Malaysia residential property market recovery in 2014

Has the Malaysian property market stopped its downtrend? It does seem so when we look at the transaction numbers for 2014 versus the years before. My good friend, Michael Geh, the senior partner of Raine & Horne International Zaki + Partners Sdn Bhd’s forwarded to me the numbers compiled by NAPIC. Please refer to the chart below. In 2010, the total number of transactions was 226,874 units and it rose to 269,789 in 2011 and in 2012 it went up to 272,669. In 2013, this went down by 26,444 units. I think everyone expected 2014 to have been a year of even low transactions. This did not happen and in fact the number of transacted units went up very slightly, by 1,026 or a marginal 0.4% up. Is this a sign of recovery?

Okay, perhaps recovery might be a little far-fetched but what about this being a sign that the downtrend has now stopped? I think this may be happening. In fact based on some comments from some agents, there were some buyers who were so worried about GST that they rushed to buy some units. Recently, there were even reports about millennials being so worried that they could be priced out of the market with GST that they were borrowing money just to buy their first property! Read more here:
Using ‘bad debts’ to buy ‘good debts’?

Fortunately I do not think this number is huge because property remains the single largest purchase ever in everyone’s lives and not many are willing to rush and risk everything. Even my close friend failed to buy one in time and he told me about it regretfully just last week. However he agreed that prices did not change thus far for the few projects that he has viewed before GST and after GST. My comments about GST and property? Read here:
GST for new properties. Higher than 3%? Try it and see.

In terms of total value for the transactions for 2013 vs 2014? It has increased from RM72.06 Billion to RM82.06 billion. This is an increase of RM10 billion or a whopping 13.9 percent. This meant that the average transacted property price in 2013 which was RM292,659 to RM331,890! Yes, the average price of the transacted properties in 2014 vs 2013 has shown a huge jump!

Diving deeper, let’s look into the primary versus the secondary market. Please refer to the chart here:

It’s very clear that the real cause for the increase in the average price is because of the value of transactions in the primary market. The total transacted units in the primary market showed an increase of 30.56% or 12,587 units. In terms of actual average value of these units, it has an average of RM389,386. This is nearly 18% higher than the overall value of all transactions. Meanwhile, the average value for overall transacted SECONDARY unit is RM315,908 in 2014. This is an increase of 7.9% from 2013. I seriously would like to encourage everyone to be serious about the secondary market. Just look at the difference in pricing between the primary vs the secondary. There are really good bargains to be found versus primary, especially if you are looking at your first property. Nevertheless, the prices of these secondary units are on an uptrend every year. Do refer to the chart which clearly showed that transactions may be down but the value of transactions are always higher year after year. I think major reason is because there is still gap between primary and secondary properties thus the secondary ones can still grow especially when primary properties are still becoming more expensive.

Seriously, there is still no sign that recovery has started on an overall Malaysian property market basis. Perhaps some market has shown improvement but some may have shown a more negative year. This is especially for 2015 because it may be affected by the frenzy of buying to beat the Goods and Services Tax (GST) as well as the slower buying after GST in anticipation that everyone would be slowing down as well. Haha. It’s always funny when the whole market always seem to swim in the same direction. Why NOT swim in the opposite direction and look for opportunities instead of anticipating the same situation year after year? You decide.

written on 25 Apr 2015

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Better sentiment or better pricing and higher transactions.

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Malaysia by Moody’s, Standard & Poors Global and Fitch. Enough lah.

There has been occasions when Malaysian friends overseas asked me this question. “Is the Malaysian economy okay?” Actually, the actual sentence was a far more negative one but let’s leave it at that. If they are close friends, I would usually give them a typical half and hour of my time and answer their questions one by one. I have to tell them that I still have a job, staying in a huge and well maintained condominium (could not afford a landed), 2 PROTON cars (may change one car next year) and supporting one wife who’s a full-time housewife as well as two kids. Oh yeah, I would also share with them that my last 3 jobs did not require me to apply for them. (
Fortunately, my skills and experience are still sought after.)

This is especially important because these close friends are working in foreign countries and seem to be happy there. I have to tell them that just like them, I am also happily working in Malaysia too. Malaysia will always be my Negaraku. Well, if they are not close friends, I would advise them to read official news instead. Haha. Maximum time spent to reply them personally? 30 seconds. There are three official ones below. They are extremely well known international rating organisations.

Moody’s
  Moody’s say that the debt burdens of Malaysia is still higher than other A-rated peers. Moody’s says that Malaysia’s reserves are insufficient to meet maturing external long-term debt repayments and short-term debt. However this is moderated by a sizeable net asset position, large export proceeds, and deep domestic capital markets. It says Malaysia’s STRONG growth trends will continue because of the country’s highly diversified and competitive economic structure underpin stable and relatively robust growth trends that have proven to be resilient to external headwinds. At a growth of around 5 percent, this is SIGNIFICANTLY higher than most other A-rated peers. With regards to the household debt which is currently at 84.6% of GDP at the end of September 2017, it does not pose material threats to financial stability. The reason for this is because households have large liquid financial assets to buffer the impact of a potential shock to debt servicing capacity. Moreover, ongoing macroprudential measures will help contain potential further increases in debt.
(Depending on which way you would like to see it, it can be both. Negative or Positive, up to you lah. I think from the whole article, it’s conclusively more positive than negative. Else, why are we in the same group as the A-rated sovereigns….)
Here’s that article again.

S&P
Standard & Poors (S&P) says that Malaysia’s rating will be stable for the next one or two years. It is however concerned about the build-up in government guarantees. S&P Global Ratings affirmed Malaysia ‘A-‘ a few months ago. S&P chief economist Paul Gruenwald said “We have not heard much of Tiger Economies in recent years but Korea, Taiwan, Singapore, Malaysia and Thailand have been experiencing robust real electrical and electronics (E&E) exports, lifting growth in all these economies.” (Positive statements indeed I believe?)
Here’s that article in NST again.

Fitch Ratings
Fitch Ratings has affirmed Malaysia’s long-term foreign- and local-currency issuer default ratings at ‘A-’ with a stable outlook. It says that Malaysia’s ‘A-’ rating is supported by strong gross domestic product (GDP) growth compared with the median of ‘A’ category peers, sustained current account surpluses and the country’s net external creditor position.
Do read the full article in TheEdge here.

Well, concerns for the Malaysian economy are definitely there. Just have to hope that the economy keeps strengthening just like ringgit’s recovery in 2017. Without by far more positive news than negative news, sentiment is not likely to improve a lot and well, the property market will continue to be lacklustre. To all my close friends, we should enjoy lattes occasionally. Pessimism does not help much actually. Changes must keep happening and this is what Robin Sharma said, “Change is hard at first, messy in the middle and gorgeous at the end.” In any economy, in any country, there are successful people looking at opportunities. All the best.

written on 19 Dec 2017

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As usual, WE (Malaysia) paid for positive news.

The professional friend who posted in Facebook about Malaysia fast becoming the next Greece economic crisis story soon had just posted another view. She said that the Malaysian economic growth would end soon. Of course, I do not dare dispute what she said because everyone must have their own opinion, whether totally irrelevant to the fundamentals or false based on a narrow point of view. Oops. Haha. Oh yeah, the below two pieces of good news, do look at some of the comments for them online. Good news for Malaysia? To some of the amazing online critics, “It’s definitely paid for by the government.” How can any sane and established organisations give Malaysia a positive rating today? Well, apart from the three international rating agencies which are still putting Malaysia under the ‘investment grade’ category, the below two are pretty awesome too.

Business Profitability Index (BPI) which was introduced in 2013 by an adjunct professor of New York University’s
(only ranked 41st in the WHOLE WORLD by QS)
 Stern School of Business  has just  given Malaysia a boost. Malaysia is now ranked 6th out of a total of 110 countries in the world. The other top 10 includes Singapore as well. I am sure with their stronger currency, if Malaysia can pay for this award, they can too. Haha. Indonesia was ranked 12th, Vietnam (23), the Philippines (30) and Thailand at the 38th position. It uses a holistic approach based on eight factors which are attractive for foreign investment. They are: economic growth, financial stability, physical security, corruption, expropriation by government, exploitation by local partners, capital controls, and exchange rates. It includes also the changes from the World Bank in its measurement of GDP which measures living standard across countries.

What about the next one which many have also claimed that this one must have also been ‘bought.’ A few claim that this report is false because they know for sure it is false. Haha. World Economic Forum (WEF) has ranked Malaysia the 8th most efficient government globally in the Global Competitive Report 2014-2015. Singapore is also ranked, they are are second. Finland is third. Hong Kong is fourth. This report from WEF evaluates following: efficiency and competitiveness landscape of 144 of the world’s governments based on, among others, the wastefulness of government spending, burden of regulation and transparency of policy-making, to produce an overall global ranking. The reason is because the efficiency of any government has a significant bearing on a country’s competitiveness and economic growth. Negative points include excessive bureaucracy and regulation, a lack of transparency, and inadequate legal frameworks all impose additional costs on business and impede expansion.

