Developer reveals upcoming project complete with park

PLB Engineering Berhad is launching, via its subsidiary PLB Land Sdn Berhad, a RM270mil mixed-development project on a 20.2ha site in Balik Pulau, Penang.

It is called Prestige III Central Park City and the project will commence in the second quarter of 2012.

Group executive chairman Datuk Ong Choo Hoon (pic) told a press conference that the project comprised 919 units — 322 single and double-storey terrace homes, 40 double-storey semi-detached houses, 57 double-storey shop offices, and 500 medium and low medium-cost apartments.

“The project, comprising three phases, will be completed in 2016.

“The first phase should be completed in 2014.

“We will kick off the project in April or May with the launch of 242 units,” he said.

The prices of the single-storey terrace and double-storey terrace houses are RM360,000 and RM460,000 respectively.

The double-storey semi-detached houses cost RM600,000.

The highlight of the project is a 1.2ha park for the residents to enjoy the greenery, the river and streams.

“The project has received overwhelming response,” Ong said.

He said the group would also launch 98 medium-cost apartments on a site larger than one acre in Sungai Nibong this year.

“The project is planned according to the new density guidelines of the state government which allows for 87 units per acre. Under the new ruling, 15% of the units have to be priced between RM200,000 and RM300,000,” he said.

“We are also targeting to launch a RM1bil township project in Paya Terubong on a 28.3ha site in two years,” he said.

The group is also planning a RM45mil low density medium-cost apartment project in Teluk Kumbar later this year.

“We have also submitted plans for light industry factories in Juru Auto City and Mak Mandin.

“The estimated sales revenue for these projects is around RM115mil,” he said. - The Star

Skills and expertise needed when marketing foreign property

EARLY last week, one of London's largest lettings agency gave a presentation to a small but eager group of investors who have either bought, or about to complete negotiations to invest in a property in London.

Most of them are buying foreign real estate for the first time while a few of them have been landlords for several years. Despite that, they still had questions about various issues like taxation and rights of landlords/tenants.

Many of them have formed an attachment with Britain because of their student days. Some have children studying there. Yet, there are others who bought into that market to take advantage of the favourable currency exchange rate as it has dropped quite a bit since 2008 and because of the drop in real estate prices.

Most, if not all of them, have bought off-plan. While some of them have visited the location of their future property, many of those who were present at the presentation have not. So it was a rather enlightening evening for most of them.

Anita Mehra and her team from Benham and Reeves Residental Lettings gave a bird's eye view of the London rental market as many of them are keen to see some sort of yield from their investments while being an absentee landlord. She answered questions about yield for the different areas, the popularity of some areas over others, the advantages of one and two-bedroom units versus three-bedroom units, the benefits of buying in central London versus one located on the fringe of the city.

Mehra says yield will not be all that attractive and instead suggested that capital appreciation will be a better option for investors to consider.

As the evening wore on, it became obvious that while rental yield was important to the investors, it was the issues related to property ownership in a country they are unfamiliar with which brought them out for the evening.

Being a student tenant in their younger days and now being the landlord means they are now sitting on opposite sides of the fence. They are driven by different forces.

Many of them have questions about taxation. This includes taxation from UK's Inland Revenue Department, local council taxes and the issue of the 40% inheritance tax.

There were questions about insurance, length of leases and what recourse they have when a tenant defaults on rental or reduces the duration of a lease. Because everything is governed by laws and rights, they are also concerned that in the event of a default, the services of a lettings agent may no longer be adequate and there may be the need to engage legal help. There were also many questions whether it was better to take a loan, or to pay cash and why.

It is obvious that being a landlord in Malaysia and a landlord in Britain present two sets of challenges. Mehra answered all these questions with patience but the fact that such questions were posed indicates the fact that they were generally unaware of or have little information when they bought the properties and the implications of that investment.

Foreign property ownership is something that is relatively new to many of these middle-income investors.

Says an investor who bought a property two days before attending the presentation: “I was not able to sleep the day I signed on the dotted line. Many of these presentations were very property oriented. The girls who attended to us told us the property was X minutes from the subway, has X number of rooms and what the price includes and what discount they can give us. I have no idea what the tax issues and property ownership is going to be like.

“At many of these presentation, I was serviced by young personnel who passed me from one colleague to another simply because they cannot answer my questions. Sometimes the property developer and a lawyer are present. But they were unable to give me their single-minded attention. So it was good to have Anita (Mehra) here to answer all our queries,” he says.

