ipoh's propenomics: the haven, an iconic project that is reshaping ipoh's property market

“Connecting the …… dots between economy, demographic trends and current-new property hotspots”

REI Group of Companies - Presentation by Dr. Daniele Gambero

Malaysia Economy and Property Market: Mid Year Review and the Raise of Ipoh

CONSULTANCY

- Strategic Marketing Consultancies: design, concept, pricing, branding

- Property Market Surveys: defining the best product for each specific area

- Property Market Reporting: give developers an independent platform to take strategic decision on future development

- Property Market Analysis: research and definition of new development products based on existing market situation

- Branding: adding value by endorsement of project, branding of new development areas, defining and creating catalyzer for future development

- Creative: converting ideas in fact and having fun

…………What we do

Organizations that have invited Dr. Daniele Gambero as speaker to their events are: Rehda KL, Rehda JB, Rehda Malacca and Rehda Penang Sheda Kuching Asian Strategic Leadership Institute (ASLI) FIABCI Malaysian Chapter iProperty, PropertyGuru Malaysia and Singapore and EG Expos Malaysian Property Incorporated University Malaya KL Wealth Mastery Academy, Comfori and Starfish Special Property Market Outlook presentation to the Bod of: Encorp Bhd Hatten Group UEM Sunrise

Regular columnist for several newspapers and specialized magazine such as: The Star Malaysian Reserve Malay Mail PropertyTimes The Sun Real Estate Malaysia Property Hunter Property Insight Property King

Agenda

Malaysian Economic Performance: room for improvement

Malaysian Economy: Fact File

Malaysian Demographic and Wealth: Fact File

The Sustainability of Malaysian Property Market: Fact File

Malaysian Property Market: The Raise of Ipoh

Malaysian Property Market: get it right!