Only two for today. If only Malaysians can come up with some sort of ranking or awards which the other world economies are willing to pay for them, that would be great. Oh yeah, I personally do not think the rankings above can be bought. I am sure if it was bought, one day the receipt showing this purchase would surface online. Happy forwarding more negative news or forwarding a positive news.

written on 14 July 2015

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An update of Malaysia property market. Just charts for reference.

As a media, kopiandproperty.com was invited to the
Property Market Report 2020
 launching session yesterday. All the charts shown today are from Jabatan Penillaian and dan Perkhidmatan Negara (JPPH).

After looking through the softcopy slides provided, we have chosen a few slides which we believe gives us a sense of what’s happening in the market today.  We get to understand if indeed the banks have stopped lending, if indeed people no longer wants to buy or even the persistent news about overhang properties in Malaysia.

Interest in residential property remains intact

In terms of people buying properties, we can see from the loan application image below that the value of the loan application has continued to show an increase every year since 2016 after a continuous drop beginning in 2013. In other words, there were three years where the loan application numbers showed a drop every year. That’s in 2014, 2015 and 2016 and in 2017, the loan application number has increased again and this has continued in 2017, 2018, 2019 and despite a year of many months of lockdowns, the number in 2020 is still higher than 2019.

Approval amount may not be what the applicant applied for

Of course, application does not mean it will be approved. The ratio of approval / application has also dropped from 43.2% in 2019 to just 35% in 2020. Do note that this is not the number of application but the value of the application. In other words, there may be situation where the loan application was for a bigger amount but the actual loan amount approved is lower. The banks does not follow selling price of the developer. It has its own valuation of the property and may only approve a 90% loan based on their valuation and not on the selling price.

New launches continue to drop in both number and sales performance

There were just over 47,000 new launches in 2020 versus 60,000 a year earlier. We can think of it this way. The lower the number of launches meant that the developer is not so confident of the market or the developer is also just trying to sell their remaining units from earlier launches. So, can be negative or positive depending on your perspective.

We could see that the typical percentage of sales were usually above 30% and in fact was as high as 40% in 2019 (HOC helped tremendously of course). In 2020, it’s below 30 percent. We need to also understand that in 2020, there were many months where offices were unable to open and this includes sales galleries, lawyers’ office and even government agencies too. So, in this context, slightly below 30 percent is not really unimaginable. Just need to see 2021 for the clear sign if it’s still the same or recovery has happened. Q1 2021 data would be very useful.

Let’s look at overhang now

On an overall basis, numbers do show that the overhang numbers are trending downwards. It went up suddenly in 2018 from 24,738 units in 2017 to 32,313 units in 2018 but has gone down in 2019 to 30,664 and in 2020, it has dropped further to 29,565 units.

This was not all, the unsold under construction and unsold not constructed numbers also shown a decrease which I think we should say is positive for the market so that the overhang numbers do not keep increasing in the near future. As for the question of whether the overhang number remains elevated, the answer is yes, it’s DOUBLE that of 2016. So, overhang number is definitely high currently.

Deeper into each states, shall we?

Johor leads the pack for overhang units. it has 7,030 unit followed by Selangor with 4,889 units and then Perak with 3,637 units. KL is only 4th at 3,023 units, Sarawak at 5th with 2,458 units and Penang at 6th place with 2,069 units.

Let’s look at the price on an overview basis

Every time someone tells me the property prices are down, I always ask where. The answer would be ‘everywhere.’ I would smile and talk about some other topics. Seriously, if no one is forced to sell (like in a financial crisis), then the prices would just move slowly upwards, following inflation. The below is actual Malaysia Housing Price Index and it’s from 2010 till 2020. In 2020, there was an overall drop of 0.6% for semi-detach and drop of 0.8% for high-rise. These are average numbers yeah and does not mean every property drops by the same number.

The only property dropping in price is high-rise, they say…

If the high-rise unit was RM500,000 in 2019, it has gone down to RM496,000. A drop of RM4,000. Do not be too sad yeah because the years before 2020, the prices have appreciated by as high as 16% and as low as 0.6%. If you bought that high-rise in 2010, your gain in property price appreciation is still by far higher than the loss of RM4,000 from 2019 to 2020. Hope everyone realise that this is the state of high-rise and it’s not ‘all high-rise are dropping in price because there are too many units…’

Okay, end of part 1.  Will post part 2 soon. Happy referring and anytime you like to refer again, do drop by. If you think this is useful for you, please do share with everyone else.

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Press Release by Juwai IQI: U.S. FED’S RATE RISES UNLIKELY TO HURT MALAYSIA PROPERTY MARKET IN 2022

Kuala Lumpur (25 January 2022)
— The United States Federal Reserve’s decision to lift interest rates poses a potential threat to economic growth in emerging market economies, but new analysis released by Juwai IQI Co-Founder and Group CEO Kashif Ansari suggests that, despite these challenges, Malaysia is well positioned for economic growth and an improving real estate market.

Impacts of American Monetary Policy

“When the U.S. Fed raises interest rates, there can be fallout in emerging markets like Malaysia,” said Juwai IQI Co-Founder and Group CEO Kashif Ansari.

“The dollar strengthens, and emerging market currencies tend to fall as inward capital flows decrease.

“That’s why we have been watching the Federal Reserve’s moves so closely. We have been studying the recently-released minutes from the Fed’s December meeting since they were released last week.

“The minutes show that the Fed expects to raise interest rates three times in 2022 and three more times in 2023. Many economists believe the first of these rate increases is likely to come in March.

Impact on Malaysia

“With rates climbing in the U.S., how risky is the situation for Malaysia?

“We think the country is relatively well placed to endure the Fed’s actions. Malaysia’s significant current-account surplus will help insulate the economy from rising rates in the U.S. Malaysia has earned more from its exports than it has paid for imports since 1997 and has maintained this surplus during the pandemic.

“It is true that Malaysia does have significant external debt, which can be risky at a time when the ringgit is falling. However, the spending that helped contribute to that debt is what helped Malaysian families and companies survive the worst of the pandemic. Because of that spending, we are better placed for an economic rebound.

“Malaysia also has inflation under control and ranks 10th best in performance on this measure, according to a recent study conducted by the Economist, that uses data from the IMF and World Bank.

“What’s more, Malaysia has significant foreign-exchange reserves, better than all but 14 other comparable emerging market economies.

“Malaysia’s overall resilience to rate increases puts it at about the middle of the pack among similar countries. Its resilience is much higher than such countries as India, Chile, Turkey, and Brazil.

“We believe international demand for Malaysian exports will continue to increase in 2022 due to fast economic growth in the U.S. and the rebalancing of supply chains. This will help offset any negative impact from rising rates.

Bank Negara Malaysia’s to Postpone Rate Increase

“The Bank Negara also has a direct impact on the economy. A recent poll of 23 economists by Reuters found that most expect Bank Negara to postpone its next rate rise until at least June or July. The country’s economic recovery is already under way. Waiting until the second half to increase rates will give it time to take hold.

“The consensus for Malaysia’s economic growth is 5.8% this year and 5.0% in 2023. Economic growth in 2021 is estimated at 3.5%, despite the impact of the pandemic.

Impact on Real Estate

“When income and employment climb in Malaysia, there is generally a positive impact on the real estate market. That’s why our forecast for 2022 predicts increasing transaction flow.

“Our agents are already seeing an increase in activity. Prices are still stable, but transactions are increasing. Buyers are more willing to purchase real estate than just three months ago. Buyers are more optimistic about the future and about their own economic prospects. As the economic acceleration continues into the second half of the year and into 2023, we also expect residential prices to begin climbing in certain submarkets.

“Real estate developers are taking all these considerations into account. We expect new projects to come online in desirable locations in 2022. Other projects will be commenced for later delivery.”

-END-

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Malaysia Property Market? Can projects sell 90% these days?

What’s happening to the Malaysia property market? In 2020, total residential property transactions reached close to 200,000. Actual number was 193,354 units.
Chart is from Raine & Horne.
 We need to also remember that in 2020, there were at least 2 months in total where it was under lockdown and more weeks where there were partial lockdowns too. Thus, this number of 193,354 units is a very promising number in my personal opinion. Now let’s look at one project which sold 90% according to its developer.

Article in themalaysianreserve.com
  Mah Sing Group Bhd’s affordable residential development in Sentul has achieved 90% take-up rate for the three phases that the developer has launched since 2019. The fourth phase is now open for sale.

In a statement today, Mah Sing said, “Complementing the HOC, M Arisa is also one of the projects under our “Come Home 2 Mah Sing” Campaign, which offers various benefits including payment-free up to four years and also provides an alternative financing solution, HouzKEY offered by Maybank Islamic to the home buyers who need assistance.”

M Arisa sits on 3.31 acres of land in Sentul and has an estimated gross development value (GDV) of RM652 million.  Please do read the article in full here:
Article in themalaysianreserve.com

Buying need to be supported by WHY and not where

Sentul (in this case, M Arisa) is 8.6km away from KLCC Park in the city centre but the reason of whether to buy or not to buy should not be how close a project is to the city centre. Do we work in the city centre? That may be good reason. Do our children study in schools in the city centre? That’s another reason. Do most of our customers’ offices are in city centre? That’s a splendid reason. Never buy just because of distance of project from city centre unless there are benefits to be derived from the property.

