Latest Updates, Real Estate Cycle & Great Locations In Klang Valley 1. Quick Introduction – Stock...

Latest Updates, Real Estate Cycle& Great Locations In Klang Valley

1. Quick Introduction – Stock Market; Industrial Statistics; Oil Prices; New Administration

2. Using House Price Index – Bubble Pre Asian Financial Crisis

3. Current Data For Residential Market 2009 Property Market – Stable & Flat for 4 last years

4. Asking Prices: Oct 2008 Vs Mar 2009 (5 Month Gap Period) Landed Suburban Steady; High End – Correction Noted

5. Is This A Good Time To Buy Residential Property? Cycles: Stock Market Correlation To Property Market Improved Sentiment Has Begun…

6. Great Locations In Klang Valley To Invest

7. Conclusions

7.7% pa

No change

2.0% pa

S$1,350 psf

S$3,250 psf








7. Conclusions

100

300

200

400

500

600

RM

'0

00

20092008O CT NO V DEC J AN FEB MAR APR MAY

Dam ansara Utam a 2 S torey Link 4r/ 3b Asking Prices

480

425

530

425








7. Conclusions

HO CHI N SOON RESEARCH SDN BHDChin Soon’s Boom & Crisis Grid

Cousin bought SS17Subang J aya doublestorey link house atRM55,000 in 1978(30 years ago)estim ated m arketvalue now : 500K

Stock MarketBULL RUN

1968 1981 1994 20071969 1982 1995 20081970 1983 1996 20091971 1984 1997 20101972 1985 1998 20111973 1986 1999 20121974 1987 2000 20131975 1988 2001 20141976 1989 2002 20151977 1990 2003 20161978 1991 2004 20171979 1992 2005 20181980 1993 2006 2019




Friend bought BandarUtam a house in 1992for RM178,000 (16 yrs ago)estim ated m arketvalue now : 680K

1968 1981 1994 20071969 1982 1995 20081970 1983 1996 20091971 1984 1997 20101972 1985 1998 20111973 1986 1999 20121974 1987 2000 20131975 1988 2001 20141976 1989 2002 20151977 1990 2003 20161978 1991 2004 20171979 1992 2005 20181980 1993 2006 2019




Friend bought BandarUtam a house in 1992for RM178,000 (16 yrs ago)estim ated m arketvalue now : 680K

1968 1981 1994 20071969 1982 1995 20081970 1983 1996 20091971 1984 1997 20101972 1985 1998 20111973 1986 1999 20121974 1987 2000 20131975 1988 2001 20141976 1989 2002 20151977 1990 2003 20161978 1991 2004 20171979 1992 2005 20181980 1993 2006 2019

GOOD TIME TO BUY RESIDENTIAL PROPERTIES?

1. 98% of Klang Valley Housing Stock – No Bubble Asking Prices Landed Last 6 months - Steady

2. Absolutely Low Borrowing Rate – 3.2% pa

3. Inflation May Come Back Commodities Inching Upwards Again Property Hedge Against Inflation

4. Liberalization Agenda Of Najib Administration

5. No Real Property Gains Tax

6. Special Offers By Developers








7. Conclusions

1. INTELLIGENT2. COMPASSIONATE3. GENTLEMAN4. VISIONARY








7. Conclusions

1. Last boom cycle we had price increase of 70% in 4 years and a rate of 14% per annum within a 4 year period. Asking prices for suburban over 5 month period stable. Correction for high end high rise in KLCC noted.


2. Malaysia in better position than most countries. Commodity prices starting to inch upwards again. Real estate markets worldwide starting to correct itself as bargains appear.



3. Branded and reputable developers are doing very well in Malaysia currently. Many developers are launching new products later this year.



4. Interest rates are very attractive. Continue to focus within the 1st tier locations from the Centre of Gravity for Klang Valley. Difficult to imagine downside for properties in general which had no bubble whatsoever. Landed properties will continue to do well. Reasonably priced luxurious high rise may do well again as economy improves 2010 onwards…

3. Branded and reputable developers are doing very well in Malaysia currently. Many developers are launching new products later this year.

Latest Updates, Real Estate Cycle & Great Locations In Klang Valley 1. Quick Introduction – Stock...

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