Malaysia: Expect a Good Property Market in 2010

So says Peter Lim of property portal, iproperty.

A litle bit of macro economics.

The Malaysian economy was not spared from the global recession. In the first quarter of 2009, her export hit an all-time low of 6.2% (year over year). However, the market improved in the second half of 2009 yet remained relatively weak when compared to other regional markets such as Hong Kong and Singapore.

According to Peter, for 2010, many industrial players feel that Malaysia’s property market will be performing well because:

1. The interest rate is still very attractive despite its tendency to increase in the near future because of the economy’s improving conditions. Furthermore, finance institutions are moving toward risk-based pricing in determining more sustainable interest rates for the industry.
2. Due to the population growth in Malaysia, the demand for residential properties will remain strong for years to come.
3. The removal of the 30% Bumiputra equity quota for companies seeking to list on Bursa Malaysia will encourage more domestic and foreign direct investment, which will further stimulate the property industry.
4. Developers continue to roll out housing projects with innovative designs, higher quality, 10/90 property financing scheme etc.
5. As the economic condition improves and the household income gradually increases, Malaysians will be prepared to commit to more capital spending such as buying houses.
6. As global economy gradually recovers, foreigners are flocking back to Malaysia to buy properties as we have one of the highest quality and cheapest properties to offer in Asia.

If the the government continues to play its active role in creating employment opportunities and improving the purchasing power of its citizens, Peter is speculating 2010 will be one promising year for property investment.

China: Asset Bubble Coolant

The Chinese government does not intend to play with fire. No property bubble and certainly no stock market meltdown can come its way if they stay ever vigilant.

And so it came to pass. Before the 'shove' phase can come on, they capped it at the 'push phase'.China renewed its vow to curb runaway property price rises by increasing the supply of affordable housing and cracking down on housing speculation.

First, China's central bank raised bank reserve requirements [for the first time since a cut in December 2008], signalling that the days of cheap money are numbered.

They warned of excessive borrowing among land developers and indicated that property prices in the country's rich coastal cities are too high, stressing that the government remains focused on preventing further asset price inflation.

In a joint statement, officials at the Ministry of Finance, Ministry of Land and Resources, the central bank, the banking regulator and others said they would continue to increase the supply of land and affordable housing, and set up checks on the property investments of state-owned enterprises.

"Since the second half of 2009, some cities have witnessed fast property price rises and inefficient supply of housing," the statement said.

The State Council, China's cabinet, on Sunday warned of the negative impact of letting hot money flow into domestic real estate markets and inflating prices further.

The Housing Ministry has also called for stricter rules on giving mortgages to second-home buyers and is discussing eliminating discount financing for buyers who already own one home.

Such a gung-ho approach. Don't they mean business?

Yoga Guru's Licence to Molest?

I think that there must be do's and don't in every field where there is physical contact between the sexes.This is applicable even in the field of sports such as football.

But what about indoor pursuits such as in dancing and yoga? Aren't there ethical standards and 'private space' to be observed by these so-called mahagurus?

The picture below shows how things can really go wrong.