Property bubble burst unlikely in Malaysia

A property bubble burst is unlikely to happen in the Asia Pacific, including Malaysia, as there are no signs to indicate such a trend in the next two years, says AmInvestment Bank Group.

Director for Retail Funds Ng Chze How said real estate investment trusts (REITS) would also not experience a burst including those acquired by the group.

"I don't see a burst or a crash in the property market. "You have high wages, ample liquidity, small percentage of non-performing loans and these plus steps taken by the government to prevent the economy from overheating, augur well for the property market.

"I don't see a property burst (happening) in the next six months, one year or two years down the line," he told reporters at the launch of Malaysia's first

Asia Pacific REITs fund, AmAsia Pacific REITs, here today.

He said with these factors in place coupled with an economic recovery, there would be more upside in the market. AmAsia Pacific REITs invests in a diversified portfolio of REITs listed in the Asia Pacific region.

Ng was optimistic the REITS selected by the group would see high occupancy rate and increasing rental.

"Selected Asian properties have yet to reach their previous peak, as such, there is room for potential growth," he said, adding that properties were seen as a good hedge during the current inflationary period. - By Business Times


August 2, 2011 at 7:40 PMObserver

No want can predict & control the market from bursting because if it bursts, it always bursts suddenly. How likely the market will burst is depend how many of those (treated/perceived as property professional) making this kind of statement. Majority of the people will just follow the crowd. Most property professional will say something else when suddenly there is a burst.

August 2, 2011 at 9:25 PMkucing

Before the sub-prime crisis in US, all the f*cking stupid property experts said there were no bubble and the property price can shoot up higher.

After the bubble burst, those idiots hide to nowhere and take no reponsibility for causing those follow their advice and badly burnt !!

Talk is cheap,
let's bull shit !

August 2, 2011 at 9:43 PMObserver

Dear Kuching

Because of such people, majority of the people have to suffer with such high cost & inflated price for their roofs. When we voice this in this forum, many of these professionals, developers, property agents, speculators & maybe banker will be cursing us b'cos we are disturbing them from protecting their property industry and earning. Anywhere we are also doing good on our part for the sake of the majority who are less fortunate.

August 2, 2011 at 11:57 PMKEN

Better let michael tan read this loh...

August 3, 2011 at 9:07 AMyh

most ministers, property experts and developers are going to say high demand, no property bubble, economy is strong and other b*llsh*t things. agree with kuching, when things happened, they just keep quite and let you guys suffer as they ahve already earn tones loads of money with them. look at how US is suffering now and 97 asia economy crises at hong kong's property market which fall more than half! eventually it will still come back, but you will be the one to bear and hug with your properties for another few more years, not to mention suddenly get layoffs by your employer~