it's good to be optimistic in general to face the world's challenges. just that being an eternal optimist in the midst of negative signs is either unwise or for the extra-gifted.

to be fair, the shit has yet to hit, just some signs now only. those affected in affected areas will hear, "i told you so". those unaffected in unaffected areas will say, "i told you so".

us subprime started in 2007 and price decline hasn't stopped yet. what makes maresia so special that it can keep going with more and more debt, less and less gdp growth?

It's not about pessimistic or optimistic, it's about REALISTIC.

Look around the world, the largest economies, the US and Eurozone are collapsing. and someone still flipping houses?

Hahaha...Property here still got developer's discounts...why not? Our metropolitan city is damn small compared to their.

Anywhere, buy wisely and you will be safe to a certain extent.


why bother good or bad / optimistic or pessimistic, all are on your own risk.

to me, as long as noone besides me is losing job, then I'm always fine with that.

I don't mean to be pessimistic.

Just to say properties price sure go up in the long run, hence property is safe to invested, somehow this statement somehow a bit overly.

Some will say buy right or prime location will eliminate this issue/problem, but prime location always at a premium or high price which many may not accessible to it due to cost, or opportunity.
And many resort to secondary location, outskirt of town which seem affordable but may expose to those kind of risk as mentioned.

I never view properties price will crash in the first place.
But immediate potential risk that can incurred is empty high end condo, empty mall, abandoned shoplot, or shoplot that little people interested and growing grass only. Not the price prach.

Well, Sunway South Quay condos are selling at less than 900k and struggling to find buyers, Mont Kiara condos are selling like 2mil-3mil? and people will choose to stay in MK for sure.

The US/Eurozone each GDP is more than US$15 trillion with a T, and Meresia GDP is about US$250 billion with a B.

"Property here still got developer's discounts" because the developers refuse to officially drop the price to attract buyers (they don't want to affect market sentiment), discount = prices are headed down?

which project is offering discount now?

buy Friday newspapers....a lot of advertisements for your references.

especially those leftover units. kekekeke...and those newly lauches with early birds discounts - also can consider got discounts lo.

aiyah... this one all tipu.

Who knows whether it's a discount or not? They can put any price they want. As long as there are enough optimistic people to buy them.

And this optimism, has nothing to do with what people can actually afford.

many are waiting for mega sale discount ... if you get what I mean

i thought all units will sell out during launch? hmm...

world capitalism....u got your own choice anyway..hehe

Good luck after GE... hehe.

Believe it or not, even developers are in BBB mode!

Hot grabs outside Klang Valley
Written by Kamarul Azhar
Monday, 22 August 2011 12:11

PETALING JAYA: Major property developers have been snapping up large plots of land worth well over a billion ringgit, even as the global economic scene turned more cloudy. And it is interesting to note that these acquisitions are mainly located outside the country’s largest property market, the Klang Valley.

Mah Sing Group Bhd, Hua Yang Bhd, S P Setia Bhd, Dijaya Corp Bhd, Berjaya Land Bhd and Eksons Corp Bhd are among the noted property developers that have this month announced acquisitions of land for future development projects. According to tabulations of a selection of notable deals by The Edge Financial Daily, five major developers alone have spent some RM1.07 billion to buy 1,502 acres (600.8ha) of land in the past few months (see table on Page 8).

Factors such as scarcity of land in mature markets like Kuala Lumpur and Petaling Jaya, which has led to high asking prices, as well as future economic developments in other regions may have prompted the buying spree. Johor appears to be the new property hot spot now, judging by the rush of developers there.

Analysts said the change of perception towards the southern state was triggered by the rejuvenation of Iskandar Malaysia. They noted that since UEM Land Holdings Bhd’s acquisition of Sunrise Bhd, there has been a more proactive development committee team spearheading the development of Iskandar. Sentiment has also been boosted by warming bilateral ties between Malaysia and Singapore, and maiden investments by Temasek Holdings is seen coming to Iskandar.

In Johor, Mah Sing acquired 83ha (205.7 acres) of prime freehold land in Tanjung Kupang for RM54.7 million in April, or RM6.10 psf, while Hua Yang purchased two prime parcels of land in Johor Bahru measuring 0.8ha for RM10.7 million, or RM117 psf.

