ASIA PROPERTY MARKET SENTIMENT REPORT (H2) 2012

Presented by Shaun Di GregorioCEO, iProperty Group 11th September 2012

Survey Methodology Objective To examine consumer sentiments in the

four key markets we serve – Malaysia, Hong Kong, Indonesia and Singapore.

To provide valuable insights to help consumers gauge the sentiments of the property market

Duration 1st July – 31st July 2012

Sample Size 25,754 survey respondents in total

11,966 survey respondents in Malaysia 9,805 survey respondents in Indonesia 1,000 survey respondents in Hong Kong 2,983 survey respondents in Singapore

Research Instrument Online survey – survey respondents were provided with links to obtain more information on specific questions.

THE FINDINGS – AN ASIAN OVERVIEW

The Findings – An Asian Overview

The Findings – An Asian Overview

The Findings – An Asian Overview

THE MALAYSIAN FRONT -CONTINUES TO BE A BUYER FRIENDLY ENVIRONMENT

Malaysia – A Buyer Friendly Environment

The largest segment of the group was the 31 – 35 age group. Just over half (56%) of people answering the survey reported an annual household income of MYR 80,000 or less and 44% earning above MYR 80,000.

Malaysia – A Buyer Friendly Environment

34% considered themselves Property Buyers, while 26% identified themselves as Property Owners. Another 20% were investors. This can be partly explained by the low barriers to property ownership and the healthy property price growth in the country.

Malaysia – A Buyer Friendly Environment A surprising 43% owned two or more properties, a higher proportion than in any other country.

Properties owned

Singapore – 29% own 2 or more

properties

Indonesia – 12% own 2 or more

properties

Hong Kong – 14% own 2 or

more properties

Malaysia – A Buyer Friendly Environment With 60% of survey respondents intending to buy property within the year, 70% had a budget under MYR 500,000. Landed property was the most popular type of property, drawing the interest of 73% of survey respondents. Survey respondents across the four countries have stayed in their current premises for less than 5 years indicating that they aspire to upgrade their living conditions.

60% want to buy within the year with the motivation to own their own property

70% had a budget of under MYR500,000

73% wants landed property

56% have stayed in their current premises between 0 – 5 years

Malaysia – A Buyer Friendly Environment

Rental Yield5.94/10

Factors of consideration when buying

property

7.84/108.15/10

6.15/10

5.24/10

Developer

4.60/10

3.03/10

Family & Friends

3.04/10

Political and

Malaysia – A Buyer Friendly Environment Trends of Most Popular Areas in Malaysia from April 2012 – July 2012

On the iProperty.com Malaysia website, it can be seen that the top 4 popular search areas were Bangsar, Puchong, Cheras and Petaling Jaya.

Bangsa

r

Puchong

Cheras

Petaling J

aya

Mont K

iara

Shah

Alam

Suban

g Jay

a

Ampang

Klang

Kepong 0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

July June May April

OVERSEAS MARKET – CAUTIOUS

Overseas Market – Cautious

49% were not interested

in overseas property

Top 3 Overseas Destinations 1. Australia 2. Singapore 3. United Kingdom

50% had the intention to purchase after two years – with 50% citing retirement/migration as main attraction.

SENTIMENTS – CONCERNED OVER RISING HOUSE PRICES

Sentiments – Concerned over Rising House Prices

85% are concerned about affordability and rising house

prices56% are concerned errant developers

and building quality

52% considered the current economic and political climate to be conducive to property

investment

Sentiments – Concerned over Rising House Prices

On Loan-To-Value, Real Property Gains Tax and Amendments to the Housing Development Act 1966

54% believed that the loan-t0-value mortgage cap will

moderate speculative activity

in the market.

A divided response from respondents that

the Real Property Gains Tax has curbed

speculation. 42% said yes and 42%

said no with 17% unsure about the

move.

47% were supportive of the new amendments to the

Housing Development Act 1966.

Sentiments – Concerned over Rising House Prices

49% did not believe that My First Home Scheme helped first time home buyers compared to 33% of respondents last

year.

51% believed that more should be done to protect property buyers.

On My First Home Scheme and Laws to Protect Home Buyers

BUDGET 2013 – WHAT MALAYSIANS WANT

Better Housing Schemes

Tax deductions on housing loans

Lower Interest Rates

BUDGET 2013 WHAT MALAYSIANS WANT

Better Public Transportation

In Housing Areas

Stricter Guidelines on Property Price

Increase

Stricter Guidelines on

Errant Developers

61% 60% 58%

55% 54% 53%

CONCLUSION

Conclusion

The Malaysian property market continues to be friendly for property buyers.

The Malaysian real estate in in tandem with the continued growth in the economy.

Buyers are more keen on investing in properties under MYR500,000 as majority young working respondents who are eager to buy.

Affordability and rising house prices continue to remain high concern.