His View on Real Estates market in Malaysia: extracted from THEEDGE FINANCIALDAILY 13th June 2011:
Snapshot of the residential market
The residential market has seen steady growth since 2007 with minimal impact from the global financial crisis. Currently, local demand is dominating the market due to the availability of cheap financing.
The property market is on an upward trend, and as long as interest rates remain as it is now, prices are unlikely to fall.
Outlook
Prices of landed property will continue to rise unless a drastic situation akin to 1997, where liquidity was low and interest rates were around 12.3%, emerges. There is a strong inverse correlation between interest rates and prices.
The high-rise residential segment is expected to remain stable in light of the huge existing stock. Projects in certain locations such as Petaling Jaya, Bangsar and KL are likely to do well while there has been limited new launches in the KLCC vicinity for more than a year.
Significant Projects since 2007
Link homes in Desa ParkCity, Nadayu Melawati in Taman Melawati by Mutiara Goodyear and Setia Alam link homes in Klang by S P Setia — these three projects have set benchmark prices in their respective localities and helped pushed prices to stratospheric heights in the Klang Valley. The latest launch of link houses in Desa ParkCity fetched more than RM2.75 million, while the latest link houses in Setia Alam went for more than RM550,000. As for Nadayu Melawati, the minimum price is RM5.5 million.
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