Location, timing, branding

Property hot spots in the Klang Valley are losing their shine in the current property downturn.

According to Ho Chin Soon (picture) of Ho Chin Soon Research Sdn Bhd, locations like the Kuala Lumpur’s Golden Triangle and the exclusive Mont’Kiara enclave, for example, are less hot these days. He explains: “In 2007 and first half of 2008, these locations were deemed hot and prices were chased up, resulting in a slight bubble. As such, there have to be adjustments to the values and this is happening now.”

Still, all is not lost for those who had bought homes in these areas. “Even if the units were sold for less today, the sellers would still profit if they had purchased at developers’ prices,” he says.

Though the global financial crisis has spooked investors and purchasers, certain types of property investments may still do well, says Ho, adding that one safe property investment haven will be landed properties.

“The values in some suburban locations are holding very well,” he says.

Ho will be identifying these locations in his presentation at the The Edge Investment Forum on Real Estate 2009 to be held at the Sime Darby Convention Centre on April 4. He has been a speaker at the yearly forum since its inception in 2007.

He says the last two recessions have shown  timing to be a critical factor in property investment. “Timing has to be one of the pillars of the real estate mantra. So, we have to change our mindset and accept the fact that the old mantra of ‘location, location and location’ is not good enough. The new mantra should be ‘location, timing and branding.’”

Ho will elaborate on his views at the upcoming forum. He will share updated timing charts, explain why the property cycle is different this time around and what some branded developers are up to in the current tough market.

Ho Chin Soon Research was set up in 1989 to provide information on real estate and consultancy services to property development companies specialising in feasibility studies.


This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 746, March 16-22, 2009.

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