Deputy Finance Minister Lee Chee Leong said that in the first half of 2017, unsold completed residential units rose by 40% to 20,807 units compared to 2016. Residential units cost a whopping RM12.26 billion; it’s also not surprising that the majority of unsold homes are condominiums and apartments that cost over RM500,000, with RM300,000 homes considered as the more affordable option in the Klang Valley. With there being more supply than demand, real estate veteran Ernest Cheong predicted that the prices of houses would fall from RM500,000 to RM300,000. He also estimated that there are 4 million homes from the secondary market waiting to be sold, meaning that RM16 billions of properties are waiting for buyers.
It is said that 2018 looked to be a tough year as developers and homeowners would find it hard to find buyers, and this could lead to a crash as consumers did not have the financial power to own homes. However, Henry Butcher Malaysia chief operating officer Tang Chee Meng told FMT that based on the latest economic data available, the employment situation, as well as the outlook for the business sector, did not appear to be so negative. This, he said, should provide overall confidence to investors and should support a stable property market. Although the market was sluggish and that the stock of unsold houses could possibly increase in 2018, some projects priced under RM500,000, as well as those above that price range in popular locations, were still enjoying good take-up rates. So what exactly does 2018 hold for the property sector in Malaysia? The Malaysian government alleged that the property glut and political tension in Asia pose risks to the country's economic growth this year as it considers deferring the zero fiscal deficit target from 2020 to 2023. Addressing the Malaysia Corporate Day economic outlook event organized by CIMB Group Holdings, Second Finance Minister Johari Abdul Ghani said that while the country's gross domestic product could grow between a projected 5% and 5.5% in 2018, it will not be insulated from external risks. "The anticipated slowdown in China's economic growth and rising geopolitical tensions in the Middle East, North Asia as well as current U.S. foreign policies are likely to present a risk to the global economy, which will directly have a bearing on Malaysia," said Johari.
There is no consensus on the definition of the financial cycle. In what follows, the term will denote self-reinforcing interactions between perceptions of value and risk, attitudes towards risk and financing constraints, which translate into booms followed by busts. These interactions can amplify economic fluctuations and possibly lead to serious financial distress and economic dislocations. Arguably, the most economical description of the financial cycle is in terms of credit and property prices (Drehmann et al (2012)). These variables tend to co-vary rather closely with each other, especially at low frequencies, confirming the importance of credit in the financing of construction and the purchase of property.That said, combining credit and property prices appears to be the most economical way to capture the core features of the link between the financial cycle, the business cycle and financial crises. Analytically, this is the smallest set of variables needed to replicate adequately the mutually reinforcing interaction between financing constraints (credit) and perceptions of value and risks (property prices).
Malaysia Property Finance Conference 2018 will bring together leading finance professionals who will share their insights into the Malaysia’s real estate market with a primary focus of raising awareness of alternative finance as well as the impact of economy/ ringgit depreciation has had on the market.
The Malaysia Property Finance Conference 2018 is intended to give you a detailed understanding of property finance and the associated property appraisal techniques and processes, encompassing both legal and social aspects. You will analyse investment and development finance situations and respond to particular financial problems with derived solutions. You will also be able to appraise options and independently evaluate alternative courses of action
• Malaysia’s annual platform for real estate practitioners to expand knowledge, skills and concepts on real estate development strategy or finance/investment experience.
• Comprehensive coverage of the most popular financing and investing structures, as well as the latest property regulatory and compliance issues, in a changing capital markets context.
• Dedicated networking sessions positioned throughout the day as an opportunity to become acquainted with those looking to establish and grow their connections within the region.
• Building new and exciting partnerships, sharing market outlooks in the current economic situations.
• Broader perspective on the Malaysian and the Asian region property industry along with its leading-edge development trends
Malaysia Property Finance Conference 2018 provides a platform to encourage dialogue, as keynotes provide insights on today’s complex and sophisticated process of real estate investment and finance, as well as on the latest challenges and prospects facing the economy and the real estate finance sector in Malaysia by focusing on some significant issues such as:
• Property performance measurement and analysis
• Evidence of cycles in property markets
• Investors' approach to different types of property vehicle
• Shariah compliant property financing solutions
• Alternative financing means for development
• Real estate crowdfunding
• The block chain technology and financing property
Top level decision makers, MDs, C-suite executives, Presidents, VPs, Directors, GMs, and senior personnel including Local Government, Agencies & Authorities as well as the following :
• Corporate Property Investors
• Finance Manager
• Financial Controller
• Banks & Other Funders
• Participation Lenders
• Insurance Companies
• Pension Funds
• Legal Officers
• Company Legal Advisor