Vaccination is the key. 300,000 per day is the target for July 2021.

I have just received my appointment for 2nd jab for AstraZeneca just 2 days ago. It’s a nice feeling to know that I would soon be as protected as two doses could afford me. I also know that infection is possible but I also know that with antibodies built up with vaccinations, the chance of hospitalisation is reduced tremendously and the probability of going into the ICU is even lower.

This is why vaccination is key and is the only effective way to keep the new cases under control. Please note that it is NOT going to cause the cases to go zero but it can keep cases low and that’s great for the medical frontliners who could then stay focused on giving the best possible.

Where are we in vaccinations?

As at 2nd July 2021, the below is the total vaccinations per 100. We can see a huge gulf between the countries at the top and the countries at the bottom. Do note that I did not include all other countries where the vaccinations are still extremely low because it just does not have any vaccine doses and donations from richer countries have not reached them too.
Info source: ourworldindata.org

Good climb in June but let’s aim higher for July

We could see that our number of vaccinations per 100 is on a steep climb and this is not slowing down yet because in July, we are aiming to hit 300,000 on average per day versus 200,000 in June. Statistically, it will be another 50% growth. Of course, at the same time I do hope all our ASEAN neighbours would also start showing a steep climb because if we intend to have any travel bubble like what the European Union is doing, we need all member countries to also be at a certain level of vaccinations.

Total Covid-19 doses we have for July?

The total doses arriving in July alone is 12 million. This is the total from a combination of Sinovac, AstraZeneca (including extra 1 million from Japan) and also Pfizer doses. This is MORE than all the deliveries from February all the way to June.  So, yes, July is that critical month where all promised deliveries must arrive but all the targets set to be hit. Let’s look at mid July numbers when we have them and perhaps I give an update again.

Happy getting your vaccination and remember to encourage more people to sign up too.

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Vaccination news: Let’s use up 1.059 million doses before end June, okay?

Good news.
 Not great news but definitely good news. Malaysia have a total arrival of 1.059 million doses of COVID-19 vaccines this week. This is
559k of AstraZeneca (which I have taken and if you like to know the experience and what to do etc, read here)
Added to this number would be another 500k vaccine doses from Sinovac which will be included into the National Immunisation Programme (NIP). AZ is separated from the NIP because too many Malaysians do not prefer it. It’s really good to read about UK’s experience with AZ and they have just reopened their economy last week. As for the 1.059 million doses, here’s that news article confirming this number.
Article in nst.com.my

Not-so-good-news.
The registration for AstraZeneca has been opened on 23rd May 2021. It is only for the seniors and they will have priority until 26th May. My good friend managed to register for his parents too. Well, after more than 4 hours, we could see that most dates remain open and in other words, these will be open to everyone from the 27th May onwards. Take a look at the screenshot for KL and Penang as below: (as at 420pm)  Register here yeah:
https://www.vaksincovid.gov.my/

What happened during the previous opening for AZ vaccines of 280k doses was that every slot was taken up within 3.5 hours. Well, I think that’s because it was open for all. Hopefully, we will see even more slots being filled up within the next 2 days. Else, it will again be open to all and from the first experience, I think it should be filled up again even if the total doses being offered for AZ is now a total of 1.1 million doses. (including another 559k arriving end of May which I really hope will arrive on time).

Another good news.
With enough vaccines available, it’s also possible to quickly ramp up the vaccinations too. Look at the numbers below. It has reached a high of over 80k doses per day. In other words, within 30 days, we could actually vaccinate over 2.4 million people. As informed earlier, the maximum vaccinations which Malaysia could do per day is up to 160,000. Well, 80,000 seems to be good enough with the current vaccine supply. We need MORE vaccines to arrive in order to keep doing such a high number.
 Image source below is KKM’s FB page.

If you have friends who have not registered, tell them. My recent article about AZ has been clicked by over 300 readers! Within 24 hours. So, I guess the interest is there but people just need more information for them to decide. It’s also possible to wait for Phase 3 which is supposed to start very soon with more vaccine supply. As for choosing which one, I just want to remind everyone again that Malaysia is nowhere near the first few million people to take any of these three vaccines, whether it’s Pfizer or Sinovac or AZ.

There has been tens of millions and hundreds of million people in the world which has gotten it way before us. Whether we are successful or not in this fight against COVID-19 is with all of us yeah. Stop hoping for miracle cure because even a lockdown does nothing more than just delay the inevitable. Vaccination is a better cure. Thank you.

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Register for your COVID-19 vaccination with MySejahtera. Here are the steps.

Time to do our small part to protect all other Malaysians and our loved ones. Register for the COVID-19 vaccination. It’s now available. This is necessary yeah. Someone said, start from first screen. So, here’s the steps.

Step 1 – Open your MySejahtera App. Click the “Close” button.

Step 2 – It will ask you to update the app. Go and download if you still do not have this app. Once you have downloaded/ updated, then the below screen would appear. You will have a new “COVID-19 Vaccination” button.

Step 3: Click on the COVID-19 Vaccination. It will show you this Vaccination Page. Click on Vaccine for [your name]

Step 4 – It tell you that we are in Phase 1. Click on “CLICK HERE” to verify and make sure all the information stated is yours. IC Number. Mobile Number.  Address. Click to confirm.

Step 5   Answer a few simple questions, click Submit.

Step 6.  It will THANK YOU for verifying your details. Now, just need to wait till they send you a notification when your turn arrives. Thank you for doing your part.

Thank you.

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Vaccinations. Latest update and what’s happening after vaccinations.

A few things are happening currently with the vaccinations happening at a fast pace in Malaysia. c

Close to 90% of all new Covid-19 cases are people without full vaccinations. Yes, this means either the vaccinated ones are ALL staying home and the unvaccinated ones are always outside. Else, it means that the vaccinations are working.
Article here.

Only 1.59% of fully vaccinated medical frontliners are infected with Covid-19.
Article here.

States with higher vaccinations already show lower hospitalisation numbers even if infections remain high because of Delta variant.

Article here.

With lower infections this will mean even lower hospitalisations for the fully vaccinated ones. This is why vaccination is so important.

USA latest news:  The Centers for Disease Control and Prevention (CDC) said 99.99% of people fully vaccinated against Covid-19 have not had a breakthrough case that resulted in hospitalization or death.
Article here.

Now for the update.  We can see I have selected those countries which have one of the highest vaccinations in the world and it includes Singapore which is actually at the top of the world. European nations were hit very hard and their vaccinations were very fast as there were availability of doses too.

Source:
https://ourworldindata.org/covid-vaccinations

Referring to the image above, Malaysia is now just behind the U.S. and unless the speed of vaccinations change for the U.S., Malaysia should equal them by end of August 2021.  Vietnam’s vaccination speed is also like lighting and based on this momentum, it would equal Thailand by end August.

Meanwhile, we can see the Philippines vaccinations are slowing down. The first dose is very low indicating that more people are getting their second dose but not many are getting first dose or newly vaccinated ones.

For a travel bubble to happen for ASEAN for example, we need all fellow ASEAN members to achieve a good level of vaccinations. If you ask me, that should be 70% vaccinations among citizens. Would I travel if there’s a travel bubble? Yes, if my kids are also vaccinated. I am not one of those who is looking forward to stay home for another one more year.

Hoping for the best.

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EU say can enter if WHO has approved the vaccines but still not so straightforward.

Recently, there was that news about all the possibility of the EU barring the entry of Malaysians with Sinovac and AstraZeneca doses. The reason was that it was not approved in the EU by the Europeans Medicines Agency (EMA). Oh yeah, they approve AstraZeneca but only the ones manufactured in certain countries. Our AstraZeneca came from South Korea and it’s not part of those approved countries.

Frankly, I just want to go home… to hometown and see my parents

Naturally, everyone was upset but someone logical said this, “I want to have two doses so that I could visit my parents in another state. I am not thinking of visiting Europe anytime soon.” I fully agree too yeah. I also just want to go home, say hi to my parents, have meals with them and watch TV with them in my hometown. That to me is the only reason I want to get two jabs. Europe can wait long, long time.

Latest news?
Article in malaymail.com here.
The European Union (EU) said that the EU Digital Covid Certificate does not ban travelers if they received Covid-19 jabs which were the ones not approved by the bloc. It also added that the members states have also lifted travel restrictions for those who received Covid-19 vaccines that are yet to be approved by the EU, as long as the manufacturers have gone through the World Health Organisation’s (WHO) Emergency Use Listing process.

It said, “Entry into the EU is in principle allowed to fully vaccinated persons with one of the vaccines authorised in the EU, including those produced in facilities not covered by marketing authorisation in the EU.”  Please do read the article in full here:
Article in malaymail.com here.

These are ones approved by WHO thus far

World Health Organisation (WHO) has already  listed the Pfizer/BioNTech, Astrazeneca-SK Bio, Serum Institute of India, Astra Zeneca EU, Janssen, Moderna, Sinopharm and Sinovac vaccines for emergency use.
Here is the news from WHO website.
Please do note that the article says that it will allow anyone vaccinated by any of the manufacturers who have gone through WHO Emergency Use Listing Process BUT the vaccines must have also received the authorisation in the EU.

