Asia Property Market Sentiment Report (H2) 2014

INDEX
CEOs Note ...........3

Executive Summary.5
Methodology, Assumptions and Caveats .6
Results Analysis Asia Overview ..7
Malaysia ....9
Demographics .....13
Overseas Property .29
Sentiments ..35
Indonesia ...47
Demographics ..49
Sentiments ..71
Hong Kong..84
Demographics ..87
Sentiments ..98
Singapore .103
Demographics 106
Overseas Property ..124
Sentiments 135
CEOs NOTE
We are once again pleased to share with you the findings of our sixth iProperty.com
Asia Property Market Sentiment Survey Report. This survey reveals sentiments for
the second half of 2014 while comparing the sentiments on the property market in
the first half of the year.
Conducted for a month, 5th June 2014 - 8th July 2014, across our market-leading
network of property portals, the survey gathered close to 13,000 respondents.
Cautious optimism seems to be the phrase that describes the Asian property market
in 2014. Despite economic upheavals, especially due to the tapering US economy,
capital flows have been somewhat steady in the Asian markets.
In all countries surveyed, affordability continues to remain a major concern. All these
countries have introduced multiple new measures to cool the property market
and/or are looking into providing more affordable housing to the low- and middleincome group via various schemes.
We wish to thank all the survey respondents for sharing their valuable input on the
property market. Without the involvement of these many individuals, this report
would not have been possible.
Should you have any comments and feedback pertaining to this report, please drop
is an email at my.info@iproperty.com
Sincerely,
Georg Chmiel
Managing Director and Chief Executive Officer
The iProperty Group
EXECUTIVE SUMMARY
In the sixth iProperty.com Asia Property Market Sentiment Report for H2 of 2014,
survey respondents in Malaysia (iProperty.com.my), Indonesia (Rumah123.com and
rumahdanproperti.com), Hong Kong (GoHome.com.hk) and Singapore
(iProperty.com.sg) revealed their intentions, preferences and motivations in
acquiring property.
METHODOLOGY,
AND CAVEATS
ASSUMPTIONS
This is the sixth iProperty.com Asia Property Market Sentiment Survey Report
conducted by the iProperty Group. Held twice yearly, the survey aims to provide the
general public, property investors, buyers, sellers and owners, including local and
expatriates with insights into the property market purely from a consumer
perspective.
In Malaysia, a total of 5,295 people responded to the online survey.
In Indonesia, a total of 2,590 people responded to the online survey.
In Hong Kong, the survey gathered a total of 1,940 respondents. The survey was
designed and conducted in both English and Chinese on www.GoHome.com.hk.
In Singapore, a total of 2,805 people responded to the online survey.
The analysis of data from each survey question only considered data from questions
that were not skipped.
RESULTS ANALYSIS
Overview
Malaysia and Singapore have seen a slowdown in property sales, while Indonesia has
seen a surge in local demand rather than the capital inflows that spurred record
home prices in neighboring Singapore and Hong Kong.
Majority of respondents are male, and most are married. Most respondents in
Malaysia and Singapore are Executives/Managers, while most respondents in
Indonesia are Clerks/Administrators.
Most respondents have lived in their current place for less than 5 years and majority
have 4 or more living under the same roof. The main motivation of purchasing
property are the desire to own their own home, to attain rental income and for longterm investment.
In all countries surveyed, concerns about affordability remain. A considerable
percentage of respondents:
Have trouble finding property that they can afford, and have insufficient
funds for a downpayment
Are looking to purchase property locally within the next year
Picked Location, Price and Size as the three key factors to focus on when
purchasing property
For overseas property, most respondents would only consider purchasing 2 years
from now. Australia is consistently the second choice for property investment in all
countries surveyed. Respondents in Singapore and Malaysia prefer to purchase
Private condominiums / serviced apartment, while Indonesia prefers to purchase
Landed property overseas. Similar to the previous survey, those who find overseas
property attractive are looking to purchase for investment and/or migratory
purposes.
Asias outlook
While mature markets like China, Japan and India have experienced certain highs
and lows, several new markets like Philippines, Indonesia and Malaysia have
emerged. According to Knight Frank Wealth Report 2014, global investment in
commercial property is expected to increase by 11% in 2014 and 2015 to USD$593
billion and USD$657 billion (RM2.1 trillion) respectively.
In Asia-Pacific, transaction volume rose nine percent to USD$119 billion (RM388
billion) in 2013, up from the one percent increase posted in 2012. In Asia-Pacific,
transaction volume rose 9% to USD$119 billion in 2013, up from the 1% increase
posted in 2012. Head of Research for Asia-Pacific at Knight Frank, noted that the
Asian economic slowdown has been more evident in the occupier markets.
In a Cushman & Wakefield publication, Asia Pacific 2014 2015 Forecasts: Regaining
Momentum, moderate growth forecasts for Asia Pacific in 2014-2015 remain intact.
Regional gross domestic product (GDP) growth is projected to remain solid at 5.4%5.5% this year and rebound to 5.5%-5.8% in 2015.
Inflation is also expected to remain benign across much of the region, except in India
and Indonesia, where monetary policy will remain tight to fend off inflationary
pressures.
The Southeast Asian economies of Indonesia, Malaysia, Philippines and Vietnam are
expected to grow more than 5% this year. Malaysias robust domestic demand will
remain crucial to maintaining its forward momentum, though sentiment is likely to
weaken following the implementation of the goods and services tax (GST) in 2015.
Indonesia will continue its underperformance as high interest rates and fuel prices
weigh on the economy. In Singapore, stable consumption, along with a pick-up in
exports, should allow the city-state to expand slightly above its projected long-term
trend rate (3.5%- 4%).
MALAYSIA:
SLOWER
MARKET
AMIDST ADJUSTMENT TO COOLING
MEASURES. A STRONGER SECOND
HALF IS EXPECTED, BUT THE LATEST
HIKE IN OPR IS EXPECTED TO LEND
A SLIGHT EFFECT.
The growth in the Malaysian House Price Index (MHPI) declined to 9.6% in the fourth
quarter of 2013, compared with 12.2% a year earlier, according to Bank Negara
Malaysia. This was the first time since the third quarter of 2011 that the MHPI was
below 10%, and the improvements were recorded across most states and most types
of dwelling.
Sales and new launches slowed in the last quarter of 2013, possibly due to the
various measures imposed to cool down the housing sector since 2010. Bank Negara
also said that it is possibly due to the wait-and-see attitude of some developers and
buyers following the prohibition on developer interest-bearing schemes in
November 2013, further increases in real property gains tax in January this year,
higher minimum purchase price for houses by foreigners, and uncertainties
regarding the potential impact of the goods and services tax.
Bank Negara said that although the MHPI had expanded annually by between 10%
and 12% since 2011, outpacing income and rental growth, the rate of growth in
house prices remained significantly below those observed in some neighbouring
economies.
Malaysias relatively young population and labour force, increasing urbanisation, and
general inclination to own a house, are factors that are expected to sustain strong
demand for affordable residential properties in major urban centres, likely
outstripping supply over the near and medium-term.
Bank Negara said the earlier government measures had also resulted in reduced
credit-fuelled speculative purchases of residential properties where the annual
growth in the number of borrowers with three or more outstanding housing loans
has declined substantially to about 4%, from a peak of 15.8% prior to the
implementation of the measures, to account for only 3% of housing loan borrowers.
A survey by chartered surveyor and international property consultants CH Williams

