In any bearish scenario, there will also be opportunities.

By the way, I'm not necessarily agreeing with the agency below. Besides, they may have ulterior motives.....Nevertheless, they did present some perspectives worth thinking about.


Zerin sees stable 2012 for real estate market
KUALA LUMPUR: With about two months to go till 2012, Zerin Properties Sdn Bhd CEO Previndran Singhe is expecting real estate transactions to slow down before picking up again in the middle of next year.

Previndran said the market in 2012 will be stable. "I am of the opinion that 2012 will be a stable year. Prices will remain stable, with asking prices, not values, becoming more reasonable as owners check their values to real pricing," he said.

Despite the uncertain global economy which could edge towards a slowdown, Previndran believes the Malaysian property market will not weaken but will soften in early 2012 and improve thereafter.

"At present, overall purchasing sentiment is down due to the eurozone financial crisis and double-dip fears," Previndran told The Edge Financial Daily.

"I think we are more Asia-focused. If and when China goes into reverse gear, then I think we need to be worried. Otherwise, we should have a stable year next year."

Nevertheless, there are opportunities even in a down market. "Recession economies offer opportunities to invest in properties with high appreciation potential; many fortunes have been made this way," said Francis Quah, head of mergers and acquisitions at Zerin Properties.

"Astute investors know how to make the best of these opportunities, it's my job to structure the deal so it's a win-win for everyone," he said.

Quah recently won the RFP Magazine's Real Estate Transaction Award, Southeast Asia, for the sale of 1 Mont'Kiara mall and office development for RM333 million in 2010.

The retail mall comes with a net lettable area of 250,000 sq ft and about 185,000 sq ft of office space.

The development was acquired by ARA Asia Dragon Fund, an affiliate of Hong Kong's Cheung Kong Group, from Aseana Properties Ltd.

This is not the first time that Quah has received an RFP award. In 2009, he received the Hong Kong-based magazine's Asia-Pacific Real Estate Transaction Award for concluding the sale of the Intercontinental Hanoi Westlake development in Vietnam for US$75 million (RM2.34 billion) at the peak of the subprime crisis.

On property development trends, Quah sees a move towards integrated developments.

"Developments like 1 Mont'Kiara which incorporate all aspects of modern life, offices, malls and entertainment, are both profitable and in demand," he said.

"Once you get residents living in a particular place, they tend to avoid the hassle of driving out somewhere else if they have everything nearby. These kinds of developments thrive once there is a critical mass of residents in the catchment area."

In the coming months, Previndran suggested that individual investors continue to look out for landed homes.

Asking prices for high-rise homes in KLCC and Mont'Kiara are becoming more realistic "so keep a good eye on assets there". Assets priced below RM1 million seem to be in demand, he said.

He also highlighted some hotspots to keep tabs on including Bangsar, Taman Tun Dr Ismail, Damansara Heights, Medan Damansara and Taman Seputeh. In these areas, landed property and well-priced condominiums are property types to keep an eye on.

For those looking at KLCC and Mont'Kiara, Previndran cautioned to look at only well-priced condos in well-managed developments.

Old Klang Road and Jalan Ipoh are also on Previndran's radar, along with Puchong, Seri Kembangan, Kajang, Bandar Sri Damansara, Kota Damansara, Petaling Jaya and Cheras outside the capital in Selangor.

These areas are stable and have good demand thanks to the combination of landed, condo and commercial developments, he said.

Klang is another area investors should look into, he said. Although properties in the town are mainly landed residential and commercial units, they are in good demand.

Old Klang Road and Jalan Ipoh are also on Previndran's radar, along with Puchong, Seri Kembangan, Kajang, Bandar Sri Damansara, Kota Damansara, Petaling Jaya and Cheras outside the capital in Selangor.

I do not try to mislead. It could be many SO CALLED INVESTORS are having HIGH savings. You could not deny that, coz you also dunno...LOL

From the article: "The international real estate service firm said the residential market is also beginning to ease as capital appreciation has reached its peak, and rent in some high-end areas of the city have come down by almost 50 per cent."

"The consensus among analysts and industry veterans appears to be that sales have slowed as the market enters a cooling phase and will continue to slow as buyers take a “wait-and-see” approach, although a hard crash landing of the property market is not expected unless the economy plunges first."


In the current run-up, the ones that ran first were the higher-end ones (i.e. the bungalows in Damansara Heights and etc.). Now, their pricing have stagnated in the past three months or so. Yes, there are still CRAZY asking prices in IProperty but what are the actual transaction prices (ask valuers or bankers)? Lately, things have been cool in the secondary markets...some new projects are still selling well with deferred payments and etc.

I think I wrote before Budget 2012 that things are looking toppish and a higher RPGT will tip the scales (but RPGT was benign - so, it did not turn out be a 'tipping point'). Anyway, ASKING prices (for prime areas) are certainly toppish for the moment - the signs are not only in Malaysia but also in countries such as HK and Singapore where prime areas cooled down first. So, you want to Speculate, please be very careful.

As for buying to stay, it is anyone's guess - boils down to affordability and price range.

This post has been edited by chabalang: Oct 31 2011, 06:25 PM

That could interprete Rental remained, Capital Value up, then rental yields down. LOL

Samething to Residential kua. Rental might decrease, capital stagant at the current level = rental yield down..LOL

So still no cheap property to buy.

no need to jump so fast and so high.

i was just trying to tell genuine investors not to be misled by info such as our savings rate is relatively high. i never deny that could be rich speculators around, but we just need a small portion of the over stretched speculators to fail to see prices coming down.

i just hope genuine buyers to think first, ask around because once committed its usually a life-long commitment. It is our hard earned money with sweat and blood just to exagerate a bit . I personally know a few individuals who managed to borrow up to 12X of salaries waiting to flip their properties in 2012 and 2013. Now everything seems ok coz no need to pay interest during construction. Just imagine a RM1m loan at 4% interest rate means 40,000 interest a year, more than RM3000 a month, how many can afford? Rarely we hear projects launched over the past 2-years require interest payments during construction right?