If you ask me, what this say is Malaysians with Pfizer and AstraZeneca vaccinations (regardless of which country it was produced) are allowed into the EU but the rest, not yet. The reason is because EMA has only approved these brands currently:
Pfizer, AstraZeneca, Janssen and Moderna. This is the link for reference.
 Please do not ask me why they are being so difficult and does not want to just recognise what WHO has approved. When you have a chance, do ask them…

Happy travelling?

By the way, there’s no way that travelling to the EU would be anytime soon. Better just stay focused on vaccinations yeah. Thus, all these debates about who they approve and who they did not, well it’s more limited to the ones who could travel. Somehow, I do think that these people are the wealthier ones… Anyway, flights are also expensive even if available right now. So, just wait for more announcements or clarifications in the near future. In the mean time, if you have AZ jab like me, travelling to the EU is allowed, for now.

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I wonder if one day people would realise valuation on startups (after 5 years) should be based on profits…?

How is the valuation on startups calculated?How long should startup be a startup? These days, it seems that some startups could be a startup like forever…? Much longer than 5 years for many of them.

Everyday, I read about how this startup or that startup getting a new high in their company valuation when another new investor invested into the company. Then, when I read a little deeper, I realised that these startups are either still losing money (but they have lots of potential) or they have very little profit if any (but they have lots of potential) and this was why they were valued at sky high prices especially versus their senior peers in the industry which are profitable but are no longer startups and the growth is already stable.

Photo by Lukas on
Pexels.com

Let’s go back to the fundamental of a company share
price valuation as per investopedia.com

What Is Price-to-Earnings Ratio – P/E Ratio?

The price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings (
EPS
). The price-to-earnings ratio is also sometimes known as the price multiple or the earnings multiple.

P/E ratios are used by investors and analysts to determine the relative value of a company’s shares in an apples-to-apples comparison. It can also be used to compare a company against its own historical record or to compare aggregate markets against one another or over time.

As for what is Earnings? The below would be the definition by investopedia.com

What Are Earnings?

Earnings typically refer to after-tax
net income
, sometimes known as the
bottom line
 or a company’s
profits
. Earnings are the main determinant of a company’s share price, because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. Earnings are perhaps the single most important and most studied number in a company’s
financial statements
. It shows profitability compared to
analyst
 estimates, the company’s own historical performance, and relative to its competitors and industry peers.

If you like to read more,
click here yeah. www.investopedia.com

How are listed companies which are NOT considered a startup valued?

They are valued as per the ratio stated above yeah. If they have good profit upward trend, their share price moves upwards to reflect the next year’s potential result. Their share prices would start showing a downtrend when it is clear that their profit numbers are on the way down due to latest circumstances. This is to reflect a fairer valuation of their share price.

To understand, just look at the share price for banks… versus those of glove manufacturers. For companies which are under the Fast Moving Consumer Goods (FMCG), it follows the trend but is usually on a more stable movement. Basic idea is a simple one, if the company is profitable, they either provide dividends which are much higher than the typical fixed deposit rates or the share prices move upwards which gives a capital gain for the shareholders if they sell the units they own.

If investments are no longer based on fundamental reasons

Everyone investing into startups would want the prices to keep moving upwards. Many of these startups share price is already running far ahead of their actual fundamental. It’s like a belief that this startup will definitely be extremely profitable in the future. Everyone buys into this ‘dream.’  Let’s always remember that there has been many occasions for stock market bubble bursting… property market bubble bursting and all these were because these markets were no longer supported by any fundamental.

Everyone was speculating and hoping that what they paid for today, someone will pay ever higher in the near future. The unluckiest would be the one who bought the “investment” at the highest price.

Money supply continues to increase, people look for higher returns

A low interest regime meant that many would be moving their money in the bank to other investments elsewhere to try and obtain higher returns. I do not think anyone could control how people invest their money but I still hope everyone would understand that a typical investment and their returns should be based on fundamental and not on hopes and dreams. I fully agree that startups with a good fundamental deserves a higher valuation than all the rest. What is alarming is that these ‘higher’ valuation may be taller than the Mount Everest…

Happy understanding and happy investing.  What is investing? Earlier article here:
Investing is like watching the grass grow

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When funds are looking for value buys, what should we do?

Are there property value buys today? A good friend had teh tarik with me yesterday evening. Full social distancing yeah. He said his friend was telling him that the property auction market is now extremely attractive. I told him just within H1 2020, there were over 75,000 residential property transactions. People were already in the market, viewing and buying. Banks are actually lending. As for his question, the following was my actual response.

Charles: If we look at the property market today, there are really a lot of attractive choices. It is not just limited to the auction market. What we need to remember is this. Regardless of the state of market we are in, VALUE BUYS are value buys (just that there are far fewer buyers) while overpriced properties are still overpriced properties. Please do not buy at future prices per sq ft, today. So, let’s just read a little about what’s really happening with value buys in the commercial property market. Remember the notion that, ‘all malls are dying?.’

Photo by Salah Alawadhi on
Pexels.com

Why not we ask, if this is the case, then why buy malls?!

Article in nst.com.my
.
  Hedge funds are eyeing malls, hotels, and office buildings hobbled by the Covid-19 pandemic in what some say may be the
most lucrative commercial real estate move of 2021.
 Leo Huang, senior portfolio manager and head of commercial real estate debt at Ellington management Group said, “The distressed loan pipeline is building. This has been a cycle that is so sector-specific that we’ve seen good opportunity.”

COVID-19 has kept shoppers out of malls, travellers away from hotel and workers are working from office. Some property segments such — such as warehouses and cold storage units — have benefited, and even among troubled malls and hotels, there are many that will survive and even thrive, market observers say. Please do read the full article here with a lot more details yeah.
Article in nst.com.my
.

Look closely, not simply

I do not know of any hedge funds which are out looking for assets to buy and then to lose money. They are LOOKING for good buys. In fact read carefully that even among troubled hotels and malls, many will survive and some may even thrive! Do not look too far away. Just look at the crowd of visitors in Cameron Highlands last weekend… or the 7 hour queue just to check in to a hotel in Singapore for Singaporeans. These are all pent-up demand and as soon as the market recovers, we are going to see a sudden boom in demand. This is what these hedge funds are betting on; market recovery.

Understanding value is not price

Low price does not equate better value. High price does not mean it’s overvalued. Everything is relative. An availability of ONE (1) unit of RM600 per sq ft high-rise unit within a typical median transacted price of RM800 per sq ft is definitely representing good value while a RM500 per sqft may mean nothing if the within the whole block there are another 200 other units all trying to sell at the same price per sq ft.  However, if the whole area are full of RM700 per sq ft units, then this RM500 per sq ft may be worth buying and waiting… or even staying.

Happy evaluating yeah.

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Value still up even when transactions are down.

kopiandproperty.com
 was invited to MIEA’s Press Conference and Launch of MIEA Property Market Sentiment Report recently. I have a full time job, so naturally
MMY
 the junior reporter went. Many good statistics were shared to all the invited medias. Please do contact them (MIEA) for a copy of all the presentations or if you are also a property related media, do let them know to invite your company for future presentations. Here’s the contact email:
secretariat@miea.com.my
  As for the huge number of presentations from them, I will continue to share them over the next couple of days. One particular slide from JLL Property Services Malaysia is important to share with everyone. Especially those who are still waiting for the
best price before they enter the market.

Please refer to the image below.

We can see that in 2017, the number of residential property transactions continue to fall. In fact it fell by 7 percent which is considered significant especially because our GDP is still pretty strong by any standard. The value has however inched upwards and what this tells us is that buyers are still paying higher prices for the homes they bought in 1st Half 2017 versus the 1st Half of 2016. While people say this is the buyers’ market, the truth is, sellers are still able to sell at a higher price. Actually, the key reason for this is because most buyers were buying for their own stay. Almost all of my friends tell me that if they really like a certain area, they are willing to pay a premium for it. The
demand is always selective and is not usually equal for all areas.

So, huge demands for some areas with limited supply and huge supply for some other areas with lesser demand.

This is true also for commercial, even if many analysts are painting a bleak outlook for the office space since Greater KL is said to be having an
 oversupply of offices

now and many more years to come.  Anyway, let’s PONDER.   If there are oversupply of office units, then why are prices still going up? Not all offices are EQUAL.  Have you ever been to some OLD office buildings? Where the water is dripping down from the carpark ceiling everyday? Where only the better drivers should drive into the car park because of the narrow entry? Where walking into the car park can be a horror story because of some dark corridors? Now imagine a public listed company or even a multinational looking for a bigger office space. Perhaps even a lady entrepreneur looking for an office space. Frankly, are they going to consider those OLD but still available office buildings or newer, better and more modern ones? Which one do you think would be more expensive to buy? 🙂   This is why it is very important to start providing more detailed stats instead of just an overall number.  Remember, oversupply is just an overview.  Go deeper to understand why as well as to know about the areas you are interested to buy. That helps a lot versus just an overall picture.

written on 7 Feb 2018

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Scrap VEP. It will boost both Singapore and Malaysia.