Having to glen information from one person to another is troublesome and frustrating. So why did he buy? “There were no competition (from other agencies) and if we wanted to invest in UK and take advantage of the weak Sterling and hope for capital appreciation for a £200,000 investment, we had limited choice.”

At the minimum, a property in London would cost about £200,000 or thereabouts. With an exchange rate of RM4.80 to £1, that works out to about RM1mil.

That is a lot of money in exchange for a property located in another country whose cultural and legal environment we are unfamiliar with despite the fact that our legal system is pretty much British-based.

At the same time, the people who sold them the property need to upgrade the skills and expertise of their personnel because selling a property located in Malaysia to Malaysians and promoting foreign real estate to Malaysians pose two different sets of challenges. Selling foreign properties requires a deeper knowledge of the culture and laws of that country. Those who promote foreign properties need to put themselves in the shoes of their investors to understand their concerns. - The Star

Assistant news editor Thean Lee Cheng thinks marketing personnel need to be very familiar with a foreign market and that includes legal issues before marketing a project there.

Slower subsale market, challenges ahead

PETALING JAYA (Feb 24): The subsale housing market in the Klang Valley which has generally slowed down in the past six months is expected to face more challenging times ahead and prices may soften due to a variety of factors, said real estate agents.

"It will soon be a buyers' market. Prices won't plunge, but they will gradually soften," said Kim Realty CEO Vincent Ng.

The secondary housing market in certain areas is due for a price correction and prices are expected to come down to a more reasonable level.

"There is a gap between asking prices or what people are willing to pay and the valuers' valuations," he said.

Sellers have to eventually reduce their asking prices because their properties are now being valued lower as property valuers are unable to justify the prices without at least two or three transactions to back them up, Ng explained.

As banks will only give out loans according to valuations, buyers will have to fork out more in cash to bridge the gap between what is covered by the bank loan and the rest of the purchase price.

"Let's say the asking price for a house is RM900,000, but the valuers find that it is only worth RM800,000, the bank will only give out a 90% loan based on the RM800,000. There is a RM100,000 differential which is a lot of money," said Ng.

This would dampen sales and eventually some sellers will just withdraw while most will gradually lower prices, he added.

Metro Homes director See Kok Loong said newer properties in the secondary market usually receive more attention as they come with features such as 24-hour security.

See believes such landed homes in the subsale market will continue to do well.

"Buyers may opt for these properties because they are already built, with no 'history' and offer features unavailable in older homes. These homes are also usually located closer to the city centre compared with current launches that are further away. Besides, with limited new launches, buyers may turn to the subsale market, giving it a boost," he said.

"Prices and yields of older properties may drop (due to incoming supply) but there are other factors to consider. The Klang Valley is a strange market as there is always demand due to migration. Demand might lag behind supply by six months to a year, but it will always be there," See added.

However, Malaysia Institute of Real Estate Agents president Nixon Paul said although most prospective purchasers have adopted a wait and see approach in anticipation of selling prices going down, "property prices coming off are highly unlikely".

There will, however, be less demand for certain types of property such as condominiums, office spaces, retail spaces and shops in non-prime locations, bungalow lots in outlying areas and high-end bungalows in prime locations.

Paul said the subsale market will continue to be active in selected areas and selected property types. For instance, bungalows in Petaling Jaya with prices ranging from RM1.5 million to RM2.5 million, and shopoffices in densely-populated areas such as Cheras and Puchong will still see active sales.

"However, if prices of property in an area keep escalating to levels where the returns on investment fall below 4% annually, then we can anticipate investors and end users to shy away from these locations," he pointed out.

As for new launches, the agents expect a slowdown in the first half of the year as Bank Negara Malaysia's stricter rules on bank loans kick in and cautious sentiment is expected to prevail due to the uncertain global economy.

According to See, this year will be less exciting as the local market has come off a good three-year run.

"The big developers are still very healthy financially and they still have a lot of unbilled sales whereby they may delay launches if the market is less attractive and hold back new supply. With that, prices will be stable," he said.

However, he said the pent-up demand built over these few months may push up the market in 4Q.

Ng said although sales may drop slightly, the market will still be sustainable.

Paul pointed out that "sales will be sensitive to price, location and property type".

High-end and luxury-styled properties will see slower sales due to an oversupply situation in the Klang Valley, he added.

