At the beginning of the month the index stood at +12 per cent, by the end of the month the index stood at +37 per cent, resulting in the index standing at the highest level it has been since the index began in May 2008.
The index has been on an increasing trend since early March 2009.
Said Asim Qureshi, the CEO and co-founder of thinkproperty.my: “The data confirms that confidence has truly returned back into the Malaysian property market. The results of this survey suggest that we will see higher prices over the next few months, which will in turn likely lead to further confidence. Now is an excellent time to buy.”
Fixed deposits continued their decline in popularly, falling over the course of the month, from 15% of people favouring them to 11%, the lowest level since the survey began.
Equities gained, rising from 25% to 28%. Property remained firmly as the most favoured investment, with 61% preferring property over the other two investment classes, a rise of just 1% of the previous month.
“Fixed deposits will have a tough time competing with both property and equities over the next few months. The KLSE Composite Index is performing well, and property looks attractive. With interest rates remaining low, we expect fixed deposits to be firmly out of favour for a while,“ said Qureshi.
The survey asked participants their opinion on the outlook for the Malaysian property market over the next 12 months.
The index takes the number of participants that believe prices would rise, subtracts the number of participants that believe prices would fall, and then divides this figure by the total number of participants, and calculates this on a rolling 30-day basis.
“The data confirms that confidence has truly returned back into the Malaysian property market," said Qureshi.
"The results of this survey suggest that we will see higher prices over the next few months, which will in turn likely lead to further confidence.
Now is an excellent time to buy. Interest rates are low, banks are becoming increasingly aggressive, and of course, market confidence is returning.
It’s always difficult calling the bottom of the market, but in my view we are now passed the bottom.”
The Favoured Investment Evolution Chart below was compiled by asking participants which investment they believe would be the best investment to make at present (without stating a time frame).
The height of each of the shaded regions shows the percentage of participants that thought the respective investment type was the best investment, calculated on a 30-day rolling basis.
Fixed deposits continued their decline in popularly, falling over the course of the month, from 15% to 11%, the lowest level since the survey began. Equities gained, rising from 25% to 28%.
Property remained firmly as the most favoured investment, with 61% preferring property over the other two investment classes, a rise of just 1% of the previous month.
Qureshi highlighted “Fixed deposits will have a tough time competing with both property and equities over the next few months.
The KLSE Composite Index is performing well, and property looks attractive. With interest rates remaining low, we expect fixed deposits to be firmly out of favour for a while.“
The Favoured Property Type Evolution Chart has been calculated in a similar way to the Favoured Investment Evolution Chart. Participants were asked which property type they believed would appreciate the most over the next 12 months.
The chart shows that condominiums have come back in favour with the percentage of people favouring them rising from 15% to 22% over the month.
Another noticeable change was the decline in agricultural land from 18% favouring it at the beginning of June, but it falling to 11% by the end of the month, possibly due to the defensive nature of agricultural land in terms of investment profile.
By Business Times
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