Talhar & Wong (WTW) showed that the outlook for the property sector in Malaysia,
particularly the residential and industrial sub-segments, is expected to remain robust
in 2014 despite a minor setback due to the governments cooling measures like the
Real Property Gains Tax and Developer Interest Bearing Scheme. GST is not entirely
zero-rated for residential properties as there is uncertainty on how the government
will resolve the grey areas concerning residential projects.
An analyst with RHB Research Malaysia believes that property sector will recover in
the second half of 2014 (2H14) driven by a stronger 2014 gross domestic product
(GDP) growth outlook and the implementation of the goods and services tax (GST) in
April 2015. Maybank IB Research remains cautious on the sustainability of property
demand. In discussions with bankers, they revealed that the loan rejection rate has
been as high as 40% to 50% nowadays (depending on product types; affordable
housing dominated by first-time buyers has lower loan rejection rate) compared to
10-20% a year ago.
Maybank IB Research also warned that with many potential buyers still looking to
buy properties for investment purposes, further tightening measures could
negatively hit demand, and in greater force. According to the research house,
demands for landed property under MYR1mil remained firm but pointed out that
discussions with property agents revealed a significant slowdown in demand for
high-rise luxury properties.
Some consultants opine that the rush on property purchases will balance the slower
first-half of 2014 with stronger demand as many potential property buyers are
currently in a wait and see situation.
Raise in interest rates
On 10th July 2014, Bank Negara raised the overnight policy rate (OPR) for the first
time in three years by 25 basis point (bps) to 3.25%, aiming to curb rising inflation
and household debt. The floor and ceiling rates of the corridor for the overnight
policy rate are correspondingly raised to 3.00% and 3.50%, respectively.
In its latest analysis, the central bank described the prospects for the Malaysian
economy to remain firmly on a steady growth path. A 25 bps hike in OPR will have a
3% impact on monthly payments in the property sector, eroding housing
affordability amongst Malaysians.
10
Graphs show loan applications and approvals between 2006 to 2014

