KUALA LUMPUR, July 4 — Malaysian-based water and wastewater engineering company Salcon Berhad has begun investing in the Melbourne property market, citing an easing in the Malaysian property market, according to an Australian report.
The Australian reported that Salcon last week completed the purchase of 16-22 Claremont Street, a 2,125 sq meter property in Melbourne, for AUS$37.88 million (RM113.13 million).
The proposed development at the site can support a AUS$230 million (RM686.89 million) luxury complex, the report stated.
In a statement, Salcon said that one of the key drivers behind its decision was the “general slowing down of the Malaysian property market”, which it said had led to it diversifying its investment portfolio overseas.
“This acquisition will allow the group the opportunity to establish a presence in the Australian property market, where demand for Australian properties has remained strong in key cities such as Melbourne, in particular inner city areas,” Salcon reportedly said in its statement.
Salcon plans to build 336 units of residential units with a retail podium on the property.
The depreciating value of the ringgit and rise in cost of living in the past couple of years has led to a slowdown in the Malaysian property market.
The value of real estate transactions and sub sectors were down by 8 per cent and 10.5 per cent respectively in 2015 compared to the previous year.