MALAYSIAN PROPERTY MARKET Setting the rules for sustainability

STABLE AND DEMOCRATIC POLITICAL ENVIRONMENT

ECONOMIC GROWTH PLANNING AND EXECUTION

DEF

INIT

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AN

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UTI

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AM

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RK

&

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ULA

TOR

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AU

THO

RIT

Y

HEALTHY GROWTH OF A REGULATED AND PROFITABLE PROPERTY MARKET

USA EU UK JAPAN AUSTRALIA MALAYSIA

GDP Growth 2.52% 0.12% 0.65% 0.65% 0.65% 4.70%

Gov. Debt as % of GDP 101.60% 90.60% 91.10% 226.1% 20.7% 53.10%

Gov. Deficit as % of GDP -4.10% -3.7% -7.40% -9.6% -3.00% -4.50%

Balance of Current Acc

in USD Billion-360.7 -34.5 -93.6 56.6 -44.9% 16.6

Inflation 1.5% 1.5% 2.7% 0.2% 2.4% 3.2%

Unemployment 7.3% 10.8% 7.7% 4.1% 5.7% 3%

GLOBAL & MALAYSIAN ECONOMY - FACT FILE

USA EU UK JAPAN AUSTRALIA MALAYSIA

GDP Growth 2.52% 0.12% 0.65% 0.65% 0.65% 4.70%

Gov. Debt as % of GDP 101.60% 90.60% 91.10% 226.1% 20.7% 53.10%

Gov. Deficit as % of GDP -4.10% -3.7% -7.40% -9.6% -3.00% -4.50%


in USD Billion-360.7 -34.5 -93.6 56.6 -44.9% 16.6

Inflation 1.5% 1.5% 2.7% 0.2% 2.4% 3.2%

Unemployment 7.3% 10.8% 7.7% 4.1% 5.7% 3%


MALAYSIA

1Q14MALAYSIA

GDP Growth 6.20% 4.70%

Gov. Debt as % of GDP65.2%

Redefined53.10%

Gov. Deficit as % of GDP -4.10% -4.50%


in USD Billion26.4 16.6

Inflation 3.40% 3.2%

Unemployment 2.80% 3%


Country

Result

over 3

years

2010 2013 2010 2013 2010 2013 2010 2013 2010 2013 2010 2013 2010 Rank 2013 Rank

SINGAPORE 1 1 4 4 2 2 16 36 1 1 13 12 0 37 1 56 2

NEW ZEALAND 2 3 1 1 5 6 3 2 26 25 10 17 -1 47 2 54 1

HONG KONG 3 2 18 6 1 1 75 60 2 2 3 10 +2 102 5 81 3

US 4 4 8 13 25 17 12 25 18 22 8 6 -1 75 3 87 4

UK 5 7 16 19 16 20 23 73 16 14 23 21 -2 99 4 154 6

THAILAND 12 18 55 85 13 16 6 26 12 20 24 23 -4 122 6 188 7

JAPAN 15 24 91 114 45 72 54 64 17 19 20 35 -6 242 8 328 9

S. KOREA 19 8 53 24 23 26 71 75 8 3 5 2 +2 179 7 138 5

MALAYSIA 23 12 88 54 109 96 86 33 35 11 59 33 +6 400 9 239 8

Overall Ranking

Ease of

doing

business

Starting a

business

Dealing with

construction

permits

Registering a

property

Trading

across

borders

Enforcing

contracts

MALAYSIAN DEMOGRAPHIC - FACT FILE UPDATE 2012

+1.6 M

+3.6 M

+2.6 M

+6 M

MALAYSIAN MIGRATION FLOWS - FACT FILE

2012: 21,000,000 Malaysians live in urban areas 3.5% growth every year

2012: 72.5% of the Malaysian population lives in urban areas

15,000,000.00

16,000,000.00

17,000,000.00

18,000,000.00

19,000,000.00

20,000,000.00

21,000,000.00

22,000,000.00

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

MALAYSIAN FLOW

Malaysian Migration Flow Rural to Urban Areas

Source: World Bank Statistics

FEW CONSIDERATION ON MALAYSIANS WEALTH:

Malaysian average per capita income 2013 (PPP) – Source IMF/WB

USD17,046 per year = RM4,400 (per month)

Malaysian Wealth Distribution

Lowest 20% Highest 20%

Share 5% of Malaysian wealth Share 40% of Malaysian wealth

=

Median 60% share 55%

MALAYSIAN WEALTH DISTRIBUTION - FACT FILE

18,000,000



State GDP @

const prices

2009 2010 2011 2012 2012

RM RM RM RM % RM Billion

Kuala Lumpur 57,040 62,075 68,072 73,931 1,768,680 5.90% 114,106

Sarawak 31,286 34,136 39,324 40,414 2,601,000 8.68% 71,874

Pulau Pinang 30,098 33,601 35,188 37,006 1,664,640 5.56% 52,530

Selangor 28,468 31,457 33,727 36,135 5,826,240 19.44% 176,239

Malacca 25,397 28,328 31,093 33,550 832,320 2.78% 21,953

Negeri Sembilan 25,595 28,586 31,295 32,511 1,040,400 3.47% 27,717

2012 % on

Malaysia

Population

PER CAPITA INCOME STATISTICS

GDP per Capita at current prices State by

state

Population

in 2012



State GDP @

const prices

2009 2010 2011 2012 2012

RM RM RM RM % RM Billion

Kuala Lumpur 57,040 62,075 68,072 73,931 1,768,680 5.90% 114,106

Sarawak 31,286 34,136 39,324 40,414 2,601,000 8.68% 71,874

Pulau Pinang 30,098 33,601 35,188 37,006 1,664,640 5.56% 52,530

Selangor 28,468 31,457 33,727 36,135 5,826,240 19.44% 176,239

Malacca 25,397 28,328 31,093 33,550 832,320 2.78% 21,953

Negeri Sembilan 25,595 28,586 31,295 32,511 1,040,400 3.47% 27,717

2012 % on

Malaysia

Population

PER CAPITA INCOME STATISTICS

GDP per Capita at current prices State by

state

Population

in 2012

Pahang 20,548 23,008 26,066 26,197 1,560,600 5.21% 30,750

Johor 18,878 21,329 23,593 24,574 3,537,360 11.81% 68,791

Terengganu 19,102 20,581 22,220 22,733 1,144,440 3.82% 19,627

Perak 15,809 17,341 19,362 20,569 2,496,960 8.33% 39,627

Sabah 15,515 17,118 19,038 19,010 3,537,360 11.81% 44,434

Perlis 15,186 16,175 16,992 18,119 208,080 0.69% 3,535

Kedah 12,481 13,744 15,388 15,814 2,080,800 6.94% 25,307

Kelantan 8,421 9,322 10,366 10,617 1,664,640 5.56% 13,461

MALAYSIAN PROPERTY MARKET SUSTAINABILITY

House - Income trend 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

House price index 100.0 101.1 103.5 107.5 112.4 115.0 117.2 123.1 128.6 130.5 138.8 151.2 167.2 178.4

Income statistics 213.0 232.1 238.2 244.2 250.0 260.8 271.5 282.2 294.6 307.0 330.0 352.9 375.8

How House Price Index and Per Capita income index are strictly correlated,

what is this comparison showing?

