IProperty.com Asia Sentiment Survey H2 2014

5/20/2018 IProperty.com Asia Sentiment Survey H2 2014

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ASIA PROPERTY MARKET SENTIMENT

REPORT (H2) 2014Presented by Georg Chmiel

Managing Director & Chief Executive OfficerThe iProperty Group


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Survey MethodologyObjective To examine consumer sentiments in the

four key markets we serveMalaysia,

Indonesia, Hong Kong and Singapore.

To provide valuable insights to help

consumers gauge the sentiments of the

property market

Duration 5thJune 20148thJuly 2014

Sample Size 12,635 survey respondents in total

5,295 survey respondents in Malaysia

2,590 survey respondents in Indonesia

1,940 survey respondents in Hong Kong2,805 survey respondents in Singapore

Research Instrument Online surveysurvey respondents were

provided with links to obtain more

information on specific questions.


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Demographics

Below

20

Aged

20 to 30

Aged

31 to 40 Aged

41 to 50Aged

51 and above

45%

12%

42%

1%

Single

Married, no children

Married, with

children

Other

Citizen

Permanent Resident

Foreigner Residing in the Country /Non- Resident in the country


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31%

48%

6%

1%

2%

1%

5%

1%

2%

2%


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Demographics

AnnualHousehold

Income

Below RM30,000

RM 30,001

RM 90,000

RM 90,001

RM 180,000

RM 180,001

RM 300,000

RM 300,001

RM 500,000

More thanRM 500,001

Prefer Notto Say

Occupati

on

Executive / Managerial

Professional / Technical

Self Employed

Sales

CEO/ Senior Management

Clerical/ Administrative

Civil Servant

Student

Homemaker

Unemployed

Retired

10%

43%7%

2% 27%

9%

3%


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Demographics

7% - One

19% - Two

20% - Three

25% - Four

29% - Morethan four

05 years

610years

1120years

More than20 years

All my life


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Demographics

Interested in Leasing andRenting Property

Interested in SellingProperty

Looking to Rent out aProperty

Real Estate Professional /Property Agent

Just Monitoring the

market

First timeHomebuyer

InvestorsTerrace House

Private condominium

Flat/Walk-up apartment

Semi-detached House

Bungalow

Shop Office


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Property

Exhibitions

Directly from

Developers

iProperty.com

Demographics

Yes

No

Maybe

Moreinterested in

resale property

57%

4%

34%

5%


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Demographics

Within the next

6 months 612 months

from now

12 years from

nowAt least 2 years

or more from

now

Not interested

at the moment


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Demographics

2014 (H2) 2014 (H1)

For Rental Income

For Long Term

Investment

Desire to Own TheirOwn Home /

For Rental Income

For Long TermInvestment

Desire to Own TheirOwn Home


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Demographics - Factors of Consideration

Location

Price

Size

Security

Facilities

Location

Price

Security

Size

PotentialCapitalAppreciation


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Demographics
http://www.google.com.my/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=xtDOELii-WRIBM&tbnid=4mbTNzDOiaeJOM:&ved=0CAUQjRw&url=http://www.blog.c21theharrelsongroup.com/&ei=V6KjU_X3CtOjugSd-YHgDg&bvm=bv.69411363,d.c2E&psig=AFQjCNF6WeJVuoOCQIh7-yFifJ3I_UymJg&ust=1403319247733536http://www.google.com.my/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=7J_17bKj7jNE4M&tbnid=5Uk0sgCOeZKp5M:&ved=0CAUQjRw&url=http://www.dezrezblog.com/page/5/&ei=faKjU9eZMM-NuATdsoLgDg&bvm=bv.69411363,d.c2E&psig=AFQjCNHjPbvv0DAohYvYrJWIfRSvgh152Q&ust=1403319283503549http://www.google.com.my/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=xtDOELii-WRIBM&tbnid=4mbTNzDOiaeJOM:&ved=0CAUQjRw&url=http://www.blog.c21theharrelsongroup.com/&ei=V6KjU_X3CtOjugSd-YHgDg&bvm=bv.69411363,d.c2E&psig=AFQjCNF6WeJVuoOCQIh7-yFifJ3I_UymJg&ust=1403319247733536http://www.google.com.my/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=7J_17bKj7jNE4M&tbnid=5Uk0sgCOeZKp5M:&ved=0CAUQjRw&url=http://www.dezrezblog.com/page/5/&ei=faKjU9eZMM-NuATdsoLgDg&bvm=bv.69411363,d.c2E&psig=AFQjCNHjPbvv0DAohYvYrJWIfRSvgh152Q&ust=1403319283503549