Mah Sing’s land is located within the Iskandar Development Region, some 1 km from the Port of Tanjung Pelepas and 23 km to Jurong Industrial Estate in Singapore. It is proposing to develop the land into an integrated industrial and business park named Mah Sing i-Parc, with an estimated gross development value (GDV) of RM610 million.


Taman Pulai Indah is Hua Yang's core development in Johor.

Leong's Mah Sing has land located within the Iskandar development region.

Tan says Dijaya will be launching more quality properties in the region.
Last week, Dijaya acquired 92ha of freehold land in Plentong for RM220 million, or RM22.25 psf, in its bid to strengthen its presence in the Iskandar Malaysia development region. The company is building a mixed development named Tropicana Danga Cove with a GDV of RM2.8 billion. Construction of the project will start this year, together with another project called Tropicana Danga Bay, a high-end integrated property development with a GDV of RM3.8 billion.

According to group CEO Tan Sri Danny Tan Chee Sing, Dijaya will be launching more quality properties in the region to ride on its proximity to Singapore. He said Iskandar Malaysia will drive up demand for properties in the region as more investments will be pouring in, especially from neighbouring Singapore. The rising cost of doing business in the island republic has prompted many of its small- and medium-sized enterprises to relocate to Johor due to its proximity to home and lower costs, according to a recent research.

Hua Yang said its Johor Bahru acquisition is in line with its business expansion plan to make the southern region a key revenue contributor to the group. The move is also in line with its vision to become a nationwide community developer providing affordable homes throughout the country.

The land parcels that it recently acquired are located in Jalan Abdul Samad in the Johor Bahru city centre and only 3.5 km from the new Customs, Inspection and Quarantine Complex. The land will be developed into a residential project comprising serviced apartments to cater for professionals working in Johor Bahru and Singapore, with an estimated GDV of RM120 million.

So will the property markets in prime areas such as Kuala Lumpur, Petaling Jaya and Penang island disappear from the property developers’ radar?

Not quite, but with limited large tracts of prime land, developers have been focusing on niche, higher-end projects.

In the heart of downtown Kuala Lumpur, Mah Sing will develop a 1.7ha parcel at the former Tunku Abdul Rahman flats, better known as the Pekeliling Flats, in Jalan Tun Razak, in a joint venture with privately-held Asie Sdn Bhd and Usaha Nusantara Sdn Bhd. The project, tentatively called M Sentral, is estimated to have a GDV of RM9 billion. Mah Sing acquired the land for RM600 psf, and will look to jointly develop the rest of the former Pekeliling Flats land, which measures 58 acres.

Hua Yang also has several projects in the pipeline in Kuala Lumpur, especially those under its RM840 million ‘One South’ integrated development located in Sungei Besi, south to the city centre. The project spreads over 16.7 acres and is currently enjoying high take-up rates, with its Phase 1 comprising retail and office units more than 80% sold.

The group has also acquired 1.55 acres of leasehold commercial land in Desa Pandan, which is located near Jalan Tun Razak and the proposed Kuala Lumpur International Financial District (KLIFD). The land was purchased for RM32 million and the group plans to develop it into affordable serviced apartments with pricing in the range of not more than RM400,000, and a GDV of RM160 million.

With limited prime land left in the urban centres, property developers would have to look much further out to build new townships. And that’s where SP Setia went to Hulu Langat, where it hopes to recreate another “Setia Alam” — its successful transformation of a backwater palm oil estate to a thriving township in less than a decade.

SP Setia acquired 409ha of freehold land in Beranang, Hulu Langat, for RM330.1 million, or RM7.50 psf. The oil palm land will be converted into a mixed residential township with an estimated GDV of RM3.5 billion.

Maybank Investment Bank Research said in a report that the property developer is spearheading a new relatively untapped trend of affordable housing development which will provide steady bread-and-butter sales to the group and support its long-term growth. The research house noted that the land could turn out to be another highly successful “Setia Alam” given SP Setia’s track record and expertise in developing townships.

Up north, Penang continues to draw attention.

