factors including income, housing process, interest rates and unemployment on property loan impairments and property supply overhang in Malaysia. ARDL is effective to measure and analyse time series data, especially to understand the lagged impacts of macroeconomic factors. This can be seen by various economists in analysing macroeconomic factors affecting non-performing loans or the real estate finance using regression analyses both in Malaysia and other regions. The observations are gathered before, during and after the COVID-19 pandemic, spanning a five-year period with monthly frequency from 2018 to 2022. Findings – The study emphasizes the critical importance of effectively managing unemployment and implementing policy interventions, such as moratoriums, to stabilize the economy and reduce the risk of loan impairments during crises like the COVID-19 pandemic. Additionally, this study highlights a significant inverse relationship between income per capita and loan impairments, underscoring the necessity for policies that promote economic growth and income equality. Initiatives targeting job creation, education and skills development can elevate income levels, thereby decreasing loan impairments. Lower lending interest rates during the pandemic also help mitigate the risk of loan impairments by facilitating borrowing, stimulating economic activity and enhancing financial well-being. Furthermore, the study suggests that while lower interest rates incentivize property developers and investors, understanding the intricate interaction between housing prices and supply is crucial for policymakers and stakeholders to effectively manage the housing market and ensure adequate housing supply, especially during crises. Research limitations/implications – This paper provides insight for policymakers, regulators, investors and property consultants into the dynamic effects of key macroeconomic factors amidst a global recession in how they impact the real estate market with regards specifically to all types of property loan impairments and property supply overhang. The observations are limited to the COVID-19 period, spanning five years with monthly data from 2018 to 2022. This understanding can facilitate the development of targeted strategic monetary policies and investment decisions in case of future recessions. Practical implications – Policymakers should prioritize initiatives such as moratoriums and job creation programs to mitigate economic downturns. Additionally, financial institutions need to adjust lending practices in response to lower interest rates, while stakeholders in the housing market must understand the complex dynamics between housing prices and supply to ensure a balanced market. Overall, addressing underlying economic factors and implementing targeted policies are essential for building resilience and promoting sustainable economic growth amidst challenging circumstances. Social implications – Initiatives aimed at fostering income equality, creating employment opportunities and ensuring housing accessibility contribute to greater social cohesion and well-being. By promoting financial inclusion and building resilience to crises, societies can mitigate the adverse social impacts of economic challenges such as unemployment and housing affordability. Overall, addressing socioeconomic disparities and promoting inclusive growth are essential for fostering a more equitable and resilient society. Originality/value – The originality and uniqueness of this study lie in its comprehensive analysis of the impact of COVID-19 on loan impairments and housing supply. While previous studies have focused on the pandemic’s effects on specific segments of the real estate market or property prices, this study provides a broad overview of its impact on property loan impairments and housing supply overhang. Finally, this study highlights the social and practical implications. Overall, this study offers a distinctive analysis of COVID-19’s impact on the real estate market and its implications for policymakers, real estate professionals and investors.
SOURCE: Planning Malaysia: Journal of the Malaysian Institute of Planners
AUTHORS: Norulelin Huri, Zarita Ahmad @ Baharum, Ting Kien Hwa, Yasmin Mohd Adnan, Noor Farhana Akrisha Ishak
SDG: 3
CITATION: Huri, N., Ahmad @ Baharum, Z., Hwa, T. K., Mohd Adnan, Y., & Ishak, N. F. A. (2024). A CONCEPTUAL PAPER ON STIGMATISED DIMENSION TOWARDS RESIDENTIAL OVERHANG. PLANNING MALAYSIA, 22(32). https://doi.org/10.21837/pm.v22i32.1514
ABSTRACT:
Property stigma refers to some characteristics, features, social values, or an event relating to land and buildings that can create a negative perception of a building, land, project, or neighbourhood area. It was identified as a significant factor contributing to the number of overhang residential units in Malaysia. This paper aims to develop a Conceptual Framework of a stigmatized dimension model for residential overhang properties that can assist the decision-making of the property market players (developers, planners, and property consultants). This study utilizes a desktop analysis that reviews previous scholars' conceptual frameworks. The conceptual paper develops four (4) stigma-related variables: Environmental stigma, phenomena stigma, neighbourhood stigma, and structural stigma. However, it is not an empirical investigation of property overhang since this paper needs to review in detail all the factors that influence the property overhang. The proposed conceptual framework will provide valuable insights into the stigmatized dimension of property overhang from the buyer's perspective. This paper provides an essential conceptual framework that will assist the property market players enhance their housing development and sales strategy, thereby increasing the bottom line. Subsequently, this will improve the property market efficiency and meet the demand and supply requirements.