In an online news report I read today. “Scrap VEP please.” SMI Association of Malaysia National President suggested this recently. He said both Malaysia and Singapore should just scrap the vehicle entry permit (VEP) because both countries must look at the bigger picture. Instead of these unnecessary actions against each other, both (Malaysia and Singapore) should realize that they are interdependent economically and socially. What should happen should be a cooperation between both countries to further promote, develop and strengthen the economies of the two countries. It should be ‘us’ against the world. It’s a competitive world out there.

I think what he said made sense but I personally do not think it will happen. If the purpose of VEP is clearly to ensure the maintenance of roads etc, then this is a must to continue. I am not sure if the federal or even the state government would like to always be in a deficit due to road repairs. Besides, the RM20 is not even S$8 based on the current exchange rate. I am not sure what can S$8 buys in Singapore but I am quite sure a typical Singaporean family would save many times this amount on meals, shopping and even just going through Johor Bahru to go Melaka.

As for working together, being interdependent on each other, this cannot be taken away with or without VEP. There is really not much choice because Iskandar cannot become successful by itself without any investments from Singapore. If you ask what is in it for Singapore, I think the answer is very clear. If Singapore really wants to continue to grow economically, it has to cater to ever more talents. The more talents it has, the more pressure it would have with regards to housing and if you were to browse online today, you may have noticed some middle income Singaporean already struggling to buy a bigger place for a growing family. Truth is, with just a better and faster link, these middle income Singaporeans can just stay in Malaysia and the pressure on their housing would lessen. Between HDB flat versus a full fledged condo which is twice its size? Choice is clear. The issue remaining would be the link because currently it takes hours during peak hours and this is a huge deterrent. Happy reading more about VEP news.

written on 6 Apr 2015

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VEP? Over 200k Singapore-registered vehicles have registered

Yes, I wrote about this quite some time ago when some people said to me that with the Vehicle Entry Permit (VEP), Malaysia will lose many Singaporean visitors and that demand for Iskandar properties will go down.
Increase of Vehicle Entry Permit and Iskandar property demand goes down?

Yes, I wrote this way back in 2014. While I have no idea if Singaporeans love Iskandar properties as much as Chinese (China) investors, the registration has shown that Singaporeans are prepared to continue dropping by Iskandar. A total of over 200,000 Singapore-registered vehicles have registered under the Malaysia Transport Ministry’s Vehicle Entry Permit (VEP). The implementation date? Undecided yet.

According to Transport Minister Datuk Seri Liow Tiong Lai, VEP would help to weed out cloned cars and foreign-registered vehicles that entered Malaysia without exiting as well as road users with unpaid compounds. He reiterated, “This is not a move to discriminate against Singapore as the same charges will be introduced in stages at other entry points in the country, at the borders with Indonesia, Thailand and Brunei.” Yes, our southern neighbour has also responded that if the VEP is discriminatory in nature, it will reciprocate. Singapore’s Ministry of Transport (MOT) said, “we will match it in some form”. Currently, Singapore charges S$35 (RM109) for Malaysian-registered cars entering Singapore once they exceed the 10 free days per year limit.

On a longer term, I believe the exchange of cars and people between both countries would increase tremendously. Regardless of VEPs from Malaysia or Singapore, unless we are talking about a really prohibitive charge, we will continue to be
even more integrated.
 One major sign? High Speed Rail agreement will be signed in December 2016. Note, it’s agreement and no longer just a memorandum. Second major sign? Temasek is huge investor in Iskandar. Other signs? Do read more about M+S Pte Ltd, Rapid Transit System and even Prime Minister Lee Hsien Loong’s message to
Singaporean SMEs to also consider Iskandar for their expansion.
Happy believing.

written on 27 Nov 2016

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Vietnam Kitchen – One Utama

I was here a few months ago with my wife and I am here today with my in-laws. Today instead of set we took aka-carte. The highlight for me was of course to try their Vietnamese coffee. Any Vietnamese restaurant which does not serve good Vietnamese coffee, please… do not call yourself Vietnamese coffee. So, did Vietnam Kitchen lived up to its reputation? Yes, superbly. Their Vietnamese coffee was really strong and the condensed milk was just right. There’s that special Vietnamese coffee flavour if you know what I mean. If I were to rate, this would be one of the best Vietnamese coffee I have ever tasted in Malaysia. Sorry, I have no immediate plans to go Vietnam at this moment.

What about the food then? Ok, I love the Fish with soya sauce. Simply loved the fried fish as I could nearly eat every part of the fish! Other than that, the rest of the dishes are good but nothing special. Portions are a little small to me. The Vietname spring roll is ok. I think for those going there take their sets and order the Vietnamese coffee. their sets are value for money. Environment wise, I would prefer a brighter place but I think they are trying to give you the cosy feel. It’s ok, I will go again. Citibank card holders get 10% off too.

written on 11th Dec 2013.

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Vietnamese Coffee vs Luwak Coffee

One is a common drink you can find in Vietnam. It consists of a special roasting process using Robusta coffee beans which is the cheapest beans in the world. This is in comparison to Liberica and Arabica. When you drink Starbucks or Coffee Bean or majority of all the cafes using the Italian pressure method, all of them are Arabica beans. Luwak coffee meanwhile are Arabica beans typically, after digestion by the civet cat. It is estimated that naturally, there are less than 400kg which can be produced in the world. These days however, there are a lot of luwak beans everywhere when you visit Indonesia. I seriously doubt some of these luwak beans.

Personally, I have tried the Luwak Coffee before, once. RM35 / cup. Was it worth the money? May I be honest? Haha. Actually, once is more than enough. Surely the coffee is good? Yes, the coffee is quite special. However, I think one try is enough for me. Rm35 is said to be very cheap for one cup. I agree because my friend sells one cup for RM55 and yet it is sold out most of the time!

I have tried Vietnamese coffee many times and I still like it tremendously. Robusta beans are much more stronger than Arabica though not as aromatic. Differences in the roasting method ensures a different taste, must like the Hainanese Roast which is also different from the typical way how they roast white coffee in Ipoh. The ingredients they add in the roasting meant that none of these would ever taste the same.

I have Malaysian friends who said Vietnamese coffee is much better because it is stronger. I beg to differ. I love them all because each have their own specialty. Oh yeah, I have tried Spanish coffee too, with cinnamon. That, is definitely yucky… to me. Penangites would tell you that a cup of kopi-O is the best. Have also tried the siphon method of brewing Arabica coffee and have tried the ice drip coffee too. Siphon coffee gives you the purest form of coffee as it is temperature controlled. The ice drip coffee, now that’s very ‘elegant’ and you must try. Coming back to Vietnamese vs Luwak, there’s nothing to fight. As a commoner, I announce Vietnamese coffee the winner in this coffee duel.

written on 2nd jan 2014

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Who’s viewing landed terrace and condos at 3pm on a Sunday?

Occasionally, we would see some photos showing lots of people at some property new launches. I am sure many of those at the launch are potential buyers. Otherwise why are they there for? Food and drinks? Or perhaps free good quality recycled bags? Actually, maybe… Haha. I wrote about my experience not too long ago a couple who went to a property event by a prominent developer. They were walking in front of me. The husband was telling the wife that all the properties in this project is so expensive. ‘How to buy?’ Both of them were there for a free dinner. Then, I looked at my wife and myself. Perhaps we were also there for a free dinner?! Haha. So, if we want to know if there are genuine potential buyers or not, then what do we do?  I cannot be asking everyone who’s there if they were there for the free dinner or the project right? This was what I did for past two weekend afternoons.

Instead of reading or shopping, I decided to use 2 hours on a Sunday afternoon to view some properties. Both my kids were sleeping anyway and I should be home by 530pm to bring them out for cycling in the condo’s park. Just wanted to see what would I be able to observe. Last week I viewed a condo project in Sri Damansara. When I arrived, three tables were occupied by potential buyers asking questions to the sales people. There was a children’s indoor playground and my kids and my friend’s kids went ‘crazy.’ I think this is a good strategy; keeping the kids occupied while the parents get to ask more questions quietly.

The next two I viewed, also on a weekend afternoon were in Puchong. These two developments are still in the selling mode and I think from my conversations with the sales people, buyers are not making fast decisions but there were many viewings. The first one, a landed three-storey terrace home had 4 different groups viewing at the same time. Two of the families have teenage kids
.
 (Lucky them!)

Unfortunately for this developer, there was only one sales person and I think he could only explain to that family who asked him more questions. (perhaps seem more interested?). When I left the place, the sales person was still serving that family while the rest have also left before me. The price starts from slightly above RM1 million. Another one, a condo in the heart of Puchong had a few sales people and there were also many viewings and also by families too! Prices started from above RM750,00 and this is definitely not under the affordable category. Yet, somehow people were viewing and most of them were with kids.

