ASIA PROPERTY MARKET SENTIMENT REPORT (H1) 2013

Presented by Shaun Di Gregorio CEO, iProperty Group 5th February 2013

Survey Methodology
Objective To examine consumer sentiments in the four key markets we serve Malaysia, Indonesia, Hong Kong and Singapore. To provide valuable insights to help consumers gauge the sentiments of the property market Duration Sample Size 3rd December 2012 4th January 2013 17,303 survey respondents in total 8,048 survey respondents in Malaysia 6,117 survey respondents in Indonesia 1,039 survey respondents in Hong Kong 2,099 survey respondents in Singapore Research Instrument Online survey survey respondents were provided with links to obtain more information on specific questions.

THE FINDINGS AN ASIAN OVERVIEW

THE MALAYSIAN FRONT TREADING CAREFULLY WHILE ADOPTING A WAITAND-OBSERVE STANCE

WHO ARE OUR RESPONDENTS

48% aged between 26 35 years old 36% of respondents reported being in executive/managerial positions. 22% were professionals. 10% are self employed

60% Male & 40% Female

Google/Yahoo & Etc Newspapers/magazines

31% - Property Buyers 29% - Property Owners 17% - Investors 10% - Tenants

44% earn between RM 30,001 RM 80,000

WHO ARE OUR RESPONDENTS

36% own at least one property 41% own between two or more properties

49% own a terrace house 47% own private condominiums 16% own Flat/Walk-up Apartments

80% are in the Klang Valley 9% are in Northern Malaysia 8% are in Southern Malaysia 3% are in East Malaysia

WHO ARE OUR RESPONDENTS 52% want to purchase within the next 6 to 12 months 27% within 1 to 2 years 4% is not interested.
Property price is too high Cannot find suitable property Cannot get a loan/afford the property

WHO ARE OUR RESPONDENTS

57% interested in Terrace Houses 55% interested in Private Condominium/serviced apartments
31% interested in Semi-Detached houses 15% interested in shop offices 14% interested in Bungalows

WHO ARE OUR RESPONDENTS

81% want to buy property in the Klang Valley

1. Petaling Jaya 2. Puchong 3. Ara Damansara

WHO ARE OUR RESPONDENTS 33% - Long-term investment (build/accumulate asset) 28% - Better environment for the family 18% - Collect rental income

WHO ARE OUR RESPONDENTS

34% have a budget between RM 350,000 to RM 500,000 33% have a budget up to RM 350,000

WHO ARE OUR RESPONDENTS

Location

Price

Size

Security Capital Appreciation Political & Economic Climate

Facilities

Rental Yield Property Status

Developer Track Record

Financing

Eligibility for Housing schemes/programmes

Recommendations

OVERSEAS MARKET LACK OF APPETITE BUT AUSTRALIA IS PREFERRED DESTINATION

OVERSEAS PROPERTY MARKET

OVERSEAS PROPERTY MARKET

SENTIMENTS CONCERNS OF AFFORDABILITY

SENTIMENTS AFFORDABILITY 13% are concerned about 69% affordability

and rising house

economic and political uncertainties. However, 51% say that the current economic and political climate is conducive to property investment.

prices. Close to 90% rated the current property prices as unaffordable.

11% concerned
about home financing policies and interest rates

are concerned errant developers and build quality

7%

SENTIMENTS AFFORDABILITY
65% believe that the allocation of
RM100 million to revive 30 abandoned

will not resolve the issue of abandoned housing projects in the country.
housing projects

SENTIMENTS ON BUDGET 2013

SENTIMENTS BUDGET 2013 49% were favorable on the abolishment of the additional requirements for a savings record equivalent to 3 months installment and minimum employment of 6 months.

SENTIMENTS BUDGET 2013 64% believe that that allocation of Rm1.9 million to build 123,000 affordable housing units will not meet the need of low-tomiddle income earners.

SENTIMENTS BUDGET 2013

Divided responses on the improvements made to

the My First Home Scheme.

32% think that it will help more people buy their own homes while 32% think that more should be done

SENTIMENTS BUDGET 2013

44% believed that the increase in
the Real Property Gains Tax (RPGT) will be increased from 10% to 15% for properties sold within the first 2 years, while properties sold from the third to fifth year will be increased

will not curb speculation while 39% believed that it will help.
from 5% to 10%

SENTIMENTS BUDGET 2013

69% agree that the proposed
stamp duty exemption on the instrument of transfer and loan agreements

will be helpful to first time home buyers.

CONCLUSION - WHAT THE DATA IS TELLING US?

WHAT THE DATA IS TELLING US Young Malaysians aged from 26 35 years old are looking into purchasing their first home or looking into property as a form of investment and they look to websites to search for property news and information.

WHAT THE DATA IS TELLING US

respondents are not property speculators or heavy investors.

The results suggest that

WHAT THE DATA IS TELLING US

Half of Malaysians surveyed answered that property prices are too high, while 16% answered that they cannot find a suitable property.

WHAT THE DATA IS TELLING US

property market in Malaysia is expected to remain stable in 2013.

The residential

WHAT THE DATA IS TELLING US

that 33% of respondents view property as a long-term investment to

The findings revealed augment their personal assets.

WHAT THE DATA IS TELLING US 34% of respondents indicated that their budget is RM350,001 to RM500,000.
Purchasing a home of more than MYR400,000 (based on a 30year repayment period) in matured or burgeoning areas may

respondents with annual household income of less than MYR60,000.

not be a viable option for

WHAT THE DATA IS TELLING US

49% of respondents are not considering investing in overseas property,
while the remaining respondents are either not interested or undecided. This is not surprising as respondents

might

be unfamiliar with local regulations.

WHAT THE DATA IS TELLING US

69% of respondents are calling for more affordable housing.

WHAT THE DATA IS TELLING US

Young middle-class Malaysians who responded to the survey might

feel priced out of the property market.

WHAT THE DATA IS TELLING US

THE END THANK YOU

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