SOURCE: Planning Malaysia: Journal of the Malaysian Institute of Planners
AUTHORS: Noor Farhana Akrisha Ishak, Zarita Ahmad@Baharum, Ting Kien Hwa, Yasmin Mohd Adnan, Norulelin Huri
SDG: 3
CITATION: Ishak, N. F. A., Ahmad@Baharum, Z., Hwa, T. K., Mohd Adnan, Y., & Huri, N. (2024). SECULAR TRENDS IN PROPERTY OVERHANG IN MALAYSIAN RESIDENTIAL AND SERVICED APARTMENTS. PLANNING MALAYSIA, 22(32). https://doi.org/10.21837/pm.v22i32.1515
ABSTRACT:
In 2022, property overhang residential and serviced apartments recorded 51, 724 units valued at RM38.6 billion. Property overhang occurred when the excessive supply of property stocks in 2017 caused a drastic increase of overhangs, which is 31,102 units then carried forward to 2018, continuing to rise in the housing market. This scenario cannot be taken lightly by the government. Hence, this study aims to explore the secular trend in property overhang in Malaysian residential and serviced apartments over the past ten years. Data property overhang in the years 2013 to 2022 was obtained from the National Property Information Centre (NAPIC). The data property overhang will be analysed using time series analysis based on (1) state, (2) type of property, and (3) price range. Then, this study reveals that the top three (3) overhang residential and serviced apartment properties are in Johor (19,390 units), Federal Territory Kuala Lumpur (9,441 units), and Selangor (6,624 units). Condominiums/Apartments and serviced apartments are the highest type of overhang properties with a price range of RM500,001 – RM1,000,000. Thus, this study provides insight into the market performance of overhang residential and serviced apartment properties in Malaysia. This data will be used to examine the factors that influence the overhang of these properties.
SOURCE: International Journal of Research and Innovation in Social Science
AUTHORS: Sr Dr Tham Kuen-wei, Chai Woei-Chyi, Dr Cheng Chin-Tiong, Dr Alan Chong Kim-Wing, Pang Khai-Shuen
SDG: 8, 10, 11
CITATION: https://dx.doi.org/10.47772/IJRISS.2024.8120172
ABSTRACT:
Purpose – This study seeks to assess the global effects of the COVID-19 pandemic on the real estate market. The results will offer valuable insights into potential impacts on macroeconomic stability, as well as provide an overview of current trends and existing literature in relation to the real estate market. These insights can aid policymakers, investors, and consumers in implementing measures to alleviate economic disruptions, counter adverse effects, and pinpoint fresh opportunities within the global real estate markets. Design/Methodology/Approach – This research article is based on a review of the literature on the impact of COVID-19 on the real estate market in the United States, Europe, and Asia. The literature review includes academic articles and industry reports. The data and information from these sources were analyzed and synthesized to provide a comprehensive overview of the impact of COVID-19 on the real estate market in the three regions. At the same time, trend analyses are conducted on the property prices in Malaysia, Singapore, China, Thailand, the United States and UK before, during and after the COVID-19 pandemic. Trend analysis emerges as a robust methodology for scrutinizing residential property prices owing to its inherent advantages. Its protracted time horizon allows for the examination of price fluctuations over extended periods, elucidating enduring market dynamics including economic cycles. Findings – The study provides a nuanced view of the global impact of the COVID-19 pandemic on the property market. It highlights that different countries have experienced varying effects, with some seeing declines in housing prices while others observe an increase. The research emphasizes the crucial role of macroeconomic stability in the real estate market and underscores the need for effective policies to mitigate economic shocks. Examining cases like China and Korea, the study demonstrates that swift government responses, through macroeconomic surveillance and implementation of stimulating policies, have successfully protected and boosted the real estate market, leading to positive price trends. This underscores the importance of proactive macroeconomic surveillance and prudent policies for safeguarding and promoting the real estate market during global crises. Conversely, instances in Italy and Spain illustrate that recessions can generate economic uncertainty and job losses, resulting in a decrease in property prices. To counteract this, governments and regulators should consider measures like guaranteed wage subsidies, job creation initiatives, and unemployment insurance to stimulate the real estate market and restore public confidence. Regarding market trends and behaviours, the research identifies a growing demand for residential properties with larger spaces in countries such as China, Singapore, the US, Germany, and France. Conversely, the hospitality and commercial property sectors, including offices and hotels, have been consistently negatively impacted by the pandemic across many countries. The study also highlights improvements in safety procedures and building management due to the pandemic. Furthermore, there is a notable shift in preferences towards online business operations and working from home, leading to an increased demand for industrial and logistical properties compared to retail and commercial spaces. Additionally, there is a rising interest in suburban and single-family homes, creating a new market opportunity for developers as more buyers and consumers express a preference for living in suburban areas with larger living spaces. Lastly, residential property prices in Malaysia, Singapore, China, Thailand, the US and UK showed similar trends before, during and after the COVID-19 pandemic where all prices dropped before a rebound after the pandemic ended. Research Limitations/Implications – This study has several limitations that warrant