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 Press Release:
Malaysia’s Property Outlook Stabilises
Kuala Lumpur, Wednesday 6th April 2009.
Thinkproperty.my has been carrying out an on-going survey, since May 2008 through its website. Nearly1,700 participants have responded to the survey. The survey provides a snapshot of the current status of the property market and reveals some interesting trends.
Summary of Findings
The thinkproperty.my Property Outlook Index has recovered from its early-March low of -58% to -46%, asign that the market could be stabilising. The index, however, remains close to an all-time low. AsimQureshi, CEO of Think Media Sdn Bhd, the company that owns thinkproperty.my commented “Fallinginterest rates and perhaps expectations of the positive impact of the stimulus packages, as well as hopesof a drive from the new leadership could be bringing back some much needed optimism into the market,or at least be preventing pessimism from increasing further.”The survey gave another positive sign. Shares and property have become increasingly favoured over thecourse of the month at the expense of the more defensive fixed deposits.Qureshi concluded that “While the survey results are not providing a clear direction as to where themarket is moving, there are a few subtle signals contained within the results from this survey whichindicate that the market is potentially stabilising.”
 
 
Further Information
The thinkproperty.my Property Outlook Index has recovered from its early-March low of -58% to -46%, asign that the market could be stabilising. The index, however, remains close to an all-time low. Thesurvey asked participants their opinion on the outlook for the Malaysian property market over the next12 months. The index takes the number of participants that believe prices would rise, subtracts thenumber of participants that believe prices would fall, and then divides this figure by the total number of participants, and calculates this on a rolling 30-day basis.Thinkproperty.my Property Outlook IndexQureshi commented that “Falling interest rates and perhaps expectations of the positive impact of thestimulus packages, as well as hopes of a drive from the new leadership could be bringing back somemuch needed optimism into the market, or at least be preventing pessimism from increasing further. Ibelieve the stimulus packages will play a significant role in providing liquidity to the property market .Banks have become more conservative, but they are still lending, and thus the strength of Malaysian
 
 banks has been an important reason why Malaysia’s property market has outperformed most otherproperty markets in the developed world.”The Favoured Investment Evolution Chart below was compiled by asking participants which investmentthey believe would be the best investment to make at present (without stating a time frame). The heightof each of the shaded regions shows the percentage of participants that thought the respectiveinvestment type was the best investment, calculated on a 30-day rolling basis.Favoured Investment Evolution ChartThe chart shows relative stability over the last month. Shares have become more favoured during thecourse of March, rising from 11% favouring to invest in shares at the beginning of the month to 17%towards the end of the month. Qureshi believes this may be due to the recent stability the KLCI hasdemonstrated over the last few months. Fixed deposits became slightly less favoured, falling from 32%of participants favouring them to 29% during the course of the month. Qureshi pointed that out that
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