My personal thoughts?
Slow property market is the best time

for upgraders. You have a home and you are in no rush to buy an upgrade. Developers love people who are upgrading because these people have an existing home which they could sell and they would usually be able to afford a more expensive property compared to first-time home buyers. I think even the sales teams love these upgraders because the questions they ask are much easier to answer with facts and figures. First-timers may have a lot more questions which may not even be related to the project itself. Happy viewing and investing!

written on 31 March 2018

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Learnings after over 10 different condo viewings

I recently enjoyed a late drinking session with a close friend. Sorry, the drinking here refers to just Chatime. Haha. She has recently moved to KL and is now attached to a public listed property developer. As she would be helping her new employer launch a luxury high-rise project, she had to understand all her competitions. Within the past few weekends, she has visited over 10 different luxury projects. From all these visits, she shared the following which I think is extremely important for all buyers who are not as rich as the
super-wealthy yet.

Value is NOT the price per sq ft.
She told me about her top two projects. It is not the highest priced ones. For example, the furnishings. We must not assume that the higher the price per sq ft, the furnishings would be something we love more. Or even that the brands being used would be of top notch. Sometimes, it may be just the usual brands that cheaper condos are using too! It’s not going to break down soon but
we are paying premium.
….

Design differences are huge!
Higher price has nothing to do with emotional appeal, with regards to the interior design. One unit was designed for a
specific target market
 and she told the agent that it was too dim for her liking. The real estate negotiator could only smile which meant that she may not have been the first to comment so. International designer names helps tremendously but designs would always remain subjective. View more and compare….

Showrooms help tremendously.
By virtue of the developer being better known as well as more marketing dollars being spent, the developments tend to get more attention. This is very important but as this is a
luxury high-rise,
 the showroom MUST be done right. For example, do the showroom show more than just the unit itself? What about the views? If the show unit could not be built high up, how about ensuring that these premium views are shown on a huge screen LED TV? Detail matters.

Understand the options.
 Nope, not about huge discounts but do ask about all the available options. For example, fully renovated, partially renovated,
guaranteed rental income

schemes, pay less now and pay more when completed and more. Choose the one most fitting to our circumstances. I think all of us would hate it if one of our friends were to tell us that they got a better deal when they bought the same development as us one week later….

This last one would be for developers to read.

Ethical agents are critical and developers should check them.
One project she went to, the agents showed her around the unit and then told her that they could also bring her to another development nearby which is also a luxury development. She was taken aback. The agent was showing her another unit from a different developer! Haha. Perhaps current times are bad, therefore the agent wanted to provide more choices?

Happy viewing and deciding.

written on 2 Sept 2016

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The slow but resilient luxury condo market in KL

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Viewing without 10% downpayment ready? How interesting.

A real estate negotiator (REN) was ‘commenting’ on a buyer who she had just served. She indicated that the buyer should not view the unit because he (the buyer) does not have the 10 percent downpayment. What the buyer wanted was for the seller to agree to mark-up the pricing so that the bank will loan the buyer an extra 10 percent. In other words, the buyer wanted ZERO downpayment or 100 percent financing. The REN said that this was wasting everyone’s time and the seller may not even agree to such a thing. Let’s not comment on whether this could be done or not, please do ask your friendly neighourhood real estate negotiator okay. 🙂   If you are buyer today, should you view a property when you have not even saved for the downpayment of 10 percent? Do remember that downpayment is just the start. A buyer would still have to pay stamp duty too. Here’s an earlier article:
You also have to pay for stamp duty too, okay?

First of all, apologies, as someone who hope that the whole property market remain robust for a very long time, I do not wish that the property market is
full of people who are taking 100 percent financing
 for their home. So, it is NOT okay to buy a property without any downpayment or think of ways not to pay any downpayment. I was just explaining to my team the other day. Imagine if banks are ‘persuaded’ to lend 100 percent instead of the current 70-90 percent financing for homes. What happens as soon as property prices drop 10 percent? Assuming the
buyers are still paying on time,
 the banks should be just fine. However, as soon as any of them defaulted and the banks are forced to auction off the property in the market at 10 percent or more below the market, the banks would have to suffer losses. Soon, the banks would stop lending the the whole market becomes even worse because demand slows and desperate sellers grow. Please read about the 2008 Mortgage Crisis again yeah…

As for whether it is okay or not to view any potential units without having saved any downpayment, the answer is yes. I mean, why not? Sometimes after viewing, it may encourage the potential buyer to save faster? As for the real estate negotiator, let’s be professional. Just because you dislike that particular potential buyer does not mean you can comment about him / her in Facebook. As Facebook is a social media, there is really no difference between commenting on Facebook and letting the whole world see it versus putting up a banner at the area where the potential buyer is saying and telling everyone in the neighbourhood that there is this potential buyer who is a ‘jxxx’ or ‘sxxxxxx’ because he is viewing without having 10 percent downpayment. Just move on and serve the next potential buyer well. Dear RENs, I have high regards for many RENs, stay professional okay. As for that potential buyer, do start saving yeah.

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written on 23 Dec 2017

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ViiA Residences, benchmark pricing and starting RM1 million

Condo market KL?
Not awesome currently.
 However, for the luxury segment, when the super wealthy likes it, they will buy. Perhaps this is what SP Setia is targeting with their latest launch which will set new benchmark pricing per sq ft. As per reported by Theedgeproperty.com, SP Setia’s KL Eco City divisional general manager Tony Ling said that the ViiA Residences within the KL Eco City would be setting a new benchmark pricing of RM1,600 per sq ft. Of course this is not the highest in KL city centre but for the Mid Valley and Bangsar areas, this is the new benchmark. The starting price would be RM1 million and the launching date is end-August 2016.

Total units would be considered low density. A total of only 326 units with built upsizes ranging from 650 sq ft and 1,300 sq ft. This is the second serviced residence after the 708-unit Vogue Suites which has been fully taken up at an average selling price of RM1,300 per sq ft. It will be connected via pedestrian bridges to the Light Rapid Transit (LRT) station, Mid Valley City as well as The Gardens shopping Mall. Ling added, “We are targeting high-income young professionals aged between 30 and 45 years old who want a vibrant city lifestyle and are looking for a
home in an integrated development
, which offers various facilities and amenities within walking distance.” Yes, his target market is definitely the senior management in companies operating within the area.

It will be completed by 2020 and construction starts end 2016. Currently, a sneak peak is being offered for the ViiA Residences through a mobile gallery which has been making its round in the Klang Valley since June 17 and will continue till next week, 23 August. As per Ling, the total registration has reached 3,000. It meant that even if just 10 percent decided to take up, it should be fully sold? 🙂
In terms of loan approvals,
 I seriously do not think there are too many young adults looking to over-stretching just to book a unit.  Somehow I have yet to view that mobile gallery. I think they are not looking at me as a potential buyer. Haha. To those who qualify, happy viewing and deciding.

written on 14 Aug 2016

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Village Grocer with 9 new stores within Klang Valley

For those in the Klang Valley, when we buy a home sweet home, always make sure there’s a supermarket nearby. A mall is less important than a place for grocery shopping. My serious personal opinion. Coming back to the topic of today. Sometimes don’t we wonder what’s really happening to the supermarket scene in Malaysia? On one hand, we have many cases where the supermarket chains were struggling and yet on the other hand, we have many which are still expanding? If the
market is really bad
, it should affect all supermarkets, not just a few. Well, one seemed to be very confident with its business potential. Reported in ptlm.com.my, Village Grocer Holdings Sdn Bhd is planning to open at least eight to nine new outlets in the coming two years. The list of the malls that they would be opening up are as follows:

SS15 Courtyard Mall in Subang Jaya;

M City, Jalan Ampang;

Tropicana Avenue, Persiaran Tropicana;

Plaza Arcadia in Desa ParkCity;

Melawati Mall in Taman Melawati;

Tamarind Square in Cyberjaya;

Empire City Mall in Damansara Perdana;

myTOWN Shopping Centre in Maluri, Cheras; and

EkoCheras Mall, Jalan Cheras.

Perhaps I share my personal experience as someone who does grocery shopping on a weekly basis. Yes, I do
grocery shopping together
 with my wife and I love it. Pricing wise, there are many more cheaper supermarket chains in the market when compared to Village Grocer. I am talking about overall basis. However, I always love to shop at supermarkets where there’s enough walking space, the food looks fresh and is arranged in a pleasant way and the workers seem to know what they are doing. I think these supermarket chains, especially those catering to slightly above the
middle income family
 meant that their target market is smaller. However, it also meant that as long as they know their target market, they would also earn good profits. Besides, how many of us, the younger generation love to visit the wet market unless our parents requested us specifically? Haha. Yes, I put myself under the younger generation as well.

A good supermarket
 would also be able to anchor a mall well, especially the smaller ones. We need a place to have dinner or lunch and at the same time to complete our grocery shopping. Not many people going to two different places.For those with families, it’s definitely a one-stop decision. Yes, I guess now we know why malls always put good supermarket brands as their anchor tenant. It’s a necessity these days. Happy visiting Village Grocer.

written on 19 July 2016

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Press Release:
VISION 20/20: PROPERTYGURU MARKET OUTLOOK

PropertyGuru anticipates glimmers of opportunity in 2020 amid a trying market
Silver linings include proliferation of alternative financing solutions and home ownership initiatives, as well as growth prospects in selected markets
More industry players to leverage on proptech and fintech as differentiators in an increasingly heated market

5 December 2019, Kuala Lumpur
 – The coming year resonates with meaning for Malaysians from every walk of life, with many growing up looking forward to it as a vision of promise and prosperity. With 2020 now around the corner, industry stakeholders and analysts can finally evaluate the shared vision of yesteryear against the realities of tomorrow.