Do we need a home now or in the future?

M Arisa is expected to be completed only in 2024. If we need a place to stay like almost immediately, then this is not going to be the right project for us. If we need a place which we could still afford and it’s pretty close to the city centre, then this may be one consideration. Do note that it’s always that choice between smaller and closer to the city centre or bigger but further away. Are you buying for a growing family? Then, size matters tremendously. Are you buying for own stay and perhaps a partner in the near future, then a smaller size will make the price lower. It can thus be a buy versus renting. Happy deciding.

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Malaysia property market. Still got people buy property meh? If you do not understand meh, it is okay. Just read the sentence without the meh. It works. If you understood, great. Haha. By the way, stop believing what you see on Facebook as the truth yeah. Due to the algorithm in order to maximise clicks / views, you will see what you want to see. That’s the danger unfortunately.

When you see what you want to see and you click on them, Facebook has more activities. That’s good for them. Simple fact. Just ask any digital marketer yeah. I am not one though. 😛

When people want to believe what they want to believe, let them be

Just a few weeks ago, someone was speaking to me and asked this question. “Actually under this current market, still got people buy property?” I asked, “what current market situation?” He answered, “This Covid-19 lah, everyone also scared. No one knows what will happen tomorrow.” So in order to explain his property related question, I need to also explain the Covid-19 situation currently.

By the way, Covid-19 is considered as under control. By the way, the lockdowns have been lifted and we could even travel inter-state. Oh yeah, I would have preferred the inter-state to only start end November but I am just a blogger, not the cabinet.
Here’s my earlier view (even if it matters little) Click to read.

One more reason? That reason why people kept saying we are too slow in vaccinations (and refusing to acknowledge that it’s just so hard to get the vaccines…)  Take a look at the below latest update from ourworldindata.org (Yes, this was the same website people used to show that we are so far behind everyone else in vaccinations)

Do not look too far down, we are really at the top and ahead of Italy… France… UK… Germany… United States… and more. This is why we allowed inter-state and at the same time EVERYONE MUST STILL WEAR MASKS because that is also the correct thing to do.

Image source:
https://ourworldindata.org/covid-vaccinations

For people who prefers to look at facts, here’s the ACTUAL property market transactions in property market Malaysia

Yes… just within 2Q 2021, there were already over 92,000 property transactions. Surely someone must be buying and someone must be selling and banks are lending to most of these buyers. I seriously doubt majority of everyone can buy a RM500,000 property with cash. (Except the one who bought my Penang condo many years ago, that one was via lifetime savings; cash)

Yes, this is not full year number. This is just for 1 quarter. As for what’s happening quarter by quarter, do refer to the next image after the below.

Image source:
https://napic.jpph.gov.my/portal/key-statistics

Image source:
https://napic.jpph.gov.my/portal/key-statistics

Covid-19 will definitely affect the property market

Anyone telling us that Covid-19 has no effects on the property market has to be lying. Covid-19 caused unemployment, caused lockdowns, caused businesses to fail. How can it not affect the property market? How can it not affect the property transactions?

Now that you get the idea that Covid-19 will affect the property market and you know that the property transactions continue to happen despite the Covid-19 lockdowns, can you also see why I remain positive on the property market? One more simple understanding. People buy property because they want a place to stay and more importantly, they have a job which allows them to get their loans approved.

People who lost their jobs could not buy a property but they may still need a property. Else where do they stay? This is why Covid-19 will affect the property market by slowing it down tremendously but it does not change the fundamental need for property. Happy understanding.

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The potential property bubble bursting in Malaysia, signs to look out for

I was invited to speak in Melaka recently. The topic was “What’s happening to Malaysia’s property market in the future?” I shared a few points. Things that are in people’s minds, especially those who have decided that property investment is important but there are still some concerns here and there. I think the most important thing I shared was that everyone should know whether a property bubble is building or bursting soon. There are 4 potential signs and a few early warnings. Learn to see it before analysts write about it AFTER it has happened. Anyway, please count out unforeseen circumstances okay. No one can predict those but based on the signs from all the past property bubbles bursting, the below are four easy to understand signs. The data? Available everywhere.

#1 – Sharp increase in property prices. This is the easiest sign to see. Are property prices still on the way up? Well, according to Knight Frank’s latest report, it is still increasing but the increase has slowed down. Here’s the full article:
KL property prices? Still up…. slowly

Generally, the world property prices (those they surveyed) are rising faster than Malaysia. In conclusion, the sharp increases in property prices during those 2009 – 2012 periods are no longer happening today.

#2 – Affordability. There are so many property listing sites these days. Just try to search for secondary properties which are RM500,000 and below. The number of choices are aplenty even if it may not be at the area you want. Then, search RM400,000 and below. You would realise that high-rise units choices are still aplenty but again, it may not be in the area everybody loves. Note also to search for RUMAWIP, Rumah Selangorku and even PR1MA. Actually, these affordable launchings would help to pacify the market and these days, even the private developers are focused on affordable units…

#3 – Loan approvals.  I would be extremely worried if every Malaysian I
know could get their loans approved.

To be frank, many of them drives far better cars than me but they also have intention to buy a property which is very close to their loan limit. I think it’s pretty dangerous BUT these days, many banks are already extremely selective in who gets to borrow from them. In this respect, I think loan approvals have helped to maintain a healthy level of quality borrowers.

#4 -Non Performing loans (NPLs).  Take a look at the image for the NPLs for selected countries. From the U.S which everyone thinks very highly of to Japan, an ageing nation which is struggling to get its citizens to be positive and start spending. I think these numbers tell a lot.  It’s a slide from my presentation. The NPLs would normally go up during a crisis or when a crisis is nearing. As of now, based on the NPL numbers, it is not likely that the crisis should start in Malaysia unless some crazy things happen which scares away all investors. I hope we continue to be harmonious for the sake of all Malaysians, especially property investors. Conclusion? It will not start from the NPL numbers. By the way, assets wise, it’s also pretty healthy. Read here:
Household debt Malaysia vs assets, as per Allianz Global Wealth Report

Last but not least, the following awesome additional signs we can see with our very own eyes.

– Unemployment Rate – No jobs, losing jobs….. Unemployment rate.

– Popular Malls – full car parks, queuing for some kind of cheese tarts and etc etc…

–
Car Sales – overall stats – still up….

Happy looking out for some of these signs and please report to everyone yeah once you found anything. Happy investing.

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written on 23 April 2017

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Difficult H1 for Malaysia property market?

I am not sure how many Malaysian friends we ask today will say something positive about the property market. Somehow, even if they still have a stable job paying them good pay, the thinking is the same; Malaysian economy is not doing well. Of course, when the economy is not doing well, the property market is likely to follow. What we do not want is for the property prices to still move up even with a slow market like today. Article here:
The economy should determine the property price. More natural

Well, perhaps we should also ask some analysts about the economy as well as the property market then? At least, their views would be backed up by numbers and their own research. Just remember to take it with a pinch of salt because it is definitely not possible to predict with any accuracy on how bad or how good a situation could become. Sentiment could change very fast and financial crisis could also happen suddenly.

Warning signs will be there before the crisis happens but these are just guides.
Understanding the 3 property bubbles and more
 Let’s look at the article
in themalaysianreserve.com
  Economist and political analyst Prof Dr Hoo Ke Ping expects the economies of many countries will be dragged down by the coronavirus outbreak as China has been the biggest provider of capital that helped boost sales at property companies across the region.

He said, “When the global supply chain is affected, we will have a big negative impact. When China’s capital doesn’t come out, how or who’s to buy property? They should try to sell houses at a cheap price to raise cash for the rainy days because the rainy days are heavier and longer. Companies who went outside Malaysia must have cash. If they start borrowing, they will have problems because there is always an exception.” Please refer to article in
themalaysianreserve.com

By the way, I do agree that when China ‘sneezes’ a lot of countries will start ‘coughing.’ China is after all the second largest economy and with it’s current growth, it will overtake the United States of America within the next decade, I think. As for
how much the coronavirus will affect the world economy, this was a recent view.
 I would like to say that we should take precautions but there’s no need to panic currently.

I just hope that all these negatives will start to become neutral and then perhaps with some infrastructure announcements, the sentiment could turn positive? Yea, I have to agree that H1 2020 looks like it will need some resuscitation efforts. Happy understanding.

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Official. Malaysia property market transactions for 1H 2020 has dropped tremendously versus H1 2019. How much?

Malaysia Property market transactions for 1H 2020 has dropped tremendously versus 1H 2019. This was what kopiandproperty.com learnt today in
JPPH’s presentation on property market Malaysia for H1 2020
 in Marriott Hotel, Putrajaya. There is little need to guesstimate. All the numbers below are official numbers from NAPIC.

It has dropped… total units and price for 1H 2020 vs 1H 2019

Statistically, 1H 2020 showed that the total Malaysia property market transactions for 1H 2020 was 115,476 units valued at RM46.94 billion. This was 28% lower in total units when compared to 1H 2019 which was 160,165 units. Value wise, it’s 31.5% lower versus 1H 2019 value which was RM68.53 billion. Briefly, this meant that the average value for every transaction is lower for 1H 2020 versus 1H 2019. It was RM406,491 on average for H1 2020 versus RM427,871 in H1 2019.