"Launches in the outlying areas such as Rawang and Kajang have done reasonably well due to the fact that these developments are affordable. Most terraced houses, semi-detached bungalows and bungalows with prices ranging from RM350,000 to RM800,000 have enjoyed brisk sales," he noted. - The Edge Property

Foreign direct investments hit RM33bil, surpassing pre-crisis level

PETALING JAYA: Despite prevailing global economic uncertainties, Malaysia's total foreign direct investment (FDI) inflows sprung a surprise and climbed to RM32.9bil last year, eclipsing the pre-crisis level of RM29.1bil achieved in 2007.

International Trade and Industry Minister Datuk Seri Mustapa Mohamedsaid the manufacturing sector accounted for the largest share of FDI inflows, comprising 50.1%, followed by the services sector with 27.3%, and mining and quarrying at 22.2%.

Brazil's Vale Group, the world's second-largest mining company, Agilent Technologies Inc and Infineon Technologies are among the foreign companies that expanded their operations in Malaysia last year.

Mustapa: Manufacturing sector accounted for the largest share of FDI inflows last year.

About 72% of FDI came from Asian countries, with Japan topping the list with RM10.1bil, followed by South Korea at RM5.1bil and Singapore RM2.47bil, while US contributed RM2.5bil, and Saudi Arabia RM2.17bil.

With the intensified efforts to attract investments, he hoped the country could achieve similar numbers this year.

Data released by the Malaysian Industrial Development Authority (MIDA) showed total investments approved in the manufacturing, services and primary sectors leaping by 40.7% to RM148.6bil on the back of 4,964 projects, compared with RM105.6bil (4,368 projects) in 2010.

Mustapa also said the domestic investments in 2011 continued to dominate the approved investments, accounting for 55.4% or RM82.3bil of the total approved investments, while foreign investments totalled RM66.3bil.

The manufacturing sector accumulated a total of 846 projects valued at RM56.1bil, an increase of 18.8% from RM47.2bil recorded in 2010, while the services sector recorded investments totalling RM64.4bil, surging by 75.5% from RM36.7bil previously.

Sarawak attracted the most approved investments at RM14.35bil, followed by Penang with RM14.04bil and Sabah at RM13.68bil.

Meanwhile, he said the country had surpassed targets for realised private investments by achieving RM94bil in realised investments in 2011, exceeding the RM83bil target set previously. He said he hoped the country could achieve the target of RM115bil in annual average realised private investments set under the 10th Malaysia Plan.

Bank Islam chief economist Azrul Azwar Ahmad Tajudin said it was a good thing to see a revival in private investments with the country surpassing targets set.

“However, the private investment share to gross domestic product (GDP) ratio is still at low levels despite the revival of private invesments,” he said.

He said before the Asian financial crisis, share of private investment to GDP took between 20% to 30%, and just before the crisis hit, it was at a peak of 35%, however currently it was hovering at about 11% only.

“Although the data presented is very clear, I would like to see data that shows FDI inflows by state,” he said.

RAM Holdings Group chief economist Dr Yeah Kim Leng also echoed the same sentiments and said the fresh data should help boost investors' sentiments given that FDI inflows were still present despite the perceived economic slowdown.

“This points to Malaysia's ability to attract foreign investments, however we still have to see in relation to the overall FDI inflows of other countries, and compare the share with them,” he said. - The Star

S’pore house prices to drop in next 6 months

SINGAPORE: PropertyGuru, Singapore’s leading property site, revealed its fourth quarter 2011 survey results on the property market sentiment in Singapore.

The survey indicates that home buyers and investors expect the new government measures to lower the cost of property, compared to third quarter 2011.

Largely due to the impact of ABSD (Additional Buyer’s Stamp Duty), 52% believe that property prices will decrease in the next six months.

The government has imposed an ABSD for private property of between 3% and 10% for Singaporeans, Permanent Residents and foreigners to moderate investment demand for private residential property and promote a more stable and sustainable market since Dec 8, 2011.

Rentals were also expected to fall in the same period as a reaction to the availability of future supply. — Bernama

Market makeover

ONE of the oldest markets in Penang — the Chowrasta Market — will be transformed into an iconic landmark in the state under a proposed major facelift project costing up to RM12mil.

Well-known for its stores selling second-hand books, preserved fruits and other titbits, the run-down three-storey building is set to undergo a major makeover since it was last upgraded in 1961.

Arkitek LLA Sdn Bhd director Ong Jin Cheng said the market would sport a refreshing new look under the project which is expected to cost between RM10mil and RM12mil.

Ong: Creepers would be grown along the side of the walls

The firm has been engaged by the Penang Municipal Council (MPPP) as the project’s architect.

