Oxley's Malaysian sales suffer from foreign buying restrictions

High price points took its toll on sales.

Whilst sentiment for most of Oxley Holdings' overseas projects is positive, its properties in China and Malaysia paint a different picture for sales, UOB Kay Hian said.

The soft launch of Oxley's commercial office in Oxley Towers KLCC faced a slow start due to the high price point and was worsened by restrictions on foreign buying. Regulations required foreigners to form a company to make any purchases.

Despite the poor sales, UOB Kay Hian said the management is maintaining the prices.

On the upside, Pepper Hill in Penang has obtained the necessary planning permissions to change its land use from agricultural to residential mixed-use.

Oxley's Gaobeidian project in China experienced a delay due to regulations in place which require developers to apply to the municipal government for price-setting.

Despite rigidity in the sale process, UOB Kay Hian said the management believes its Gaobeidian portfolio is in a sweet spot and does not feel pressured about selling.

Since the announcement of China’s third special economic zone in the Xiongan New Area, land sale has also been frozen.

Recently, residential prices in the vicinity has risen from $1,021.47 (RMB5,000) to $1,839 (RMB9,000) psm. Prices are expected to reach $4,085.88 (RMB20,000) psm in the next two years.