Demand vs Supply, Location and Price, Your Decision.

Few weeks back, I read in news that the price of HDB flats were softening. On 15 July, in PropertyGuru.com.sg, it has been reported that the Ministry of National Development (MND) of Singapore will be reducing the supply of HDB flats this year. From 24,300 originally planned, it will be reduced to just 22,400 units. For the larger units, which are typically for families, it will be only be 16,700 units, down from the planned 18,600 units. This is still sufficient as the estimation is that there are 15,000 new Singapore family formations every year. Even the backlog applications are being cleared up. In other words, if you apply and there’s a unit, there’s really no competition. First timer application is now only between 1.0 and 1.7.

Do you know the significance of this pieces of news about Singapore’s HDB flats? The significance is in the numbers. They know every number they want to know and they can plan every detail. It is so easy to understand why certain policies are put in place. If you are living in Singapore and trying to qualify for a HDB flat, this is a very good year for you. Just make sure you do not delay this decision but it is not always that the ratio is so favourable to you.

Then again, if demand and supply can be somehow controlled, then why has property prices been increasing in Singapore? Why has it increased to much compared to the world? It has even contributed to Singapore being ranked the most expensive city in the world! Truth is, property prices are never about policies even if it can affect it. Property prices is always about the demand versus supply. There are many more new units, true. However, there are not many additional units in AREAS that you WANT. So, you decided it must be that particular area, and when many decided the same, demand increases but supply is the same. Prices naturally go up and the highest bidder gets it.

Hope everyone understand that due to ‘location scarcity’, you either pay higher or you can choose to buy further, newer areas. Sure, it will be 10km away or additional 15 minutes. Sure, there are no huge malls there, YET. Sure, the community there are not the affluent type that you aspire to be. The prices are however, much lower. How about buying that unit, save up to buy another unit and the journey continues? Think about it. Please do not speculate, chances are you will be burnt because if governments with full statistics are unable to plan the actual prices, there’s no way you can.

written on 14 July 2014

Next suggested article:
It’s the duration, not the distance. ok?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Demographics Malaysia and property demand

Analysis by research houses are usually based on a whole set of data which may not be available to the public. That’s why their accuracy is higher than majority of us. One latest analysis by UOBKayHian Research was reported in the local media. The article was a long one and I think mostly positive though the article had a negative title. The research house was quoted as saying this, “We believe growth in 2016 would still be supported by demand for affordable homes, mainly fuelled by a rapidly-growing population between the prime age of 25-45, supported by an increasingly affluent middle class.”

Demand for affordable homes is a sure thing unless those shouting, ‘renting is better than owning’ wins over majority to believe them. Reason is simple, Malaysia’s population is still growing and the number of new baby shops, baby related products and even baby sections in hypermarkets would tell us this fact. Read here:
Kids eat free. Buy property
 With a growing family, the demand for ‘upgrade’ homes will increase too which is one reason why the landed are the ones which are increasing the fastest when everything else is the same. There are also 200,000 new marriages every year. Read here:
200,000 new marriages, 80,000 new properties

In terms of affluent middle class, I think the research house is only referring to the top quartile because there’s no way majority can buy anything above RM800,000 even if they are buying as a couple. Read here:
I do not believe majority can buy RM900 psf sorry
 This is one reason why the prices have started to normalize for those luxury properties for which prices were chased up during those few years of buying frenzy. At that time, the developers were launching because of the seemingly never-ending demand. Buyers were buying because of the seemingly never-ending price increases every time a new project is launched. Well, sanity has returned to the market and developers, whether big or small are now humming the ‘affordable’ tunes. Read here:
Affordable not just focus for developers

Banks are said to have tightened their lending but I would personally be alarmed if the banks keep lending for ever higher property prices even when they could see that buyers are really stretching themselves to the limit. My relationship manager told me that lending is continuing but anyone trying to buy a property of which price is too close to what they should really afford would be under heavier scrutiny.
 Read here:
Easier to obtain loan not best option
 My good friend Michael Geh always tell me that ‘the focus should be on affordability.’ I think it’s also important not to simply buy whatever the developers are putting into the market. Let’s be really objective. If the developers are really selling at a huge loss, they would have stopped selling, returned your money and just stop the development. Some of them would not even ‘dangle the juicy carrots’ for all buyers currently. Happy believing and more importantly, taking the right actions.

written on 18 Feb 2016

Next suggested article:
Yes, it’s definitely safe for a long time yet; property investment

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Actual numbers. Denmark and Covid-19 restrictions.

Covid-19 restrictions no more in Denmark

In case you did not know, Denmark’s cases are on an uptrend until end of January 2022. On 8th February 2022, it has lifted ALL restrictions related to Covid-19. No mask. No specific operating hours. No restrictions against Covid-19 at all. Zero. What has happened, really? Well, first one is that the government of Denmark has support from the people for this lifting of restrictions. Else, no government would dare to do so. As for all other reasons, let’s look at one article. Let’s look at just numbers.

Source: google.com

Article in abc.net.au
   Analysis of recent Omicron BA.2 data from Denmark shows a fatality rate less than 0.05 per cent, which is below influenza

JP Morgan economist David Mackie said, “Our analysis of the Danish data suggests that the properties of the now dominant BA.2 sub-lineage of Omicron (high transmissibility but low virulence), high vaccination and booster rates and the use of anti-viral therapeutics have together pushed the case fatality rate (CFR) of COVID-19 to below the CFR of influenza.”

In Denmark, the CFR (death rate) from the dominant BA.2 strain is less than 0.05 per cent — or 1 in 2,000. Global death rate from influenza, which is estimated to kill between 0.05 and 0.1 per cent of those infected.

“A University of Copenhagen study calculated that up to 40 per cent of the deaths recorded in the latest week in Denmark were people who died with COVID-19 rather than people who died because of COVID-19.”

 Clinical epidemiologist Professor Nancy Baxter says we should maintain non-restrictive anti-COVID measures such as mask wearing and better ventilation.(Supplied: University of Melbourne).  Full article for reference here:
Article in abc.net.au

What about Malaysia?

If we look from the beginning, our death rate is 32,056 / 2.94 million = 1.09%. Chart below.  Worldwide, it’s 5.76 million / 402 million = 1.43%.

Source: Google.com

If we look at the most recent numbers, this is likely to drop even further. We can see that for a similar number of cases, the death rate is by far lower when Malaysia’s vaccinations were much lower last year. I personally do think that as long as booster vaccinations continue and SOPs are followed enough, we will see the current increase peak probably by end February and numbers should start to come down by then. Perhaps can go back to below 10,000 cases per day by end March. My wish yeah. I will do my part definitely.

Waiting for the next European country to announce lifting of restrictions maybe?

If Denmark is successful many would soon follow. We just need to see for the next 14 days to have an idea. We can also see that many countries no longer require masks in public places which I disagree yeah. I think it’s best to be on the safe side. 2022 is really starting to show a positive side where Covid-19 is concerned. This is a good sign and I wish you all the best Denmark.

Property News Malaysia?
Sign up for daily investment news updates (FREE since Nov 2013 and FOREVER).
 Alternatively, Follow me on
 Telegram here
.

Please LIKE
kopiandproperty.com FB page
 to get daily updates about the property market beyond kopiandproperty.com articles. Else,
follow me on Twitter here.

Next suggested article:
5 Must-Do steps for property investment.

Header Image by
Rolands Varsbergs
 from
Pixabay

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Descriptive or Deceptive words used?

These days articles in the newspapers are getting pretty descriptive and perhaps flowery. Some of these articles were written as part of the advertisement package and thus it must be something which meets the expectations of the developers. FYI, I hate it when developers cannot even afford to pay the usual writing fee to have a good article to support their development. At the very least before launch, during launch and after launch as well as one more additional article should accompany the project? No? Okay, maybe my standards are just too high but I do notice many developers do this extremely well. From the mass media newspapers to the business magazines to online portals and even PR agencies, they take every opportunity to highlight their projects and them. This should be the right way to go because today, I have yet to find one media which can claim to have every single property investor reading only them. Today, let’s just browse through some of the nice terms used and their potential meaning(s).

‘Close to / Next to Nature’ – whenever this is used, rest assured, it would not be in a matured neighbourhood. It may be next to a secondary forest or even at a place which is slightly out of the usual routes. Nothing wrong ok, in fact I like this word better than ‘next to MRT’ station. Just a personal choice.

‘Exclusivity’ – Unless the total units are less than 50, this word may not be that correctly used. Let’s be very clear, are you sure a 100 units of condo, each with 4 persons staying and a total of 400 pax sharing most of the time a pretty small swimming pool is called exclusive? Hope everyone understand that if YOU are the developer and you have a huge piece of land today, you would maximise the number of units to make it affordable and easier to sell.

‘Luxury Condo’ – I saw this ‘Luxury Condo only RM299xxx’ on my way to office everyday. It’s on a wooden signboard next to the road on a lamp post. Wow, this is truly luxury’. RM299xxx is already a ‘luxury’ price and the way the advertisement is done, you can immediately understand the ‘luxurious’ treatment you are getting.

‘NEAR’ to the city – Please do not ask how many km. Ask how long does it take to be at the city during the usual working days. In developed countries, they are now using the duration instead of km which is very misleading because 20km away does not mean that it would take a longer time compared to an area which is just 6.5km away from the city.