The original Chowrasta Market was built in 1890 by the George Town Municipal Council.

The market faces Penang Road and is flanked by Lebuh Tamil, Jalan Chowrasta and Jalan Kuala Kangsar.

Ong said there were plans for an urban farm on the rooftop where hydroponic plants could be grown.

In the heart of George Town: File photos of the Chowrasta Market viewed from the back (above) and the front facing Penang Road (below)

“We have proposed that an escalator be built for easier access to the upper levels.

“The first floor will also be equipped with amenities for the public,” he said at a press conference in Komtar yesterday.

He said creepers would be grown along the side of the walls of the multi-storey car park at the back portion of the building under the proposed new look.

MPPP secretary Ang Aing Thye said the project was still at the designing stage and the council was getting more feedback from the public.

Chief Minister Lim Guan Eng, who was present, said the upgrading of the market would be helmed by heritage architect Laurence Loh from the same firm.

“The traders can continue to operate their business there in a cleaner, greener, safer and healthy environment,” he said.

Lim added that the contractor for the project would be chosen through an open tender.

When contacted, Komtar assemblyman Ng Wei Aik said the project design was almost ready.

“Now we need to know the actual cost for each element of the project,” he said adding that the upgrading works were expected to begin within the next few months.

It was reported in December last year that a multi-storey car park and travelators were among the proposals to rejuvenate the market.

It was proposed that one third of the back portion of the market be demolished to build a five-storey car park with 153 parking bays. - The Star

After topping manufacturing investment, Penang looks to drive services

KUALA LUMPUR, Feb 22 — Penang will focus on building up its human capital as it plans to see services make up more than half the state’s economy.

After topping Malaysia’s manufacturing investment charts for the second year running, the state government said today it will now concentrate on services, as the sector “has been identified as one of the twin engines of economic growth together with manufacturing.”

Chief Minister Lim Guan Eng said in a statement today that Penang, the second smallest state in the country, only lost out to the largest state, Sarawak, by RM300 million in total investment “due to the surprising strength of Penang’s services sector.”

“Sarawak received a huge boost from oil and gas investments. Sarawak attracted some RM14.35 billion in total investment last year, to Penang’s RM14.038 billion. Petronas alone invested RM6.7 billion in Sarawak as compared to minimal investments for Penang.

“Penang hopes to see the services grow to more than 50 per cent of GDP by 2020,” the DAP secretary general said.

Putrajaya announced yesterday that Penang topped manufacturing investment for the second consecutive year with RM9.1 billion. This was down, however, from RM12.2 billion in 2010, in line with slowing economic growth in Malaysia.

Lim said this “incredible” achievement came after the state, which has been the country’s electrical and electronics manufacturing hub for over two decades, “focused on consolidating our human resources and building up capacity to attract critical sectors that are knowledge-intensive, high-tech and high-value added.”

“The Pakatan Rakyat (PR) Penang state government will continue to build human talent by focusing on training, retraining, retaining and attracting new talent,” the Bagan MP added.

Business newswire Bloomberg had in October last year described Penang’s growth into Malaysia’s “biggest economic success”, despite the federal government’s focus on Johor and Sarawak, as a boost to PR’s credibility.

It pointed out that under the Najib administration’s Economic Transformation Programme (ETP), the federal government is promoting RM65.8 billion worth of private sector-led projects for Johor and a mere RM375 million for Penang. - The Malaysian Insider

