Residential Property Investment Is There More Upside?Malaysia As An International Real Estate Investment Destination

Foreign Purchasers Of Office Investments In Terms of ValueLast year, a whooping 45% of the value of office transactions were by Foreigners, as compared to 19.3% the year before and 1.9% in 2004. I see this increasing investments in commercial markets as a growing trend

The Same applies for Equity Investments in Real Estate ie Capital Group of California bought 5.2% of E&O Properties. Zerin Properties Corporate Real Estate Services

Ownership Details as of Dec 2006Office Sector Golden TriangleGLCs will drive commercial real estate market in next two yearsZerin Properties Corporate Real Estate Services

GoldenTriangleSuper PrimePrime A1Prime A2Secondary B1Secondary B2Percentage Foreign Ownership23%0%46%32%21%19%Percentage GLC Owned33%100%KLCC7%27%36%19%

Ownership Details as of Dec 2006Retail Sector Kuala LumpurLocal79.78%Foreign20.21%Zerin Properties Corporate Real Estate Services

Kuala LumpurPrime A1Prime A2Percentage Foreign Ownership16%15%42%

Trend Of Hospitality InvestmentsMalaysiaZerin Properties Corporate Real Estate Services Foreign Investments In Hotels Grew By 64% in 2006. Hotel Funds and Foreign Investment Funds Driving DemandAnd again, a huge 85% of the value of hotels transactions were by Foreigners, as compared to 44% for the year before.

Interest Outside Klang ValleyPenangGood MM2H FollowingMid East Fund and Capital Land in E&Os projectResidential (landed and flatted) Hospitality HPL/Hard Rock HotelJohorMudabala and KFH in Node 1Multi Level Interest in IDRSabahKudat RiveriaLabuanSandakanKota KinabaluZerin Properties Corporate Real Estate Services

Real Estate Transparency Index 2006Source: JLLMalaysia is also one of the most Real Estate Transparent countries in the world ranking in Tier 2 with Japan (both ranked 22 and 23 respectively) as compared to China and Vietnam at Tier 4 (ranked 42 and 56 respectively)

RatingTierHong Kong61Singapore101Malaysia222Japan232Thailand363India413China424Vietnam564

Investor Demand For Commercial Real EstateRICS Global SurveyThe RICS Global Property Survey provides unique insight into commercial property occupancy and investment trends incities around the world.

The survey, published twice a year, has nearly 400contributors from both global property companies and local property professionals.

The Survey Resulted in KL being sought after by REITS and Investment Funds, causing Yields to drop as prices increase due to demand

Any More Upside? Resounding YesMerryl Lynch Asia Property Boom Still Young

KFH Property Picks are Malaysia and Vietnam

Credit Suisse Malaysian property will experience property asset appreciationZerin Properties Corporate Real Estate Services

Any More Upside? Resounding YesDue to the wealth effect of the stock market

Government pump-priming

Foreigners snapping up high-end property as a result of perception that it is relatively undervalued compared with other major regional countries such as Hong Kong and Singapore, coupled with an undervalued currency. Kuala Lumpur could be the next property play after Hong Kong and Singapore.

More fund managers have been deviating from the normal routine of company visits to view property developments in Kuala Lumpur, Penang and Johor.

Zerin Properties Corporate Real Estate Services

Any More Upside? Resounding YesAsia 9.5% rise over 10 yearsAsia 29% rise over 5 years

Anglo Saxon 149% rise over 10 yearsAnglo Saxon 56& rise over 5 years

Asian property prices are not high relative to per capita income.

Asian property still offers good value.

It appears that property prices in most Asian cities are not yet overpriced relative to per capita income.

London and New Yorkers have to work more than 6 months to buy one square meter as compated to Asia ie 4 months.

Any More Upside? Resounding YesMain Drivers in PlaceLow Interest RatesSustained Growth Employment and WagesYoung Population and UrbanizationTourism JuggernautLCC Induced GrowthHow Long Will It LastBased on GDP Growth, Population Requirements, GlobalisationZerin Properties Corporate Real Estate Services

3 Hot Property LocationsKuala LumpurKLCC, Mont Kiara, Ampang HilirPenang IslandJB IDR

Followed ByKota Kinabalu (I am Sabahan)Kuantan-Cherating-KT

Zerin Properties Corporate Real Estate Services