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Demographics

Below

RM500,000RM500,001

RM800,000

RM800,001

RM1Million

RM1Million

RM3 Million


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Demographics

Detailedinformationabout theproperty

PropertyPrice

Comparisons

Reviews onthe property/

location

Hi QualityPhotos

Price GrowthComparison

Neighborhoodinformation /

average askingprice

CompareFeatures

InteractiveMaps


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ON THE MALAYSIAN PROPERTYMARKET


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The Malaysian Property Market

Affordability & rising house prices

Stringent home financing & high interest rates

Economic & political uncertainties

Errant Developers

Poor building quality


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Very

Affordable

NotAffordable

at all


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Petaling Jaya

Ara Damansara

Puchong

IskandarMalaysia

Georgetown,

Penang

Melaka/Nilai/

Nusajaya


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Not sure

Yesdefinitely

It willremainmore orless thesame


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No

Uncertain

Yes


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Iskandar MalaysiaWhats Their View


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Iskandar MalaysiaMalaysias Point of View


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Iskandar MalaysiaSingapores Point of View


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MALAYSIANS & THEOVERSEAS PROPERTY

MARKET
http://www.google.com.my/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=C-jOMR8Kc9SoBM&tbnid=wgrSb_OUHwb99M:&ved=0CAUQjRw&url=http://blogs.angloinfo.com/angloinfo-world-property/2012/11/21/beware-of-remortgaging-to-fund-overseas-property-investment/&ei=2VkMUpzxIIXNrQfrkoGgDg&bvm=bv.50768961,d.bmk&psig=AFQjCNF8F7D3Rcu3CgUVpnfubPhPn5aziw&ust=1376627495477415http://www.google.com.my/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=i4gTah4pOXK-uM&tbnid=6HfIGZ7qyol1DM:&ved=0CAUQjRw&url=http://www.geocaching.com/seek/cache_details.aspx?guid=f63bf67b-37fd-410f-9e04-b292c1584e03&ei=JFoMUrW3HMSHrAfrkoCgDw&bvm=bv.50768961,d.bmk&psig=AFQjCNHi6HCWia0uqkMEEw36KSxf_UEwYw&ust=1376627597993158


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Overseas Property Market

No

Yes

Undecided

Australia

Singapore

United

Kingdom


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Overseas Property Market

Private condominium /serviced apartment

Terrace house

Flat/walk-up apartment


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BUDGET 2014RESPONDENTSPERCEPTION


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InvigoratingEconomic

Activity

StrengtheningFiscal

Management

InculcatingExcellence in

Human Capital

Intensifying

Urban andRural

Development

EnsuringWell-being ofthe Rakyat


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GST at 6% effective

1 April 2015

1% to 3% reduction

on personal income

tax

1% reduction on

corporate & SME

income tax

RM 2,000 tax relief

to middle income

group Maximum rate for

income tax

increased from

exceeding RM

100,000 to

exceeding RM

400,000

RPGT

30% for property

sold within 3

years

20% in the 4th

year

15% in the 5th

year

0% from 6thyear

RM 1 million

minimum propertypurchase price for

foreigners

80,000- units under

PR1MA at 20% lower

than market rate

RM8.8 billion to the

Royal Malaysia Police

RM200 million for

PDRM tools &

equipment

RM20 million to

provide 496 CCTVs in

25 local authorities

RM 20 million to

purchase 800

motorcycles for thepolice motorcycle

patrol unit

RM 75 million to

strengthen East Coast

Special Security Area

(ESSCOM)