Surrounded by greenery – Most of the time, this means that there are going to be a few more trees than usual and there would be a garden for everyone to walk etc. Do not think of this as those resort style kind of environment. Reason is, if it is truly resort-like, they would use ‘resort-like’ instead of surrounded by greenery.

Exquisite – I have no idea what this word would want to say for the property. Haha. Low density? Luxurious? Special or customised design? If these might be its meaning, then it’s best to use these words instead.

Eco-friendly – There are standards for this, those Green awards? The words should be ‘Green Certified’ followed by what’s the award they got for the development. So, if the development is not a certified one, eco-friendly simply meant they include one or two features into the development and would call it ‘eco-friendly’. Does not mean much actually. Oh yeah, I also do not mind that my development is not ‘eco-friendly’. I just want it to be equipped with good facilities, that’s all.

There are lots more of these terms being used. Nice to read. Just try to understand what they mean by asking the sales person. No assumptions because even low-density developments these days may mean 500 units while a high density development can be 2,000 units or higher. Gone are the days when car parks of 5 levels are considered high. Today, 8 levels may just be the usual. Haha. Oh yeah, if the brochure said, ‘multiple award winning developer’, take a look at how many and when did the developer won them. It might have been won a few years ago or one older project might have won many. It still does not mean that the development you are buying is the award winning one. Happy searching and buying.

written on 30 Nov 2014

next suggested article:
Tips on ‘Good Location’ to buy.

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Desaru Coast – desired business and leisure hub

I have a staff in Singapore who reports to me but is under the local country headcount. So, she was invited to the company’s retreat cum team building while I was NOT invited since my headcount is under the regional team. They were going to Desaru. I have heard of this name a couple of times but has not visited it before. Where is Desaru anyway? Assuming the office is at downtown, say Woodlands, the distance to Desaru Beach would be about 81km. Driving into Johor, the duration end end would take one hour and 40 minutes. Not too bad as I would need to drive slightly longer to reach the Morib Beach from Kuala Lumpur. The beach at Desaru is definitely nicer than the beach at Morib. Google Desaru Beach and look at some of the photos. It’s beautiful. (As long as you do not compare it to say Perhentian Island or even Tioman Island)

Then, I read about a huge development in Desaru called the Desaru Coast project. The full article in
NST here: Desaru Coast poised to become global business, leisure hub.
There are already two golf clubs there. The Ocean Course, a 27-hole golf course designed by Ernie Els, and Valley Course, an 18-hole golf course designed in collaboration with Els’ long-standing friend and major champion, Vijay Singh. (It does not say how many golfers would visit these golf courses on a weekly basis) The Desaru Development Holdings One Sdn Bhd executive director and chief executive officer Muhammad Zainal Ashikin Muhammad Rejab said the unique propositions of Desaru Coast were that it catered to holidaymakers, families, couples, golfers and the corporate sector. Key target markets included people residing in Singapore, Indonesia, China, Hong Kong, India, Japan and South Korea. Desaru has 17km of pristine beachfront land. Desaru Coast will include international hotels and resorts, a conference centre, 27- and 18-hole golf courses, a themed water park and a retail village. The developer is Desaru Development Holdings One, a subsidiary of Themed Attractions Resorts & Hotels Sdn Bhd, which in turn is a unit of Khazanah Nasional Bhd. More resorts and hotels are coming. (I think these new players would have already done sufficient market research before building)
The full article in NST is here.

With regards to golf courses, I think it has good appeal. Fathers loving golf can bring his whole family there. While the kids enjoy a dipping the pool, he could swing his golf clubs for many hours. Many business deals are also closed on the golf courses too. The retail village could help, as long as it is NOT the usual stuffs that could be found in Singapore, for example. Think along the lines of Johor Premium Outlet and I think we have a successful combination. Anyway, team buildings for Singaporean companies would find Johor much more attractive than doing it within. The reason? Their staffs might have been to the local attractions before and would love somewhere new. I think that was also the reason why my Singapore office decided to choose Desaru instead of Sentosa island for example. Yes, ringgit plays an important part too. I could drive to Desaru from KL but it would take me over 4 hours. Perhaps KL is not a target market in this case. All the best Desaru!

written on 22 July 2017

Next suggested article:

Is Iskandar getting better? Or worse? Media reports

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Branded developer and the exclusivity

There has been many contests by many branded developers. Some offer money, some offer luxury cars and recently one is offering a RM1 million voucher which can be used to buy their project. Some may say that this shows that the market is slow, thus the developers are trying to do more. Some truths but I think one major reason is also because once a branded developer does it and the response was encouraging, the rest have no choice but to also do. Agree? That’s what we call ‘Competitiveness’ in the corporate world.

However, what if a branded developer decided to offer RM 1 million voucher and instead of getting it’s own marketing team to organise it, somehow it gave exclusivity to a property site to do it? Well, I have no idea what’s the actual value of offering exclusivity to this property portal BUT what I can see from the whole campaign thus far is that the portal gains tremendously. I seriously hope the property portal is offering a near free service to this developer because with the RM 1 million voucher ‘carrot’, the property portal will be increasing it’s total signups tremendously.

Oh yeah, maybe database of all those who registered would be passed to the developer instead? For this, I also hope the developer would realise it and ask for them as well. Perhaps one major reason is because this property portal may be telling the developer that its readers are all the ‘upper’ people. Truth is, once the prize is extremely attractive, if I am the developer, I would use as much as my company website as possible. This allows ME to collect my OWN database as well and not relying on just an outsider who would also have access to whatever database that they collected. In fact, if I am the developer, I would be trying more than one property portals because when we ask any investor, majority of them would definitely be using more than one property related portal today. Even a small blog like kopiandproperty.com has close to 1,000 visits per day.

Remember one reason why when branded developer launches their project, most of the time, many of the units were bought by their loyal followers? Build this database further up, not share them with anyone else. Well, I wish them all the best and I also wish the property portal the best. This is indeed a great deal / coup for them. To the marketing department of all developers, think about this seriously. You should do your best for your company, not share the wins with others. Happy marketing.

written on 20 June 2015

next suggested article:
Emerging trend or desperation?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Lower threshold does not mean more will suddenly buy.

Singapore talk

In my recent talk in Singapore (November 2019), a number of them were asking about the new RM600,000 threshold for foreigners to buy a property in Malaysia. I reminded them that it is NOT for any unsold property. It is only for overhang properties.

That’s unsold properties after key handover for 9 months or more. It’s also limited to just Kuala Lumpur and that’s why the number if going to be way smaller than what the current overhang numbers are which are over 30,000 units. Thus, if they love Kuala Lumpur and thinks of it as a growing capital city, then they should take actions soonest possible because even among the overhang units, not all will appeal to them. Yes, this was my small part in selling Kuala Lumpur properties the right way. Not about price but about our beloved Kuala Lumpur.

Article in themalaysianreserve.com
   With regards to the new RM600,000 threshold for foreigners, CCO & Associates (KL) Sdn Bhd ED Chan Wai Seen said, “There is a big possibility that it is going to be challenging for developers to sell the overhang homes unless they reposition the products.  Most of the overhang properties were planned and launched prior to the market slowdown. In other words, the products and pricing may no longer be in line with the prevailing market trend.”

Chan added that clearer guidelines are needed on the lower threshold, including on the foreign buyers threshold in states such as Johor and Penang.
TMR
previously reported VPC Realtors (JB) Sdn Bhd Asia-Pacific property consultant Bruce Lee as saying it might take time for state governments to enact the new ruling and any impact on the overhang would not be as immediate. He said, “The initiative by the federal government might not be too impactful as the regulation needs to come from the state governments since land falls under state matters.” Do refer to the full
Article in themalaysianreserve.com

Many years ago, a close friend asked me what would I buy if money is no longer an issue. She gave me three choices of high-rise developments in Penang. All three were between RM700,000 – RM1.2 million. I replied none of the three. The reason is because if money is not an issue, I would not buy something which many more people could afford to buy. I will buy something more exclusive instead.

This is why the target for these RM600,000 or higher properties should NOT be due to the fact that it’s cheap.  It should be targeted at those who thinks Kuala Lumpur is a good place to stay.  Thus, the property presentation for these trips to Hong Kong needs to emphasise Kuala Lumpur and then mentioned that there is now the opportunity to have a place in Kuala Lumpur and it’s limited in quantity. If Kuala Lumpur as a second home or third home fails to register any interest, then the RM600,000 new threshold is unlikely to do anything at all. Happy understanding.

Please LIKE
kopiandproperty.com FB page
 or
Sign Up for free
 to get daily updates about the property market. Else,
follow me on Twitter here.

Next suggested article:
Lower threshold for foreigners? Not a single unit in Selangor yet.

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


REHDA is okay with moneylending for below RM500k

Moneylending license to developers with deep pockets? This is an issue which is still very popular and in fact it should be decided soon, whether going ahead or nothing happens. I shared about the proposal earlier here.
No loan? No worry. I (developer) lend you

Now, the Real Estate and Housing Developers’ Association Malaysia (Rehda) has also waded in with their views which technically represents majority of all developers here in Malaysia. Its president Datuk Seri FD Iskandar said that the moneylender licence can be capped at RM500,000. It would be targeted at genuine homebuyers.