consideration. Firstly, it relies on a review of existing literature, industry reports, and news articles, potentially missing some nuances in the impact of COVID-19 on the real estate market. Secondly, the ongoing nature of the pandemic means that its long-term effects remain uncertain, making it possible that the study's findings may not accurately predict future trends in the real estate market. Furthermore, the study's scope is limited to specific countries in three regions (US, Europe, and Asia), and the impact of COVID-19 on the real estate market may differ in other global regions. Lastly, potential biases in data collection and reporting could affect the representativeness of the data used in this study. As a result, it is important to interpret the findings with caution, and further research is needed for a comprehensive understanding of COVID-19's impact on the real estate market. Practical Implications – The research underscores the critical role of policymakers in addressing unemployment through strategic measures such as guaranteed wage subsidies, job creation policies, and unemployment insurance. These initiatives not only stimulate the real estate market but also reinstate public confidence. Moreover, the study emphasizes the importance of tackling underlying economic issues and deploying tailored policies to foster resilience and sustainable economic growth amid adversity. Additionally, it identifies a growing preference for suburban and single-family homes, presenting a lucrative market opportunity for developers to capitalize on this trend and cater to the increasing demand for larger living spaces in suburban areas. Social Implications – The study underscores the social implications of policymakers prioritizing initiatives to combat unemployment and control housing prices. By implementing measures such as guaranteed wage subsidies, job creation policies, and unemployment insurance, communities can experience not only economic revitalization but also enhanced social cohesion and well-being. The restoration of public confidence in the real estate market can lead to increased stability and prosperity for individuals and families. Additionally, controlling housing prices ensures accessibility and affordability, fostering inclusive communities and reducing socioeconomic disparities. The rising demand for suburban and single-family homes reflects evolving lifestyle preferences, highlighting the importance of urban planning and development strategies that prioritize community needs and aspirations for spacious living environments. Thus, addressing unemployment through targeted policies while also controlling housing prices can have profound social implications, promoting inclusive growth and sustainable urban development. Originality/Value – This study stands out for its extensive examination of COVID-19's effects on the real estate market in the US, Europe, and Asia. While prior research has concentrated on specific segments or regions, this study offers a comprehensive view of how various sectors and regions worldwide have been impacted. Additionally, the study sheds light on the societal and practical consequences of the pandemic on the real estate market, offering valuable insights for adapting to evolving consumer demands and addressing socio-economic concerns. In summary, this research presents a distinctive perspective on COVID-19's influence on the real estate market, offering valuable implications for policymakers, real estate professionals, and investors.
SOURCE: Penerbit UTHM
AUTHORS: Zarita Ahmad Baharum, Kien Hwa Ting, Sharuzaman Mohd Salleh
SDG: 4
CITATION: Baharum, Zarita & Ting, Kien Hwa & Salleh, Sharuzaman. (2025). Skills and Competency in the Malaysian Property Management Industry.
ABSTRACT:
This book delves into Malaysia's multifaceted world of property management, exploring the skills and competencies essential for success in this dynamic field. As the Malaysian property market continues to evolve, it becomes increasingly vital for property managers to possess diverse skills and competencies to navigate challenges and capitalise on opportunities. This comprehensive guide is designed to provide a deep understanding of the key aspects of property management specific to the Malaysian context. From regulatory frameworks to cultural nuances, and economic trends to technological advancements, each chapter offers valuable insights into the intricacies of property management in Malaysia. We aim to equip both aspiring and seasoned property professionals with the knowledge and tools necessary to excel in their roles. Whether you are a property manager, investor, developer, or industry stakeholder, this book serves as a valuable resource for enhancing your understanding of the Malaysian property market and honing your skills to thrive in this competitive industry. Through a blend of theoretical concepts, practical case studies, and expert perspectives, "Skill and Competency in the Malaysian Property Management Industry" provides readers with actionable insights and best practices that can be applied in real-world scenarios. We delve into topics such as regulatory compliance, financial management, tenant relations, sustainability practices, and more, offering a comprehensive guide to navigating the complexities of property management in Malaysia. We extend our gratitude to the Ministry of Finance that funded this research through the NAPREC Research Grant, industry experts, and practitioners whose expertise and insights have enriched the content of this book. Their dedication to advancing the field of property management in Malaysia is evident in the depth and breadth of knowledge presented within these pages. As you embark on this journey through the Malaysian property management landscape, we encourage you to approach each chapter with curiosity and an open mind. May this book serve as a valuable companion in your quest for excellence in the Malaysian property management industry.
