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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

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.

Impacts of Macroeconomic Factors during COVID-19 Pandemic on Property Loan Impairments & Overhang: Case Study of Malaysia

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

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.

A systematic review of social capital in low-cost housing: A conceptual framework and lessons learned

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.

Impacts of Macroeconomic Factors During COVID-19 Pandemic on Property Loan Impairments and Overhang: Case Study of Malaysia

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.

A Conceptual Paper on Stigmatised Dimension Towards Residential Overhang

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.

Secular Trends in Property Overhang in Malaysian Residential and Service Apartments

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.

A Review of COVID-19 Impacts on Global Residential Property Prices and Key Trends: UK, China, Malaysia, Singapore and United States

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.

Skills and Competency in the Malaysian Property Management Industry

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.

Real Estate Agency Practices in Malaysia: Future Direction

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.

Stricter Regulation Needed in Property Management

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.

Without professional training, how does separate board solve property management issues?

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.