He shared that from REHDA’s checks, many buyers have problems because the loans from the financial institutions are only up to 80 percent. The average that is being approved is between 75 to 80 percent. This is why many of these buyers would have to look for the remaining from other sources and this moneylending by developers will be able to assist them. He also shared the scenario of second-time house buyers who genuinely want to upgrade who are not covered by government schemes like MyHome and MyDeposit. Besides that, FD Iskandar also said that this scheme will not be applicable for all developers because there are risks involved and not all developers have the balance sheet to do it.

I think this is not easy to implement, even assuming the cabinet approves this and the law actually provides for this. There are many questions which remain unanswered. In fact it may be better that genuine buyers buy what they can afford instead of trying to aim at something they could not. Actually, not buying that car which needs extra RM300 car loan payments per month would already allow the mortgage payment affordability to be up too, immediately. Happy following.

written on 15 Sept 2016

Next suggested article:
Property investment: size, area, price, affordability

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


A developer does not equal to a successful mall

How many malls are coming up in the Klang Valley? I have already lost track. However, I did share in an earlier article. Read here:
Even more new malls coming up in Klang Valley

My colleagues were discussing about buying a condo which is connected to a mall. He said these condos would fetch a premium in the future. Well, I believe the chance of it being higher priced than another condo without a connecting mall is higher. However, this is not a guarantee.

The reason I say so is simple. Operating a mall versus building a mall are two different things altogether. When I was still staying in Kelana Jaya, I got to know about the SStwo mall. It was supposed to be a right-sized mall for the neighbourhood. First impression was not good. The number of shops open were few for my acceptance, car park was expensive considering it has just opened and the types of shops were really not attractive enough. I told my wife that this mall may not survive long because it was in the middle of Paradigm Mall and Tropicana City Mall. Alas, today SStwo mall is undergoing a rebranding and rebuilding. Even Tropicana City Mall would be taken over by CapitaMalls after showing some signs that it’s visitors are going down especially when compared to Paradigm Mall.

The same thing happened in Penang. Penang Times Square was built by a well-known Penang developer but this mall has never reached any standard deemed acceptable until today. Compare that to Queensbay Mall which is going from strength to strength and even Gurney Mall which continue to be doing exceptionally well even after Paragon Mall was opened just a stone’s throw away. In fact if you ask me to rate the two, I would prefer Gurney Mall instead. These three malls either have residential units nearby, next to and above them. Which do I think deserves to be priced higher? Of course the one I love the most. 🙂

Always take caution if the mall which is to be built is by a developer who has never been known to operate a mall successfully before. Any mall operator would have sufficient connections to many retailers of which some would have already been following them for years. New mall operators meanwhile would have to start everything from scratch and may just not have the clout or experience to get these brands in. Furthermore, the management of the mall would be vital because there are new malls for which I still find the car parks not well lit and there are even malls where the baby rooms are so limited and the toilets are DIRTY.

Thus, before you buy that unit and pay a premium for it, do ask a few more questions. It helps because if you were to buy a residential unit in a mall where there are very few shops opened, I seriously do not think it deserves a premium pricing. In fact, because of such negative environment, the types of retail outlets which will survive would be those which you MAY NOT WANT in a mall. Happy researching.

written on 17 May 2015

Next suggested article:
KLIA’s new mall, the Mitsui Outlet Park.

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Developers and their profit margins, recent updates, Sept 2014.

There has been many rumblings that developers earn too much. If they are willing to lower their profit margins, surely the prices can be lowered. I think I agree on some parts, especially the marketing that they do. If they continue to use traditional mediums, without any doubt that part would be ever higher. Use online effectively and the costs suddenly reduces tremendously. Black and white and one day versus unlimited videos, pictures and in colours and easily shared or forwarded? Anyway, forget about that. For today, let’s just run through announcements by listed property developers in terms of their profits versus revenue.

In a report recently, OSK Property Holdings was a darling of some research houses. One of the reason is because its profits are expected to record a new high for the property developer. It’s outstanding performance was due to the advanced construction progress for projects such as Mirage by the Lake and Pan’gaea in Cyberjaya, Mirage Residence in Kuala Lumpur, Atria SOFO Suites in Damansara Jaya, Sutera Damansara in Sungai Buloh and Bandar Puteri Jaya (BPJ) in Sungai Petani. The profit after tax and minority interest (PATAMI) was RM50.2 million versus a revenue of RM323.7 million. The net profit margin?  15.5%.

Mah Sing’s first half recorded a RM168.76 million net profit versus a revenue of RM1.35 billion. This gives it a net profit margin of 12.5%. If you ask me, I think it’s on the lower end but if you look at the net profit actual number, this is already so many times higher than that of OSK which is a mid-tier developer while Mah Sing is one of the largest in Malaysia. The improved revenue is due to the higher work progress from the groups ongoing development projects.

UEM Sunrise Bhd meanwhile recorded a net profit of RM136 million versus a revenue of RM849.2 Billion. This gives it a net profit margin of 16%. Theere was a drop versus the same period last year which included a strategic sale of 17.6 ha in Puteri Harbour worth RM400.7 million. The revenue was largely contributed by the following projects in Nusajaya namely East Ledang, Imperia, Nusa Bayu and Nusa Idaman as well as those in the Klang Valley, specifically Summer Suites and Symphony Hills.

Tropicana’s first six months net profits was RM97.2 million while revenue was RM655 million. Net profit margin of 14.8%. This was a higher number than the same period of last year and it said that the property market in Malaysia is subdued because of the many cooling measures by the government. However it expects to continue to be able to tap into its sizeable and strategic land banks especially in Klang Valley and thus its performance is likely to be satisfactory in 2014. New launches include terrace homes in Tropicana Heights, Kajang, and the third serviced apartment block in Tropicana Gardens, a mixed residential development located in Kota Damansara with proximity to the Dataran Sunway MRT station.

We have now learnt that most of the recent announcements showed a double digit net profit margins but none of them hit over 20%. With the slowing market, new launches may be priced more affordably and I think perhaps we can see the effects moving forward. I think double digits are still considered very healthy. There are developers in markets outside Malaysia which are already having just a single digit net profit margins. Happy reading.

written on 10 Sept 2014

Next suggested article:
Property prices and developer’s profit margin

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Developers can be jailed now. Buyers beware though.

Yes, after the amendment to the National Housing Development (Control and Licensing) Act 1996, developers may now be jailed as well as hefty fines. It’s meant to tell every developers in Malaysia today that should you want to build homes, you should be serious.Under this new amendment, any developers found guilty of abandoning their projects may be jailed for three years and fined up to RM500,000. Another point is that the house buyers may also terminate the sale and purchase agreements with developers if they see no progress in the project for six months of more. Refund of deposit, once asked needs to be settled within 30 days. Of course, these days, the number of developers who abandons project has been reduced tremendously. Even the ‘unprofessional’ ones would still complete their project, just that the quality they promised is missing.

When we look at this amendment, I think this is a fair deterrent. For those who are definitely not ready to be a developer, they really should not. The reason being, most of the first time home buyers, when they buy their first home meant that they are using up majority of whatever savings they have built over many years of their working life. One project may affect 100 buyers easily and these 100 buyers may affect 200 other family members who either have no place to stay or may have to lend the affected buyers more money in order to buy another property.

I remember vividly when my wife and I bought our first property, an apartment of RM123K. We paid a 15% deposit, did a very simple renovation of RM20K, bought cheapest possible electrical goods and the bill came to about RM50,000 in total. My wife and I had just finished everything we have saved. We did not even have money to go for honeymoon and had to use credit cards to pay for it which took us many months to pay back. Now, imagine if the developer ran away or fails to complete the project! I have a friend whose house, until today is still abandoned, the developer has disappeared long time ago.

There’s a reason why they call it home sweet home. Don’t let errant developers destroy it. For this particular new amendment, it is welcomed. More of these to come please. Protect first time home buyers but remember, punish the speculators.

written on 27th May 2014

Next suggested article:
What is considered reasonable property price?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Developer’s Open Showhouses. Chinese New Year.

The number of visits to kopiandproperty.com for the day before and 1st day of Chinese New Year has dropped. Of course this has been expected because the same thing happened last year. Thus, let’s focus on something related to Chinese New Year holidays this time. During Chinese New Year holidays, the property advertisements increased many times more than usual. Yes, especially if you still buy newspapers. Many are advertising their open showrooms during this holiday. Pity their staffs but then again many of them get overseas trips and even good bonuses when the developer did well? So, yes these sacrifices does have its rewards.

Actually, it’s a good time to visit these showrooms. Your family members are all home. If you really like a certain property, decision can be made instantly and the next reunion may be at your new home.Actually, there is also little reason for your parents to stay in a huge home which would only be occupied during that few days by everyone every year. Alternatively for those who felt that your current home is too small because of the expanding family members , this is also the time to search for a bigger home.

Besides easier decision making, these are the times when there are special incentives. The developers do know that they should not miss this opportunity because to get everyone together again will be hard. thus special Chinese New Year angpows, discounts or even other promotions is a usual case. Oh yeah, if there are developers offering nothing extra special, I think you may want to skip them. The reason is because if the sales has been way too awesome, they do not need to force their staffs to work during holidays. As for whether are they desperate, I do not think majority of the newer projects are because they would been priced much more affordably these days. For older projects which are still selling after over 18 months, I can only wish them the best. Do remember, buyers of today are much more informed and it’s much harder to shout ‘special offer’ when it’s not really anything special.

