“A conservative, long-term plan for Malaysia” This is the title of an article in TheEdge online which I read today (1 Aug 2015). It refers to what Agile Property Holding Ltd had in their mind when they decided to start their Malaysian development plans. It is China’s third largest developer and according to Wilson Ren, CEO of Agile Real Estate (M) Sdn Bhd, the reason why it is focussing on Greater Malaysia is because the economy and the income level which is like Fujian, a Tier 2 city in China. Some may disagree with him but I think it’s fair to say that Greater KL is definitely at the level of Shanghai or Beijing of today. Perhaps just the KLCC area is closer and comparable but all other areas would continue to show promises of future growth.
I like his statement because it meant that he is thinking long term about Greater KL. Personally, for Greater KL my investment mindset is, ‘Going long term, objective and firm.’ Long term is because I would be based here for some time more. After all, I was based in Penang for 14 years and I have just been here in KL for the past 2 years plus. Thus, whatever investment I have should focus on a longer term horizon, with the aim of continuous and orderly capital appreciation. Objective is because until today, different areas of just few minutes away shows a totally different price levels. Just look at Desa Parkcity and its surroundings. There are condos which are still at below RM400 psf today, simply because the area is less loved and there are condos where the price per sf seems like NO LIMITS!
Finally, FIRM is because the decision is mine and not due to any influence from any famous personality no matter who they are. I would not want to follow anyone simply because he or she is supposed to be a well known property guru. Yes, I think I may miss out on some opportunities but if my evaluation and due diligence is done right, coupled with sufficient readings, I should do just fine. I will always remind myself that if I buy without understanding, it’s just a gamble.
Agile also said something which I have written before earlier; profit margins for developers in Malaysia are still higher than many more developed property markets. Wilson said that the profit margin for developers here are definitely higher than those in China. He said in China the typical margins are just 10 percent. What about here in Malaysia? Read latest one for a mid-tier developer here: Hua Yang’s FY15 net profit margin at 18.95% Or a top developer here: First 6 months, SP Setia’s net profit margin at 12.83% This meant that there are definitely still rooms for developers to adjust their strategies accordingly during a market slowdown. A look at some of the newer launches would show that rebates or some type of special deals are now a norm. With Agile, the market should have another competitive choice to choose from, especially starting with Mont Kiara. An image of how their project would look like is attached in this article. Happy going long term with Greater KL.
written on 1st Aug 2015
Next suggested article: Cheapest and most expensive in Mont Kiara
I like his statement because it meant that he is thinking long term about Greater KL. Personally, for Greater KL my investment mindset is, ‘Going long term, objective and firm.’ Long term is because I would be based here for some time more. After all, I was based in Penang for 14 years and I have just been here in KL for the past 2 years plus. Thus, whatever investment I have should focus on a longer term horizon, with the aim of continuous and orderly capital appreciation. Objective is because until today, different areas of just few minutes away shows a totally different price levels. Just look at Desa Parkcity and its surroundings. There are condos which are still at below RM400 psf today, simply because the area is less loved and there are condos where the price per sf seems like NO LIMITS!
Finally, FIRM is because the decision is mine and not due to any influence from any famous personality no matter who they are. I would not want to follow anyone simply because he or she is supposed to be a well known property guru. Yes, I think I may miss out on some opportunities but if my evaluation and due diligence is done right, coupled with sufficient readings, I should do just fine. I will always remind myself that if I buy without understanding, it’s just a gamble.
Agile also said something which I have written before earlier; profit margins for developers in Malaysia are still higher than many more developed property markets. Wilson said that the profit margin for developers here are definitely higher than those in China. He said in China the typical margins are just 10 percent. What about here in Malaysia? Read latest one for a mid-tier developer here: Hua Yang’s FY15 net profit margin at 18.95% Or a top developer here: First 6 months, SP Setia’s net profit margin at 12.83% This meant that there are definitely still rooms for developers to adjust their strategies accordingly during a market slowdown. A look at some of the newer launches would show that rebates or some type of special deals are now a norm. With Agile, the market should have another competitive choice to choose from, especially starting with Mont Kiara. An image of how their project would look like is attached in this article. Happy going long term with Greater KL.written on 1st Aug 2015
Next suggested article: Cheapest and most expensive in Mont Kiara
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