SOURCE: Penerbit UTHM
AUTHORS: Zarita Ahmad Baharum, Kien Hwa Ting, Sharuzaman Mohd Salleh
SDG: 8
CITATION: Baharum, Zarita & Ting, Kien Hwa & Salleh, Sharuzaman. (2025). REAL ESTATE AGENCY PRACTICES IN MALAYSIA: FUTURE DIRECTION.
ABSTRACT:
This book is the culmination of extensive research, practical insights, and foresight into the evolving landscape of real estate practices in Malaysia. As the industry continues to adapt to changing market dynamics, technological advancements, and regulatory developments, it has become imperative for real estate professionals to stay ahead of the curve. In this book, we delve into the current state of real estate agency practices in Malaysia and provide a comprehensive analysis of the trends shaping the future of the industry. From digital transformation and sustainable development to evolving consumer preferences, we explore the diverse factors influencing the direction of real estate agencies in Malaysia. Through in-depth case studies, expert interviews, and thought-provoking analysis, we aim to equip industry practitioners, policymakers, and stakeholders with the knowledge and insights needed to navigate the dynamic landscape of real estate agency practices in Malaysia. We sincerely hope this book serves as a valuable resource for all vested in the future of real estate in Malaysia and inspires proactive strategies that will drive the industry forward. We extend our gratitude to all the contributors and individuals who have supported the creation of this book. We extend our gratitude to the National Real Property Research Coordinator (NAPREC), Valuation & Property Services Department, Ministry of Finance, Malaysia who has funded this research, the respondents and the panel of experts whose insights and dedication have enriched this work. It is our sincere hope that this book catalyses thoughtful discussions, informed decision-making, and transformative actions that will shape the future of real estate agency practices in Malaysia.
SOURCE: The Star
AUTHORS: Assist Prof Dr Sr Tham Kuen-Wei
SDG: 4, 11. 16
CITATION:
ABSTRACT:
In Malaysia, the property management industry is well established through a robust combination of education, practice, and industry standards. Several professional bodies have also been established to uphold high standards in the property management sector.
Some unqualified property managers claim that a building manager is responsible solely for coordinating the maintenance and upkeep of common areas, while a property manager merely acts as an intermediary between tenants and landlords. This oversimplification misrepresents the comprehensive role of a property manager.
According to the Valuers, Appraisers, Estate Agents and Property Managers Act 1981, a property manager’s responsibilities include enforcing lease agreements, preparing budgets, monitoring expenditures, advising on property decisions, and managing maintenance and facilities. Property managers registered with the Board of Valuers, Appraisers, Estate Agents and Property Managers Malaysia are proficient in lease valuation, provide valuable advisory services, and possess essential knowledge of real estate law, market conditions, and the relevant by-laws. This expertise is especially important when managing commercial properties.
Graduates in estate/property management are trained in property valuation, estate agency operations, and related fields, enabling them to practise in one or more areas. It is therefore unfortunate that some unqualified parties mislead the public by suggesting that valuers are only trained to perform property valuations.
In Malaysia, the property management industry is well established through a robust combination of education, practice, and industry standards. Higher education institutions such as Tunku Abdul Rahman University of Management and Technology (TARUMT), Universiti Malaya (UM), Universiti Teknologi MARA (UiTM), Universiti Teknologi Malaysia (UTM), Universiti Tun Hussein Onn Malaysia (UTHM), University of Reading Malaysia, University of Malaya-Wales, etc offer professional degree programmes in estate or property management. Many of these universities collaborate closely with industry experts and the senior experienced professionals are appointed as external examiners as part of the university accreditation framework.
Several professional bodies have also been established to uphold high standards in the property management sector. For instance, the Malaysian Institute of Property and Facility Managers (MIPFM), Royal Institution of Surveyors Malaysia (RISM), and the Association of Valuers, Property Managers, Estate Agents, and Property Consultants in the Private Sector Malaysia (PEPS).
With the demand for effective property management continuing to rise, these institutions are essential in cultivating the expertise necessary to manage properties professionally, efficiently and sustainably, thereby contributing to the nation’s economic growth.
It is also important to note that various international organisations recognise Malaysia’s property management education standards. For instance, TARUMT and UM’s real estate management degree programmes are both recognised and accredited by the Royal Institution of Chartered Surveyors (RICS).
However, RICS does not recognise any degree specifically titled “building management.” So, how can we expect a building manager trained solely in building maintenance to navigate the complexities of the industry without the technical, legal and professional knowledge required? How can building managers without such expertise give advice on operations such as tenancy management, leasing, rental rates and the relevant regulations and by-laws?
Calling the profession a monopoly is unjustified. If this were the case, then all lawyers, accountants and doctors would be monopolistic in their own accord. It is not logical to dumb down to meet the requirements of non-professionals who lack the formal education, training and regulatory procedures required.