我国外资增长12.3% 槟雪包办首二名

（吉隆坡21日讯）尽管欧洲债务问题和美国经济不振而对全球带来影响，惟据大马工业发展局（MIDA）发出的“2011年大马投资表现”显示，大马2011年外来直接投资（FDI）取得12.3%增长，至329亿令吉（2010年为293亿令吉），反映出我国并没有因为上述负面消息，而削弱吸引外来直接投资的能力。
在槟城，获发展批准的制造业达91亿零600万令吉，慕斯达法表示，多半一般的公司是进行重新投资。而排名第二州属则是雪兰莪，该州获得批准的投资额为87亿4100令吉。
排名第三为柔佛，第四砂拉越，吉打排第5。而另一民联州，吉兰丹倒数第二。
慕斯达法表扬槟城与雪兰莪多年成功，可以取得佳绩是实至名归的。然而，他语带双关道，“该州州政府在推行把槟州国际机场升级和建造第二槟威大桥的正面带动下，有可能不获得如此佳绩吗？”
当中，制造业最具吸引力，有50.1%的外来直接投资流入制造业。另外，也有27.3%外来直接投资进军服务领域、22.2%投入矿业与采石业、0.4%投资在农业、森林业及渔业领域。
值得注意的是，主要的外来直接投资大部分来自亚洲国家，比例占72%，当中多半来自日本、韩国、美国、新加坡及沙地阿拉伯。上述取得发展批准的国家投资总额是225亿令吉，或占了外来直接投资总额的65.8%。
海外投资表现不俗，我国国内的表现亦不落人后。2011年的国内直接投资持续超越外来直接投资，经批准的发展投资项目达55.4%，相等于823亿令吉的总额；而外资总额则是663亿令吉
制造业在2011年继续复苏，其中，总值561亿令吉，或846项制造业计划已在2011年获得发展批准，多于2010年的472亿令吉，增长了18.8%。
国际贸易与工业部长拿督斯里慕斯达法指出，该成绩更超越马来西亚第三工业计划（IMP3 -2020年）设下的275亿令吉的目标。
这归功于我国政府提倡将在新兴科技、高附加价值领域、高科技、资本密集及研发作出投资，进而吸引海外和国内投资者瞩目；与此同时，国内投资者对政府推行的经济转型计划感到正面。
不但如此，在获得执照的制造业公司中，北马走廊经济区（NCER）的投资总额极具份量——高达153亿令吉，紧随在后的份量级投资项目则是砂拉越再生能源走廊（SCORE）（投资额达82亿令吉）、大马依斯干达计划（57亿令吉）、东海岸经济特区（ECER）（46亿令吉）以及沙巴发展走廊计划（9亿令吉）。
慕斯达法今日在公布《2011年大马投资表现》报告时如是透露。随同出席包括大马工业发展局（MIDA）主席丹斯里苏莱曼、及国际贸易与工业部副部长拿督慕克力。
对于去年设下的私人投资领域将取得830亿令吉投资额目标一事，慕斯达法指出，“初步预测，2011年私人投资有望达到940亿令吉的投资额，但这只是初步预测，确实数据必须等待国家银行公布。”
总括而言，他认为政府推出的经济转型计划将为我国经济注入更多的正面元素。“此外，相信私人投资仍会保持强劲的动力，以驱动我国经济发展。其中，油气领域的公司如国家石油和戴乐集团积极地推出发展计划下，该领域有望在未来数年有更大的发围。”
服务领域续当我国要角
服务领域继续担任驱动我国经济增长的重要角色。2011年，共有3957项目，或相等于644亿令吉的投资总额获得发展批准，相较于2010年的367亿令吉，私人领域于2011年共取得75.5%成长。
初步相信，这些取得发展批核的项目将可创造4万3794份的就业机会。
缅甸逐步开放
随着缅甸政府逐步采取开放措施，慕斯达法表示将带引大马公司到该国发展。
至于泰国首相英叻于周一，与我国首相拿督斯里纳吉展开的双边会谈，以借此加紧双方的联系。慕斯达法表示，泰国迅速成长，而水灾延伸出来的问题已逐步获得解决，相信泰国可在今年复苏。
然而，泰国人民在我国设立公司并不多，因此，他将致力推广，以吸引更多的泰国公司到我国投资。

相关照片

■ 慕斯达法公布2011年大马投资表现，其中外来直接投资取得12.3%增长。

Tax spotlight on green building materials

PETALING JAYA: The Energy, Green Technology and Water Ministry will look at ways to reduce the costs of green building materials in order to encourage the use of such materials in property and public infrastructure development.

“We can consider this. I will definitely look seriously at this.

“For example, the import duties on such materials,” said Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui after he witnessed the signing of a memorandum of agreement between property developer Ken Holdings Bhd and Universiti Tunku Abdul Rahman (Utar) to undertake collaborative research and develop green technology in housing construction.

Chin reiterated that the Government already provided tax deduction incentives for building developers concerning the additional costs of achieving accreditation as being environment-friendly by rating tools such as Malaysia's Green Building Index (GBI).

Green and clean: Ken Holdings executive director Sam CS Tan (right) exchanging documents with Utar president Datuk Dr Chuah Hean Teik during an MoU signing ceremony, witnessed by Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui. The collaboration will focus on developing an energy-efficient design system for housing.

Meanwhile, the ministry is aiming to promote the implementation of green projects this year, under the Government's Low Carbon Cities Framework (LCCF), by the authorities in five locations, namely Miri (Sarawak), Pulau Sah Besar (Kenyir Lake, Terengganu), Universiti Malaya, Port Dickson (Negri Sembilan) and Hang Tuah Jaya (Ayer Keroh, Malacca).