Chinese New Year is thus more than just reunion. It’s also the time to reflect on your property plans for the future. Safety for your parents, convenience for all family members to have a home to come home to and even just some renovations or rejuvenations. No wonder property fairs and even developer’s show rooms are all open during this festive season. Happy Chinese New Year.

written on 20 Feb 2015

Next suggested article:
Too many property fairs, good or bad for developers?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Developers feeling the heat?

I read in The Star today about some developers feeling the heat from all the cooling measures undertaken by the government. I seriously believe if their product is the right one for the mass market, there is nothing to fear. Whatever cooling measures undertaken is to ensure the property bubble does not happen and there are no bubble thus far for right property at affordable price. Gone are the days when the developers simply launch anything and the market would be queuing up to buy them. When the goings get tough, the tough gets going. It meant developers themselves have to conduct sufficient research and understands the market before any launching.

These days, any company with some cash in hand love to become a property developer. Some even roped in superstars to endorse their project and in the process the price per sf is increased even further. While this may continue to attract those with very deep pockets but even these deep pocketed people do their own research before parting with their money. In a market where everything is slowing down; over 30% down in terms of transactions in both Klang Valley and Penang year on year as at October 2013, it is not wise to think these people would continue whatever you build.

My friend asked me about buying a property for RM750psf in Penang recently. My advise is, as long as you are able to withstand some waiting, it should be okay in the longer term but if you think this RM750psf will rise up to RM850psf easily, think again. Perhaps it may be quite a long wait and I welcome the wait because properties should primarily for people who wants to stay and not for people who wants to flip. For those who loves to earn fast money, you may proceed to casinos all around you. There are two newer ones in Singapore and our very own Genting.

written on 28 dec 2013

Next suggested article:
Predictions on property bubble burst date

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


When developers continue to focus on Klang Valley

Urbanisation is on our side when it comes to property investments in the Klang Valley. More people are moving into cities. There are some who are
retiring and going back to their small hometowns

but the number is small lah. In fact, Ttere are still lots of people moving into cities every year. Kids grow up, complete their secondary school education and move on to universities, usually their first choice would be those in the cities. Upon graduation, whether they studied in smaller towns or cities, the first choice would always be where they could build their career. Here, the choice is pretty clear, a city would be better than a town. There are bigger number of available jobs. When they move into cities like Kuala Lumpur, they would need housing. After staying for a couple of years, they would need an upgrade.

The demand for properties? Well, it will continue to increase until the day when the population growth in cities slows down. That’s when the demand stops and depending on supply, the property prices would change. By 2020, the population in Kuala Lumpur is expected to top 10 million (widely reported, just google for it) compared to today’s estimated 7.25 million.
Source: worldpopulationreview.com
 What this tells us is that assuming 4 people would stay in the same home, we will need an additional 687,500 units of new residential homes. I know you would like to ask, ‘If this is the case, with such huge demands, then the property prices will surely rise right?’ Short answer is ‘Depends.’ The next question of ‘Depends on what?’ Well, the answer is that it depends on the affordability of these new homes. If it continues to be the price range of
PR1MA
,
RUMAWIP

and
RumahSelangorku
, then these would sell. It may be far away from the city centre but if it’s connected to the MRT or LRT line within 10 minutes, it will sell lah. My staff hates the jam and takes the LRT instead. During these journeys, she could listen to an audio book every week. Lots of new knowledge!

Two developers seem to agree too. Mah Sing is expanding its landbank in the Klang Valley. It has a low gearing and thus may be able to spend up to RM1 billion to buy landbanks.
Full article in TheStar here.
It says that assuming the land cost is 10 percent, the gross development value for a RM1 billion landbank would be RM10 billion. It has 883.42 hectares currently. Total remaining GDV for it as well as unbilled sales is RM30bil. It is enough to support the company’s revenue and earnings growth for the next eight years. Second developer is
thinking of Sentul!

Full article in TheStar here.
It seems that Sunsuria does not yet have any landbank in the Kuala Lumpur area. It has existing property development activities in Salak Tinggi, Shah Alam and Bukit Jelutong. It will jointly develop the piece of the land with Genlin Development Sdn Bjd. The final development plan of what is to be built will only finalised at a later stage. Happy waiting for 2020 to arrive.

written on 27 July 2017

Next suggested article:
Secondary would usually be cheaper

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Developers, once stamped, tough to change their spots

I woke up in my sister’s condominium in Penang and took the picture below. She bought a unit on the 11th floor after I ‘forced’ her to cancel another booking she did with project X. The reason I forced her to cancel was because of the developer. I did not like the developer. This is despite the fact that she would have to pay higher for this current one that I chosen and the unit size is even smaller. Another friend refused and bought the bigger and cheaper unit which my sister cancelled. Today, the differences could not be further away.

Both has appreciated from the prices they paid but Project X has stopped appreciating and in fact, prices for my sister’s condominium is already much higher today. Everything is still working well and but the Project X, its lift is missing a few buttons, maintenance is getting worst and my friend’s unit has water leaking into his bathroom’s ceiling and it has yet to be fixed after 9 months. In fact just looking at the guards would reveal that the engaged security company is a cheaper one.

Sometimes, we should give benefit of the doubt to some newer developers. However, if a developer has repeatedly built sub-standard units and it’s main selling point is always only price, I would skip it. Come on, when you pay lower, do you expect them to compress their margins and give you a better unit than others? Think very objectively. The cost of construction and the materials cannot differ too much. If one is selling way lower than another, find out more. Do not pay too much, of course but to pay too low but expect the sky? Well, the sky might just fall on you then. It’s your home. Happy deciding.

written on 31 May 2015

next suggested article:
IF affordability = low quality

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Developers are unlikely to reduce prices drastically? True, but.

No business concerns would be willing to reduce prices drastically unless some unforeseen circumstances happen. Prices would be maintained as long as everything remains manageable and even when business starts slowing down. Secondly, not many businesses would want to reduce their profit margins unless competition becomes extremely fierce or the market condition forces them to. In terms of developers here in Malaysia, I have not read news about any of the usual names suffering from losses despite market started slowing down since 2014 and 2016 has shown that it has gotten worse.  If you have such news, please let me know.

Reported in a local media, Tan Sri Eddy Chen who is the MKH Group managing director as wells the patron of the Real Estate & Housing Developers’ Association of Malaysia said that well managed property development companies are not likely to drastically drop the prices of their property. This is because most of the local developers develop their projects with profit margins of between 15%-18%, or even 20% if their projects were in choice locations. He said, “The only reason for them to lower their prices would be for the generation of cashflow perhaps to finance land cost commitments or other such priorities.”

Let’s be objective with his assessments of the local developers. Today, many developers have shown that even if they are not reducing the actual selling prices upfront, there are ways that they can make the deals more attractive. Rebates would be one of them, special renovations package may be another and last but not least, enticing you with extremely low downpayment. This is simply due to the current market situation. During good times, these do not happen. Thus, perhaps drastically is not the best word but are they pressured to provide an overall lower price? Yes. Are some developers more desperate than others? Yes. If market dives deeper into the negative territory, would more developers be providing even more ‘discounts,’? Yes.

Truth is, everything we read are predictions. The only thing real would be our actions. If we believe worse has yet to come, have we saved enough ‘bullets’ and set a target in terms of where to buy, what to buy and how much to pay for? Note, this may or may not happen. If we believe 2017 is going to be a recovery year, actually, it’s best to buy now and not buy in 2017…. Alternatively, how about secondary choices instead. Choices are aplenty, today. Decisions are easier when we are clearer. Else, better take the money and put into FD instead? Happy believing yeah.

written on 2 Feb 2016

next suggested article:
HBA: Buy property later, price is falling

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Development, compensation and promises not kept

Nearly every week there would be articles about some new developments facing protests from the residents nearby. This would normally turn into a debate of whether the developer has done enough in terms of air pollution and noise control, compensation and even promises. When a new high-rise development happens in a mature neighbourhood, it is almost impossible to have zero noise and dust particles flying around. In fact, even the jams would be more frequent than usual and this would normally continue for the duration of the development. So, should we support these complaints instead?

Sometimes, the complaints are valid without any doubt. However I seriously think what is more important is that the council really does its job. If the developer does not follow existing guidelines, they should be fined and if they repeat, fined again. What happens thus far has always been a lax in enforcement and thus some developers with lower standards of construction would just take it easy. Just look at those ‘bald’ hills cleared by developers or even trees cut down unscrupulously without any approval. All these happened before the council came to know about it. Actions are often already too late If the hill is already bald, replanting of trees or whatever remedial works would take years. A 50 year-old tree which has been cut down is lost forever.

Another important point is to ensure the developers keep to their promises. For this, perhaps the executive councillors should be the facilitator between the developer and the affected parties. There’s really no need for any lengthy debates or arguments which does not benefit anyone. One recent example reported in The Star. One developer agreed to work with MBPJ to build a new complex for the Section 17 morning and night markets within the developments. The promise was for it to be completed by end of 2016. However, the traders are saying that they have not been informed of the progress. In fact they claimed that MBPJ is asking them to talk to developer while the developer is asking them to talk to MBPJ. Who is at fault here? Well, I did not yet read about any actions from the executive councillor. Hope the person would do something, soon.

written on 11 Aug 2015

Next suggested article:
New highways, new developments, sure objections

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Developments must be followed by upgrades and maintenance; investments too!

