ASIA PROPERTY MARKET SENTIMENT REPORT (H2) 2012

Presented by Shaun Di Gregorio CEO, iProperty Group 11th September 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 1st July 31st July 2012 25,754 survey respondents in total 11,966 survey respondents in Malaysia 9,805 survey respondents in Indonesia 1,000 survey respondents in Hong Kong 2,983 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 Findings An Asian Overview

The Findings An Asian Overview

The Findings An Asian Overview

THE MALAYSIAN FRONT CONTINUES TO BE A BUYER FRIENDLY ENVIRONMENT

Malaysia A Buyer Friendly Environment

The largest segment of the group was the 31 35 age group. Just over half (56%) of people answering the survey reported an annual household income of MYR 80,000 or less and 44% earning above MYR 80,000.

Malaysia A Buyer Friendly Environment

34% considered themselves Property Buyers, while 26% identified themselves as Property Owners. Another 20% were investors. This can be partly explained by the low barriers to property ownership and the healthy property price growth in the country.

Malaysia A Buyer Friendly Environment

A surprising 43% owned two or more properties, a higher proportion than in any other country. Singapore 29% own 2 or more properties

Hong Kong 14% own 2 or more properties

Indonesia 12% own 2 or more properties

Malaysia A Buyer Friendly Environment

With 60% of survey respondents intending to buy property within the year, 70% had a budget under MYR 500,000. Landed property was the most popular type of property, drawing the interest of 73% of survey respondents. Survey respondents across the four countries have stayed in their current premises for less than 5 years indicating that they aspire to upgrade their living conditions.
60% want to buy within the year with the motivation to own their own property 70% had a budget of under MYR500,000

73% wants landed property

56% have stayed in their current premises between 0 5 years

Malaysia A Buyer Friendly Environment

7.84/10
Rental Yield 5.94/10

8.15/10

3.04/10

Factors of consideration when buying property

6.15/10

Developer

Family & Friends

5.24/10

3.03/10 4.60/10

Malaysia A Buyer Friendly Environment

Trends of Most Popular Areas in Malaysia from April 2012 July 2012 On the iProperty.com Malaysia website, it can be seen that the top 4 popular search areas were Bangsar, Puchong, Cheras and Petaling Jaya. 3.00%

2.50% 2.00%
1.50% 1.00% 0.50% 0.00% July June

May
April

OVERSEAS MARKET CAUTIOUS

Overseas Market Cautious

SENTIMENTS CONCERNED OVER RISING HOUSE PRICES

Sentiments Concerned over Rising House Prices

85% are concerned about affordability and rising house prices

56% are concerned errant developers and building quality

52% considered the current economic and political climate to be conducive to property investment

Sentiments Concerned over Rising House Prices

54% believed that the loan-t0-value mortgage cap will moderate speculative activity in the market. A divided response from respondents that the Real Property Gains Tax has curbed speculation. 42% said yes and 42% said no with 17% unsure about the move. 47% were supportive of the new amendments to the Housing Development Act 1966.

On Loan-To-Value, Real Property Gains Tax and Amendments to the Housing Development Act 1966

Sentiments Concerned over Rising House Prices

49% did not believe that My First Home Scheme helped first time home buyers compared to 33% of respondents last year.

51% believed that more should be done to protect property buyers.

On My First Home Scheme and Laws to Protect Home Buyers

BUDGET 2013 WHAT MALAYSIANS WANT

61%
Tax deductions on housing loans

60%
Lower Interest Rates

58%
Better Housing Schemes

55%
Better Public Transportation In Housing Areas

54%
Stricter Guidelines on Property Price Increase

53%
Stricter Guidelines on Errant Developers

CONCLUSION

Conclusion
The Malaysian property market continues to be friendly for property buyers. The Malaysian real estate in in tandem with the continued growth in the economy. Buyers are more keen on investing in properties under MYR500,000 as majority young working respondents who are eager to buy. Affordability and rising house prices continue to remain high concern.