Moreover, the shift towards self-regulation in property management and proposals to establish a new board of building managers to admit non-professionals — those without the required education and technical knowledge — has unfortunately coincided with an increase in reports of corruption, abuse of power, unauthorised activities like illegal homestays, partitioning of strata properties without approval, and the lobbying of unlicensed individuals seeking to create a professional body for managing properties.
These issues have proliferated in properties lacking professional management, and the proposal to create a board comprising non-professionals will not effectively address these systemic problems. What Malaysia truly needs are stricter regulations and an end to the employment of unqualified property managers.
SOURCE: The Edge Property
AUTHORS: Asst Prof Dr Sr Tham Kuen-Wei
SDG: 4, 8, 11, 16
CITATION:
ABSTRACT:
Introducing a new board of property managers doesn’t address any issues but instead opens doors to individuals lacking the education, credentials and qualifications required for property management. The only parties who would benefit are unlicensed, profit-driven individuals and cronies of contractors.
Earlier, I have responded to Dr Foo Chee Hung’s article dated Sept 20, titled "Property manager vs building manager — Are they the same?", which claimed that a building manager is solely responsible for coordinating the maintenance and upkeep of common areas, while a property manager merely acts as an intermediary between tenants and landlords. In my article “Stricter regulation in property management needed”, I explained the professional roles, bodies, education and training required of a registered property manager.
In a second article titled “Separate board of property managers needed to address current weaknesses”, Foo claimed that "valuers-cum-property managers" lack experience in dealing with building maintenance regulations and rely heavily on contractors or site supervisors for routine maintenance.
However, he never responded to the education, training and institutional requirements supporting the valuation and property management professions, nor did he address the redundancy of a new board in which members would be without proper educational frameworks, professional institutions, qualifications and regulatory support. He also never provided proof or facts how a separate board without the skills and qualifications would resolve any issue.
Professional training regulated by BOVAEP
Let me clarify: valuers and real estate professionals regulated by the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP) undergo extensive assessments of their professional competency. To even qualify for professional assessment, one must have a degree accredited by BOVAEP, where real estate professionals study everything related to property—including property management, building maintenance, valuation, agency and property laws. They must then complete a minimum of several years of training with a registered person, keeping logbooks of their experience, before being eligible to sit for the demanding professional interview.
As mentioned previously, in Malaysia, the property management industry is well established through a robust combination of education, practice and industry standards. Higher education institutions such as Tunku Abdul Rahman University of Management and Technology (TARUMT), Universiti Malaya (UM), Universiti Teknologi MARA (UiTM), Universiti Teknologi Malaysia (UTM), Universiti Tun Hussein Onn Malaysia (UTHM), University of Reading Malaysia, University of Malaya-Wales, etc offer professional degree programmes in estate or property management. Many of these universities collaborate closely with industry experts and the senior experienced professionals are appointed as external examiners as part of the university accreditation framework.
Several professional bodies have also been established to uphold high standards in the property management sector, for instance, the Malaysian Institute of Property and Facility Managers (MIPFM), Royal Institution of Surveyors Malaysia (RISM), and the Association of Valuers, Property Managers, Estate Agents, and Property Consultants in the Private Sector Malaysia (PEPS). With the increasing demand for effective property management, these institutions are essential in cultivating the expertise necessary to manage properties professionally, efficiently and sustainably, thereby contributing to the nation’s economic growth.
It is also important to note that various international organisations recognise Malaysia’s property management education standards. For instance, TARUMT and UM’s real estate management degree programmes are both recognised and accredited by the Royal Institution of Chartered Surveyors (RICS).
Introducing a new board of property managers to admit non-professionals without such rigorous assessment and educational support is detrimental. It doesn’t address any issues but instead opens doors to individuals lacking the education, credentials and qualifications required for property management. The only parties who would benefit are unlicensed, profit-driven individuals and cronies of contractors—certainly not the general public or the real estate profession.
Lowering qualification is not solution to shortage of professionals
In the most recent article, Foo claimed there is a critical shortage of property managers in the country, with a ratio of one firm for every 38 strata schemes or 2,662 strata units. However, if we look at the numbers in other sectors, the issue isn’t as simple as Foo suggests. According to the Malaysian Bar, there are 23,645 lawyers and 7,323 legal firms in Malaysia—one lawyer for every 1,353 Malaysians and one legal firm for every 4,370 Malaysians. Similarly, the Ministry of Health reports 9,726 specialists in 29 specialties serving the Ministry's facilities, translating to one specialist for every 3,290 Malaysians.
Based on Foo’s logic, we would need a separate board for conveyancers to allow individuals to practise conveyancing without a law degree, and doctors to practise medicine without a medical degree as there is a dire need of conveyancers and doctors. It is certainly misguided to portray the profession in such a way. Does it mean we should lower the bar for specialists, lawyers, and in this case, property managers, by establishing a new board that lacks the education, skill, knowledge, experience, institutional support by universities, professional bodies, accreditations, professional assessments and regulations that have been in place since 1981?