Yesterday was a terrible day for many in Penang. It rained for a couple of hours and the whole Penang was flooded. Do take a look at the images for those who are not from Penang. These were just some of the photos which were being shared in WhatsApp. I could not reach office until after lunch because the floods surrounded my office. My CEO’s father commented that the flood was as bad as the one he experienced 30 years ago. My CEO himself, who was supposed to pick me up for breakfast was in a jam of over 2 hours only to cover 1km of road. In the end, I walked with an umbrella under the rain and had Subway for breakfast. Floods do happen, as all of us know. However, it is worth noting too that all developments with proper development planning would cover the necessary upgrades and maintenance too. For example, deeper and wider monsoon drains and maintenance to ensure all drains are not clogged which may cause flash floods. Of course, sometimes flood happens even to
countries which has world-class proper planning…

Coming back to our property investments. Haha. Kopiandproperty.com is still a property related site lah. Assuming we have bought our first property, what should we do next? Well, besides enjoying that purchase and feeling great about it, the time has come for future planning for your next upgrade. I know, you love your current home a lot and that’s totally okay. However, if you are just a working professional, then that first home may just help you quite a lot, financially. Have
you started reading more about some other cheaper but upcoming areas?
Get to know a few of them, start knowing their pros and cons. Drive around occasionally, have some meals there or even visit some friends who stay there. One day, when your current property has increased in prices, perhaps RM200k, that is when you may potentially use your current property for a new home at the same price that you bought TODAY. In other words, you are suddenly RM200k richer which will now enable you to start your property investment adventure. It does not have to be just one until we retire. Property adventure starts only from 2nd property onward.

During our adventure, maintenance is needed. Are we still saving money when we have a higher salary? Are we buying more than necessary? Are we focusing on the necessity? Did we put the savings to a good use so that it is also growing higher as we ourselves grow older? When I look around me today, I realised that there are many younger graduates who are already achieving more than what I did when I was their age. Are we also maintaining our current lead, expanding our experience instead of staying at the same spot? When we stay at the same spot, these younger managers would catch up and overtake us. Maintenance is thus KEEP IMPROVING and LEARNING and not just staying the same. If I am a CEO today and I could find someone who could do as much as what
 my manager could for lesser pay,
 I would hire that person instead of keep giving my manager ever more money just to do the same thing. Let’s be savvy about this.

Remember, as a working professional who wants to continue in our property investment journey, we need to keep earning a good pay. It helps us in saving enough as well as getting our loans approved. Without a good pay, we may
face rejections when we apply for our 2nd mortgage,

3rd and so on. Sometimes, we may face unforeseen circumstances, have we prepared enough for it?
 Insurance, Medical Cards

and even
EPF nominations?
 All the best in both the UPGRADING and MAINTENANCE part when it comes to property investments. Yes, I am still working very hard today, just like most of you. Happy working.

written on 15 Sept 2017

Next suggested article:
Managing risks, starting strong (Think big, Start Small)

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


DIBS? Yes, it’s a comeback potential

Remember the days when everyone, even those without sufficient downpayment could afford to buy a new condo? Okay, I am exaggerating, maybe not everyone but the majority of fresh graduates with a stable job. The happy days for these buyers were over when Developer Interest Bearing Scheme (DIBS) was cancelled. I remain a firm believer that we must be disciplined, save enough for downpayment and buy within affordability. Otherwise, we may be slowly providing air for a property bubble to burst. There’s little need to look too far, just look at the largest economy in the world. The 2008 mortgage crisis was simply a crisis of greed. From the bankers to the buyers and speculators. Let’s keep away from this.

The government is now considering housing developers’ request to reintroduce DIBS (Developers Interest-Bearing Scheme) for first-time house buyers. According to Minister in the Prime Minister’s Department Datuk Seri Abdul Wahid Omar, the government is still discussing whether to relax current buying and lending guidelines for first-time house buyers. He said, that even if the government wants to help these first-time buyers, it has to ensure that home ownership comes with the ability to service the loans as well. The same view was shared by many. Read here:
Stay safe, buy within affordability and stop bubble building

In terms of complaints about loan rejections, Wahid said that from their own survey of the banks, the banks have informed that the current rejection ratio is less than 20 percent. The cooling measures implemented a few years ago has also helped to curb excessive speculation and moderating rapid growth in household debt.
(Note: Nothing about pushing prices lower because that’s not what cooling measures are for)
He pointed out that the construction industry has to also address the productivity-related issues. These include low skilled work force, inadequate or a mismatch in training and development, over-reliance on low-skilled foreign labour, limited adoption of modern practices, mechanisation and industrialised building systems (IBS), the lack of data and information-driven decision-making, and a limited adoption of information technology such as building information modelling.

I do not like DIBS. However, if this can truly be efficiently carried out for only first-time home buyers, perhaps it’s worth a consideration. I would not want these people to rent their whole lives. Think very seriously though, more often than not, the only reason why we could not afford that first home is due to us. Over-spending on wants, “gambling” on investment because we did not know much or even kept doing the same job and hope for higher pay every year. Let’s wait and see how DIBS can make a comeback if indeed it is on its way back. Perhaps this time, it will be controlled better and not help speculators push up house prices while those in need of one, suffers.

written on 12 Nov 2015

Next suggested article:
Scared of RPGT but willing to wait and risk?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


DIBS should be back but not for every price level.

Developer Interest Bearing Scheme (DIBS) is making a comeback was first mentioned some weeks ago. Recently, it was reported again. This time, I think the possibility is pretty good. The Real Estate and Housing Developers Association (Rehda) is engaging the government in a discussion on bringing back the developers interest bearing scheme (DIBS) but with limitations. Perhaps for first-time house buyers of a certain price. This was revealed by Datuk Soam Heng Choon when he was moderating in a property forum. Datuk Soam is also IJM Corp Bhd CEO and managing director.

Briefly, DIBS which allows a house buyer to pay a downpayment of between 5% and 10%, and the rest on completion of the property was banned on Jan 1, 2014 because it was deemed to encourage speculation. The same thing happened in Singapore when it wanted to fight against rising house prices. As soon as DIBS was removed, the property sales dropped. I think it’s clear that DIBS has allowed flippers to thrive and majority of everyone to lose their minds and buying at ever higher property prices because the downpayment was too little! Imagine buying a RM500,000 home and having to only need RM25,000 as downpayment.

Soam clarified something which is very important. He said that even though on an overall basis, Malaysia has a high household debt against gross domestic product of close to 90% only 50% of this debt were mortgage-related while in Singapore and the US, mortgage debt make up 74% of their household debts. His only warning is, “Curtail unproductive loans.” While I do agree somewhat but I would like to concur with Khazanah Research Institute’s Datuk Charon Wardini who said in the same forum that home ownership should not be achieved at the expense of high household debt. In fact, it’s better to build housing cheaper and faster using Industrial Building Systems (IBS), a housing construction technique used by the Chinese and a company in the Philippines. He also said something I have been telling many, RM500,000 is already considered a level which is no longer affordable for many.

I personally would like everyone who is renting to actually start paying for their own home. At the very least, everyone has something that they could turn into money when they retire and found out that the life expectancy is getting much higher! Secondly, even if we do not buy property, do we believe we would save the money or invest it in something better? The answer is a firm no for majority of everyone. When we have more money, we tend to have MORE wants. That’s why we should make ourselves a little poorer. Property is one such way where our needs are taken care of before wants. Happy investing and hopefully DIBS can help those who really need them.

written o 11 Apr 2016

Next suggested article:
RPGT is still around, DIBS can come back

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


DIBS should NOT be reinstated, even for first time buyers. My views.

I am a supporter of DIBS being reinstated for first time home buyers. Readers to kopiandproperty.com would know that. Latest article written was:
RPGT is still around, DIBS can come back.
However, please allow me to now soften my stand, a little. Perhaps there’s the other side of the coin which I did not really look at closely. In an article in a local newspaper, Datuk Dr Goh Ban Lee (I do not know who is he) gave a few reasons which I do agree. He summarised the current slowdown in the property market as reported by the survey by REHDA and he said that DIBS should not be reinstated even for first time home buyers. He said that the property sector should slow down after a few years of rapid increase. DIBS will facilitate the greed of speculators and these people needs just 2-3 years to make big gains by paying just 10%. Up till this point, I do agree.

For many speculators, paying 10% is indeed a very easy way to earn huge gains. However, this is also where RPGT helps to lessen some of these speculative activities because with RPGT, the overall return is even lower because some portion of it has to be paid as tax. I have a few friends who were buying properties like vegetables from the market. Sorry, I was not joking. A few of them bought a RM600K condo within just 30 minutes. Indeed, RM60K was not that hard plus there’s nothing else to be paid until they sell the property once its completed. However, these same few friends has not purchased anything else after RPGT was introduced. One reason was they feel paying the tax is too ‘heart-pain’ (chinese dialect) and thus they prefer to use that money for something else instead. So, even if RPGT did not stop everyone, it stopped a few of my friends and I seriously think it stopped many other like-minded property buyers.

In terms of prices, it is still showing an increase. I seriously think this is also because the new property launches were for the higher end ones, thus it caused the average price to increase. This is also where the most overbuilding is. Not many people can afford to stay in homes over RM1 million, not even majority of the managers earning a salary close to five figure. Majority would be using the latest smartphones, driving a Segment C Japanese car but in terms of home sweet home, I know of many who would not be willing to pay over RM1 million for it.