With this in mind, as Southeast Asia’s leading property technology company and in line with its commitment to keeping consumers informed with the latest market insights and policy updates, PropertyGuru Malaysia has adopted a neutral outlook for property prospects in 2020, with glimmers of opportunity amid a trying market.

There have been targeted measures introduced in Budget 2020 to address specific issues in Malaysia’s property landscape, along with scattered feel-good factors for the market, such as a positive interest rate environment. However, mixed internal and external economic indicators, including a global economic slowdown due to US-China trade tensions as well as volatility in the Ringgit, have hindered growth prospects moving forward.

Pushing new frontiers in property

“The year 2020 has been positioned as a landmark time for Malaysia, with targets for high-income status and economic self-sufficiency, including an equivalent gross domestic product (GDP) of RM920 billion in 1990 Ringgit terms – what would now be about RM1.81 trillion,” says Sheldon Fernandez, Country Manager, PropertyGuru Malaysia.

“With a GDP of RM1.45 trillion in 2018, we’re not too far off the mark. It’s undeniable that Malaysia has come a long way since the 1990s, and with Budget 2020’s focus on digital transformation, it looks like we’ll go even further. The Securities Commission has already registered the country’s first property crowdfunding platform, and other innovations are finding their way into the industry, increasing its diversity and resilience.”

Crowdfunding, rent-to-own (RTO) schemes, and financial eligibility tools such as
PropertyGuru Loan Pre-Approval
 (
www.PropertyGuru.com.my/preapproval
) are solutions and alternative platforms introduced to address home ownership challenges faced by Malaysians. In particular, Budget 2020 has emphasised on RTO, with a financial backing of RM10 billion, including a RM3 billion guarantee by the government.

The RTO approach, in which purchasers can occupy a unit immediately with rental in lieu of a downpayment, is favoured by some industry analysts as it addresses the prohibitive upfront costs of home ownership for many home seekers. Others note that RTO schemes can incur significantly higher total costs compared to conventional mortgages.

While RTO terms and feasibility vary from programme to programme, numerous financial institutions and developers have already adopted the approach, including Malayan Banking Bhd (Maybank) and Gamuda Land Sdn Bhd.

Other alternative housing strategies in Malaysia include micro-housing and co-ownership. There is no single definition of micro-housing; however, it generally includes compact living spaces and communal living elements.

Micro-housing was piloted by Kuala Lumpur City Hall (DBKL) earlier this year for youths in the B40 segment at Jalan Tuanku Abdul Rahman, and is also being explored for University of Malaya students in association with the Malaysian Institute of Architects (PAM).

Meanwhile, co-ownership is the practice of combining income to jointly purchase property, and is seeing popularity as a solution due to affordability concerns. The proliferation of these solutions illustrate how the property purchasing journey is evolving with time in Malaysia, as we move into 2020.

Home ownership: a contemporary dilemma

However, the need for these alternative solutions also underscores the ongoing issues facing domestic property, and these issues are set to continue into the next year. Affordability, supply-demand imbalances in the market and loan financing remain key challenges.

With regard to loan financing, for example, Bank Negara Malaysia (BNM) has seen an uptick in defaults from 2018 through 2019, particularly among those with variable income and those with properties worth more than RM500,000.

“These issues are not limited to the Malaysian property market, and are a product of increasing population pressure and decreasing land availability in urban hotspots. As more purchasers compete for fewer properties, prices are driven up, with developers catering to segments with higher profit margins,” says Fernandez.

In Malaysia, these trends are underscored by perceptions of income stagnation and rising costs of living. The Department of Statistics Malaysia’s (DOSM’s) most recent Household Income and Basic Amenities Survey reported the median monthly income in the country as RM5,228 in 2016, growing at a rate of 6.6% per annum.

The Consumer Price Index (CPI), meanwhile, has grown at an average of 2.5% year-on-year (YoY), with an increase of 1.1% YoY in October. The disconnect between real and perceived inflation is explained by BNM as a function of frequency and memory bias.

Regardless, with the benchmark for affordability set by US-based consultancy Demographia International as three times the annual household income, this means that the price ceiling for affordable housing was about RM188,208 in 2016. Today, this figure has been reported at RM282,000, while the average price for newly launched houses was RM417,262.

Property provisions in Budget 2020

This disparity accounts for affordability and loan financing challenges for Malaysians, as home seekers cannot afford properties or the loans required to purchase them. There is also the demand-supply imbalance in the market, as developers gravitate towards the higher margins for luxury and high-end launches.

“The pressures driving these issues are complex and interrelated, and have been building for decades, leading to calls from some quarters for a fundamental restructure of the property industry in Malaysia. Budget 2020 has taken several steps towards addressing this, through both interim and long-term measures,” says Fernandez.

“Short-term measures aimed at easing home ownership challenges among Malaysians include the Home Ownership Campaign (HOC) and Bank Simpanan Nasional’s (BSN’s) Youth Housing Scheme (YHS), both of which have been extended from their original timeframes.”

These measures, along with the aforementioned emphasis on RTO schemes, address home ownership among younger and first-time purchasers. The HOC, as well as provisions for lowered purchasing thresholds for international purchasers, also seeks to reduce the ongoing residential property overhang.

The residential overhang is a direct result of the supply-demand imbalance in the market, as developers build properties which buyers cannot afford to purchase. It was most recently estimated at 52,666 units in Q2 2019, including 32,810 residential units, 18,186 serviced apartment units and 1,670 SoHo (small office home office) units, according to Nawawi Tie Leung Property Consultants Sdn Bhd.

Perhaps most importantly, Budget 2020 includes numerous provisions targeted at income and labour reform, including minimum wage increases, changes in overtime guidelines and other revisions to the Employment Act 1955.

However, both interim and long-term measures to address the challenges in Malaysia’s property market will take time to impact established patterns. For these reasons and larger macroeconomic factors detailed below, PropertyGuru remains neutral on its outlook for 2020.

In the meantime, affordable housing quotas and initiatives such as Rumah Selangorku, the Federal Territories Affordable Housing Project and Cagamas Bhd’s Skim Rumah Pertamaku (SRP) are bridging the gap between consumer demand and developer portfolios.

Price trends and projections for 2020

Perhaps the clearest indicator of market sentiment is seen in pricing movements moving into 2020. According to the PropertyGuru Market Index (PMI) Q3 2019, asking prices for properties across the board declined in three out of four major markets in Malaysia, namely Kuala Lumpur, Selangor and Penang.

Overall, prices in Malaysia declined 0.9% YoY in the third quarter, with Penang leading the contraction with a 1.5% quarter-on-quarter (QoQ) decrease in its PMI from 94.8 to 93.4 in Q3 2019. Johor was the only domestic market which exhibited no decrease in its index; however, it also failed to showcase growth, with a static PMI of 98.5 in the third quarter.

“With the exception of Johor, these downticks in asking prices are representative of downward movements in longer-term trendlines across key markets since 2015. While asking prices aren’t necessarily interchangeable with transaction prices, they serve as benchmarks for seller sentiment, and as such, point towards moderate prospects at best for 2020,” says Fernandez.

Industry analysts attribute falling prices to adjustments on the part of developers to clear unsold stock and ease cash flow, along with downward pressure from the HOC. Buyers with sufficient leverage can take advantage of the current market to expand their portfolios.

Johor, for example, is an attractive destination for investment, with the caveat that prices there have seen marked volatility in recent years due to supply and policy shocks. With this in mind, thorough consideration of existing property types and incoming demand in the area is necessary, before venturing into the market.

Further north, property seekers in markets such as Kuala Lumpur and Selangor can hedge their bets, by examining purchasing sentiment. According to the PropertyGuru Consumer Sentiment Survey H1 2019, Malaysians are increasingly open to purchases in the secondary property market.

This is attributed to locational preferences, with younger home seekers prioritising older projects close to established urban centres, instead of new launches further afield. As such, mature satellite townships like Petaling Jaya, Subang Jaya, Damansara, Shah Alam and Cheras offer better prospects for investors, though affordability will remain a concern for home seekers.

Macroeconomic factors and the road ahead

Mixed macroeconomic indicators also point towards a lacklustre year ahead for property. The US Federal Reserve cut interest rates three times this year, with BNM following suit in May and analysts projecting another potential cut mid-2020. These moves have the effect of creating positive interest rate environments at home, and abroad.

This is conducive to home purchases in the short term, with prospects for capital appreciation in the long run, as cheaper loans drive property prices up. In addition, an influx of interest from regional purchasers may cause an upswing in sentiment for the near future, driven by unrest in other markets such as Hong Kong as well as relaxed foreign ownership guidelines laid out in Budget 2020.

