Entire Asia fighting rapid increase in property prices in the last few years has caused the market clam down. Indeed, plentiful of property developing related counters’ stock prices are subdued. From locally Malaysia to even China, prices of property developer PE dropped to as low as 5 to 8 times.
I personally feel this is a good sign as developers in history mostly could not read the market well. They keep building as long as in business angle they can make money but forget the overall supply and demand rule. We may have a few outstanding companies can withstand in any situations. Governmental measures are recommended to control the overall platform of the industry.
We believe there are values in the market. We will start looking around for quality companies as an early entrance back to this segment. Interest rates increase worldwide is already priced in in short term. Asset related investment will still a good choice for wealthy investor to leverage their portfolio.