Datuk Dr. Goh further stated that with the current slowdown, he hope that it would lead to cheaper houses in the near future. In fact he said that all the promises of affordable housing during the general election has not yet been fulfilled. I think he was referring to both the federal and the state governments. He asked that property developers manage their expectations in terms of profits, it will no longer be like few years ago. For the future, this cooling down in the property market may be a boon to all.

Ok, I said I softened my stance about DIBS for First Time Home Buyers. However, if I can only choose ONE, I would still say DIBS should be reinstated for first time buyers. Nevertheless, if it can be shown that average property prices are really coming down after years of increase, then I will then say perhaps for first time home buyers, something else should be done for them instead of DIBS. Let’s look at what 2014 would bring for the property prices and then will make my next decision.

written on 16 Sept 2014

Next suggested article:
100,000 new units vs 140,000 new household formation. Prices up? Do not agree.

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Did not buy, so its because of affordability.

“Gen-Y most affected by lack of affordable housing.”
 This is the title of an article in propertyguru.com.my recently. It quoted its country manager who said, ‘The lack of affordable housing in the market has mostly affected the mid-income mass market segment or those in Generation Y.’ Another assumption that the sole reason why Gen-Yers are not buying is because of the lack of affordable housing in Malaysia. I disagree with lack affordable housing in Malaysia. I think it’s more like there’s not enough new choices in areas that these Gen-Yers want. Those areas that is already demanded by many and thus prices has appreciated aplenty.  Seriously, should Gen-Yers be ONLY looking at
 primary properties?

Before that, should we be assuming that ALL new launches are so unaffordable these days? I really wonder if the developers are still launching everything unaffordable, how would they get buyers? So, the answer is not likely and new launches are now becoming ‘affordable’ again by using size as a major factor; smaller.

Aren’t there other government related affordable housing projects? I was at PR1MA’s office in Ara Damansara just the other day, there’s just me within its office. Zero interest? Just within Klang Valley alone, there are choices from PR1MA, to RUMAWIP to RumahSelangorku and even semi-government builders like PKNS. More importantly, can consideration be extended to secondary properties as well? Or are all the Gen-Yers allergic to anything secondary? Too old? Too out-dated? Or even scared of being laughed at by friends? Oh yeah,
some units are haunted too.

Let’s look at propertyguru.com.my’s very own listings to see if there are none available; affordable properties. Let’s assume affordable properties to be those below RM300,000 shall we? Well, these are just a few out of the many choices available. They are not huge in size. They may not be in the best locations. They may not even be that new anymore, some are more like 15 years old. However, the question which we needs an answer to is, availability of such units.

It’s about time a more concerted effort is aimed at
educating the potential buyers
 of the why, where, what, when and how. Stop assuming that there’s none available which will make the focus be on building ever more units which actually does NOT solve the root-cause in the first place. If an area is not as attractive, understand why. Then, make it more attractive.
Ten minutes from the nearest LRT / MRT station?
 Solve it via feeder buses. If an area is far away, solve it with dedicated Bus Rail Transit (BRT). It does not need to be years later for MRT Line 2 or MRT Line 3 for example. Malls are everywhere these days, so it should no longer be a major reason anymore. Yes, I am really worried when everyone higher up kept saying that ‘I will build more’ but without understanding why. By the way, many Gen-Yers whom I know are also not buying because they fear sentiment may get even more negative. This also cannot be solved by simply building ever more units. Happy solving and stop blaming Gen-Yers who are not buying as not having enough affordable choices!

written on 4 Jan 2017

Next suggested article:
53% of Gen-Y owns a property ….. in Australia

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Press Release: DIDIAN, Digital Marketplace For Developers and Property Agents

Didian
; Malaysia’s first B2B marketplace for primary residential properties from developers, is a modern real estate platform that accelerates and grows property sales. With its technology, industry know-how, and a nationwide database of more than 3,000 agents, the property technology company helps developers and agencies by providing an easier, faster, and more efficient way to help buyers secure their dream homes.

With proven track records with Malaysia’s most reputable developers and an eye on market trends, Didian’s platform automatically pairs the most qualified agents from its national network of over 3000 experienced agents from over 400 agencies to make selling and marketing projects fast, intelligent and seamless. Since 2018, Didian has transacted RM2.2 Billion worth of bookings, and reputable developers who have leveraged on Didian have seen 100% take-up rates on projects listed on the platform.

“Developed in response to issues such as finding the right project to sell, cashflow problems and paperwork, which have been identified as the reasons for agents and negotiators leaving the industry, we developed our platform to make it easier and convenient for them to work. We are focused on empowering agents to sell more and be more productive. We design products and services to help the agents on our platform to grow and succeed. For developers, our platform allows them to reach out to more agents which will enable them to have better sales velocity,” said Chow Nam Kit, Co-founder and Director of Didian

Selling a property can be a very difficult, complex, time-consuming, and, most importantly a costly process. Here is what Didian offers for a seamless and a pleasant experience to our partners; agencies and agents:

At Didian, every agent that signs up gets a mobile app, designed with a level of functionality and intuitiveness to help them reduce time and friction in selling property.
Didian features digital booking, real-time data access and commissions status tracking, and supports back-end administrative processes.
7-Day Express Commission; Didian pays fast commission to your agency upon SPA & LA signing. With Didian, you never have to worry about cashflow issues again!
Agent Cooperation Network (ACN); maximise your conversion and let a Didian partner assist you to close a sale.
Sales Management Support; Get live updates on the booking made on the Didian App.

As for the property developers these are some of what Didian offers an all-in-one platform to market, launch, and sell projects:

Enjoy either in-person or virtual balloting events for your new projects that will be organised by Didian.
Developers can accelerate sales by leveraging on Didian’s wide network of agencies and agents immediately. Didian’s platform recommends agencies to developers’ projects based on our proprietary algorithm.

Didian is able to offer market research, sales and marketing strategies based on market trends.
Stay up-to-date on sales statuses from appointments and loan outcomes to SPA signings on the Didian Dashboard.
Didian’s end-to-end platform is designed to support developers at any stage of the project marketing lifecycle — pre-launch / post-launch / completion.

Didian is the preferable marketplace you go to ensure your real estate business runs smoothly. It is convenient, smart and provides you with the real estate sales and marketing services that you need.

To learn more about Didian’s offerings please check out Didian’s website:
mydidian.com
 or reach out to any one of the helpful Didian customer service team via email at
support@mydidian.com
 or call +603-2391 0118.

— End Of Press Release —

Love news like this and more?
Sign up for daily investment news updates.
 Alternatively, Follow me on
 Telegram here
.

Please LIKE
kopiandproperty.com FB page
 to get daily updates about the property market beyond kopiandproperty.com articles. Else,
follow me on Twitter here.

Sign up for KopiWeekly. (only once per week of property, finance, investment news and more)

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Press Release: DIDIAN Offers An Alternative For The Property Sector To Bounce Back From COVID-19

Malaysia’s property landscape has not been left unscathed by the fallout from the Covid-19 pandemic. With the Conditional Movement Control Order (CMCO) now in effect and more Malaysians returning to work, the focus for the property sector has been on bouncing back and overcoming the challenges of social distancing.

The pandemic and consequent Movement Control Order (MCO) which resulted in the nation’s economic shutdown had a profound impact on the property industry including real estate firms which employ over 25,000 registered estate agents (REA) and negotiators (REN)s.

To overcome the tough times that REA’s and REN’s are currently going through, proptech start-up Didian Realtor Sdn Bhd quickly adapted to the situation, releasing new features and services on its Didian platform, Malaysia’s first online B2B marketplace for primary residential properties from developers.

“During the MCO, we saw some real estate practitioners earn little to absolutely nothing which is harrowing when you need to feed your family. As an online platform that helps developers and the real estate fraternity, we felt it was important to accelerate the evolution of the platform to allow for seamless access and transactions between registered estate agents and negotiators with their customers,” said Brian Wong, Chief Technology Officer (CTO) of Didian Realtor Sdn Bhd.

To address social distancing norms, new features have been incorporated such as showcasing virtual viewings of developer projects and virtual training sessions for new agents who sign up, allowing REAs and RENs to brief their customers easily.

The platform, available in both web and mobile app versions, would also help both property developers and real estate agents and negotiators to connect and drive the property sales of curated units at projects that are under construction or close to completion.

Wong added that REAs and RENs managed to close about RM 45 million in Gross Development Value (GDV) worth in units during the MCO period but he expects the property market to continue its sluggish growth now and in the immediate period post-Covid-19.

“As more and more real estate agents utilize technology in their everyday workflow, it is essential that Didian provides the tools and services to make sure these agents can operate at maximum efficiency to improve their conversion rate,” said Ng Han Yang, Head of Business Development at Didian.

For agents and negotiators, he said Didian offers a seven days express commission payable from the date the SPA and loan agreement is signed which can help to improve the financial situation of the more than 1,000 REN’s and REA’s utilising their platform.

“Our platform digitizes the sales process allowing agents and negotiators unparalleled access to ongoing developer product offerings at the click of a button; facilitating and accelerating property sales for all our stakeholders. This is the core focus of our business and will be our engine for continued, sustainable growth.