However, these positive factors are balanced by ongoing US-China trade tensions, and their consequences for global economic expansion. In particular, slowing growth in China and escalating trade tariffs may dampen global value chains (GVCs), with spillover effects for markets with high exposure, such as Malaysia.

The Ringgit remains volatile as well to date, trading at an average of RM4.18 to the US dollar as of 4 December with a target of RM4.20 to the dollar by end-2019, according to Kenanga Research.

This volatility, along with sociopolitical uncertainty as the euphoria of Malaysia’s 14th general election fades against a backdrop of increasing dissatisfaction, would have a negative impact on investor appetites – again, with the exception of Johor, which has seen optimal investment numbers to date.

“Moving forward, we anticipate proptech and fintech to play larger roles as international trends find their way to local shores and industry stakeholders seek to differentiate themselves in a heated market. Deloitte, for example, has reported in its 2020 Commercial Real Estate Outlook that it’s no longer about ‘location, location, location,’ but ‘location, experience and analytics,’” says Fernandez.

“Accordingly, PropertyGuru has leveraged on its established track record as the region’s leading proptech player to introduce innovations such as PropertyGuru FastKey, PropertyGuru Lens and Listing Performance Insights. These solutions utilise augmented reality and artificial intelligence to enhance the property journey for home seekers and agents alike, cementing PropertyGuru’s status as a proptech leader into 2020.”

— end of press release —

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Vision City, the VERVE and IKANO for mainland Penang.

A friend said, even if mainland Penang is RM100,000 cheaper, he would still prefer to live in the island. Actually, if he is talking about Batu Kawan, I think the price difference is higher than the RM100,000 than he is talking about. There has been many articles about mainland Penang versus Penang island side. The main grouse remain that despite all the talk, not many has happened. Eco World may have a huge piece of land in Batu Kawan but nothing has happened yet. IKEA Penang which was so loudly trumpeted had also quietened down.

Fortunately, all these are about to change. Aspen’s Vision City township in Batu Kawan had started earthworks last month. Approval for infrastructure work had also been obtained. The first proper would be the Verve and it will start building end of the year. the Verve is a gated commercial district of 441 shop-offices and it is 85 percent booked. the Verve is a joint venture between Aspen Group and Ikano Pte Ltd. (Yes, IKANO!)  At the end of the project would be an IKEA furniture superstore as well as an integrated shopping centre by IKANO which is scheduled for total completion in 2025. (Yes, this is 10 years away) Do not worry, IKEA is scheduled to open in 2018 while the shopping centre in 2020.

The project includes condominiums, retail and serviced suites, hotels, a financial hub, a medical centre and an international school. So, is the attractiveness of Batu Kawan increasing? As usual, it’s a chicken and egg situation. If ALL that was planned can be completed, of course a lot of ‘islanders’ would become ‘mainlanders’. However, for all these shop offices to have sufficient business, they need more residents first. Thus, the condos would have to be fully booked and occupied, right? We shall see what happens when the residential part starts. Hopefully, it’s made affordable so that the first phase of all the residential units are taken and occupied once its completed. IF however, majority buyers are investors, then it will be an uphill task moving forward even if there’s IKEA furniture store. Happy buying.

written on 20 June 2015

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Visit Langkawi? Over 60,000 in less than 30 days. Were you one of them?

When there is ONE island which is open to all travellers who are vaccinated in the whole country, surely there would be people who would want to enjoy the sun, the beach and the sights. This was what happened to the Langkawi Travel Bubble which started on 16th September. It has accepted over 60,000 tourists.

What will happen next would be more travellers because when people see that it looks okay to travel to Langkawi, more would be going. Let’s hope everything continues to be under control even if there are the sporadic cases. Of course as the inter-state travel is now reopened, there would be more choices for Malaysians too.

Article in thestar.com.my
   Kedah Menteri Besar Muhammad Sanusi Md Nor said a total of 60,504 tourists visited Langkawi, as of Oct 6, with an average of 16 flights a day to the island with two ferry trips daily from Kuala Kedah and Kuala Perlis, as well as two RORO (roll-on, roll-off) ferry services from Kuala Perlis.

He said, “Looking further ahead, Langkawi is scheduled to open up to international tourists around November or December 2021 depending on the government’s decision. I was made to understand by Malaysia Airlines that there is a high demand from the international tourism community for entry to Langkawi.” Please do read the full article here for more details.
Article in thestar.com.my

Travelling will be stopped again if we fail to adhere to SOPs.

Just need to keep reminding ourselves again. Whatever we start to enjoy may be taken away from us again if we do not adhere to SOPs. Please remember that in countries where vaccinations are high, some of them have seen a resurgence of COVID-19 new infection cases. Fortunately, with vaccinations, the chance of hospitalisation is lower and thus the potential for ICU admission and deaths too.

Stay safe everyone. Yes, I do think I will be in Langkawi again but may not be in 2021. I still prefer to drive to any destination versus taking a flight. Let’s decide later. My typical one staycation per month will be back very soon too. Haha.

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Press Release: Visit Property Hunter Expo To Learn About Real Estate Investment

[April 22, 2022 – Kota Kinabalu, Sabah] Property Hunter, East Malaysia’s leading property portal invites Malaysians to join East Malaysia Largest Property Expo, the PH Expo Hybrid 2022 happening from 22nd to 24th April 2022 at the Sabah International Convention Centre(SICC). This 3-day special event will be held from 9am – 9pm.

Opportunity for Short Stay Operator

As the economy and borders open up, more tourists will flock into Sabah. If you are interested to learn more about operating a short stay (Airbnb) business, or to seek a professional operator to manage your unit, you can visit Staton Homes’ booth at the expo.

A Wide Variety Of Property

Being the largest property event in East Malaysia, there is a wide variety of options for you to explore. There are affordable homes from RM138,888 to mid or luxury range residential properties on display. If you are looking for an own-stay property, there is always an option for you with location spanning from Sepanggar, Likas, Luyang, Putatan, Papar or even Tawau & Sandakan.

Besides, for the keen investors, you may explore options such as short stay apartments both in KK or KL, or even see investment grade real estates from KL, Penang and Johor.

“Yesterday was always the best time to buy a property”

Real estate is a long term investment, and it should always be a part of your overall investment portfolio. With the hike in construction cost and ever growing inflation, properties will only get more expensive. “We strongly encourage everyone to visit the expo to learn about real estate investment and ownership, even if you are not ready to own a property now. It is wise to equip yourself with knowledge and prepare as early as you can,” says Victor Yong 杨伟强, Director of Property Hunter.

7 Things To Look Forward To

The PH Expo Hybrid 2022 will be featuring more than 20 developers and will be showcasing over 80 new projects. Visitors will be able to gain access to information on the latest projects in town along with tips and advice from property experts.

Remajaya Sdn Bhd will be launching their new 70 units at Bay Suites which will be another highlight of the event.
The PH Expo will feature talks by professionals and influencers on investment, financing, tax, legal, and home renovation topics. This will be an opportunity to acquire guidance and recommendations from some of Malaysia’s most knowledgeable property experts.

Bank Negara Malaysia will also be having a booth at the Expo to offer free counselling services and free printing of CCRIS reports which are needed to apply for home loans. Kinabalu International School (KIS) will be offering a special 50% discount on tuition fees* and have a booth to plan your children’s education, as well as a presentation on stage.
Get your tickets by visiting this link
https://bit.ly/3EaxCUo
 Upon pre-registration, visitors will receive a QR code to gain access into the venue and redeem RM5 food vouchers.

For more information on the PH Expo Hybrid 2022, please visit:
https://www.propertyhunter.com.my/expo/

– End –

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Over 200,000 visitors to Langkawi every month in 2022?

Visiting Langkawi, anyone?

At least 4-5 friends I know have visited Langkawi within the past few weeks. Most of them are staying in the 5 star hotel / resorts and they usually stay a few days. I think they are within the over 200,000 visitors on average which is being targeted by Langkawi. Do read the below article as to how this average of over 200,000 visitors in 2022 for Langkawi can come true.

Article in nst.com.my
  The Kedah State Tourism, Arts and Culture Committee chairman Mohd Firdaus Ahmad said that the state government has set a target of attracting 2.5 million visitors to Langkawi island by this year. This is especially due to the reopening of Malaysia’s borders.

He said, “The 2.5 million target is higher than the earlier target of 2.2 million visitors arrival, comprising domestic visitors and international travellers.”

Image by
ZHI ZENG
 from
Pixabay

Nassaruddin said the agency has planned several high-impact events to boost visitor arrivals to Langkawi including Ironman Malaysia Langkawi, Le Tour de Langkawi, Langkawi International Beach Soccer and Asean International Course on UNESCO Geopark. He said, “Langkawi is also offering new attractions such as Splash Out, Perdana Quay Eco Marine Park and MAHA Tower.” Do read here for more details.
Article in nst.com.my

If on average over 200,000 visitors visit Langkawi?