Photo by Negative Space on
Pexels.com

Residential unit transactions are 65.2% of the total Malaysia property market transactions followed by agriculture with 20.1%. When it comes to the total value of transactions, residential units’ share is 54.6% versus 18.1% for commercial units.

Some key numbers for residential property includes the following:

#1 – 1H 2020 had 75,318 transactions worth RM25.61 billion. This is a 24.6% drop in volume and 26.1% drop in value. Again, this has showed that the average prices of the properties being transacted are dropping.

#2 – Number of new launches in 1H 2020 were far fewer than in 1H 2019. Only a total of 13,294 units were launched, down by 43.6% against 23,591 units in H1 2019. Compared to 2H 2019, this number were still lower by 31.6%. 2H 2019 new launches were 19,444 units.

#3 – 92% of all sales were for units priced from RM400,000 and lower.  (Now we know the price range most Malaysians prefer)

#4 – LANDED property launches beat the high-rise units. Single-storey and 2-3 storey terraced homes contributed 55.6% (7,389 unit) versus just 20.7% (3,951 units) for condominiums / apartments.

#5 – Residential overhang has increased by 3.3% versus 2H 2019. There are now 31.661 overhang units versus 30,664 units in 2H 2019.

#6 – Malaysia House Price Index (MHPI) showed a 0.4% increase for 2Q 2020 this is the LOWEST annual growth since 2010. When compared to 1H 2020, this is a decrease of 0.7%.

I will be writing another article with more details about the residential property market numbers by different states but for now, let’s also understand that the numbers for Malaysia property market transactions which was revealed today has showed that when Movement Control Order (MCO) was implemented, this has caused the property market to drop drastically. This was also coupled with the Malaysian economy but this is expected to start recovering in 2H 2020.

Penjana’s initiatives will also be lending help to the property market too. These include the reintroduction of Home Ownership Campaign (HOC), exemption for the Real Property Gains Tax (RPGT) and well as the relaxation of the 70% financing margin limit for third housing loan onwards.

For first-time home buyers, there’s still time to look around and do strive to look for the best property which meet the needs. Anticipating further drop in prices? If we look at how bad was 2H 2020 and the property prices hardly moved, let’s note that a soft recovery is not likely to show a drastic drop in property prices. By the way, selectively there are surely some desperate owners selling below market value. Ask your friendly real estate negotiator to help you look for them.

We need to also note that developers have also slowed down their new launches and this meant that they are now focusing on selling the remaining launches instead. This is why there are many good offers around. This is also one reason why Malaysia property market transactions are down as well. Many times, if you did not like that property many months back, you may still not like the property today despite receiving higher discounts.

To those who believe that no one is buying, the total transactions of over 75,000 residential units is already great evidence that most people are buying because they need a home and not because they are speculating. These days, flippers are more likely to be found in the stock market and not the property market. I am personally happy and optimistic that the worst should be over unless COVID-19 situation gets worse.

In terms of recovery, let’s note that 2020 will definitely be a challenging year. Most businesses have lost 3-6 months of productivity and this cannot be reversed by relying on just Q4 2020. Perhaps we need to look into 2021 instead for a much more stronger recovery for Malaysia property market transactions. That’s great enough for me. Happy understanding.

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Malaysia property price? Increasing and now 25th highest in the world.

Source:
https://www.macrobusiness.com.au/2017/01/2017-demographia-housing-affordability-survey/

I was invited by Miichael Yeoh to share my thoughts about the Malaysian property market for 2018. Unfortunately, I do not have a crystal ball which can tell the future. In case anyone wants to know, I am just a working professional like most Malaysians and I do not buy a property every year or even 10 properties in a year. 🙂   I shared about all the possible scenarios including what to look for in order to know if a property bubble crash is imminent. In brief, the answer is no. However, no one can predict any unforeseen circumstances yeah. I also shared that it’s very important to look at
median prices instead of average prices

because one tells about the most possible transaction while the average tells nothing if the market has both extremes of high end and low ends. Do refer to the image for some understanding about the median prices in many major markets of the world today.

Did you know that
property prices in Malaysia is still rising despite the current ‘
negative sentiment’ in the market? Do you know that we are much higher ranked than Singapore which is now facing a negative price change for house price? Indonesia’s property market is in between. For the period of Q3 2016 to Q3 2017, Knight Frank’s Global House Price Index showed that property price grew 5.1 percent up in Malaysia, 3.3 percent up in Indonesia and -0.3 percent for Singapore and are ranked 25th, 38th and 52nd respectively when compared to 56 other markets that is tracked by Knight Frank. The tracking revealed that 9 out of 10 countries are showing an increase BUT almost half of them are showing an annual growth decline when compared to the previous quarter. Please do read the full article for this ranking by
Knight Frank in NST here.

Knight Frank International residential research head Kate Everett-Allen said, “The shift was most evident at the top of the rankings table. Thirteen of the 15 strongest performing housing markets around the world registered a slowdown in their rate of annual growth in the year to September.” Hong Kong is STILL in second place in the ranking but its price growth is now only 1.7 percent when we look at the last three months to September 2017. (This means it should drop down the ranking if this continues for the next few quarters)  It also showed the United States and the United Kingdom on different trajectories. Average prices in the US accelerated from 5.8 percent a year earlier to 6.2 per cent currently. The UK meanwhile faced a marginal dip from 2.8 to 2.6 per cent.
China’s property market
 is already rising at their slowest for five quarters but even this still showed that the prices are up 6.5 per cent on an annual basis.
Here’s that full article again.

written on 15 Jan 2018

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Property transactions Malaysia: Numbers for H1 2022 looking good actually

Malaysia is not in a crisis, dear friend

First of all, thinking that Malaysia is in a crisis because US$ kept appreciating versus most of all currencies including Malaysia is not clever.  Just in case anyone wants to know, British Pound reached a 35-year low versus the US$. AUD is at 2.5 year low versus the US$. Japanese Yen is at 24-year low versus the US$. Euro is at 20-year low versus the US$. I think the whole world will all be in a crisis except one country? 😛

Secondly, assuming this friend is right that Malaysia is going to be in a crisis, then he (yes… he) better be ready to potentially lose his job because during a crisis, banking jobs are not going to look that rosy. I also hope he has huge savings and is ready to invest into distressed properties using cash because if he loses his job, he is not going to be able to get a loan.

Remember, never say something and then do something else yeah. Many friends kept saying a crisis is coming and then continue to spend money versus saving it to be ready…

No crisis means property market will have support

Take a look at the actual numbers below yeah. This is not from some comments among your social media friends (no matter which social media…).  Total residential transactions alone is 116,178 and this is just H1 yeah. Usually, H2 numbers are higher for some years.

When property transactions happen, it means the borrowers could quality and the banks could lend because they qualify. Else, nothing happens. For example, during a financial crisis where borrowers are scared to commit and banks are scared to lend without a super stringent and thorough check.

We will see what happens then.

Trend for volume and value for transactions are also trending upwards. Good news for owners who managed to sell at a higher price than the price they paid for probably a few years ago. Take the profit and perhaps invest into another good property.

No prizes for guessing right. The cheaper properties would usually have more transactions but please do look at the general trend which is showing a rising trend. This is across all residential and commercial properties too. Briefly, the economy is definitely supportive and the banks are willing to lend too. This meant the banks could trust the borrowers yeah. They usually do stringent checks.

Selangor property transactions are the top and this has been the case as usual. Klang Valley remains that place where most of our graduates would flock to for employment opportunities. Businesses may also be setting up there to cater to an ever increasing demand because of migration from smaller towns to bigger cities too.

Conclusion: H1 2022 has been a good one

If you still believe a crisis will be happening soon, just be very prepared to take the opportunity if it arrives. Do not just say and do nothing and then when opportunity came knocking, we do not have the funds to buy low and sell high a few years later. Happy believing and deciding.

Here’s the link for NAPIC.
They have a lot of very good stats and numbers there. Always visit them often, else subscribe and I will share too every time they post anything together with my views too.

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No, can’t be true. Reaffirmed at ‘A-‘

You may not see this on Facebook. It’s okay. At least you read about it here. Standard & Poor’s Rating Services has maintained Malaysia’s positive sovereign rating outlook for Malaysia at A- long-term and ‘A-2’ for short-term foreign currency. It said the ratings reflect the strong external position and considerable monetary flexibility. In brief, rating shows Malaysia is doing fine currently even if everything being shared are only about one man and one issue; negative. The other two, Fitch Ratings and Moody’s have also earlier maintained Malaysia’s rating at the lowest investment grade. (YES, still investment grade, for now)

Strong external position is due to the position of foreign currency reserves. It is 1.1 times the external short-term debt. It’s continuing to decline and is currently at US$100.5 Billion.  Monetary flexibility is because our interest rate is not at zero. Thus, Bank Negara still have flexibility to adjust it upwards or downwards depending on the growth. Yes, interest rate is a huge thing. This is one major reason why people are buying more US$ in anticipation of a rate increase by the Federal Reserve. It has been forecasted to happen in September. Until then, I think US$ will remain very strong if not stronger than today.

