Of bub­bles and hotspots

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THERE are mini hotspots ap­pear­ing all over the coun­try, es­pe­cially in places sur­round­ing the Klang Val­ley such as Cy­ber­jaya, Seri Kem­ban­gan, Ka­jang, Bangi, Se­menyih, Ni­lai, Sepang, Har­ta­mas and Bangsar Southc­ity.

If you an­a­lyse this care­fully, you will no­tice that th­ese places are ori­ented to­wards the south, to­wards Iskan­dar, which is a mere 300km away.

This is in line with what ex­perts in the prop­erty field have been say­ing all along, that Iskan­dar Malaysia will dic­tate prop­erty prices and the hotspots that will crop up for the next few years.

How­ever, in­vestors should be cau­tious about jump­ing onto th­ese mini hotspots be­cause they could be con­tribut­ing to the build­ing of prop­erty bub­bles.

The thing is, th­ese hotspots are very frag­ile and the burst­ing of a bub­ble in one of th­ese ar­eas will cause a domino ef­fect and re­sult in a gi­ant ex­plo­sion.

There are two main rea­sons for th­ese and they have very lit­tle to do with re­cent poli­cies im­ple­mented by the Gov­ern­ment to cool the prop­erty mar­ket.

Over­sup­ply of prop­er­ties

The many new de­vel­op­ments that were launched three years ago have been com­pleted or are near­ing com­ple­tion.

While there will be de­mand in the sec­ondary mar­ket, in­vestors have to bear in mind that the ma­jor­ity of buy­ers will buy to live in and not to re-sell or let the prop­er­ties out.

This means once th­ese prop­er­ties are oc­cu­pied, there will not likely be any more de­mand af­ter that, un­less there are new eco­nomic de­vel­op­ments near the area such as new job op­por­tu­ni­ties.

In­vestors have to keep in mind that the spate of new prop­erty launches has been on­go­ing with many new launches still in the works.

In the next five years, an over­sup­ply of prop­er­ties, both res­i­den­tial and com­mer­cial in th­ese ar­eas, are ex­pected.

New gen­er­a­tion, new life­style

Peo­ple are putting off mar­riage and start­ing a fam­ily. Some don’t even plan on start­ing a fam­ily.

This means they will not want or need new houses to live in for a few more years or at all.

So, in all prob­a­bil­ity, un­til the next gen­er­a­tion comes of age and is able to buy or need prop­erty to live in, ex­perts ex­pect prop­erty prices to level from now on as op­posed to the steep climb it has been ex­pe­ri­enc­ing for the past 10 years.

As such, what can prop­erty in­vestors do to make sure they con­tinue to make money from their in­vest­ments? Sell as soon as pos­si­ble? Hold and wait for prices to go up? This dilemma and many oth­ers are what the Prop­erty Out­look Con­fer­ence 2014 will ad­dress.

The line-up of speak­ers for the Prop­erty Out­look Con­fer­ence 2014 in­cludes prop­erty gu­rus as well as the heads of or­gan­i­sa­tions that have spear­headed the growth of the prop­erty mar­ket to­day.

The key to mak­ing prof­itable in­vest­ments is be­ing able to get the right in­for­ma­tion at the ear­li­est op­por­tu­nity and tak­ing ac­tion on that in­for­ma­tion, chang­ing and adapt­ing the in­vest­ment strat­egy to suit the sit­u­a­tion.

The con­fer­ence hopes to give prop­erty in­vestors the lat­est and most au­then­tic in­for­ma­tion on the prop­erty mar­ket to­day in face of the many changes to the rules of the game.

High­lights of Prop­erty Out­look Con­fer­ence 2014

* Bud­get 2014 strikes. What is the big im­pact on the prop­erty mar­ket?

* Overview of the Malaysia econ­omy and prop­erty mar­ket * Sub-sale mar­ket per­for­mance and out­look * Com­mer­cial mar­ket per­for­mance and out­look * Malaysia prop­erty out­look for each re­gion * Are there any mini prop­erty bub­bles form­ing in hotspot like Cy­ber­jaya, Iskan­dar Jo­hor and other ar­eas? * How to be­come a mil­lion­aire land­lord? * Chang­ing trends in the re­tail mar­ket

In­vestors who are se­ri­ous about be­ing suc­cess­ful in prop­erty in­vest­ment should at­tend the con­fer­ence so they can pre­pare them­selves and cre­ate long-term in­vest­ment strate­gies.

The two-day con­fer­ence will be held on Jan 11 and 12, 2014, at Ho­tel Is­tana, Kuala Lumpur.

For The Star read­ers, you are en­ti­tled to a very spe­cial pro­mo­tion.

wma.my/star­poc.

The Prop­erty Out­look Con­fer­ence 2014 or­gan­ised by Wealth Mas­tery Academy pro­vides a bet­ter per­spec­tive on the prop­erty mar­ket.

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