INTRODUCTION

Real estate is known as property comprised of land and the buildings . Real estate simply
means the thing that can touch or can see and the thing that attach to the land such as land,
building, resort, factory and so on. Real estate also can be grouped into three categories such as
residential, commercial property and industries. Examples of residential real estate include
houses, apartments, condominiums and townhomes; examples of commercial real estate are
office buildings, warehouses and retail store buildings; and examples of industrial real estate are
factories, mines and farms.

Real estate market is the buying and selling of the land or building . The main participant
in the market is owner, renter, developer, renorator and facilitator . Owner is the people that
purchase house or property as an investment or use as business . The owner also pure investors
and they rent out or lease the property to someone else or to get the benefit from the property.
Renter is a people that consumers. People that prepare raw land for building which results in new
product for market is known as developers.
Real estate market have an own characteristics such as heterogeneous, high transaction
cost, immobility, long time delay and so on. Real estate is heterogeneous because every unit of
real estate unique in term of location, building and financing . Real estate have a high transaction
cost because the cost including search costs, moving cost, legal fees, real estate fees, deed
registration fees and land transfer taxes. Another characteristic is long time delay due to the time
is takes to finance, design and construct new supply.
REAL ESTATE IN KELANTAN
Kelantan situated in Peninsular Malaysia and nearby with Thailand, Terengganu, Perak
and Pahang. Kelantan is located in the northeast region . Kelantan also called the Cradle of
Malay Culture because of the diverse cultural activities such as Silat, Wayang Kulit, Dikir Barat,
Wau Bulan and Gasing. Kelantan has a GDP growth of 5% that contribute by servise, agriculture
and manufacturing activities. Kelantan also third lowest average monthly household expenditure
and third largest state in West Malaysia . From the Malaysian National Property Information
Centre (NAPIC) report show that in Kelantan, terrace house and semi-Ds are the most purchased
property of 2016.
From the East Coast Economic Region Development Council (ECERDC) report that
Kelantan has attracted large amount of private investment up to September 2015 . There are two
project have been realized and these construction integrated cement plant at Gua Musang by
ASN Cement Industries Sdn Bhd and Biz Markz Cemnet Industries Sdn Bhd . Another project is
by Permodalan Nasional Berhad (PNB) for expansion and refurbishment of Hotel Perdana in
Kota Bharu. From the past few years, Kelantan known as a less developing state in the country.
But in a real situation, Kelantan nowadays has developed more than before.
RESIDENTIAL
In term of residential property, 1262 residential property transaction over 2016 based on
all type and district in Kelantan . There are many type residential property in Kelantan such as
single storey terrace, 2-3 storey terrace, single storey semi-D, condominium/apartment, flat and
so on. Named as one of the top residential in Kelantan is Anjung Vista . The Anjung Vista was
established in Kubang Kerian with a height of 21-storey apartments. Anjung vista apartment
have 251 units of apartments houses and one unit of double storeys commercial lot. The
commercial lot have an area of 5,100 square feet with estimated total construction costs of
RM39.9 million. The apartment provided numbers of facilities such as swimming pool,
gymnasium, praying rooms, halls, cafeteria, convenient store, playground, and a 24 hours
security surveillance. This development has become the landmark of Kubang Kerian district .
Another residential area is an area of condominiums housing located in Kota Bharu . This
condominium known as One Residence Condominium. This condominium area have 80 units of
single 3 bedrooms condominium where the price started around RM262,000 for the area of 1049
square feet and RM351,000 for the condominiums with the area of 1404 square feet.
In year 2016, Kelantan has highest number of houses being built with 5061 houses under
the Rumah Mesra Rakyat 1Malysia (RMR1M) that completed by Syarikat Perumahan Negara
Berhad (SPNB). These project of houses would meet the need of low-income people to own
permanent houses on their own land . On this project, government has given subsidy of RM20,
000 for each house to help the people and that is contribution of government.
In year of 2015, Binaraya PKINK Sdn Bhd completed the housing project that located at
Kuala Krai known as Desa Ar-Rahman Binaraya and construct at Kota Bharu known as Taman
Itqan Binaraya. Binaraya PKINK Sdn Bhd construct 56 house that consist 42 bungalow and 14
semi-D bungalow. The cost for these project is RM3, 491, 000 RM10, 214, 000 . In 2014,
Binaraya PKINK Sdn Bhd also construct 45 terrace houses at Taman Kifayah Binaraya, Jeli with
the cost RM 7, 486,000 for the terrace house . There are many terrace house and bungalow that
construct a few past year. It will help the resident to own their house in their own land not rent
the house.
INDUSTRIAL
In terms of industrial property, 3 industrial property transaction over 2016 based on all
type and district in Kelantan. There are many type industrial property in Kelantan such as office,
detached, factory and others. In year 2011, Kompleks Saidina Ali have been established and has
operated since then. This complex consists of 107 units of shop lots, and has been developed by
Ali Homes which located in Kok Lanas, Kota Bharu. Other than that, a lot of Malaysian Anti-
Corruption Commission (SPRM) building in Jalan Sultan Yahya Petra have finish from
construction on the July 2011 with 8 floors of a total. The plan for the construction of this
building has also being blue-printed in the Ninth Malaysian Plan (RMK-9).
Besides that, another industrial property is Sawit Raya Oil (Kelantan) that has been
established in the 2015. This factory provides 173 job opportunities where 70% from the
positions in the factory are held by the local especially Kelantan people. This filtrate factory has
also been the supplier of refined, bleached, deodorised (RDB) palm oil for the food supplies
industries in Kelantan, Pahang and Terengganu. As much as 65% to 90% of the production will
be exported to Thailand, Vietnam, Cambodia and Myanmar. This export activities will be
conducted through the Tok Bali Port. This activities will then increase the income of the small
palm oil farmers. In addition, in 2014, Malaysian Investment Development Authority (MIDA)
has approved a total amount of RM1.2 billion investment in the manufacturing sector in
Kelantan. It is also recorded 25% higher than the total investment approved in 2013. Kelantan
also keep receiving investments further until the 2015.
COMMERCIAL
In terms of commercial property, 81 commercial property transaction over 2016 based on
all type and district in Kelantan. There are many type commercial property in Kelantan such as
storey shop, purpose-built office, shopping complex and others . There are top development in
Kelantan over the year. Shopping complex in Kelantan has been an attraction to the people from
the south of the neighboring country, Thailand especially at Kota Bharu, Kubang Kerian, Pasir
Mas and others that nearby Thailand. They came to shop their daily needs in Kelantan . Before
this, Kota Bharu is very well-known with numbers of shopping complex including Tesco, KB
Mall, Giant & Parkson, Mydin Mall . Besides, there is also Billion Shopping Centre, Pantai
Timur, Nirwana, Tunas Manja Group (TMG), Econjaya, The Store, Ceria and many more.