This does not affect the property market directly but should Malaysia’s rating drop, of course sentiment would be more negative than today. That’s when everything slows because everyone would be too worried to do anything at all. Hold undervalued properties. Sell fully valued ones and buy undervalued ones. In popular areas, majority of the properties are still at the highest point. In secondary areas, lots of bargains to be found still. Do take a look. As for these ratings, if it’s a negative one, you can read in Facebook. If it is still a positive one, you will read it here. Happy researching.

written on 4 July 2015

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Property KL: Best value, highest yields and least volatility.

Every time I go out for meals with friends who does not yet own a property but has newer phones and bigger cars than me, they would ask this question. ‘Can still buy ah? My friends said Malaysia property market about to collapse. So many negative news and scandal.’ My standard answer? Well, I am still investing because I think despite the fact that there are many overpriced properties, there are always opportunities within the Malaysian property market. Their usual reply? ‘Ai ya, you bought earlier when prices low, so you sure okay lah.’ Haha. Actually, for these debates, it will never end and I treasure my friendship more than winning the arguments with them. Every individual is different.

Well, today I read something encouraging in NST today, 22 Sept 2016. Full article
here
. Briefly, according to the a global real estate consultancy Knight Frank, the Malaysian property market offers the best value for money for real estate investors in the world, and the highest yields and least volatility in the market across the Asia-Pacific region. Knight Frank Malaysia managing director Sarkunan Subramaniam added, “Coupled with the step-up on transport infrastructure development, which increases mobility and connectivity throughout Greater Kuala Lumpur, this transformation gives the city the edge, and represents the best value propositions for any multinational corporations (MNCs) or investors in the Asia-Pacific region.”

I wrote earlier about the MRT lines changing many area dynamics. Read here:
MRT stations will change the area dynamics.

Just look at areas close to LRTs today. They are definitely higher priced than places far away. Yes, there are even some ‘awesome’ articles online which tells about how walking distance from these stations affect the property prices. Nope, it is definitely not written by me. It’s also important for us to focus on the attractiveness of a certain area by asking the right question. It’s less about
WHERE but it should be about WHY
. Looking ahead, Malaysia’s GDP will most probably grow 4 percent in 2016. (As per most of all predictions). Google and understand that 4 percent should place us within the top tiers in the world today.

A check online showed that the number of jobs being advertised in JobStreet.com.my remains healthy. Remember, the job numbers would be an early indicator of the property market. We do not stop paying the mortgages first. We would lose our jobs first. Even the car sales numbers would come later and not before we lose our jobs. That’s why we should always look at the job market for the earliest signs. The unemployment rate in the US is one of the key metrics before the Federal Reserve makes any decisions at all. Last but not least, here are
some quotes for us to enjoy
, from around the world. Cheers.

written on 22 Sept 2016

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Malaysia – Singapore. Not just one new bridge. Few bridges please.

In a news report recently, it quoted Minister for Youth and Sports Khairy Jamaluddin as saying that he hoped that a new bridge can be discussed by both Malaysia and Singapore Prime Ministers during the leaders’  retreat soon. He said that the new bridge would be a symbol of future bilateral relations. In fact the current Causeway should just be demolished. This bridge can be built even before the High Speed Rail (HSR) or the Rapid Transit System (RTS). He further said that this new bridge can potentially reduce jams as well.

Personally, some of the readers to kopiandproperty.com would have noted that I would love for the connections between both Johor and Singapore to be enhanced. Just look at the current connection. During the usual working days, it may take up to 2 hours. During festive seasons, it may take up to 5 hours! Actually, due to this waiting period, many things would never happen. For example, the possibility of more people staying in Johor instead of renting the SMALLEST room in Singapore and paying S$700 for it? For example, more families would choose to take short trips into Johor even during weekdays? All these would help to increase the economic activity in Johor tremendously and within a short while would already pay for the bridge cost itself.

I remembered a few years ago when I visited the city of Osaka. Someone told me that the ‘old’ city of Osaka is connected to the ‘new’ Osaka (Shin-Osaka) by 8 bridges / links. That was why everything was so smooth. Thus, to me, one bridge is way too few. I would propose that the discussion should immediately talk about 2 bridges or more. I think once more cars pass through both sides, the VEPs can even be reduced further. Yes, I just a blogger but I think I speak objectively.

written on 30 Apr 2015

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Fitch on Malaysia: Stable outlook, still at A- (Investment Grade)

Reported in
many different medias
 few days ago was about Fitch Rating’s affirmation of Malaysia’s long-term foreign- and local-currency issuer default ratings (IDRs) at ‘A-’ with stable outlook, reflecting the country’s strong net external creditor position. Nope, this was definitely not widely shared. Perhaps it’s because of Malaysia’s badminton team in Olympics.
(Great performances by the way and I watched every game)
 Fitch also said that the real gross domestic product (GDP) growth is stronger than the median of ‘A’ rated peers and this is supported by the surplus in trade account even if this continues to narrow.

Fitch has also affirmed Malaysia’s senior unsecured foreign- and local-currency bonds at ‘A-’ and ‘F1’, while the short-term local-currency IDR at F1.

Meaning of A-? Please read below then:

Investment grade

AAA
  : the best quality companies, reliable and stable

AA
  : quality companies, a bit higher risk than AAA

A
  : economic situation can affect finance

BBB
  : medium class companies, which are satisfactory at the moment

Short-term local-currency IDR at F1. What does F1 mean? Please read the below then.

F1
  : best quality grade, indicating strong capacity of obligor to meet its financial commitment

Fitch expects Malaysia’s real GDP growth to be 4 percent in 2016. The supporting factors for the growth include private consumption demand and continued spending on strategic projects by the government and state-owned enterprises. This will have to defend against the weak external demand. Fitch also said something really important for a longer term outlook.
Fiscal consolidation had supported stabilisation in the federal government debt and deficit ratios.
Yes, this is still happening despite the slowing growth which has made it even harder to stay the course.

Yes, I think recession will not be started by Malaysia but some more advanced countries around the world or perhaps a few of them, potentially. If recession happened to start from Singapore, then yes the effects will be pretty significant to Malaysia. Happy following and believing.

Full understanding of all the different ratings from Fitch? Take a look here:
Fitch Ratings by Wikipedia

written on 21 Aug 2016

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As long as you love, that’s the best yeah. Does not mean your life is better than mine. :)

Do I love to go holidaying in some exotic beaches where the view is spectacular? YES. Would I love to stay in my own property in some advanced cities in some advanced countries? YES. However, I would not want to be staying by the beach for 365 days a year, regardless of how spectacular the sunrise or sunset is. Malaysia has sunrise and sunset views daily too.  As like most Malaysians, I also do not have unlimited money coming into my bank account every month. Thus, I would not want to own a property which is empty for the whole year until my next visit. It has to somehow be rented out to cover the mortgages.

Would I consider working overseas? YES. However, the offer must be a very spectacular one. It has to be an upgrade or promotion. Not even a lateral move, sorry. If I have to take up jobs that the locals in the country do not want or to take a position downgrade where I have to now report to someone younger and less experienced simply because he / she is a local and I am from another country? Then, the answer is NO. Come on Malaysians, do we suddenly become ‘unskilled’ or ‘lowly skilled’ as soon as we go to another country?

This has been a conversation with many friends for many years. Many would tell me how ‘superior’ their life is at some other countries and yet the reasons given are really not that ‘superior’ in my personal opinion. One said that in the new country, she could take the public transport to anywhere she likes in because the public transport there is by far more superior than Malaysia. It is SO CONVENIENT! Haha.

Frankly, even if I am a single today and not having a family of four, I would still prefer to drive. It gives me real convenience. I can start when I want, go where I want and even have crazy jokes with a few close friends in my car all the way until I arrive at the destination. As they say, it’s the journey…  By the way, only 5% of the people in that country that my friend said could actually afford a car…..

Another told me that she has so much land in the new country she was in that she was now rearing sheep and cows and that she’s extremely happy. She said, “there’s no way she could do the same thing in Malaysia.” I congratulated her because she has a life that she likes.  As for me, I love going to farms once every year and my kids would love to touch the sheep or the cow and even drink a cup of fresh milk or two. Certainly not becoming a farmer on a daily basis…. And as for the opportunity to do the same thing in Malaysia, it’s possible lah even though the sheep would NOT be white in colour and the cow would be of a different breed due to the weather.

The conclusion is a very simple one. Everyone loves different things and when ANYONE comes back from whatever country they have now grown in love with, please do not give me some reasons why your life is superior than me yeah. You enjoy what you enjoy and I enjoy what I enjoy. There are so many superior things in Malaysia but I would not want to tempt you to come back. I always think it is best that everyone is happy instead of having to keep debating or comparing. Life’s too short for that.  I’s rather go to any of my high-rise properties and enjoy the swimming pool instead… (yes, in 7 towns / cities in Malaysia today). Cheers.

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The more data which we have, the better decision we could make because we would then be better informed. This is why kopiandproperty.com feel that if we had planned by looking at demand versus supply, the current issue of unsold leading to overhang properties may not have happened. We attended a showcase event by iProperty.com.my on Malaysia’s Subsale Residential Property Demand Trends for 2019.

