PETALING JAYA (Jan 16) — Property developments centred on wellness and healthcare can deliver long-term value, but only if they are grounded in sound financial planning and realistic market demand, industry leaders said at the Real Estate and Housing Developers’ Association (Rehda) Institute’s CEO Series 2026.
The high-level forum, attended by more than 400 senior representatives from government, finance, property, academia, and international businesses, focused on Malaysia and Asean’s economic outlook, investment trends, and future workforce needs. Among those present were Finance Minister II Datuk Seri Amir Hamzah Azizan, Transport Minister Anthony Loke Siew Fook, and Deputy Minister of Tourism, Arts and Culture Chiew Choon Man.
Speaking during a panel on future-proofing real estate and tourism-led income streams, Datuk Seri Vincent Tiew, branding, sales and marketing executive director of KL Wellness City, cautioned that many “eco-wellness” developments struggle because they prioritise appearance over commercial fundamentals.
He stressed that successful projects must carefully balance healthcare standards, wellness features, and land acquisition costs — particularly when securing commercial property in KL or large development parcels across Selangor.
“Wellness features add value, but they must be practical and financially sustainable. Green buildings and open spaces are important, but they don’t automatically translate into revenue,” he said.
According to Tiew, buyers and end users are increasingly discerning and will only commit to wellness services if there is proven effectiveness and credibility behind the offering.
From an investment perspective, Tiew said developers must clearly demonstrate returns when acquiring land or launching integrated townships, whether for healthcare hubs, resorts, or mixed-use projects.
This applies not only to hospitality developments but also to surrounding office space in Bukit Jalil, business parks, and supporting commercial assets that form part of a wider ecosystem.
“Without strong infrastructure, accessibility, and market demand, even a well-designed wellness project can become a long-term financial liability,” he added.
Sunphol Sorakul, partner and director at Thailand-based architecture firm Foster + Partners, noted that eco-focused developments typically require heavy upfront capital expenditure, including environmental infrastructure built well before sales begin.
However, he said sustainable design ultimately lowers operating costs over time, particularly energy consumption, allowing long-term returns to materialise.
“In wellness developments, trust is everything. People need confidence in the operator before they commit, whether for medical or step-down wellness services,” he said, adding that once trust is established, repeat demand follows.
Meanwhile, Malayan United Industries Bhd (MUI) operations senior vice president Pel Loh Pooi Ling highlighted that hotels generally take about seven years to recover development costs, depending on location and positioning.
She noted that while premium features may not always generate immediate financial returns, they can enhance brand prestige. Revenue-generating facilities such as ballrooms and MICE-ready meeting spaces can significantly improve margins, particularly in well-connected urban areas.
She also advised developers to explore niche positioning, including wellness-focused hospitality or youth-oriented concepts, which can deliver stronger long-term performance when aligned with market demand.
Such strategies are increasingly relevant as developers integrate hospitality elements into mixed-use projects near industrial land in Selangor, growing employment hubs, and emerging industrial property in the Subang area.
As wellness, hospitality, and commercial developments continue to converge, speakers agreed that success depends on balancing ambition with financial discipline. For developers and investors, aligning vision with practical execution — especially in high-growth areas across Kuala Lumpur, Bukit Jalil, Puchong, and Selangor — remains critical to achieving sustainable returns.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 17 Jan 26
Malaysia