“We have transformed our platform to be even more user-friendly. Agents can now access live price charts, make bookings in real-time, access a fresh supply of projects and manage their client’s progress. Team leaders in real estate firms also have a live dashboard to track the performance of their team members,” said Wong.

Ng said the company also launched its inaugural Didian Preferred Partner programme today. The programme will allow high performing real estate agencies to leverage additional benefits such as access to selected developer properties, higher commissions and even higher-value marketplace rewards. Team leaders from Reapfield, PropNex, Forest Properties and Dreamvest have already joined the programme.

“The concept behind Didian Preferred Partners is to ensure that our partner agents get every possible tool and service to improve their chance of closing sales fast and seamlessly,” said Ng.

He added that an E-Store had also been created to allow real estate agents to create their own profile to boost their credibility and profiles to their customers.

Negotiators are also able to take part in selling projects by reputable developers regardless of their size and geographic area.

Wong said at the moment the total value of properties currently on the system is valued at close to RM1.2 billion in GDV with over 2,000 units listed.

Participating developers include Sime Darby Property, Gadang Holdings, Paramount Property, MCT, IJM Land, Sime Darby Brunsfield and IOI Properties, Armani Group, and Nadi Cergas Development.

— End Of Press Release —

Please LIKE
kopiandproperty.com FB page
 or
Sign Up for free
 to get daily updates about the property market. Else,
follow me on Twitter here.

Next suggested article:
Didian launches first B2B property marketplace app

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Whatever works for you, do it well. That’s all.

A colleague was talking about how awful AirAsia was. Seats are more cramped than many airlines and in recent months, they (AirAsia) have been weighing all cabin luggages and would charge any additional weight above 7kg. She said that she saw how one angry male passenger took out 7 T-shirts and 2 pants from his ‘overweight’ cabin luggage and wore them before he boarded the plane. I usually take Malaysia Airlines as first choice and AirAsia as second choice. I would usually not take other airlines unless the timing is really more convenient or the fare is way cheaper. Yes, the same reason as my Hong Kong colleague who insist on taking Cathay, Singaporean colleagues who insist on Singapore Airlines and even my Thai colleagues who would choose Thai Airways all the time. I could go on but you get the idea.

As for ‘awful’ AirAsia, do note that this is just a business model which they have chosen, that’s all. They have also just won another time as the
World’s Best Low Cost Airline.
Furthermore, we could choose from so many other airlines within Malaysia. Malindo, Firefly and many other LCCs from other countries too. For AirAsia, they are trying to maximise profits, just like any other airlines out there. Note that when the airline is not profitable, they would retrench a lot of their staffs. Let’s not forget what happened to MAS just a few years back and the recent huge retrenchments at
Cathay. Here’s the article.
Plus, in Malaysia, there are lots of choices that one could take and there is no longer any monopoly for the skies in Malaysia, unlike in many other countries. These choices contributed to the reason for this ‘cheapest air fares in the world’ result. Many articles about this in google but here’s one for reference, from
Australia’s news.com.au
 It’s around AUD5.63 per 100km for Malaysia. I know, suddenly someone would like to point out that we are cheapest because of the ringgit! Haha. Okay… for Australia, it’s around AUD39.61 per 100km. (7 times higher). It’s AUD1 to RM3.24 currently….  Thailand’s air fares are ranked top 8th in the world and they are 62 percent higher than Malaysia. Here’s an
article by bangkokpost.com

AirAsia has chosen their path. I support them even if they are not my first choice. I have forgotten how many times have people asked me about my preference for high-rise. I do not stay or own a landed property currently. 🙂  They usually point out one fact that everyone knows.
‘Landed is better than high-rise because it’s far fewer and land is limited.’
Seriously, I know…. However, I also know that in many by far more advanced property markets, the people’s choice is affordability first instead of the type or the size of the property. I think for Malaysia, affordability has become a big issue. This meant that if I am looking at property as an investment, it does not matter which one would become MOST valuable in future. It matters only whether it would appreciate and whether people would want to buy it in future. Prices of high-rise units would still continue rising, that’s for sure. Here’s one real happening today.
Buying a Tesla or an apartment?
Happy flying your favourite airlines lah, whichever brand it may be.

written on 21 June 2017

Next suggested article:
Spending in Malaysian airports? Liquor, cigarettes and cosmetics

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Difficulties in getting a loan will continue…. 2019

This morning, I gave a talk on “8 tips to closing more sales” to a group of real estate negotiators. One of them was telling the other that their CEO is busy because he will be delivering a speech in the MIEA event. After the event, I read an article shared by my good friend Michael Geh. Now I know where the CEO of this group of negotiators went. He went to the MalaysianAnnual Real Estate Convention 2017 (MAREC ’17). This is an annual event organised by Malaysian Institute of Estate Agents. This is the full article in
Theedge
 that was shared in the Facebook page of my friend, Michael Geh. It was about the talk by CEO of Smart Financing, Gary Chua during his talk in the MAREC ’17. His topic was entitled, “Unlocking Top 7 Financing Secrets & Strategies And Property Market Outlook for 2017.” Gary shared that loan approval rate is already at its lowest within the past 10 years and this will continue for 2017 and there would be no changes until 2019.

Bank Negara Malaysia’s data showed that the approval rate for residential property loans was about 42%, while the rate for non-residential property loans was about 40% as at Oct 2016. He also shared that the reason is because with the current lending policy in place, Malaysia is still one of the easiest places in the world to get loans. With Malaysia moving towards becoming a developed country, the lending policy would become stricter. He shared that countries such as Hong Kong, China, Taiwan, Singapore and Japan has more stringent lending policies and Malaysia is also moving in the same direction. One major financing strategies he shared so that we can continue to obtain loans would be to maintain a good credit profile. In other words, whatever debts we have, always pay on time. I think this includes even if we intend to just pay the minimum amount for our credit cards. He also shared that if we should issue cheques, we should make sure it does not bounce back twice within two months as this record is kept in the system of Biro Maklumat Cek for 12 months. This will impact our credibility. Full article in
TheEdge here.

I think if I am there, I would ask if this strict lending policy is also applicable for developed nations like the U.S and Australia. Just last week my friend who’s now an American resident shared that home loan requirements are very stringent in New Jersey. I asked if this is after the 2008 mortgage crisis because one reason for the crisis was due to easy loan approvals. She said she does not know. Well, since it’s now really tough to get loans, perhaps this is a good sign that the 2008 crisis will not happen again. As for Australia, I also hope that they maintain strict lending guidelines because as at Q3 2016, its household debts vs GDP is already 123 percent. I do not think it’s wise to have household debt growing ever faster than the GDP. Source:
TradingEconomics.
 The Australian economy is expected to grow 2.6 percent in 2017. This is an estimate by the
International Monetary Fund (IMF).

Personally, I take this as positive because I do not wish for any financial crisis to start from within our very own banking sector. However, it is also fair to note that with the way the newer generations are spending their money, they will face more difficulties in securing loan approvals. There’s too many material temptations and yes, the peer pressure to try and outdo one another with almost the same incomes. Only when we improve our ‘credit profiles’ as per advised by Gary that it would be easier to obtain loans. Let’s start perhaps by also reading
Gary’s site
 here or my good friend who’s a personal finance guru,
KCLAU.com
 Happy investing and getting our loans approved.

written on 4 Mar 2017

Next suggested article:
Loan rejection, who’s fault?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Difficulty in buying a property is the issue.

I personally believe the supply is still way below the potential demand when it comes to property, especially within Greater KL. Thus the
unsold property number which is being bandied about (article here)
 is incorrectly labelled as ‘oversupply’. Just look at Greater KL population for example. It’s growing by a few hundred thousand every year. Urbanisation remains strong and PWC said that KL is ranked number 11 in the world among cities exhibiting the
strongest economic clout by PwC’s 2016 Cities of Opportunity Index. (Article here)
  Economic clout or growth can only happen with more population.

It seems however that the working population in KL,  the M40 and the B40 are having difficulties in buying properties.
Article in Edgeprop.my here.
 The reason is because the average house price is above both groups’ affordability range. Within the article The CGS-CIMB Research said that where property stocks are concerned, some have fallen from their peak valuations in 2014 and some down to their lowest levels in 2008. This meant that the share prices are now attractively priced. They continue to expect property companies in their coverage to show positive earnings growth. They also shared this important observation.

Housing loan growth is likely to be limited because of the existing low interest rate environment, limited buyer’s affordability and possible interest rate hike. Restrictive government policies are still in place.(They meant the current cooling measures and recent Budget 2019). Thus, they do not see buyers having the incentive to purchase property given the weak rental market and subdued property market. They expect the housing market to remain challenging in the near term. This will not change unless there is a meaningful surge in household income, decline in house prices or more positive measures are introduced. Please do read their full report here.
Article in Edgeprop.my here.

Property prices have to come down or income has to rise. This is the usual view. Beyond these however, I think some of the potential buyers have to manage their expenses better already. Perhaps moving forward they could because smartphone sales have peaked according to some reports which may meant people will use their smartphones for a longer period of time since there’s no super-duper features coming up. This is the time when buyers could get their best property at a lower price. Developers are much more willing to tweak their margins too. However, if the buyer continue to miss this opportunity, then in the near future, we will continue to have the ‘house price too expensive’ situation. happy following.