This post has been edited by godutch: Oct 31 2011, 07:03 PM

eternal optimists will tell you we're different, we're special, cheaper than tokyo, hk, spore, shanghai, buy now!
but never compare to cambodia, bangladesh or dominican republic.
seriously, without such thinking, how can there be any burst in anything anywhere?

then again, which "facts" you wanna belive in? lyn forummer facts, menteri facts or others?
since last year, so many dev promise a mall and office space for every new project.
still buy that? who's renting them? who's shopping there? illegals?

some are being f'ed bad, just dunno or keep quiet onli.
only the cronies and special species byuing with discount, early and choice units will not get burned.

This post has been edited by AVFAN: Oct 31 2011, 07:56 PM

Seriously, our price cheaper than Singapore, Thailand even Vietname . Lol

---

Added on October 31, 2011, 8:36 pmA lot are group investors and not individual players lol... Seriously this can at least reduce personal risk burdens👀


This post has been edited by kh8668: Oct 31 2011, 08:36 PM

Haha this story will go on until next year. I'll just enjoy the debate and move on.

another bad news ...

Panasonic sees US$5.5b annual loss, worst in a decade

"TOKYO, Oct 31 – Japanese electronics maker Panasonic Corp forecast an annual net loss of US$5.5 billion (RM16.92 billion), its worst in a decade, as restructuring costs soared and weak demand in the United States and Europe eroded income."

ahh i hope those big company won't runtuh.. they runtuh then we all will be hard to get a job recession...

http://www.investlah.com/forum/index.php?t...07746;topicseen

Yalor...call only is ok....
dont la waste ppl time meet up, then only tell me 100k above the ad price la....wat is this..u waste time for both side, obviously i am not gonna pay 100k higher rite...so durh :/
Summore the place next to tension cable la, not maintain properly la, dem jam summore and kampung area & road leading to it.....dunno on wat basis it demands above 500k?!! ;/ Making use of the situation ....slowly wait la, i think 2nd hand buyer have alot more choices lor these days than a shitpigeonhole at rm500k

about last weekend, i ter-spotted an ads in iprop of a dsl house in usj amend the price downwards... an interesting and rare development?

(reminds me of those used cars sale.. pricing them down, down, down as time progresses)

the first price might be the "sky price", eventually hard landing lor

This post has been edited by katijar: Nov 1 2011, 04:14 PM

And your conclusion is property price has already fallen based on this?

i cannot brain your statement for i has no conclusion yet..
i just noticed a "paradigm shift".. e.g seller market to a buyer market again?

or maybe it's just "hot air" aje?

---

Added on November 1, 2011, 5:18 pmdo you think it's ok to go in with a "stop beating around the bush" price discount of say 10% from the asking price?
will that be too.... ?

This post has been edited by Tikietic: Nov 1 2011, 05:18 PM

I guess all these news contribute to the fact that house prices have stagnated and would probably decrease over time if the bad news (financial debts and losses particularly avalanching from Europe and USA into Asia, not to mention earthquakes, floods and other natural calamities including exponential hikes in world population ) keep coming on.....

What we don't know is;
1) How long this will last?
2) How deep can it get?

Chinese home buyers not so easy to please

BEIJING: China thought it had a good plan: Bring down soaring house prices so millions of frustrated wage-earning families could afford new homes, and social harmony would follow.

However, furious protests by existing home-owners against price-cuts on new developments show that the road to real estate equilibrium is a rocky one.
For every aspiring home buyer in China thwarted by a speculative property bubble that has seen house prices in key cities jump nearly 10-fold in 10 years, an existing home-owner is anxious to see the biggest investment they're likely to ever make keep rising.

Anxiety built to anger in Shanghai on Oct 22 after Longfor Properties cut prices on the latest phase of a housing development to revive stalling sales at the site.

A mob of about 300 people smashed up the development's sales and demonstration centre, according to local media reports.

All had bought homes in earlier phases of the project at prices as much as 30% above current selling levels which Longfor insists just reflect market conditions.

“We decided the price according to market demand,” the company said in a statement emailed to Reuters. “The promotion, which ended on Oct 20, was an effective one when the company proactively grasped the right market opportunity.”

Hundreds of home-owners were on the same Shanghai street a day after the Longfor incident, staging a smaller protest in a Green Land Group development. There's been uproar at sites developed by China Overseas Land, Sino-Ocean Land and Huaye Real Estate Co.

Protests have flared in Beijing as well as Shanghai and threaten to spread. Social unrest is anathema for China's ruling Communist Party.

“The protests run an alarm to the public that gone is the time when home prices only rise and never fall. Investors need to be cautious,” the People's Daily, the top party newspaper, said in an opinion piece posted on its website on Oct 26.

Property is a touchstone issue in the world's second-biggest economy, generating around 10% of China's GDP.

Besides would-be buyers and profit-hungry developers, local governments across the country rely on income from land sales to service debts estimated at 10.7 trillion yuan (US$1.7 trillion) and fund construction of roads, railways and schools. Reuters

hehe.. easy solution, ask the all 300 ppl to sapu habis all the discounted prop from longfor properties launch will do wat since it is cheap... kind of stupid way to protest.