It will be pretty crazy yeah. 200,000 visitors could occupy 100,000 rooms. That’s an occupancy of 3,333 rooms per night if we divide this number of rooms needed over 30 days. Definitely a healthy number.  Not to mention that if everyone spends just RM150 per day, that’s RM30 million per month yeah. Multiplier effect of 4, that’s RM120 million for the Langkawi economy every month. 🙂

Of course… if the target does not materialise, then all these numbers would not happen. All the best to Langkawi yeah. Who knows maybe their number will include 4 people from me and family too.

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Header Image by
歌 高
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Vote me and get US$1,000 per month. WOW.

I am just referring to a news article in CNBC.com  Hopefully they did not publish some fake news. One American President aspirant says that if he is elected, Americans will get US$1,000 per month. Nope, not once per year. It’s every month and I think the period would be as long as he is the President, perhaps.
Here’s that article in CNBC.com
The person is an entreprenuer by the name of Andrew Yang. Yes, if he is the President, there will be many new firsts but first of all, this is what he promised: all citizens, ages 18-64, should get a check for US$1,000 every month, no strings attached, from the U.S. government. This is what he said of President Donald Trump,
“People who think the antidote to Donald Trump is a boring generic This Democrat missed the point. He is a sign of massive institutional failure. On both sides.”

This US$ 1,000 (RM3,893) payment is a
 universal basic income (UBI) payment, which Yang calls “the Freedom Dividend,” is one of his major policies. He says that the government has
“plenty of resources, they’re just not being distributed to enough people right now.” In the article, it was said that Facebook CEO Mark Zuckerberg said something similar during a Harvard commencement speech, “Now it’s our time to define a new social contract for our generation. We should explore ideas like universal basic income to give everyone a cushion to try new things.”  He says that he is pledging US$1,000 because US$12,000 a year brings an individual close to the U.S. poverty line and will help in growing the economy. it will not make people lazy because,
“It’s virtually impossible to do more than just survive on a thousand dollars a month around the country.”
Yang tells CNBC Make It. “It would make a huge difference for families, but it’s not a level that would lead one not to work.”

Yang shared that this UBI is necessary because of concerns that the automation will be replacing human workers in manufacturing and threatens jobs in retail, food service and preparation, customer service, transportation, insurance, accounting, medicine and law. Under his plans,
the UBI payment would be funded by a “new tax on the companies that are benefiting most from automation.”
This tax, he explains, would be a value-added tax (VAT) of 10 percent on goods and services a company produces. He also argued that VAT is important because
“because you cannot collect income tax from robots or software.” This new VAT can easily raise US$700-US$800 billion. (RM3,115 billion)  Beyond this US$1,000 Yang says that he is running for President because “I’m an entrepreneur … so you want to try and solve problems. The problem I saw was that we’re going to automate away millions of jobs … so then the question is how can you realistically solve for that?”

Good plans? Well, let’s see what happens in the near future.  Yang would still have to beat all other candidate aspirants from his party first. He’s a Democrat. (Democratic Party). President Donald Trump is a nominee from the Republican party. He had to beat many aspirants so that he could go into the ‘final battle’ versus Hillary Clinton (a Democrat) whom he eventually won. Past U.S President Barrack Obama is also a Democrat too. US$1,000 salvo has been fired. The next U.S Presidential election will be in 2020.

written on 16 April 2018

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VR theme park in Damansara Perdana by 2018

I was in Universal Studios Singapore 2 months ago. Accommodation was provided by my two Ipoh pals and both have doctorate degrees! You know who you are, thank you! One of the rides I enjoyed the most was the virtual reality (VR) ride as part of a rescue mission in a Transformer’s setting. It was exhilaratingly exciting! It looks so real and I was shouting occasionally. My wife told me she shouted throughout the whole ride! We could not go in together because one of us must take care of both kids. Our experience may be expanded in the near future. Reported in
freemalaysiatoday.com
was the news that a US-based company known as US VR Global Incorporated would be building a VR theme park in Damansara Perdana in the earlier part of 2018. Its CEO Mark Olivier Francq who was speaking in a press conference shared that the facility would be called Hero Central Park and it will be located in Empire City, Damansara Shopping Mall. This will be the first and the company would also start to launch into other emerging markets in ASEAN, India and China.
Read more about VR here.

The park will be one the largest VR parks in the world. It will occupy 170,000 sq ft of space. Total to be built may be 20 within ASIA and 200 or 300 within the next three to five years. Six months is all it takes to build such a park, unlike the conventional ones which would take years. Let’s not forget that the land cost is also higher these days. The tickets are also said to be so affordable that it will attract people from all segments and represents a great value for money. I can agree that the entertainment value is definitely there. However, do note that I love both the outdoor theme park where I can actually see, feel and walk around. As for VR, regardless of how real it is, I know it’s still VR. US VR Global Inc founder and executive chairman Ramelle Ramli shared in the press conference that the total cost of building the park would be RM100 million but the first phase would cost RM70 million.

Image source: ultravr.org

The more things that Damansara have, the better it would be. Even though this is not free, I still consider them as public amenities. We do not need to travel all the way to the city centre every weekend for all these, right. Remember I shared about
Decathlon in Sri Damansara?
 Well, I also hope that this VR theme park would be another great attraction which is extremely nearby. Have you worn those VR googles which allow you to view the showroom of the unit during a property fair? You know, sometimes it’s not easy to convince people to drive over
50km to view a showroom and then drive another 50km back

after the viewing. VR is definitely a technology which will assist in many marketing functions. In fact it helps tremendously in ‘opening’ up the possibilities of buying a property from the comfort of an air-conditioned mall! Happy waiting and anticipating.

written on 7 May 2017

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VulcanPost: Malaysian Property Prices? One expert and 3 Insiders’ views

Will the property prices drop from RM500,000 to RM300,000 in a few months time? Vulcan Post referred to Mark Chua’s FB post,
“If property prices really drop from RM500k to RM300k, buying a property will be the least of our bloody concerns. The average Malaysian will have other f*cked up problems to worry about; namely plummeting consumer confidence, lower retail spending and higher unemployment!”
Mark Chua was a former senior banker of 17 years.

Frankly, what he said is totally logical and something which I wrote about many years back when a friend who has just one property told me that he will invest in property when the market collapses. That was way back in 2009. My answer to him, “You dare not buy now, you mean when the whole market is down, when everyone is out of job and trying to look for one and you dare to step into the market and buy a property of a couple of hundred thousand ringgit?’ Anyway, he has just one property today. I truly believe that the best time to buy is when we are ready to buy and the best property to buy is the one that meets our expectations. This meant that we must have the right expectations and not thinking that property investment is the fastest road to riches. It is not. Perhaps the casino or even the stock market is.

Coming back to Vulcan Post’s article. They dropped me a couple of questions and my views were published together with two more prominent property people.
Here’s the article in Vulcan Post.
 They have a lot of awesome trendy article pieces. Do check them out yeah.

— Some interesting excerpts of the article  —

There have been a lot of opinions and speculations going around about the property market recently. One catalyst of discussion was an article published on Free Malaysia Today titled “Property market will be badly hit in 2018, says expert

“Cheong expects the prices of houses to fall from RM500,000 to RM300,000.”

On top of that statement, Putrajaya announced that it will be putting a halt to approvals for shopping complexes, offices, serviced apartments, and luxury condominiums priced over RM1 million in the city—only to tell us that the halt “isn’t absolute“.

Since the initial article, a particularly insightful post written by Mark Chua—a senior banker of 17 years—has been making circles on Facebook. A particularly captivating quote from Mark is:

“If property prices really drop from RM500k to RM300k, buying a property will be the least of our bloody concerns. The average Malaysian will have other f*cked up problems to worry about; namely plummeting consumer confidence, lower retail spending and higher unemployment!”

Makes sense, but we wanted to hear more insight from other insider voices. So we reached out and got answers from 3 industry insiders who live and breathe property.

What do they think about predictions of the property bubble bursting?

Gadiy Lim is the founder of Bumbung—a Malaysian startup that facilitates the match between agent and potential buyer. And he is inclined to disagree with the theories of a bubble burst in 2018.

“In my opinion, the cooldown measures this time round have got to do with affordability, as most property projects are targeted towards the above average instead of the lower average income for Malaysians.”

Wong Whei Meng is the founder of Speedrent, an app that matches owners with potential tenants, instead of buyers. And he thinks that this is all about the imbalance in supply and demand.

“Media has been reporting this for a few years now—most of the properties built were geared towards high-end projects. The public at large couldn’t afford this. I believe the high-end projects are the ones have highest risk of property burst.”

On whether a RM500k property will drop to RM300k—”I don’t think it would be this drastic on secondary transaction,” said Whei Meng.

This is true for him even if he thinks that “investors who do not have strong holding power are willingly to let go at lower price to avoid auction”.

A member of property media has also weighed in on this. Charles Tan is the Chief Editor of kopiandproperty, an independent property publication based in Malaysia.

“Just look at the listings in major property sites. If every single listing is all above RM500,000 then I think the crash which is expected may be coming true.”

“Else, it meant that there are still choices, coupled with ever more new affordable launches by the state, federal and even private developers.”

