ASIA PROPERTY MARKET SENTIMENT REPORT 2012

Presented by Shaun Di Gregorio CEO, iProperty Group 20th February 2012

Survey Methodology
Objective To examine consumer sentiments in the four key markets we serve Malaysia, Hong Kong, Indonesia and Singapore. To provide valuable insights to help consumers gauge the sentiments of the property market Duration Sample Size 29th November 2011 17th January 2012 8,499 survey respondents in total 3,349 survey respondents in Malaysia 1,614 survey respondents in Singapore 2,372 survey respondents in Indonesia 1,074 survey respondents in Hong Kong Research Instrument Online survey

THE FINDINGS

The Findings - Demographics

The findings show that males were more keen in the property market compared to females.

The 31-35 age group was the largest among survey respondents in Indonesia and Malaysia.
The 30-39 age group was the largest among survey respondents in Hong Kong, while the 41-50 age group was the largest among Singaporean survey respondents. Respondents were made up largely of executive/managerial and professional occupations, mostly with an annual household income above the national average.

THE MALAYSIAN FRONT A BUYER FRIENDLY ENVIRONMENT

Malaysia A Buyer Friendly Environment

Just over half (53.4%) of people answering the survey reported an annual household income of MYR 80,000 or less and over 46.6% earning above MYR 80,000.

Malaysia A Buyer Friendly Environment

35.7% considered themselves Property Buyers, while 26.2% identified themselves as Property Owners. Another 19.5% were investors. This can be partly explained by the low barriers to property ownership and the healthy property price growth in the country.

Description of Survey Respondents

18.60% 19.50% 26.20% 35.70%

Property Buyers Property Owners Investors

Others

Malaysia A Buyer Friendly Environment

A surprising 41.4% owned two or more properties, a higher proportion than in any other country.

Malaysia A Buyer Friendly Environment

With 62.3% of survey respondents intending to buy property within the year, 71.3% of had a budget under MYR 500,000. Landed property was the most popular type of property, drawing the interest of 74.5% of survey respondents. Private condominiums or service apartments drew the interest of 60.4%.

Malaysia A Buyer Friendly Environment

Most Popular Areas in Malaysia in Dec 2011

On the iProperty.com Malaysia website, it can be seen that the top 4 popular search areas in the Klang Valley were Bangsar, Puchong, Cheras and Petaling Jaya.

CONSUMERS SENTIMENTS POSITIVE ON THE ECONOMY, CONCERNED OVER RISING HOUSE PRICES.

Consumer Sentiments on the Property Market

The most important issue for concern in the Malaysian property market was that of rising house prices. However, a significant number of people surveyed also expressed high concern about home financing policies and interest rates, as well as errant developers and build quality.

Consumer Sentiments on the Property Market

59.5% considered the Malaysian property market to be doing quite well, despite the threat of a global recession. Interestingly, 58.6% believed that a property bubble existed in the Malaysian property market.

Consumer Sentiments on the Property Market

Respondents were almost evenly divided, when asked what housing policies the government should focus on

THOUGHTS ON THE MRT PROJECT

Malaysia Thoughts on the MRT Project

An overwhelming majority 89.8% expected property prices to rise in selected locations as a result of this project

THOUGHTS ON THE BUDGET 2012

Malaysia Thoughts on BUDGET 2012

In November 2011, Bank Negara Malaysia imposed a Loan-to-Value ratio of 70% for people buying a third property starting in 2012. 60.3% expected this measure will moderate speculative activity in the market.

Malaysia Thoughts on BUDGET 2012

With the increase in the Real Property Gains Tax to 10% for the first two years, 5% in the third through the fifth year of disposal, 47.7% expected that it will also discourage speculation.

Malaysia Thoughts on BUDGET 2012

62.1% were positive than negative (33.3%) about whether the My First Home Scheme, designed to assist lower income private sector workers in obtaining housing loans, would help house buyers to acquire their first home.

MALAYSIANS AND THE OVERSEAS MARKET

Malaysians and the Overseas market

17.9% of Malaysians were interested in investing in overseas property with interest in Australia, Singapore and the United Kingdom. Nearly half cited migration or retirement plans as the reason for buying overseas property.

However, 42.2% of Singaporean survey respondents showed interest in overseas property, a significantly higher percentage than in any other country surveyed.

Malaysians and the Overseas market

Malaysians were not in a rush to purchase property overseas. 71.7% of respondents did not plan to buy for at least another one year. In Indonesia, survey respondents who planned to buy overseas property were the most likely to wait the longest (2 or more years) compared to the other three countries surveyed

CONCLUSION

Conclusion
Although recent measures have been taken by Bank Negara and the Inland Revenue Board to discourage speculation, the Malaysian property market continues to be friendly for property buyers. Malaysian survey respondents are upbeat about the property market but at the same time wary of a possible property bubble.