His View on Real Estates market in Malaysia: extracted from THEEDGE FINANCIALDAILY 13th June 2011:
Snapshot of the residential market
The market prior to 2007 was rather sluggish. Properties purchased four to five years earlier, even in many good areas, had generally realised a gain of only up to 10% in asset value. The exceptions were properties in Bangsar, Sri Hartamas, Taman Tun Dr Ismail and Bandar Utama.
The global financial crisis in 2008 affected buyers’ confidence all over the world. Malaysia had fewer foreclosures because our loans were better regulated. The post 2008 recovery has been amazing though the upbeat trend is not totally unprecedented. Similar trends were seen in the early 1980s and 90s.
Outlook
House prices will continue to rise regardless of interest rates. This trend will be sustained by the government’s Economic Transformation Programme to bolster the economy.
Significant Projects since 2007
1. Sentul, East & West, Sentul East d6 & d7
The transformation of Brickfields as a backwater part of KL by YTL Corp into an upper middle-class enclave has been spectacular. Its most recent successful launch was The Capers where units are priced from RM695 psf, a price unheard of in the area two to three years ago.
2. Bangsar South
This was formerly Kampung Kerinchi. Today, the UOA Development Bhd project is much sought after by MNCs, medium-sized corporations and MSC companies. Its success can be attributed to good planning, infrastructure and its proximity to Bangsar, Mid Valley and KLCC.
3. Kota Damansara
This is one development in Petaling Jaya that has successfully removed the stigma of leasehold properties. Its properties are among the most sought after mainly because they are in gated communities. These properties were among the first in PJ to experience a surge in demand during the economic recovery, leading to rising prices. The whole area started growing when the infrastructures connecting Bandar Utama and Mutiara Damansara came up.
It struck gold when it was renamed Kota Damansara from its original Sungai Buloh. Everything in Kota Damansara now sells like hot cakes benefiting developers such as Sunway, Encorp Bhd, Mitraland Group and Sunsuria Development.
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