Separate board could lead to illegal practices
I’ve already provided clear examples of why knowledge of valuation and agency is essential in property management, particularly when managing commercial buildings and complex properties. Creating a separate board for building managers is a waste of public funds and time, and it will not improve the status quo. In fact, it will only contribute to the proliferation of illegal property managers, leading to issues such as illegal homestays, corruption, potential monopolistic practices by interested parties and poor management.
What is needed is stricter regulation of property management in all areas. At the same time, the Malaysian government should encourage education in property management in Malaysia through existing BOVAEP-accredited degree programmes. There are dozens of universities offering formal education in real estate management. This will increase the number of qualified and experienced property managers who can manage not only residential properties but also commercial and complex properties like airports, hotels and office buildings.
BOVAEP provides for property management since inception
Lastly, another factual error by Foo is his claim that BOVAEP under Act 242 was never intended to cover property management until 2018. This is incorrect, as the Act has included provisions for property management since its inception in 1981, far earlier than 2018. In fact, the Malaysian Property Management Standards, in its first edition, was published by BOVAEP in 2010. This shows that Foo lacks the understanding of the relevant by-laws in property management, which all registered valuers will certainly be aware of.
I strongly encourage Malaysians, including Foo, who are not yet licensed with BOVAEP, to pursue accredited real estate degrees at institutions such as TARUMT, UM, UiTM, UTM, UTHM, Reading University, or any other universities accredited by BOVAEP. These programmes provide essential training in property management laws and regulations, including critical areas such as valuation and agency laws. This will assist Foo in clarifying his many factual errors and understanding the Malaysian Property Management Standards, which he is not aware of. This initiative will certainly help to address the shortage of experienced and professional property managers in the country.
At the same time, the Malaysian government should strongly reject the redundant proposal for a separate board of building managers, which wastes public funds to accommodate unqualified individuals. Instead, our hard-earned taxes would have been better redirected towards scholarships, enabling more young Malaysians to pursue studies and become professional property managers.
SOURCE: The Edge Property
AUTHORS: Assist Prof Dr Sr Tham Kuen-Wei
SDG: 4, 11. 16
CITATION:
ABSTRACT:
In Malaysia, the property management industry is well established through a robust combination of education, practice, and industry standards. Several professional bodies have also been established to uphold high standards in the property management sector.
Some unqualified property managers claim that a building manager is responsible solely for coordinating the maintenance and upkeep of common areas, while a property manager merely acts as an intermediary between tenants and landlords. This oversimplification misrepresents the comprehensive role of a property manager.
According to the Valuers, Appraisers, Estate Agents and Property Managers Act 1981, a property manager’s responsibilities include enforcing lease agreements, preparing budgets, monitoring expenditures, advising on property decisions, and managing maintenance and facilities. Property managers registered with the Board of Valuers, Appraisers, Estate Agents and Property Managers Malaysia are proficient in lease valuation, provide valuable advisory services, and possess essential knowledge of real estate law, market conditions, and the relevant by-laws. This expertise is especially important when managing commercial properties.
Graduates in estate/property management are trained in property valuation, estate agency operations, and related fields, enabling them to practise in one or more areas. It is therefore unfortunate that some unqualified parties mislead the public by suggesting that valuers are only trained to perform property valuations.
In Malaysia, the property management industry is well established through a robust combination of education, practice, and industry standards. Higher education institutions such as Tunku Abdul Rahman University of Management and Technology (TARUMT), Universiti Malaya (UM), Universiti Teknologi MARA (UiTM), Universiti Teknologi Malaysia (UTM), Universiti Tun Hussein Onn Malaysia (UTHM), University of Reading Malaysia, University of Malaya-Wales, etc offer professional degree programmes in estate or property management. Many of these universities collaborate closely with industry experts and the senior experienced professionals are appointed as external examiners as part of the university accreditation framework.
Several professional bodies have also been established to uphold high standards in the property management sector. For instance, the Malaysian Institute of Property and Facility Managers (MIPFM), Royal Institution of Surveyors Malaysia (RISM), and the Association of Valuers, Property Managers, Estate Agents, and Property Consultants in the Private Sector Malaysia (PEPS).
With the demand for effective property management continuing to rise, these institutions are essential in cultivating the expertise necessary to manage properties professionally, efficiently and sustainably, thereby contributing to the nation’s economic growth.
It is also important to note that various international organisations recognise Malaysia’s property management education standards. For instance, TARUMT and UM’s real estate management degree programmes are both recognised and accredited by the Royal Institution of Chartered Surveyors (RICS).
