KUALA LUMPUR, April 27 ― Global property company Knight Frank Malaysia International has acquired a 51 per cent stake in Property Hub Sdn Bhd, rebranding it as Knight Frank Property Hub Sdn Bhd as part of its expansion strategy to bolster its position in the local residential property market.

Knight Frank Malaysia group managing director S. Sarkunan said the holding company's local operations Knight Frank Malaysia is the entity which has entered into a joint venture (JV) with the rebranded outfit, a boutique local real estate agency.

It is the holding company, Knight Frank Malaysia International which bought the stake, but it is Knight Frank Malaysia, that has entered into the JV with the rebranded entity to integrate its residential operations, with Property Hub acting as the key element of the company’s residential agency network.

A new management structure, complemented by future new hires will bring the JV in line with Knight Frank’s global practices and to bolster the team, Sarkunan said, adding that Property Hub has 120 agents in its Kuala Lumpur headquarters and Kota Kinabalu.

Sarkunan said the JV will reinforce the Knight Frank brand in Malaysia, and the combined 700 professionals across the board will enhance its ability to assist clients.

"Our target is to double the current turnover in the next three years. The immediate plan is to expand the company nationwide with operations in Penang and Johor Bahru in the near future,” he said.

Property Hub managing director Benjamin Tee said the two companies will leverage each other’s expertise in today's "constantly evolving real estate landscape”.

"Our shared values and unique qualities will enhance our market impact and reach,” he said.

On the property market outlook, Sarkunan said the market is poised for a strong recovery this year with Malaysia transitioning into the endemic phase.

"A lot of people didn’t spend a lot of money during the pandemic period. They have the money to invest, and residential property is where most people invest. Certainly, the market will improve tremendously,” he said.

Knight Frank Group chairman Eric Ooi cautioned that the ongoing Russian-Ukraine war is causing serious inflation and may spillover into the property market.

"Definitely, the cost of developing a property has gone up by easily 15 per cent. Ultimately, cost will impact how developers price their products.

"On top of that, the stock market recently had a bear run. With many losing money in stocks, the demands for property will not be as ‘quick’ as expected. However, I believe that we have seen the worst, and it is just a matter of seeing how fast we can pick up from this,” he said. ― Bernama