Confidence in the state was summed up by Berjaya Group tycoon Tan Sri Vincent Tan. He said he was impressed with the level of cleanliness in Penang; the state has done very well economically over the past few years, having attained the highest level of investments in the country last year with RM12.2 billion.

Berjaya Land Bhd acquired 23ha of land in the famed Penang Turf Club area for RM459 million cash, or RM184 psf for a high-end residential property development.

The group said the project, with an estimated GDV of RM1.52 billion, will be a low-density, exclusive gated housing development comprising bungalows, semi-detached units and low-rise condominiums. The development will take five years to complete.

Not only is the Penang island property market red hot now, the same could also be said about the property market on the mainland, Seberang Prai.

Other than Tambun Indah Land Bhd, which has firmly positioned itself on mainland Penang property market after successfully building several notable townships such as Taman Tambun Indah, Juru Heights, Pearl Garden and Pearl Villas, Hua Yang is also making its foray into the market.

According to the group’s chief executive officer Ho Wen Yan, the group is currently scouting for landbanks on mainland Penang as well as in Kota Kinabalu, Sabah. He said that the group is going to raise RM100 million to fund land bank acquisitions in these two key markets.

“Penang is one of the high growth states in terms of economy and population. It is a target market for us to build affordable housing in the state. In Kota Kinabalu, we will look at building high-rise affordable residential property in the urban centres, whereas if it is outside the urban centre, it would be viable for us to build more landed properties,” he said during a press conference after the company’s annual general meeting last Friday.

However, there are concerns over the various property projects in the more mature markets of Kuala Lumpur and Penang island , giving rise to fears that there will be an oversupply of housing.

Penang, for example, has seen a surge in planned projects over the next ten to 15 years worth RM29.6 billion, according to news reports. At the current level of property purchasing in Penang, which is an all time high, it will take 10 to 11 years for the market to absorb such a large number of projects.

Datuk Jerry Chan Fook Sing, the Real Estate and Housing Developers’ Association (Rehda) Penang chairman, had said property launches should be perfectly timed to suit demand so the many projects would not lead to an oversupply in the island’s property market which will dampen prices/yields.

According to Affin Investment Bank property analyst Isaac Chow, there will always be demand in the medium- and low-cost property markets but the high-end residential property market will see slower demand, as buyers have become more selective and prices will be quite “shaky”, especially for high-rise developments.

“The right property in the right location will see an increase in demand and hence price, whereas the wrong property in the wrong location will see lower demand and the price will decrease,” he told The Edge Financial Daily.

He maintained that property prices in Malaysia are still generally affordable as only about 20% to 25% of a buyer’s monthly disposable income is spent on rent or mortgage payments as opposed to buyers in other countries who would have to spend almost 30% of their monthly disposable income on mortgages.

With the recent turbulence in the global financial markets, amid fears of a recession in the US and Europe, developers are still confident in the property market.

“Development is an industry that cannot slow down. Every 10 to 15 years, we have a downturn but we have to weather it and keep going. For us, it will be business as usual,” Dijaya managing director Datuk Tong Kien Onn told The Edge Financial Daily.


This article appeared in The Edge Financial Daily, August 22, 2011.

Land is their material lo...hahahaha

Yes, I do believe that.

I also believe that some of the major Malaysia developer faces cash flow problem and goes bankrupt because all the money is used to buy lands.

I also believe that major property player like Fannie Mae and Freddie Mac can tumble because of their wrong move.

It does not mean that they are right when they are big.

However, bigger companies USUALLY have bigger risk appetite. If they are not careful, they will fall harder.

And some does not care, because those are share holder money.

When the share price goes up, they are first one to sell.

This post has been edited by GangHo: Aug 22 2011, 08:44 PM

LOL...which companies????

It is simply too sensitive to mention it here and it is against the Cyber law.

However, I can give you some hint.

Go through those black listed developers and study their background.

If not, you can come to my house. I will tell you in closed door.

TALAM kua ...

too many to be name... check urself... from 1997 to 2007... how many public listed company (prop category) disappear in bursa... some go thru restructuring by selling their company (changed boss).

U are cleaver must be able to find that... hehe..

This post has been edited by sampool: Aug 22 2011, 09:03 PM