However, RICS does not recognise any degree specifically titled “building management.” So, how can we expect a building manager trained solely in building maintenance to navigate the complexities of the industry without the technical, legal and professional knowledge required? How can building managers without such expertise give advice on operations such as tenancy management, leasing, rental rates and the relevant regulations and by-laws?
Calling the profession a monopoly is unjustified. If this were the case, then all lawyers, accountants and doctors would be monopolistic in their own accord. It is not logical to dumb down to meet the requirements of non-professionals who lack the formal education, training and regulatory procedures required.
Moreover, the shift towards self-regulation in property management and proposals to establish a new board of building managers to admit non-professionals — those without the required education and technical knowledge — has unfortunately coincided with an increase in reports of corruption, abuse of power, unauthorised activities like illegal homestays, partitioning of strata properties without approval, and the lobbying of unlicensed individuals seeking to create a professional body for managing properties.
These issues have proliferated in properties lacking professional management, and the proposal to create a board comprising non-professionals will not effectively address these systemic problems. What Malaysia truly needs are stricter regulations and an end to the employment of unqualified property managers.
SOURCE: EdgeProp
AUTHORS: Prof PMgr Dr Ting Kien Hwa
SDG: 4
CITATION:
ABSTRACT:
In what way could a new unproven board offer solutions when Rehda and PPK members are already admitted as registered property managers under BOVAEP and its representatives are board members of BOVAEP?
The current debate on the property management-building management issue can be examined from the public policy perspective. The proposal to establish a rival regulatory Board of Building Managers (BOBM) versus the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP) by the Ministry of Housing and Local Government (KPKT) impinges on public policy affecting the property management industry.
Public policy refers to the decisions, actions and programmes implemented by governments to address societal issues or achieve specific goals. The creation of a new regulatory board is a deliberate government action aimed at influencing behaviour, regulating industries or protecting public interests. It falls within the purview of public policy as it involves the formulation and implementation of rules and regulations that have significant implications for society. The affected stakeholders are the graduates of property management, strata property owners, tenants, occupiers, joint management bodies (JMBs), management corporations (MCs), property management professionals, professional bodies, etc.
The establishment of a rival regulatory board, while intended to address certain perceived shortcomings, can also introduce new challenges and weaknesses. Here are some potential drawbacks:
1. Increased costs and inefficiencies
With a significant overlap between the functions and roles of property management and building management, the two bodies may duplicate their regulatory efforts, leading to increased costs for both agencies and the professional practice they regulate.
The two different boards may adopt conflicting or overlapping regulations, creating confusion and uncertainty for the practising professionals, strata management bodies, Commissioner of Building (COB), etc. Why reinvent the wheel when the current regulatory system has already been in place since 1981?
Competition between the two boards can lead to bureaucratic conflicts and a lack of cooperation, hindering effective regulations with dire consequences on the well-being of strata owners, tenants and users.
2. Regulatory capture
The new regulatory board itself could be captured by special interests or specific industry groups, thereby defeating the purpose of its creation. The proposal on BOBM is led by developers with vested interest and the proposed board smacks of conflicts of interest. In contrast, BOVAEP is a semi-statutory body supported by the Federal Department of Valuation and Property Services, the National Institute of Valuation (Inspen) and National Property Information Centre (Napic). As a public body, the impartiality of BOVAEP is clear. Why is there a need to transfer some of the property management functions of a public entity to a new board which is controlled by the private sector, especially developers?
3. Undermining public trust
The existence of two regulatory bodies can create confusion and uncertainty among the public, eroding trust in the regulatory system introduced by the Government. The perception of duplication and inefficiency can lead to a loss of public confidence in the government's ability to regulate effectively.
4. Regulatory overreach
The creation of a new regulatory board could lead to increased regulatory burdens on JMBs and MCs. The professionals and management committees of strata properties will need to report to two boards.
With building management being a subset of property management, the two agencies may have overlapping jurisdictions, leading to conflicting regulations and unnecessary monitoring costs resulting in inefficiencies and waste of public funds.
The unnecessary competition between professionals will stifle growth and innovation in the property management industry hindering the competitiveness of the real estate industry in the Asian region.
5. Political motivations
The establishment of a rival regulatory board could be motivated by political considerations rather than genuine concerns about regulatory effectiveness. Political motivations may lead to short-term policy decisions that do not address the root causes of regulatory problems. It is questionable why the Real Estate and Housing Developers' Association Malaysia (Rehda) and Malaysia Shopping Mall Management Association (PPK), having been board members of BOVAEP since 2018, need to request for the establishment of a separate new board while suggestions and recommendations from them could have been offered for deliberations and implementations by BOVAEP for the well-being of the industry.
6. Unproven to be effective
The creation of a new regulatory board may simply reinforce existing problems or create new ones, rather than addressing the underlying issues. The new agency may be constrained by the same factors that have limited the effectiveness of the existing regulatory regime. In what way could a new unproven board offer solutions when Rehda and PPK members are already admitted as registered property managers under BOVAEP and its representatives are board members of BOVAEP?
