Real Estate: A Good Investment

Sarena Cheah
30th April 2016
Malaysian property and its economic cycles the past 25 years
Soft Economic Outlook
Global uncertainty
Tightening of lending
guidelines by banks
GST implementation

2014 vs. 2015: 2%

Global Financial Crisis 5 years CAGR: 12.10%

Asia Financial Crisis

2008 vs. 2009: 8%

5 years CAGR: 7.79%
1997 vs. 1998: 23%
5 years CAGR: 9.96%

The proposal and recommendations contained herewith remain the sole property of Sunway Group. Any unauthorized duplication or content use without consent of authority from Sunway Group, is deemed as
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 22 April 2016

The proposal and recommendations contained herewith remain the sole property of Sunway Group. Any unauthorized duplication or content use without consent of authority from Sunway Group, is deemed as
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Are there any opportunities?

The proposal and recommendations contained herewith remain the sole property of Sunway Group. Any unauthorized duplication or content use without consent of authority from Sunway Group, is deemed as
4 breach of copyright.
2015 was a year of adjustment for the Malaysian property
market
Malaysia Total Value Transaction (RM bil)
Moving average 9% (3 years)
180.0
163.0
160.0 152.4 149.9
142.8
140.0 137.8

120.0 107.4

100.0 88.3
77.1
80.0 81.0
60.0
60.0 61.6
56.9
40.0
20.0
-

Source: NAPIC (3 years moving average 2004-2007)

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Total NPL has been on a downward trend from 2010 to 2015,
similarly for residential property loan

Non Performing Loans (RM' mil) NPL to Total Loans Ratio

40,000 6.0%
5.6%
35,000 34,785
5.0%
4.8%
30,000 29,692
28,669 4.2%
26,996 4.0% 4.0%
25,000 3.7%
22,520 22,699 23,103 3.4%
22,161 3.2%
20,000 3.0%
2.6% 2.7%
2.4%
15,000
2.0% 2.0% 2.0%
1.9% 1.9%
10,738 1.7% 1.6%
10,000 1.5%
8,926 1.3% 1.3%
7,724 1.2%
6,434 1.0% 1.0% 0.9%
5,000 5,661 5,272 5,012 5,030 0.8% 0.7%
2,698 1,913 1,857 1,398 1,281 1,162 1,335 1,786
- 0.0%
Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15

Total NPL Purchase of residential property Purchase of residential property Purchase of non-residential property
Purchase of non-residential property Total loans

Source: Bank Negara Malaysia

The proposal and recommendations contained herewith remain the sole property of Sunway Group. Any unauthorized duplication or content use without consent of authority from Sunway Group, is deemed as
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5 reasons to invest in real estate 1 2 3 4 5
Maslows hierarchy of needs; we all want a place to call home.

The proposal and recommendations contained herewith remain the sole property of Sunway Group. Any unauthorized duplication or content use without consent of authority from Sunway Group, is deemed as
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5 reasons to invest in real estate 1 2 3 4 5
Property, being an important contributor to GDP, has proven to be
a resilient investment class.

Source: Bank Negara Malaysia & Department of Statistics

The proposal and recommendations contained herewith remain the sole property of Sunway Group. Any unauthorized duplication or content use without consent of authority from Sunway Group, is deemed as
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5 reasons to invest in real estate 1 2 3 4 5
Real estate, in the right locations, gives the greatest return for
leverage.

INFRASTRUCTURE ACCESSIBILITY

INTEGRATED DEVELOPMENT CONNECTIVITY

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9 breach of copyright.
5 reasons to invest in real estate 1 2 3 4 5
We can get creative and innovative with real estate.

The proposal and recommendations contained herewith remain the sole property of Sunway Group. Any unauthorized duplication or content use without consent of authority from Sunway Group, is deemed as
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5 reasons to invest in real estate 1 2 3 4 5
There are pockets of opportunities.

The proposal and recommendations contained herewith remain the sole property of Sunway Group. Any unauthorized duplication or content use without consent of authority from Sunway Group, is deemed as
11 breach of copyright.
 The proposal and recommendations contained herewith remain the sole property of Sunway Group. Any unauthorized duplication or content use without consent of authority from Sunway Group, is deemed as
12 breach of copyright.