House price index +67%

Median income +175%

HOUSING EXISTING STOCK AND FUTURE SUPPLY

STATE

SUPPLY OF

LANDED TILL

2020

SUPPLY OF LOW

COST TILL 2020

LOW COST ON

POPULATION %

SUPPLY OF

HIGH RISE TILL

2020

TOTAL HOUSES

SUPPLY BY 2020

POPULATION BY

2020

NEED/OVERSUPPLY

OF HOUSES BY

2020

KUALA LUMPUR 113,005 156,915 8.39% 251,854 521,774 1,870,000 101,559

SELANGOR 833,155 491,584 7.83% 342,154 1,666,893 6,279,686 426,336

JOHOR 652,827 260,616 5.79% 87,968 1,001,411 4,499,432 498,400

PENANG 204,903 214,780 13.15% 63,728 483,411 1,633,703 61,157

MALACCA 138,607 50,244 5.49% 18,979 207,830 914,506 97,005

NEGERI SEMBILAN 265,638 90,725 7.11% 47,461 403,824 1,276,244 21,591

PAHANG 230,251 69,856 4.17% 17,862 317,969 1,674,660 240,251

PERAK 383,460 95,873 3.84% 12,909 492,242 2,494,237 339,170

PERLIS 19,804 9,294 3.82% 1,602 30,700 243,400 30,150

KELANTAN 67,511 12,722 0.83% 4,189 84,422 1,533,613 426,782

TERENGGANU 91,254 43,173 4.13% 1,026 135,453 1,045,864 213,168

KEDAH 247,710 115,217 5.92% 3,173 366,100 1,947,472 283,057

SABAH 98,335 62,930 1.83% 41,618 202,883 3,443,107 485,738

SARAWAK 189,640 51,915 2.04% 14,893 256,448 2,543,759 252,304

GRAND TOTAL FOR

MALAYSIA3,536,100 1,725,844 5.50% 909,416 6,171,360 31,399,685 3,476,669

EXISTING STOCK AND HOUSE SUPPLY TILL 2020

MALAYSIA AND THE REGION: WHERE ARE WE?

Ranking Country RM/psfHouse of

1,000 Sq.Ft.

GDP Per

capita

(PPP) USD

GDP Per

capita

(PPP) RM

Property

value to

income ratio

1 Hong Kong 3,124.59 3,124,590.30 44,770 143,264 21.81

2 Singapore 2,684.31 2,684,310.67 53,266 170,451 15.75

3 Australia 1,345.25 1,345,254.55 35,668 114,138 11.79

4 Japan 1,266.79 1,266,794.87 31,425 100,560 12.60

5 South Korea 950.93 950,925.31 27,990 89,568 10.62

6 Taiwan 911.38 911,379.60 33,608 107,546 8.47

7 Brunei 847.36 847,359.72 45,978 147,130 5.76

8 China 794.82 794,817.91 7,957 25,462 31.22

9 Thailand 451.83 451,829.25 8,458 27,066 16.69

10 Myanmar 414.39 414,385.92 1,324 4,237 97.81

11 Malaysia 367.42 367,418.25 17,046 54,546 6.74

12 Philippines 285.84 285,838.91 3,802 12,166 23.49

13 Vietnam 241.09 241,086.96 3,133 10,026 24.05

14 Cambodia 212.31 212,310.48 2,149 6,877 30.87

15 Indonesia 207.62 207,621.70 4,271 13,667 15.19

16 Laos 79.72 79,721.29 2,521 8,067 9.88

Source: IMF - World Bank - CIA

Average price of property per country 2012 - SEA REGION Property value

to income per capita (PPP) ratio

MALAYSIA AND THE REGION: WHERE ARE WE?

Ranking Country RM/psfHouse of

1,000 Sq.Ft.