A sudden crash in property price might seem great for someone who is ready to buy, but a crash won’t happen overnight.

“In my opinion, oversupply of units, especially those of RM500k or higher is not a main trigger point. The reason is because most buyers are aiming at properties below RM400k, and not these expensive/luxury units.”

“This is the reason why developers are now focusing their attention on affordable homes.”

Instead, Charles points out other trigger points that can contribute to a bubble burst.

Can buyers comfortably pay their mortgage, or will even a slight increase in interest cause an inability to pay?

Unemployment: if they can’t find a job, then they’ll miss their mortgage payments, or outright sell their property at much lower prices.

“On a larger scale this will affect the sentiment of the whole market,” said Charles.

“Even when approval was given for a new development, it will not affect the property market suddenly because a development would still need typically 3 years to complete,” said Charles.

Meanwhile, ongoing projects and what is already on the market continue to lead to this oversupply quoted by the Finance Ministry.

“I don’t think public at large would be affected by this. After all, these developments were not targeted at these segment of market,” said Whei Meng.

Instead, developers now have to rethink their strategy and start building houses that people actually want to live in, like modular homes.

“Investors should take it positively as it controls the new supply into the market (albeit a little late, but never too late),” said Whei Meng.

“It’s still uncertain as to what projects are being held back,” said Gadiy. “The impact could be huge depending on the number of projects that will be placed on hold along with the number of purchasers that have already bought the place.

For the longer term, as long as the economy continues to move and we don’t have any sudden external shocks, Charles thinks that this halt is a positive for the market. The oversupply would be on a downtrend.

“Apart from sentiment (whether positive or negative), there are no huge changes statistically actually.”

Meanwhile, Charles is a little skeptical of the rise of “sharing economy”.

“Some are using UBER or AirBnB as an example but seriously, I believe Uber drivers themselves would prefer to own a home instead of renting while AirBnB is expanding so fast because of owners who were renting out their homes.”

Despite this, Charles notes that rent economy has been predicted even in countries outside of Malaysia, and this has been ongoing for years. It still won’t stop people from buying, though, even in advanced property markets.

“If there are people willing to rent, then it’s better to be the owner and not the tenant. However, let’s understand that right now, tenants are happy because choices are aplenty due to the oversupply of units.”

He also voiced his support for renting schemes by the government for the people, because these affect a different segment of the population.

“Everyone needs a roof over their head if they are to continue to work and support themselves, their family and ultimately the economy. I hope every stakeholder would take note of the recent 6 policy options from the Bank Negara Malaysia.”

— end of article —
TO read the full article, click here.

Hope everyone is clearer that when property prices drop drastically, that is a crisis. During a crisis, property is not even going to be the main thing we think about. It’s more of survival; keeping our jobs, minimising expenses etc. Happy viewing and
buying ONLY when you are ready.

written on 24 Nov 2017

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Press Release: PropertyGuru: Purchasers Adopt Wait and See Approach in Buying Property

Consumer sentiment improves slightly as Malaysians adapt to the new normal
Property buyers postpone buying decision to look for better deals in the market
Malaysia’s economy is expected to be on the mend once mass vaccination program begins

Kuala Lumpur, 8 February –
The sharp surge of COVID-19 cases has caused the country’s healthcare system to be at a breaking point. This has led the Government to announce a movement control order (MCO) nationwide until February 18, 2021.

‘With
prospects of a mass vaccination program
 slated to be rolled out early this year, it could be an antidote to the uncertainties that we currently face as Malaysians brave through the third wave of infections.

“Nevertheless, a sense of acceptance of the new normal and the incentives that are currently in place have reflected a slightly improved sentiment in our recent
Consumer Sentiment Study H1 2021
 findings,” said Sheldon Fernandez, Country Manager, PropertyGuru Malaysia.

PropertyGuru, the country’s No. 1 Property Website has revealed an increase within its property sentiment index, from 39 points (H2 2020) to 42 points (H1 2021). Contributing factors include: current real estate satisfaction, positive outlook on property climate, favorable interest rate environment, positive government efforts and favourable price outlook.

Although with a slight uptick in sentiment, Malaysians are still realistic but cautious about property purchase, with 42% adopting a wait-and-see approach in anticipation for a better deal in the future.

“Many are expecting that housing prices will go down further as developers have adjusted their pricing strategy to launch more affordable homes. According to Kenanga Research, over
50% of the new launches in Q3 2020 were priced below RM300,000
.

With more affordably-priced properties available in the market, property owners who are desperate to let go of properties have no choice but to reduce the asking price, thus price trends of properties in the secondary market will be fairly linear,” added Sheldon.

On the other hand, a total of 35% of the respondents (mostly aged between 22 – 29 years old) have expressed interest in owning a property as they see opportunities in the current favourable environment, and spurred by historically low-interest rates, incentives from the extended Home Ownership Campaign (HOC), as well as attractive prices and packages offered by developers.

Homeownership Challenges

The COVID-19 pandemic has also jeopardised the financial strength and job security of Malaysians, which in turn affects property buying decisions.

Entrepreneur and Cooperative Development Minister Datuk Seri Wan Junaidi Tuanku Jaafar revealed that
over 30,000 businesses have shut down last year
since the start of the pandemic.
99,696 workers
 were also laid off between January and November 27, 2020, due to the spread of COVID-19. For those who are able to keep their jobs, many are seeing salary cuts due to the challenging market environment.

52% of the respondents said the difficulties in forking out the down payment for the property purchase remains the main barrier that stops them from applying for a home loan.

Meanwhile, job instability (46%), unfamiliarity with paperwork (33%), poor credit history (27%) and lack of supporting documents (25%) are the top five barriers in taking a home loan.

2021 Market Outlook

In reviving the country’s economy, the Malaysian government had allocated the
largest national budget at RM322.5 billion
 to spur economic growth. Over
500,000 new jobs for Malaysians
 is also expected to be created within the next two years.

Despite the short-term pain during times of uncertainties, it is believed that after the mass vaccination program is underway, Malaysia’s economy will be on the mend with forecasted improvements within the property sector in H2 2021.

“The property market is poised for a gradual recovery in 2021, driven by a better economic outlook and historically low-interest-rate environment.

“This is reflected by Bank Negara Malaysia’s (BNM) latest decision to maintain the overnight policy rate (OPR) at 1.75%, as the central bank sees continued recovery in the global economy. However, downside risks remain amid uncertainties surrounding the COVID-19 pandemic.

“The property market will also likely be seeing increased sales in the first half of 2021 as the
Home Ownership Campaign (HOC)
 ends on May 31, 2021,” added Sheldon.

— End of Press Release —

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Let’s wait for the next property bubble to burst, shall we?

A long time ago, a good friend who’s a senior management of a U.S. MNC based in Penang told me that he intends to buy a property when the bubble bursts. However, he does not know at what price would he enter the markets. Well, 2008 mortgage crisis came and left. In 2009 in Penang, every time there were launches, queues would form days before the launch. Needless to say, prices went up too. So, is a property bubble building up then?

Let’s not comment whether the
property bubble will burst

or even predict when the
actual year, month or even day would be.

How about we think about what to do to prepare for the property market to crash? When prices suddenly fall 20 percent or more? RM500,000 homes suddenly become RM400,000. RM1,000,000 homes becoming RM800,000? Sounds interesting and attractive? First question is HOW LOW (prices) do you expect it to be? Will you buy when it hits 10 percent? Or 30 percent? Or more? By the way, if it hits 20 percent or more, I do not think people are in the mood to buy a property. Perhaps it’s best to ensure we keep our jobs. So, set a target so that you can buy when it reaches your target.

Secondly, have we identified the area that we want to buy? This is because when the property market crashes, there would be plenty of choices and we may be too spoilt for choice; analysis paralysis. So, it’s important to know the area. Then, we need to identify a few developments that we actually have viewed well in advance before the market crashes.
Drive around the area. Do all the necessary due diligence.

Remember, even during a crisis, not every unit in the whole development would be up for sale. There are many other ‘vultures’ around who are like us, waiting to snap up underpriced units. If we really want to buy, we must be quick and faster than others.

Third is actually the most basic rule. However, unless we have identified something, we do not have the motivation to do this. Have we started saving feverishly? Frankly, without sufficient downpayment ready with us, who are we kidding that we will buy when the market crashes? If we believe the market will crash in 12 months and we need RM50,000 then it’s saving of RM4,000 per month! If we need RM50,000 and we expect the market to crash in 24 months, then it’s RM2,000 plus per month! So, are we already saving up for this potentially lucrative investment?

Finally, keep reading and finding out all these
potential property bubble bursting signs.
It is extremely important to keep abreast of the news because things do not suddenly happen. Investment is never about being lucky. Else, it may not be continuous. When we have done all these steps, then we are actually ready to wait for the next property market crisis. Else, please do not say that we are waiting for the best opportunity to buy. Just declare that we are not interested with property investment. When we are truthful, no one will feel offended. However, insisting on something just for the sake of showing people that we are interested is actually wasting our time and opportunity. Happy waiting and at the mean time, preparing.

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