Please LIKE
kopiandproperty.com FB page
 or
Sign Up for free
 to get daily updates about the property market. Else,
follow me on Twitter here.

written on 13 Jan 2019

Next suggested article:
7 reasons to buy in a slow market

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Wow, 29 applications for up to 5 digital bank license to be awarded by BNM

Yes, there were 29 applications to be among the first few digital banks to start operating in Malaysia. Bank Negara Malaysia (BNM) may issue up to 5 licenses in 2022.
Article in themalaysianreserve.com
  BNM said that various parties including those from state governments has applied for the license.

Among notable groups that have applied for the license include Axiata Group Bhd and RHB Banking Group Bhd. Axiata’s subsidiary Boost Holdings Sdn Bhd and RHB signed a comprehensive heads of agreement last month to form a consortium for the application. There are a few more notable names too, do refer to the
Article in themalaysianreserve.com

Why do we need digital bank licenses if current banks already have online banking systems?

Digital banks would not have transactions over the counters at all as every form of financial transactions would take place using technology. A smartphone would definitely be required for all these financial transactions to happen. When we say everything will be done digitally, we are talking about opening an account, making deposits and payments, applying for loans or debit and credit cards, etc. Everything.

Some segments could be better served by digital banks too.

A very good example would be the gig economy where many would not have salary slips and without this, the credit assessment with a traditional bank will be harder. Digital banks would have their own way to serve this group. Another group would be the rural folks who may not be able to have access to the bank branches which are usually only in bigger towns and cities. I guess we have to note that if the digital banks could have a process to serve these groups, then the current traditional banks are definitely capable of emulating it too.

Are digital banks common today?

Singapore awarded 4 digital bank licenses in December 2020. What are these banks doing thus far?  These 4 are the Grab-Singtel partnership, the Sea Group, the Ant Group and Greenland Financial. All four are expected to turn operational in 2022.
Article in fintechnews.sg

Hong Kong awarded 8 digital bank licenses and they are as follows Airstar Bank Limited, Ant Bank, Livi Bank Limited, Fusion Bank, Mox Bank Limited, Ping An OneConnect Bank, WeLab Bank, AZ Bank Limited. Please read the
article in fintechmagazine.com

So we can say that the licenses have been given but operations have not really started. In fact some of these entities which had won licenses in Singapore and Hong Kong are also part of the 29 entities which had submitted its applications to BNM for a license out of the potential 5 license which will be granted the the successful ones.

How big would these digital banks become?

Digital banks would also have to safeguard the interest of their users. In Malaysia, the 5 requirements for digital bank include driving financial inclusion (this means get all users who may not be served by current banks so that they too have access to banking services), maintain asset threshold of RM3 billion in the first 3-5 years (this means that the size of the digital bank would be very small versus the traditional banks), comply with FSA and ISFA regulations (Financial Services Act 2013 and Islamic Financial Services Act 2013), offer meaning access and affordable financial solutions and safeguard the integrity and stability of the financial system.

Please note that digital banks would also be regulated the same way as traditional banks. Thus, if it were to face huge financial issues, they would also be affecting the whole banking industry and not just the digital ones.

This is why we can see that even for the more advanced financial centres such as Singapore and Hong Kong, they are still taking a conservative approach when it comes to digital banks. The sandbox approach remains critical to the success of integration of digital banks into the financial market in the future.

Hope this helps everyone to be a little more knwledgeable about digital banks. I seriously think these are important to have and yet I do worry at the same time for the many people working in traditional banks who may also lose their jobs in the future as the whole industry continue to evolve. Instead of bank tellers, could many of them evolve into customer service which serves the customer in their digital banking needs instead?

Remember, digital banks would still need to take care of their customers and not everything can be done without human intervention. The digital bank without a good customer service, I wish them all the best. In the beginning, there will be more issues first… before everyone starts to understand and could start to be more comfortable with them.  When one job closes, another opens. This is the world we live in.

Love articles like this and more?
Sign up for daily investment news updates.
 Alternatively, Follow me on
 Telegram here
.

Please LIKE
kopiandproperty.com FB page
 to get daily updates about the property market beyond kopiandproperty.com articles. Else,
follow me on Twitter here.

Sign up for KopiWeekly. (only once per week of property, finance, investment news and more)

Next suggested article:
How much unpaid debt before one is declared a bankrupt?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Digital Banks. Financial access and solutions. Stability of financial system.

P2P lenders. China.  If we are to google for these two words, we will find many articles on the horrible things which had happened. Perhaps the monitoring from the central bank  could have been better to prevent the general public from simply borrowing ever more money because the requirements are lower than traditional banks. Many simply could not get out of the debt hole they established after many months of spending spree, thinking that money will continue to be available.

They would just roll over their debts. Meanwhile in the traditional banking industry, we have so many complaints that banks are just too conservative. So, do we only continue with traditional banks? By the way, I personally think banks need to continue to evolve in order to survive. I am also of the opinion that digital banking licenses should be issued sooner rather than later. Singapore has announced that they will announce the winners of five digital banking licenses by June 2020. What about Malaysia then?

Article in themalaysianreserve.com
 . Bank Negara Malaysia (BNM) has issued the Exposure Draft on Licensing Framework for digital banks that forms part of the series of measures adopted by the bank to enable innovative application of technology in the financial sector. BNM said that it will be adopting a balanced approach to enable admission of digital banks with strong value propositions whilst safeguarding the integrity and stability of the financial system as well as depositors’ interest.

Up to five licences may be issued to qualified applicants to establish digital banks to conduct either conventional or Islamic banking business in Malaysia. BNM also said that an asset threshold of not more than RM2 billion will be applied within the initial three to five years of operations will be applied. With regards to minimum capital fund, BNM said, “On the minimum capital funds, digital banks will be required to maintain minimum capital funds unimpaired by losses of RM100 million during the foundational phase, and RM300 million thereafter.” Please read here for full
Article in themalaysianreserve.com

I continue to have high regards for BNM. I think they have done a good job thus far even if some would prefer that the pace of these regulatory procedures be quickened. RM2 billion limit will enable these digital banks to offer their services and for the public and regulators to evaluate it without causing any huge instability to the banking financial system.

The requirement of minimum capital funds of RM100 million to RM300 million is needed which meant that the licensees would also needed to balance market share growth with profitability as well. By the way, this is definitely still within the sandbox phase and 5 should be good enough. Too few and we may not see enough competition and innovation. Too many and we may have made the cake too small for too many players. Yes, I will be happy to sign up and start depositing money as well as borrowing from them for my next property if their rates are great.

Please LIKE
kopiandproperty.com FB page
 or
Sign Up for free
 to get daily updates about the property market.

Next suggested article:
 Banks are still lending. Need some proofs?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Digital banking licenses to spur competition further. 29 applied.

Bank Negara Malaysia (BNM) will be deciding on the winners for the digital banking licenses for Malaysia. There are up to 5 licenses up for grabs and there were 29 applications for one. What happens after this is that the traditional banks would now have innovative competitors and it would also force the current players to really do more in order not to have others eat their lunch. This is good for consumers here in Malaysia.

As usual, there are many speculations as to the companies which will win one of the licenses. Here is one article highlighting a few of them.

Article in themalaysianreserve.com
  Bank Negara Malaysia (BNM) will announce successful applications for the country’s first digital banking licences.

Banks, industry conglomerates, technology enterprises, e-commerce operators, fintech players, cooperatives and state governments were among those who applied. Five digital banks will be granted licenses to provide financial services to under-served and unserved populations.

Successful applicants will be required to contribute to increased financial inclusion by offering goods and services that solve market gaps in underserved and unserved segments.

Axiata, via its subsidiary Boost Holdings Sdn Bhd, and RHB signed a comprehensive heads of agreement yesterday to form a consortium for the application to increase competitiveness and accelerate the country’s digital transformation and financial inclusion ambition.

Aeon Credit said that it will partner with its parent business, Aeon Financial Service Co Ltd, for the digital banking licence. It will own 40% of the company, while its parent company will own 60%.

BigPay, is another fintech supported by AirAsia which will be aiming for one of the licenses too.

Grab has also confirmed its application for a digital banking licence, making it the most frequently cited example of how digital banking may be used to disrupt traditional financial institutions. Malayan Banking owns a 30% indirect state in GrabPay Malaysia. Please do refer to the full article for even more potential bidders too.
Article in themalaysianreserve.com

Why digital banks are needed when we already have so many banks today

Imagine trying to sign up for a bank account in a normal bank. It’s a long process which may even start from comparing between the different banks. This is followed by choosing one and then driving over to the bank, find a parking and then queue up. Then it’s filling up forms, waiting for the bank officer to call our name. Then, it’s done and we need to then proceed to login online for the first time and more. This is because banks have their KYC (know your customer) process.

When it comes to a digital bank, this whole process could be completed within minutes. e-KYC will be the way forward and gone would be the process which needs a lot of human intervention. With a much shorter process, it meant that costs are lower and when costs are lower, then it’s possible for the bank to offer higher returns too. At least that’s how the industry is anticipating for digital banks.

All the best to all the winners.  Do more for us quickly!

Property News Malaysia?
Sign up for daily investment news updates (FREE since Nov 2013 and FOREVER).
 Alternatively, Follow me on
 Telegram here
.

Please LIKE
kopiandproperty.com FB page
 to get daily updates about the property market beyond kopiandproperty.com articles. Else,
follow me on Twitter here.

Next suggested article:
Property is no longer a key retirement asset

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...