Chin said this was among the Ministry's KPIs (key performance indicators) this year.

Chin also pointed out that there were efforts to implement the use of green technology in Government buildings.

“Many government buildings are old, and were not designed to comply with GBI. We are trying to implement and retrofit (green elements) and eventually, we may be able to call Putrajaya and Cyberjaya green communities.

“We have discussed this with Putrajaya Holdings Sdn Bhd and Sepang Municipal council,” he said.

Chin said the Works Ministry was spearheading efforts concerning green government buildings, and had proposed minimum standards for certification.

He also said the ministry was compiling details on energy usage by the various ministries, and would submit a report to the Cabinet at the “appropriate time.”

Also, according to the Ministry, about RM607mil under the Green Technology Financing Scheme has been approved for 36 projects since the scheme started in January 2010.

The scheme can benefit companies which are producers and users of green technology.

Under the GTFS, the Government would bear 2% of the financing interest, and in addition, provide a guarantee of 60% on the financing amount via Credit Guarantee Corp Malaysia Bhd (CGC).

Meanwhile, the collaboration between Utar and Ken Holdings would focus on developing an energy-efficient design system for housing, by using heat insulated roofing sheets, walling blocks and panels.

Ken Holdings would provide Utar with materials for the collaboration, which would include building an “experimental village” in the Ken Rimba township in Shah Alam. - The Star

Demand for luxury houses seen to be flattish

PETALING JAYA: Demand for houses priced around RM1mil has dropped and is expected to be flattish throughout this year, a reflection of real estate transaction volumes across the Asia-Pacific, an online survey in Malaysia and a Hong Kong-based report show.

External uncertainties, the general election factor on the local front and a general wariness about a possible bubble in the Malaysian market had dampened the market, said iProperty Group chief executive officer Shaun Di Gregoria.

“We are seeing a reduction in volume for the top-end market. Rental is also expected to come off a bit for the top end,” he said after launching the result of an online survey at iproperty.com.my conducted from Dec 5, 2011 to Jan 19, 2012 involving 3,459 respondents.

The findings are supported by telephone interviews with two property agents.

Despite that, Di Gregorio said, Malaysians were expected to continue to be upbeat about the property market, with interest seen mostly in properties priced between RM400,000 and RM500,000.

The survey revealed that 35.7% of the respondents considered themselves property buyers while 26.2% identified themselves as property owners.

This is part of the first cross-market online property survey conducted by the iProperty Group covering Singapore, Indonesia, Hong Kong and Malaysia that attracted about 8,500 respondents.

Di Gregorio said although various measures had been taken by the authorities to discourage speculation, the Malaysian property market continued to be friendly to buyers.

He said Malaysia was the number one destination for Singaporeans as property prices here were still affordable to them.

“Yield in Singapore and Hong Kong is low because of the high capital cost there. The United States and Europe have their own challenges, so South-East Asia will increase in popularity, with Malaysia being a good market to be in throughout this year. There is positive sentiment to invest here,” he said.

About 40% of the Singaporean respondents said Malaysia was their preferred destination, followed by Australia (19.4%).

Meanwhile, about 40% of Malaysians considered Australia as their preferred overseas property investment destination, 19.8% liked Singapore and 13.7% chose the United Kingdom.

While iProperty Group paints a positive picture of the local property market, 58.6% of those who responded to the survey in Malaysia believed there is a property bubble in this country versus 53.85% of those who responded in Singapore.

On a larger scale, the drop in transaction volume is also reflected in the Asia-Pacific. A quarterly report by the Asia Pacific Real Estate Association (APREA) and Real Capital Analytics said there was a 32% drop in real estate transaction in the Asia-Pacific year-on-year to US$85.3 bil as at Dec 31, 2011.

“It moderated by as much as 18% since the end of the third quarter last year,” APREA said in a statement.

“Concerns over the eurozone debt crisis contributed to the moderation in the fourth quarter. A strong performance by Singapore helped mitigate the declines in other countries,” said APREA chief executive officer Peter Mitchell.

The decline was seen across all industry segments. Transactions in hotels fell 23%, commercial property 20%, land 17%, and apartments 8%. Stripping out land transactions, Japan led in regional sales volume, accounting for 22% of the fourth-quarter sales. This was followed by Australia with 17% and Singapore, 16%.

“Transactions in the region are continuing to be dominated by domestic players,” Mitchell said. - The Star