Slowdown in property demand to persist until 2017

Maybank Investment Bank Research expects the slowdown in property demand to persist for another 12 months until 2017, reported The Star.

“While some projects have shown some signs of sales stabilisation, there are no signs of a broad-based pick-up just yet. We expect overall property sales to stay weak amid the slowing economic momentum,” it said in a report.

“Cautiousness among lenders will also continue to weigh on buyers’ sentiment. Most developers are delaying new property launches and are focusing on affordable housing and clearing the existing unsold property inventories in hand.”

In fact, company margins are expected to become weaker or remain subdued, in anticipation of more rebates, discounts and marketing incentives to move units.

“Rising compliance costs will also eat into developers’ margins. Elsewhere, various housing schemes under the Government have created a large incoming supply of affordable housing and this could pose a threat to existing players,” noted the research house.

“That aside, developers may have to re-strategise their projects and marketing activities (for example, from bigger units into smaller units) and this could lead to delays in property launches and higher operating expenses.”

Notably, the November to December 2015 results season was a mixed bag, with Glomac Bhd, Mah Sing Group Bhd and UEM Sunrise Bhd underperforming its expectations as well as consensus due to higher marketing and administrative costs and lack of strategic land sales.

“However, Eco World Development Group Bhd and SP Setia Bhd beat expectations, thanks to stronger-than-expected progress billings at their landed property projects,” it said.

“As for Sunway Bhd, results were in line, backed by a steady or strong income from its investment properties and construction division, offsetting the slowdown in the property development business.”

The research house said it initially adjusted its earnings and sales assumption forecasts for SP Setia and Eco World following the release of their results on 10 December 2015.

“We now lower our 2016 sales assumptions for the other stocks under our coverage by 20 percent to 48 percent and earnings forecasts by one percent to 27 percent to factor in the weaker sales prospects and delays in high-rise property launches,” said Maybank.

“Consequently, our new target prices for these stocks are lower by two percent and 11 percent on lower revalued net asset value (RNAV) estimates and higher discounts of 30 percent and 60 percent to RNAVs.”

Resources:  propertyguru.net

Forest City set to become an iconic urban area

Forest City set to become an iconic urban areaThe Forest City project in Johor is poised to be an iconic urban area in the world within 20 years, reported The Star.

Notably, the project is expected to trigger significant changes in how development projects are carried out throughout the world, said Country Garden Holdings chairman Yeung Kwok Keung.

He noted that the 1,740ha reclaimed land in Forest City, the first such urban development in the world was designed to be environmentally friendly.

“This is a fresh idea where Forest City will have four multi-layers development and the public will not see any vehicles on the road. The development will be filled with greenery on the top layer, while there will be roads and parking bays underneath,” said Yeung.

“We also provide an effective transportation system for more than 100,000 residents living there. Forest City will be a dream for the community to live and work there.”

He revealed that Country Garden Holdings had been involved in construction, property, hotels and logistic for over 20 years and had operated in 300 cities including Malaysia.

“I am confident that Forest City will become a smart urban area and an example to other projects, where we are committed to turn it into a reality,” he added.

Meanwhile, Country Garden Pacificview Sdn Bhd executive director Datuk Daing A Malek Daing A Rahaman, said the Iskandar Malaysia project will offer various opportunities to foreign investors.

“Besides its location along Johor Straits, its unique designs will attract foreign investors and offer opportunities to all,” he said.

With an initial gross development project of RM450 billion, Forest City is expected to create 220,000 job opportunities once completed in 2035.

Built on four man-made islands near Tanjung Kupang, Forest City was launched in 2013 and has already received RM170 billion worth of commitment investment.

Resources: propertyguru.net

Real estate sector investments dip by RM36.9 billion

Real estate sector investments dip by RM36.9 billionFor the first nine months of 2015, Malaysia attracted RM153.2 billion worth of investments in the manufacturing, services and primary sectors, reported New Straits Times Online.

The figure, which came in lower compared to the RM180 billion posted over the same period last year, was primarily due to a significant decline in the approvals for investments in the real estate sector.

According to International Trade and Industry Minister Datuk Seri Mustapa Mohamed, investments in the real estate sector fell from RM57.9 billion during the first nine months of 2014 to RM21.0 billion this year.

Nonetheless, approvals in other sectors, particularly manufacturing, remained robust.

“This indicates that investor confidence in Malaysia remains high despite the decline in global FDI inflows and the challenging global economic environment,” he said.

Notably, investments in 3,727 projects were approved, which are expected to generate 139,720 work opportunities for Malaysians.

Domestic investments accounted for 82 percent of the total investments at RM124.9 billion, while the rest is accounted for by foreign investments.

Of the total investments, the services sector made up 54.0 percent or RM82.7 billion, the manufacturing sector 44.2 percent or RM67.7 billion and the primary sector 1.8 percent or RM2.8 billion.

Image: Sourced from The Malaysian Insider

Resources: propertyguru.co

 

Property market 2015 affected by various factors

 

Property market 2015 affected by various factorsThe property market’s performance and pricing for 2015, which proved to be a challenging year, have been affected by various factors leaving prospective investors and buyers cautious, reported The Star.

According to Jordan Lee & Jaafar executive director Yap Kian Ann, these factors – be it macroeconomic or microeconomic, political and social – have either jointly, directly or indirectly affected the market.

“These factors are interrelated and influence each other. Individually, they give direct and indirect impact to the property market, property transaction volume and property prices at a different direction and degree.”

“As the property market involves players (buyers and sellers) with all kinds of behaviour and is subject to a combination of factors that affect its performance at a given point in time, it is not an easy task to predict its trend and degree accurately.”