Weigh drawbacks against benefits
In conclusion, while the establishment of a rival regulatory board may be seen as a potential solution to certain regulatory challenges, it is important to carefully consider the potential drawbacks and weigh them against the expected benefits. A more effective approach may be to reform the existing regulatory system or to create a more collaborative and coordinated regulatory framework, which the current BOVAEP is practising with an inclusive approach.
SOURCE: THE PROPERTY MANAGER
AUTHORS: Prof PMgr Dr Ting Kien Hwa
SDG: 9
ABSTRACT:
The Malaysian economy has gone from the doldrums to being a juggernaut, which has posed many challenges to the health care industry-especially hospitals. Public hospitals in Malaysia have faced an uphill task in upgrading health care services to levels compatible with international standards. In this book, Hong Poh Fan, a senior adviser on facility management for a hospital developer, explores the transition that public hospitals have undertaken with the support of the private sector. The author zeroes in on critical issues, including: - successes and challenges of privatization implementation; - hospital experiences in a Southeast Asian context and how those experiences can be applied elsewhere; and - ways that private development of hospitals has changed over time as well as the rationale of privatization. When people think of what the hospital industry needs, they often focus on having enough doctors and nurses, but when facilities management is lacking, services can be compromised no matter how employees are working at a facility. Join the author as he shares lessons learned over a fifteen-year period of hospital privatization in this detailed examination of how to improve health care.
2023
SOURCE: Journal of the Malaysian Institute of Planners or Planning Malaysia
AUTHORS: Chin Tiong Cheng & Hon Choong Chin
SDG: 11
CITATION: Cheng, C.T.; Chin, H.-C. Concern over property value: Will the sitting of petrochemical hub influencing housing price? Journal of the Malaysian Institute of Planners or Planning Malaysia 2023, 21(3), 1-10. https://planningmalaysia.org/index.php/pmj/article/view/1280/961
ABSTRACT:
Malaysia is a major exporter for petrochemical products. In line with this, the petrochemical industry is experiencing continuous growth and expansion. This study intends to examine the effect of the establishment of petrochemical hub on nearby housing price. Using residential transaction data of year 2016-2022 nearby Gebeng Industrial Area, we analyse the effect of the sitting of petrochemical hub via hedonic models. Our result indicates that the sitting of petrochemical hub will influence the housing price in which those located nearby will experience higher appreciation in property prices. This study is essential inclea ring the doubt that housing price will be negatively influenced by petrochemical hub. Our findings further indicate that there is a need to educate local residents on the impact of the industry cluster on their house, in mitigating local opposition due to concern over declination of housing price due to the sitting of petrochemical hub.
SOURCE: IOP Conference Series: Earth and Environmental Science
AUTHORS: Nur F. A. M. Lehan & Khairul H. Kamarudin
SDG: 11
CITATION: Nur F. A. M. Lehan and Khairul H. Kamarudin 2023 IOP Conf. Ser.: Earth Environ. Sci. 1264 012001
DOI 10.1088/1755-1315/1264/1/012001
ABSTRACT:
Malaysia's Shared Prosperity Vision 2030 Strategic Thrust 1 stated that the business and industry ecosystem to be strengthened and expected to contribute almost 50% of the country's GDP. This agenda is indeed in line with Goal 11 of UN-SDG that aims to develop sustainable and resilient cities and communities by 2030. However, due to the result of the global pandemic in 2020, many micro, small and medium enterprises (MSMEs), particularly tourism-services oriented, were heavily affected and, unfortunately, the last to recover. The industry suffered a significant decline in revenue due to halting of operations, travel bans, and lockdowns resulting in delays to the continuity plan of business operations. As a result, there was a reduction in workforce and some of MSMEs were forced to cease their operations. Based on questionnaire-guided interviews of 53 respondents, this paper firstly will deliberate extensive review of the impacts of COVID-19 pandemic on MSMEs in East Malaysia state of Sabah, particularly in tourism-centric regions of Kundasang and Kota Belud areas. Secondly, the explanation of smart GIS solutions through network analyses, in helping MSMEs rejuvenate their business operations as soon as possible during and after the disaster events. The results from GIS Network Analysis for disaster event simulation and outputs show that each case study region reflected differently according to different disaster types and intensities. From the outputs, the study proposed an integrated framework consisting of MSMEs' capital of economic, social, and environmental problem-solving phase, together with an operational framework of Disaster-Business Continuity Plan (DBCP).
SOURCE: The Property Manager
AUTHOR: Alan Chong Kim Wing
SDG: 11
CITATION: Chong, K.W. Green Lease Benefits and Implementation Challenges 2023. The Property Manager Vol. 5 (4) pp.20-25.
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