Press Release:
iProperty.com.my Showcases Malaysia’s Subsale Residential Property Demand Trends For 2019

? The analysis provides a view of the current demand trends using iProperty.com.my’s user visits and property listings data in the Malaysian subsale residential property market with a special focus on Kuala Lumpur, Selangor, Penang and Johor

? Overall increase in demand for subsale residential properties at the national level by 13.3% compared to 2018

? Condominiums recorded a turnaround with a 14.2% growth in 2019 compared to -5.9% in
H1 2019 Portal Demand Analytics

? Property prices in major states throughout the country are slowly converging, with more affordable cities seeing their property values increase over time

Kuala Lumpur, 17th January 2020
– iProperty.com.my officially released the full 2019 Portal Demand Analytics which provides an overview of subsale property demand using iProperty.com.my’s user visits and property listings data for residential subsale properties in Malaysia with a particular focus in KL, Selangor, Penang and Johor. The publication was unveiled at the opening of iProperty.com.my Home & Property Fair 2020 at Mid Valley.

The publication, presented by Premendran Pathmanathan, General Manager of Customer Data Solutions, REA Group Asia, reveals that the growth in user visits on iProperty.com.my continued to outpace the growth in listings for three property types: terrace house, condominium and serviced residence. This results in an overall increase in demand for subsale properties at the national level by 13.3% year-on-year (growth in user visits outpaced the growth in listings). This was mainly driven by the large demand in condominiums and serviced residences due to a modest drop in capital growth. As for the terrace house category, which represents over 50% of sub sale residential transactions in the market, it exhibited an increase in demand at 9.0% in 2019.

Through the publication, it was revealed that the top four housing markets in Malaysia, namely Kuala Lumpur, Selangor, Penang and Johor, have experienced a growth in user visits in 2019. All states also experienced growth in listings except for Kuala Lumpur which experienced a decrease in listing. Johor is the only state where the listing growth outpaced visit growth.

Among the three property types, terrace houses emerged tops in 2019 in terms of capital appreciation with a 3.16% capital growth compared to 2018. Serviced residences, which recorded the highest demand growth in the the first half of 2019
,
maintained its top position among the three property types, ending the year with a demand growth of 17.3% year-on-year. Condominiums recorded a turnaround with a 14.2% growth compared to -5.9% in the first six months of 2019
.
This can be partly attributed to a drop in the number of listings in the second half of the year. However, this property type registered the lowest capital growth percentage in 2019 at -2.02%.

Property prices in major cities throughout the country are slowly converging, with more affordable (second-tier) cities seeing their property values increase over time. For instance, Seremban which offers properties with an affordable median price of RM200,000 is highly attractive when coupled with factors such as connectivity and proximity to the Klang Valley, thereby contributing to its higher capital growth of 9.91%.

On the demand front, Kota Kinabalu remains the top capital city with the demand growth of an impressive 24.72% year-on-year. The number of users looking at Kota Kinabalu grew at a much faster pace in 2019 compared to the growth in number of listings. Meanwhile, Petaling Jaya trails in a close second at 22.13%. Another notable mention is Melaka City which saw its number of listings double in 2019, pulling down its demand figure to -5.3%. The surge in listings was contributed by condominium projects being utilised as short term rental units.

In summary, Kuala Lumpur improved in demand and recorded a 19.8% growth. Its median pricing is still the highest in the country at RM516,000 in 2019, although this figure had dipped from the
H1 2019 Portal Demand Analytics
median price of RM540,000 in tandem with a capital depreciation by -1.61% in 2019

Benefiting from an overflow of population away from the city of KL, Selangor’s residential demand grew 22.4% in 2019. While the number of listings remained constant, the growth was brought about by a higher number of visits especially by users checking out the terrace home category.

Penang experienced a turnaround with demand figures jumping to 10.6% in 2019 from a disappointing -4.4% in
H1 2019 Portal Demand Analytics
. This positive shift can be attributed to the Penang South Reclamation (PSR) project recently approved by the state government to be part of its multi-billion ringgit Penang Master Transport Plan (PTMP). The government also announced that several PTMP projects including the PSR will be tendered out in the second half of 2020.

As for Johor, the residential property landscape remains sluggish toward the end of the year. Johor is the only major state to register a negative growth in demand in 2019. Demand figures continue their downward trend at -12.2%. However, things are slowly turning around for the better as the demand figure for the first six months of 2019 was even lower at -16.6%. The poor performance can be attributed to a property oversupply. There has been an influx of property listings in the review period as a result of owners of numerous newly built properties having received their vacant possessions.

The analysis, with additional data compiled from brickz.my, aims to provide an insight for policy makers and property developers on Malaysian residential preferences. As the number 1 property portal in Malaysia, iProperty.com.my garners millions of visits each month. These real-time behaviours indicate where the nation’s residential demand (site visits) and, in comparison to supply (site listings) is leaning toward. iProperty.com.my are the first to publish these demand analytics in Malaysia with these data points have never been accessible in the region before. Tailored to initiate conversations among stakeholders, this analytics also serves to align industry players with market sentiments to facilitate better decision making.

“The lack of demand-driven data in Malaysia is crucial in policy planning and making evidence based subsidy decisions. It is our intention that the publication be made available for the benefit of all stakeholders so as to align industry players with market sentiments to facilitate better decision making. With these analytics, we hope all relevant stakeholders would be able to analyse the insights to understand the local market preferences better, which are reflective of the market demand. These analytics can only be compiled by collecting numerous data points. We hope to continue publishing these analytics in the years to come for the benefit of all parties in the property market,” said Premendran Pathmanathan, General Manager of Customer Data Solutions, REA Group Asia.

As the leader in the local property listing industry, iProperty.com.my has dedicated almost one year of research, planning and information gathering to produce this exclusive analytics. This analytics is the second edition and subsequent editions will be available in the future to provide invaluable insights into the local property market. Through big data technology, the analytics provides property owners and all relevant stakeholders comprehensive information about existing demand for certain projects.

— end of press release —

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Press Release: Malaysia’s Third Largest Real Estate Group, The RINA Group, with Its Associates to Join IQI

One of Malaysia’s largest real estate agency groups, the RINA Group and its associates, will merge into Juwai IQI, the owner of
Juwai.com
, Juwai.asia, and IQI, the two companies announced today. The RINA Group and its associates’ more than 1,000 agents and negotiators will become members of IQI’s 9,000-person global team and will adopt the IQI brand.

The RINA Group and its associates make up Malaysia’s third-largest real estate agency group. Founded in 2010, it has seven offices throughout peninsular Malaysia. Its more than 1,000 agents and negotiators in 2019 closed transactions with an aggregate value of approximately RM1.2 billion (US$275 million).

Juwai IQI is the holding company that operates the Asian real estate super-brands dedicated to empowering residents of Asia to become residents of the world: IQI and Juwai Limited. IQI is the No. 1 real estate network in Southeast Asia and the Middle East. IQI sold RM4.34 billion (US$1 billion) of property in 2019.

JORDAN YEOH QUOTES

RINA Group CEO Jordan Yeoh, who as a result of the merger will become Vice President of IQI, said:
“By joining IQI, we are giving our agents access to the Juwai IQI technology-enabled platform. Technology is already playing a much bigger role in real estate because of the pandemic, and this role will grow quickly in the years to come.

“We have great respect for IQI as the Southeast Asian industry leader. By joining with IQI, our team gains both scale and relevance in Malaysia and internationally. That has been a long-standing goal for our business.

“Being part of IQI will help our agents succeed. Our agents will benefit from being able to harness the lead generation capabilities of
Juwai.com
 and Juwai.asia to help them sell, win and offer properties from all over the world to over 3.3 million monthly users.They will also enjoy the supportive culture and extensive training that IQI offers.

“We couldn’t be more excited about the opportunities available to us as part of IQI. We look forward to working together as one team.”

KASHIF ANSARI QUOTES

IQI Global Group CEO Kashif Ansari said:
“This is an exciting opportunity to unite two world-class teams and become a bigger regional powerhouse. We are excited by the opportunities this move creates and more than delighted to have the RINA Group and its associates join us.

“Technology is now an essential component of real estate whose role is only growing. Companies that aren’t using technology in management, marketing, sales, and post-transaction support will face increasing challenges.

“We have great respect for the RINA Group and its associates, admire their outstanding achievements, and are honoured to have them merged into the IQI family. Welcoming them into our organisation will give us an immediate boost in scale and bring a wealth of new talent into the business. Actions like this are enabling us to thrive, even in a market challenged by COVID-19.

“Merging with the RINA Group will further accelerate our growth in both market share and transaction size. This merger also gives added momentum to our regional and global expansion, which has already taken us into 15 countries. We look forward to an exciting new chapter.”

GEORG CHMIEL QUOTES

Juwai IQI Executive Chairman Georg Chmiel said:
“We celebrate a new milestone today as we formally welcome the RINA Group and its associates into not just the IQI team but the entire Juwai IQI family. Together, we will draw on our decades of experience to push the boundaries of innovation with the goal of delivering outstanding technology and service to meet the needs of the property industry.

