Residential Property Investment Is There More Upside

1
Residential Property Investment Is There More
Upside?
Malaysia As An International Real Estate
Investment Destination
2
Foreign Purchasers Of Office Investments In Terms
of Value
Last year, a whooping 45 of the value of office
transactions were by Foreigners, as compared to
19.3 the year before and 1.9 in 2004. I see
this increasing investments in commercial markets
as a growing trend The Same applies for Equity
Investments in Real Estate ie Capital Group of
California bought 5.2 of EO Properties.
Zerin Properties Corporate Real Estate Services
3
Ownership Details as of Dec 2006Office Sector
Golden Triangle
GLCs will drive commercial real estate market in
next two years
Zerin Properties Corporate Real Estate Services
4
Ownership Details as of Dec 2006Retail Sector
Kuala Lumpur
Foreign 20.21
Local 79.78
Zerin Properties Corporate Real Estate Services
5
Trend Of Hospitality InvestmentsMalaysia
And again, a huge 85 of the value of hotels
transactions were by Foreigners, as compared to
44 for the year before.
Foreign Investments In Hotels Grew By 64 in
2006. Hotel Funds and Foreign Investment Funds
Driving Demand
Zerin Properties Corporate Real Estate Services
6
(No Transcript)
7
Interest Outside Klang Valley

• Penang
• Good MM2H Following
• Mid East Fund and Capital Land in EOs project
• Residential (landed and flatted)
• Hospitality HPL/Hard Rock Hotel
• Johor
• Mudabala and KFH in Node 1
• Multi Level Interest in IDR
• Sabah
• Kudat Riveria
• Labuan
• Sandakan
• Kota Kinabalu

Zerin Properties Corporate Real Estate Services
8
Real Estate Transparency Index 2006
Malaysia is also one of the most Real Estate
Transparent countries in the world ranking in
Tier 2 with Japan (both ranked 22 and 23
respectively) as compared to China and Vietnam at
Tier 4 (ranked 42 and 56 respectively)
Source JLL
9
Investor Demand For Commercial Real Estate
The RICS Global Property Survey provides unique
insight into commercial property occupancy and
investment trends in cities around the world.
The survey, published twice a year, has nearly
400 contributors from both global property
companies and local property professionals. The
Survey Resulted in KL being sought after by REITS
and Investment Funds, causing Yields to drop as
prices increase due to demand
RICS Global Survey
10
Any More Upside? Resounding Yes

• Merryl Lynch Asia Property Boom Still Young
• KFH Property Picks are Malaysia and Vietnam
• Credit Suisse Malaysian property will
  experience property asset appreciation

Zerin Properties Corporate Real Estate Services
11
Any More Upside? Resounding Yes

• Due to the wealth effect of the stock market
• Government pump-priming
• Foreigners snapping up high-end property as a
  result of perception that it is relatively
  undervalued compared with other major regional
  countries such as Hong Kong and Singapore,
  coupled with an undervalued currency. Kuala
  Lumpur could be the next property play after Hong
  Kong and Singapore.
• More fund managers have been deviating from the
  normal routine of company visits to view property
  developments in Kuala Lumpur, Penang and Johor.

Zerin Properties Corporate Real Estate Services
12
Any More Upside? Resounding Yes

• Asia 9.5 rise over 10 years
• Asia 29 rise over 5 years
• Anglo Saxon 149 rise over 10 years
• Anglo Saxon 56 rise over 5 years

• Asian property prices are not high relative to
  per capita income.
• Asian property still offers good value.
• It appears that property prices in most Asian
  cities are not yet overpriced relative to per
  capita income.
• London and New Yorkers have to work more than 6
  months to buy one square meter as compated to
  Asia ie 4 months.

13
Any More Upside? Resounding Yes

• Main Drivers in Place
• Low Interest Rates
• Sustained Growth Employment and Wages
• Young Population and Urbanization
• Tourism Juggernaut
• LCC Induced Growth
• How Long Will It Last
• Based on GDP Growth, Population Requirements,
  Globalisation

Zerin Properties Corporate Real Estate Services
14
3 Hot Property Locations

• Kuala Lumpur
• KLCC, Mont Kiara, Ampang Hilir
• Penang Island
• JB IDR
• Followed By
• Kota Kinabalu (I am Sabahan)
• Kuantan-Cherating-KT

Zerin Properties Corporate Real Estate Services