In 2005, KB Mall has been established in Kota Bharu . It is a strategic shopping mall as it
is located at the main road to the capital of Kelantan, Kota Bharu city . It is maintained and
managed by Y. S. Tang Holdings Sdn Bhd with the area of 1 million square foot . In this
shopping complex, there is also some kind of family market namely Pacific Hypermarket &
Departmental Store. On the upper floor, there is also food courts and the Pacific Bowling . In
2016, another international ranking shopping complex will be operated in Lembah Sireh . AEON
Mall Kota Bharu has been considered as the fourth largest shopping complex in the country with
the area of nearly 1.3 million square foot (120,774 square foot). That complex will be equipped
with AEON hypermarket, fashions boutique, sports center and also furniture shops. AEON Mall
also provide 178 shop lots including the business areas for the entrepreneurs of small and
medium enterprises (IKS). It also provide 2,400 parking lots and offers more than 1,000 job
opportunities to the locals.
Just for information, almost 1440 of agricultural property transaction over 2016 in
Kelantan. These transaction in all district and all type of agricultural property such as rubber, oil
palm, paddy, orchard, durian and others. Based on latest news, Kelantan government has agreed
to cooperate with the federal government to build an additional 4,000 housing units under the
1Malaysia Civil Servants Housing (PPA1M) project in the state . It is a measure to ensure more
civil servants in Kelantan would own homes . A total of 7,334 house units under the project in
Kelantan, sold between RM90, 000 and RM300, 000 each, were being built and similar to
projects by the federal government in Kepong, Kuala Lumpur.