“The leadership at IQI and the RINA Group and its associates deserve congratulations on being able to conduct this merger during a period when Malaysia has been under the Movement Control Order.

“I warmly welcome Jordan Yeoh, his cofounder Fiona Chin, and the entire RINA Group and its associates to Juwai IQI.”

— End of Press Release —

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2 years of content and the result today; top 8 in Malaysia

I was pleasantly surprised when a close industry friend tagged me in Facebook about a ranking of the Top 8 Property Portals in Malaysia. It was a chart published by Ken Lim, the founder of
Penangpropertytalk.com
 using
Similarweb.com
 data as at end October 2015. Similarweb.com is a very popular choice for sites to benchmark themselves against their competitors. The list of the top 8 started with all the usual and familiar names in Malaysia including
iproperty.com.my
,
propertyguru.com.my
, theedgeproperty.com.my, propwall.my,
penangpropertytalk.com
,
propsocial.my
,
starproperty.my and

stopped at
kopiandproperty.com
 WOW. Haha. Take a look at the image.

I started writing from the hospital bed on 28th November 2013. It was after my kidney stone operation. At first, the aim was just to write some property related stuffs. When traffic grew, I aimed at hitting the top 100 for property portals in Malaysia. Later, due to increasing traffic, a new target was set; a top 50 position by end of 2015. I think I may have to set a totally new target for end 2016. To be realistic, I think even maintaining this ranking is an achievement. So, hopefully I can double my visits or stay at this same position by end 2016.

Thank you for all the visits, sharing and comments both bad or good.

written on 2 Dec 2015

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Malaysia’s total trade is RM2 trillion for 2021 thus far. No one shared, so I share lah.
This is the news article in theedgemarkets.com

What was before? How do I know if RM2 trillion is high?

Total trade in 2020 amounting to RM1.777 trillion. Considered good since we know Covid-19 caused lockdowns of many months in 2020. Well, this trade amount could have been matched in October 2021 (means in 10 months) and the number after full month of November is RM2.01 trillion.

We still have December 2021 numbers to go yeah. However, despite these positive numbers, I did not see it in my FB page or any group Whatsapp. Well, as usual, when I have negative articles, my views increase. When I write positive news, the views will reduce. So… yes, this article is likely to have lower views.

Is Malaysia a top trading nation then?

Malaysia is ranked 24th out of the top 25 trading nations in the world.
Full list of top 25 trading nations in the world is here.
 By the way, ASEAN countries are doing well. There are 4 of us within the top 25. If we add just these 4 up, we are 6.3% of the world’s total exports! This is why I really think ASEAN must be more united and speak with one voice versus each supporting different superpowers.

You know lah, just look at the Covid-19 vaccines and you can see who is supporting who lah. Also look at the weapons supplier and we can also guess a bit too. Malaysia ah? We have no particular country yeah. We have Pfizer, Astra-Zeneca and Sinovac as the three main ones; US, UK and China. Neutral enough lah. We have fighter jets from Russia and the US and the older ones from UK and the future ones probably from some ASIAN countries. Hopefully can pay for partial payment with palm oil exports? Haha. 🙂

Here’s that list again:
Full list of top 25 trading nations in the world is here.

Yes, I always do my small part in supporting my dearest country ( I have just one)

I am still driving a Persona. Trouble-free and has hit 150,500km thus far.  People can say I cannot afford a Vios lah, so I buy Persona lah. Haha. Maybe they are right. My wife drives an Exora. People say that’s because I could not afford a proper MPV like the Toyota Innova? Haha. Maybe they are right as well. Noted on all comments yeah. I shall continue my car choices for now.

When I buy things, I always take a glance at the manufacturing country. If it’s Malaysia, even if it’s slightly more expensive, I will get the Malaysian one. I know, people will say that the factory worker may not be Malaysian and the money may be sent back to the workers’ home country. I say? Noted. I will still continue buying Malaysian first.

After all these years, I realise that if I intend to change, I can only control mostly one person; me. So, even if writing negative news about Malaysia will get more views and writing positive news somehow gets far lower views, I will still write good news about Malaysia when I read one. Thanks for reading and sharing. Take care.

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Header Image by
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 from
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Malaysia’s INCREASING unemployment rate in January 2021 vs December 2020. Is it looking bad?

Important. Unemployment rate determines the economic outlook of a country. When more people lose their jobs, we would soon see many more people stop paying for their loans. When more people stop paying for their loans, then we would see even more financially distressed people and there would be some desperate selling of their assets. Bankruptcies may increase and well, the issue will continue. Non-Performing Loan (NPL) will also rise.

Why breathing space is so important

However, if we could give all these distressed people a breathing space to look for the next job, open back their businesses after the lockdown, then things may be totally changed. The loan moratorium gives these people and many businesses some time to get the next job and to strategize on their business and they could continue their loan repayments. All stakeholders could now heave a sigh of relief.

Unemployment in Malaysia?

How’s the unemployment in Malaysia then? An image from Department of Statistics Malaysia (DOSM).  It has shown that the number was generally hovering around 3.3% at the end of 2019 before it suddenly shot up in March 2020 when our Movement Control Order 1.0 (MCO 1.0) started. With the lockdown, businesses could not open and this meant that the unemployment numbers rose even further and peaked at above 5% in May 2020. This continued to stabilise and started a downtrend until September 2020.

What has happened after that, despite the MCO 2.0 starting in October is that the unemployment numbers started to climb again but the number seemed to have stabilised if we compare this to periods after MCO 1.0. Nevertheless, it has to be noted that the unemployment rate is still close to 5%.

Image source: Department of Statistics Malaysia (DOSM)

What’s next?

Hopefully what happens next is that more businesses would start to reopen fully and the new norm starts to go back to old norm; people start to buy, buy and buy again. Not specifically on property yeah, everything which people wanted to buy but did not get to buy earlier. Even the holidays which was supposed to be overseas, perhaps can now do it locally. Let’s see when the travelling between states would be allowed though I do hope that we only allow once we have just a few hundred active cases in whole Malaysia and we have had this situation for over 14 days. Happy following.

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Malaysia Vision Valley 2.0 unveiled – technology focused too.

This is definitely a catalyst for Negeri Sembilan and Port Dickson. Not just economically but will definitely extend into the property market as well. The Malaysia Vision Valley (MVV) 2.0 was unveiled by Negeri Sembilan Menteri Besar Aminuddin Harun. It’s a state-led private sector-driven development spanning across 153,411ha in Seremban and Port Dickson. According to the Negeri Sembilan government and Sime Darby Property, MVV 2.0 aspires to deliver economic impact on Malaysia by bringing in international and local investors, creating job and business opportunities.

Aminuddin said, “The preparation for MVV 2.0 is inclusive as it provides an opportunity for the surrounding communities to give their views and ideas for the overall planning of MVV 2.0.” The first phase of the MVV 2.0 will be Sime Darby Property’s plan to develop a high-technology and industrial park within the development. Sime Darby Property currently owns 2,838 acres (1,148.5ha) within MVV 2.0 and has the option to acquire another 8,796 acres from Sime Darby Bhd within five years from the date of its listing. The first phase of MVV 2.0 spans over a 30-year development period covering 27,000 acres.

“Sime Darby Property will be undertaking this project as the master developer, which allows us to extract and enhance the value of our land bank within the MVV 2.0 development area,” said Sime Darby Property chairman Tan Sri Dr Zeti Akhtar Aziz. “We will take on key projects that will become among the principal drivers of the country’s future economic growth and social development. The company’s significant role in MVV 2.0 is a continuation of our commitment towards the development of Negeri Sembilan,” she added.
Article in Edgeprop.my here.

Currently, many potential buyers of properties in Seremban and surrounding areas are working in Kuala Lumpur / Selangor. When MVV 2.0 is up and running, then the professionals may be working and living nearby instead. This is good for the whole region because when the developments are spread over a much wider area, property prices do not rise as fast and Malaysians will have ever more choices too. Now, just have to wait for ever more details as well as more timelines of completion of these catalyst projects. Happy believing.

written on 15 Dec 2018

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Malaysia Vision Valley? Sime Darby Property pushes ahead alone

I think this is what they call an advanced piece of news.
Reported in TheStar: Sime to build Malaysia’s largest property project alone; KWAP, Brunsfield out
  A few key points about Malaysia Vision Valley. It’s 379,000-acre and is said to be twice the size of Singapore. The partners for this super huge project was Sime Darby Property Bhd (SD Prop), Brunsfield Development Sdn Bhd and Kumpulan Wang Amanah Pencen (KWAP). This was what the quoted source said, “Later, all the parties mutually agreed not to extent the MoU. Subsequently, SD Prop decided to go it alone in developing the massive project by stages to take advantage of the development shift south of Kuala Lumpur.” (In brief, SD Prop will now be going it alone although it can definitely still have partners in the near future)

The reason for KWAP in pulling out? Article quoted a source from the fund as saying that KWAP wants to be a partner somewhere along the development. It is not keen to be part of the master developer team to drive the project. It is too large for an entity such as KWAP.”  The article also said that SD Prop owns large tracts of land in MVV. It has also charted out a masterplan and the development of the first phase covering more than 11,000 acres will kick off soon. Sources say that the developer is confident of the demand for it even if the property market is soft currently. A source said, “The existing projects are seeing good demand because they are landed and not too expensive. The confidence is based on the thousands of workers in the industries.”