GDP Per

capita

(PPP) RM

Property

value to

income ratio

10 Myanmar 414.39 414,385.92 4,237 97.81

8 China 794.82 794,817.91 25,462 31.22

14 Cambodia 212.31 212,310.48 6,877 30.87

13 Vietnam 241.09 241,086.96 10,026 24.05

12 Philippines 285.84 285,838.91 12,166 23.49

1 Hong Kong 3,124.59 3,124,590.30 143,264 21.81

9 Thailand 451.83 451,829.25 27,066 16.69

2 Singapore 2,684.31 2,684,310.67 170,451 15.75

15 Indonesia 207.62 207,621.70 13,667 15.19

4 Japan 1,266.79 1,266,794.87 100,560 12.60

3 Australia 1,345.25 1,345,254.55 114,138 11.79

5 South Korea 950.93 950,925.31 89,568 10.62

16 Laos 79.72 79,721.29 8,067 9.88

6 Taiwan 911.38 911,379.60 107,546 8.47

11 Malaysia 367.42 367,418.25 54,546 6.74

7 Brunei 847.36 847,359.72 147,130 5.76

Average price of property per country 2012 - SEA REGION

Property value to income per capita (PPP) ratio

Source: IMF - World Bank - CIA

MALAYSIAN PROPERTY MARKET SUSTAINABILITY

Kuantan: the new commercial port, the already committed investment from Chinese, European and American Multinational Corporation

Kota Baru: the Northern Educational Hub with 15 Local and International Universities already working to establish a northern campus

Penang: the 8th destination worldwide to retire.

Ipoh: retirement homes and health tourism

Klang Valley: the Northern, Southern and Western Corridor and the Megaprojects

Iskandar Malaysia: the most Strategically Sustainable Location in the region (SEA)

Malacca: upcoming star in the Malaysian market as world tourist destination.

PERAK The Raise of Ipoh

- Ipoh: the healthier city of Malaysia with lakes, mountains, rivers and hot-springs which give high breathability through daylong breezes

- Ipoh: ranked 6th less expensive destination worldwide for retirement living (expatriates ranking)

- Ipoh: local Government and Private Operators to profitably tap into Visit Malaysia year 2014 and Year of Festival 2015

- Ipoh: conveniently located and easily accessible within 2 hours from Kuala Lumpur and Penang

PERAK & IPOH: FACT FILE

Perak is the 4th State of Malaysia by size 21,022 km2 or 10 times the size of Iskandar Malaysia

Perak is the 7th State of Malaysia by GDP Contribution 5.3%

Perak/Ipoh: 2013 residential properties saw a 11.5% increase

The Sustainability of Malaysian Property Market: Fact File

Perak is the 5th State of Malaysia by Population – 2.4 Mil or 9% of the Malaysian population. Metro Ipoh counts 1.6 mil habitants

PERAK & IPOH: HIGHLY SUSTAINABLE MARKET

Status Landed Low cost High-rise

2014 Existing stock 150,637 44,715 2,580

Completion 3,450 - 182

Incoming Supply 10,666 3,564 669

Starts 4,105 - 322

Planned Supply 9,102 122 846

New Planned Supply 3,950 - 762

19,209

2013

235,672

Total

197,932

18,531 2016

2020

IPOH TOTAL HOUSES BY 2020

PERAK & IPOH: HIGHLY SUSTAINABLE MARKET

ESTIMATE NEED OF HOUSES

(4 MEMBERS PER HOUSEHOLD)

1,688,911

422,228

186,556

CURRENT DEMAND OF HOMES


TOTAL IPOH POPULATION AS AT 2015

(Est +1.2% yr)

DEMAND OF HOMES BY 2015


(4 MEMBERS PER HOUSEHOLD)

TOTAL IPOH POPULATION AS AT 2020

(Est +1.2% yr)

DEMAND OF HOMES BY 2020

TOTAL IPOH POPULATION AS AT 2012 1,535,192

383,798

185,866

1,591,125

397,781

181,318

NEW INFRASTRUCTURE WITH BUDGET 2014: WEST-COAST HIGHWAY

West Coast Expressway Banting-Taiping 250 km

West-coast highway

NEW INFRASTRUCTURE WITH BUDGET 2014: WEST-COAST HIGHWAY

THE HAVEN: buying an iconic product

IPOH & THE HAVEN “Lakeside Residence” THE ICONIC PRODUCT

IPOH & THE HAVEN “Lakeside Residence” THE ICONIC PRODUCT’S AWARDS 2011 - 2013

Thank you

For questions please email to: [email protected]

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