RM 209 million to

enhance the

teaching profession

RM168 million on

internet access

improvement in

rural schools

RM600 million in

research grants for

public universities

RM 831 million for33 new schools and

upgrades

RM450 million to

Special Fund for

Building, Upgrading

and Maintenance

of schools


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Budget 2014An Overview

Average

Fair

Bad

Good

Undecided

Excellent


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Views on GST


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Yes, but theyshould offer

loans on a case-by-case basis

No, people should

be able to purchaseany property they

desire

Yes, peopleshould not be

able topurchase

something theycant afford

Views on Bank Negara Regulation
http://www.google.com.my/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=5cC--4RqL_LxoM&tbnid=QNUtP1ZDnV-n9M:&ved=0CAUQjRw&url=http://fhlogo.blogspot.com/2011/08/bank-negara-malaysia-bnm.html&ei=N6OnU93wJ9CSuATP34D4Cg&bvm=bv.69411363,d.c2E&psig=AFQjCNEvmTtxFunrunX_XVzXD-mtatpJ6w&ust=1403581612463687


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Views on Changes in National Housing Act

Yes, but it should be a bigger penalty

No, it is too small a penalty

Yes, it is fitting

No, it is too severe

TO FINE DEVELOPERS RM 500,000 AND JAIL TIME FOR UP TO

THREE YEARS FOR ABANDONED PROJECTS FAIR?


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BUDGET 2015WHAT DO MALAYSIANS WANT?

2015


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Budget 2015What Malaysians Want


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An Asia Overview


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An Asia Overview


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An Asia Overview


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THE CONCLUSION


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The Conclusion

Affordability concerns continue to remain a major

concern across all the four countries

Shift in the main motivation of purchasing propertycompared to H1 findings which were the desire toown their own home and now its for long-terminvestment.

Location, Price are the two key factors thatrespondents havent changed when deciding on

purchasing property. Security, seems to be a factor ofconsideration now, which relates to many wanting tobuy Private Condominiums.


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The Conclusion

A stronger second half is expected, but the latest

Overnight Policy Rate is expected to put a damper in

the market, eroding housing affordability amongst

Malaysians

Malaysias relatively young population and labour

force, increasing urbanisation, and general

inclination to own a house, are factors that are

expected to sustain strong demand for affordable

residential properties in major urban centres.


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The Conclusion

Some consultants opine that the rush on property

purchases will balance the slower first-half of 2014

with stronger demand as many potential property

buyers are currently in a wait-and-see situation.

Properties in Malaysia remain attractive for localand foreign investors who believe in the countrys

long-term economic potential. The appreciation in

real estate prices in key economic centres like Kuala

Lumpur and Iskandar Johor, is driven by theimplementation of the governments economic

transformation programme, rise of the middle class

and rapid urbanisation.


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The Conclusion

Overall investors sentiments looks to be very

cautious;some share the feeling that this year is not

a good year to invest or buy properties as there are

too many uncertainties and are taking a wait-and-see

attitude. On the up side, generally the propertymarket looks to be stable, and will continue to grow

as it has proven itself resilient and there is a

constant demand for properties.


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The full copy of the iProperty.com Asia Property Market

Sentiment Report (H2) 2014 will be available for

download by the end of the month on

http://www.iproperty.com.my/survey-reports.aspx
http://www.iproperty.com.my/survey-reports.aspxhttp://www.iproperty.com.my/survey-reports.aspxhttp://www.iproperty.com.my/survey-reports.aspxhttp://www.iproperty.com.my/survey-reports.aspxhttp://www.iproperty.com.my/survey-reports.aspx


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THANK YOU

Documents

IProperty.com Asia Sentiment Survey H2 2014