Sources said that the SD Prop master plan caters to gradual development to create vibrancy and provide ample open spaces and green parks in its development.  MVV covers a large area from Sepang in Selangor right up to Port Dickson in Negri Sembilan. The high-speed rail (HSR) is to cut across the development with at least two stations located within the development. One of the stations is in Labu in Negri Sembilan.  At the moment, the
HSR has been deferred (read here)
 but there’s the existing railway line with a stop in Labu to provide connectivity. A source said that the Negri Sembilan state government is also doing its best to help SD Prop develop the area between KLIA and up to Seremban. He said that the state saw tremendous potential, especially to cater to industries that want to be located in close proximity to the airport. “The MVV is a project that will drive development in the state for the next 30 years.”
Earlier report here
  Please refer to
the article in TheStar here.
 Happy anticipating and all the best SD Prop.

written on 4 Oct 2018

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Press Release:Sime Darby Property is synonymous with quality

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Malaysian economy overview from the banks’ results

For those who bought some banking stocks last year when the stock prices were battered by negative sentiments because you have confidence that it’s just a matter of time before the banks’ profit numbers start to normalize, congratulations. You are right. This is especially important for the ones who were looking for dividend yields.

We start to see the good and positive signs already from all the recent announcements from the banks. As for how soon would it be even higher than financial year 2019, perhaps 2022 may just be the year. The moratorium is over. Thus, people would have to start paying or the banks will have to take action to recover what is owed to them.

Article in themalaysianreserve.com

Malayan Banking Bhd (Maybank) registered a 33.8% rise in net profit in the 4Q21 to RM2.05 billion from RM1.53 billion attributable to the increase in its net interest income and Islamic banking income which rose RM566.5 million or 12.7% to RM5.02 billion.

CIMB Group Holdings Bhd saw its net profit for the 4Q21 jump close to four times to RM854.51 million from RM214.98 million a year ago, underpinned by significantly lower provisions. Revenue for the quarter fell 1.68% to RM4.59 billion from RM4.67 billion a year ago.

Public Bank Bhd, the country’s third-largest lender, posted a 20.3% increase in net profit to RM1.38 billion for the 4Q21 from RM1.15 billion a year ago, mainly due to lower loan impairment allowance of RM274.3 million and higher net interest income of RM149.9 million.

Hong Leong Bank Bhd’s net profit for 2Q22 rose to RM738.59 million, which was 10.11% higher YoY on 2.1% lower revenue of RM1.37 billion.

RHB Bank Bhd’s net profit for the 4Q21, rose 43.9% YoY to RM631.17 million due to lower expected credit losses. Revenue for the quarter slipped 6.1% YoY to RM2.89 billion.

AMMB Holdings Bhd reported a nearly 53% jump in net profit for the 3Q22 to RM403.29 million against RM263.83 million in the previous corresponding quarter despite higher loan provision caused by exposure to the local oil and gas industry.

Meanwhile, Affin Bank Bhd achieved a net profit of RM206.85 million for 4Q21, from a net loss of RM9.36 million a year ago due to improved Islamic banking income, lower operating expenses and allowance for impairment losses.

Alliance Bank Malaysia Bhd’s net profit increased by 50.3% to RM151.02 million in 3Q21 from RM100.46 million in 3Q20, mainly due to higher interest income and lower credit cost. Revenue also rose to RM480.18 million from RM475.7 million previously.  Please do read the full article here with more good comments and views.
Article in themalaysianreserve.com

Malaysian economy overview from the banks’ results

Banks lend. Businesses and people borrow. When everyone is feeling more confident, they will borrow more so that they could invest the funds into a business or even a property. Of course when times are good, people also borrow a lot to buy their dream car.

To buy a lot of things using the buy now pay later mode. Basically they believe that with better times, they would soon have a lot more money to pay for things they have bought. Businesses meanwhile believe that this is the best time to invest and to expand. They want to capture higher sales revenues and eventually higher profits too.

This is why if we like to know if the economy is growing or not, banks’ results would provide that overview.

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Malaysian economy stays healthy, says Moody’s

Foreign funds would always try to invest in markets which are worth investing in. In brief, countries which are rated under the ‘Investment Grade’ by the international rating agencies. This is why when a country is downgraded by an international rating agency, the foreign funds would be withdrawing their investments soon after or even before if they got some earlier warning signs. The three major rating agencies? Fitch Ratings, Standard & Poors and Moody’s. So they do yield tremendous powers and well, authority. Where is Malaysia with regards to our sovereign rating? Here’s one recent announcement by Moody’s.

Moody’s Investors Service vice-president and senior analyst for Sovereign Risk Group, Anushka Shah says that Malaysia’s growth performance is likely to remain healthy in 2018, which is reflected in the country’s credit rating. She shared that Malaysia with an A3 credit profile, was among the fastest-growing A-rated sovereigns.
Here’s the article in NST.
 The economic growth will however slow in 2019. She says that Malaysia has
an environment of trade uncertainty, and this could weigh on growth prospects going forward. Nevertheless, she said,
“But we do think that the potential performance remains relatively strong.” Anushka said that Malaysia’s trade flow was strong in 2017 with export growth outperforming other regional peers, thus providing some buffer to the current account.

Debt is where Malaysia is showing some weakness. She said that this is a key credit constraint to the rating. She added, “Despite several consecutive years of deficit consolidation, (Malaysia’s) debt burden is significantly higher than the median for A-rated sovereigns.”
Here’s that article in NST for reference: Malaysia’s growth to stay healthy in 2018: Moody’s.
 By the way, Malaysia is also rated under investment grade by both Fitch Ratings as well as Standard & Poors. Singapore is rated under Aaa which is the highest rating possible. Indonesia is under Baa2. Thailand is Baa1. China, the second largest economy in the world is rated A1 which is below Singapore and above Malaysia. I am not an economist, so will not comment on the rating. By the way, the U.S. is rated at Aaa too! 🙂  Happy understanding and yes, keep buying those undervalued stocks.

written on 21 Sept 2018

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Malaysian economy to recover only in 2021. Bad news?

By the way, if you still do not know, the latest forecasts about Malaysia’s economy are all in the negative territory.
Ambank Research says negative 1.1% for 2020.
This was Ambank Research’s comment, ““The pandemic virus impact, added with the collapse in oil prices, just aggravated some of the already weak sectors while dampening new areas of economic activities such as services.”

Our Finance Minister said that the economic
growth could be weaker than the earlier forecasted of up to negative 2% for 2020. Read it here.
Tengku Zafrul said, “But that forecast was made after just two weeks of movement curbs. We’re now more than five weeks in … so our GDP could shrink even more.”
CGS-CIMB said that for 2020, it is likely to be negative 4.3%. Click here to read more.
 So, conclusion for 2020 GDP growth for Malaysia is a simple one. It will be a negative number, just that no one has the same opinion on the actual number yet.

Article in businesstimes.com.sg
  According to a report from Morgan Stanley, export-oriented economies in South-east Asia could only start recovering by first quarter of 2021. The reasons also include lockdowns which has hit both the exports as well as domestic demand. The Philippines and Indonesia would recover faster because they have a lower exposure to recession impact and relatively higher structural growth.

Morgan Stanley also predicted that China is most likely to return to pre-Covid-19 levels by Q3 2020.  All these predictions are based on three factors: how exposed each economy is to the global recession, the institutional response to handle the Covid-19 situation and the ramifications on domestic demand, and the room and willingness to undertake policy easing. There is no V-shaped recovery predicted and it’s more likely to be a gradual one. Please do read the full article here:
Article in businesstimes.com.sg

Let’s hope their prediction for China comes true yeah. Q3 2020 starts from July and that’s just around the corner. China is our largest trading partner, so that’s good news for us too. As for the prediction of recovery only in Q1 2021, let’s look at it positively. They could see the economy recovering. In other words, if we are thinking of grabbing some potential opportunities, it does seem that the window is not as wide as what some of us thought.

There were also a few friends who said that they will wait until October 2020 for that potential ‘red sea’ of opportunities. If we assume they are right, then they have just 2 months to invest into everything they think is worthwhile. Anyway, forecasts are just forecasts yeah. Statistically speaking, the only way we would be accurate is to look at history. Other than that, everything else would just be potential happenings. Waiting is great. Just remember to be on the lookout. This is not a good time to miss opportunities that float along… Happy investing.

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IMPORTANT message for all Malaysians.

kopiandproperty.com is part of the media partners for Malaysian Health Coalition (MHC) which aims to provide real news and help all Malaysians stay safe. We (all of us who are staying at home) could do more as the ‘frontliners’ to combat COVID-19 yeah. Our team-mates, the doctors, nurses and health experts need our help. We may feel bored but they are feeling tired. Message as follows.  Please feel free to share with more Malaysians.  Thank you.

For more info please visit the following:

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https://www.instagram.com/myhealthcoalition/?igshid=1xfssu56clvlm
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https://twitter.com/malaysianhc
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https://www.facebook.com/MyHealthCoalition/

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