With this, property consultancy VPC Alliance (KL) Sdn Bhd managing director James Wong expects the market to be more subdued next year, as most developers have aggressively launched their products in 2014.

“They knew the market this year would be soft and this softening would be carried forward to 2016.”

Notably, Wong expects demand in the high-rise luxury residential sector within the Klang Valley’s central region to soften in 2016 while demand for landed residential property will likely remain resilient. He also expects home prices to “self-correct”.

Meanwhile, MIDF Research revealed earlier this month that the house price index in Johor posted the slowest growth year-on-year at three percent while Penang 3.5 percent. Selangor and Kuala Lumpur fared better with the index at 6.2 percent and 5.3 percent, respectively.

“We believe that the outlook for property price is better in Greater KL (Selangor and KL) due to support from the urbanisation factor.”

Citing data from Bank Negara, the research house said demand for property loans also fell 13 percent year-on-year in October 2015 to RM25.19 billion.

“This was weaker than September 2015, which declined nine percent year-on-year. On a monthly sequential basis, the data was one percent lower. We are negative on the data as the number was showing nine consecutive year-on-year declines since February 2015.”

“Year-to-date October 2015, loans were lower by seven percent year-on-year to RM253.88 billion. In our view, consumer appetite for big ticket items such as property remains low due to the rising cost of living and the weakening Ringgit.”

Image: Sourced from The Star

Resources: propertyguru.co

6 Habits To Improve Your Memory and Boost Your Brain Health

“Maintaining productivity as an effective decision-maker, innovator, strategist and planner necessitates continued development and sharpening to take advantage of the brain’s vast capacities,” Chapman said. However: “Neglecting your cognitive health and allowing your brain to lose its mental edge with routine [life activities] rather than innovative thinking has unnecessary and deleterious economic, social and personal ramifications.

In our always-on connected society, more and more people express concerns about feeling mentally exhausted, and experience memory lag and information overload. Many of us may therefore conclude that we need a vacation or some downtime, when the actual remedy needed may be a boost in brain health.

Here are the six brain-boosting habits:

1. Limit multitasking.

Multitasking diminishes mental productivity, elevates brain fatigue and increases stress.

 

2. Get an adequate amount of sleep.

Make sure you regularly get seven-to-eight hours of sleep. Information is consolidated in the brain at a deeper level of understanding during sleep.

 

3. Commit to an exercise routine.

Get 30 minutes of aerobic exercise three to four times a week, to improve memory and increase attention and concentration and brain blood flow in the brain-memory area.

 

4. Construct bottom-line messages.

Summarize your task-assignment reading, training seminars, articles, movies you see or books read. Abstracting novel ideas, versus remembering a litany of facts, builds a brain with an enhanced long-term memory for global ideas and the ability to retrieve fundamental facts.

 

5. Laser-focus on important tasks.

Block out information that is relatively unimportant. Limiting the intake of information is a key brain function associated with brain health.

 

6. Stay motivated.

A motivated brain builds faster and more robust neural connections. Identify your passions and learn more about them.

Resources: Entrepreneur.net

Are You the Sheep or Sheepdog? 6 Lessons for Crisis Leadership

We often say there are sheep and there are sheepdogs, and while both are needed for a community to survive, only one can be the leader. So when a small group is placed under stress, many look for that sheepdog to step forward, to provide guidance and take charge to help ensure the endurance of all involved.

Under pressure, people revert to their basic needs, realizing that the group is stronger than the individual. They form bonds based on that need to rely on one another—bonds that aren’t as great when everything is going right.

People who are forced through the toughest times of their lives—natural disasters, military combat tours, health crises—bond in relationships that typically last a lifetime and are far more meaningful than those relationships made during normal circumstances.

So although we don’t necessarily welcome crisis, it does offer lessons we can use to build stronger teams—in difficult and normal times.

Are you the sheepdog of your group? Consider doing the following the next time you’re caught in chaos:

1. Use times of crisis to evaluate and take notes about your personnel. Look to see who is performing, who is withdrawing, who is setting themselves up to survive at the cost of others, and who is working to promote and ensure the success of the team.

 

2. When the stressful period is over, go back and have mentoring or counseling sessions with individuals and the team as a whole to discuss what you observed and what everyone needs to do in the future to promote the advancement of the team during difficult periods.

By providing individual counseling to each member and talking about their observed strengths and weaknesses, you will probably engage them in talks and reflection that they typically wouldn’t have, prompting them to see themselves in a new light.

 

3. Ensure that as a manager, after a stressful period, you take the time to provide an after-action review with your team. Sit down and talk about what worked, what didn’t and what the team sees as the best chance to do better in the future. Do this within a week of the event, take notes and implement changes based off the feedback.

 

4. During normal times, take the opportunity to push people outside of their comfort zones by giving them responsibility and projects that are more challenging. See how they perform. They may surprise you, and if they don’t, that’s fine; you’ll know where their limits are.

 

5. Don’t always choose the same leaders for these greater responsibilities and projects, but use them to mentor others, or completely remove them and let others take the leadership role. Don’t tell them how to do these tasks; just tell them what you want done and let them surprise you with their ingenuity and creativity.

 

6. Make sure people know that you will defend their honest mistakes and will not punish them but will look at these experiences as opportunities for growth and improvement. Build a team by fostering a go-for-it attitude, not one of fear that’s afraid to fail.

 

We grow the most—as individuals and as teams—when we push ourselves through our toughest times. Ask a group of people when the hardest times of their lives were and then ask them at what times in their lives did they grow the most, and will bet you those times match up. No one grows in times of comfort. We learn and grow when we are tested, stressed and forced to perform to survive.

Resources: success.net