(SOURCE: Bank Negara)
A simulation study suggests that in the current base lending rate of minus 2.4%, a
MYR3,000 per month instalment amount will be able to afford a property worth
MYR681,000. A 25bps rate hike will reduce the affordable property price by 2.92% to
MYR662,000.
According to a senior executive of a real estate agency, an increase of 0.25% in the
overnight policy rate (OPR) will not have a significant impact on borrowers for lowcost and affordable housing priced between MYR45,000 and MYR450,000.
Property consultants expect fewer transactions as mortgage rates will rise in tandem
with the interest rate.
11
12
DEMOGRAPHICS:
MARRIED
COUPLES
WITH
INCREASED
BUDGET FOR BOTH LONG-TERM
PROPERTY
INVESTMENT
AND
OWN-HOME PURCHASE
There are more male respondents in this survey compared to the last survey, up
from 57% to 61%. As with the previous few surveys, the survey is male-skewed.
Gender
100%
90%
61%
80%
70%
39%
60%
50%
40%
30%
20%
10%
0%
Male
13
Female
In comparison with the previous survey, there is a huge increase in the percentage of
married respondents (from 41% to 54%), and this increase is directly from a drop in
respondents who are single (from 57% to 45%).
Marital Status
100%
90%
80%
70%
54%
45%
60%
50%
40%
30%
20%
1%
10%
0%
Married
Single
Other
Most respondents are probably living with their spouse, their young children and/or
parents, as 55% of respondents have 4 or more people living in their household.
No of People in a Household
100%
90%
80%
70%
60%
50%
40%
30%
25%
30%
20%
19%
20%
7%
10%
0%
One
14
Two
Three
Four
More than
Four
As for the age groups, the numbers are similar to the previous survey. Respondents
are largely from 20 to 40 years old, and majority of respondents are Malaysian
citizens.
Age Group
100%
90%
80%
70%
60%
50%
39%
37%
40%
30%
14%
20%
10%
9%
1%
0%
Below 20
20 - 30
31 - 40
41 - 50
51 and above
Residence Status
Non-resident in the country
1%
Foreigner Residing in the Country
6%
Permanent Resident
91%
Citizen
0%
15
20%
40%
60%
80%
100%
Profession of respondents surveyed is consistent with the previous survey, where

most respondents are Executives/Managers, followed by Professional/Technical
and Self-Employed. The difference in percentage is rather insignificant.
Profession
1%
Unemployed
Homemaker
Retired
Student
1%
2%
3%
3%
Civil Servant
Clerical / Administrative
4%
5%
CEO / Senior Management

Sales
8%
8%
Self Employed
Professional / Technical
Executive / Managerial
25%
40%
0%
20%
40%
60%
80%
100%
Despite the upward percentage jump in married respondents, the household income
remains relatively unchanged. Majority of respondents (52%) fall into the
MYR90,000 and below group, while more than a quarter (27%) are from mid- to
upper middle-income group of MYR90,001 to MYR180,000. There is a slight increase
of those earning more than MYR300,000 (from approximately 3.4% to 5%).
Annual Household Income
7%
Prefer not to say

More than MYR500,001
2%
MYR300,001 - MYR500,000
3%
27%
MYR180,001 - MYR300,000
43%
MYR30,001 - MYR90,000
9%
Below MYR30,000
0%
16
20%
40%
60%
80%
100%
Back in March 2013, the 2012 Household Income Survey conducted by the Statistics
Department announced that the Malaysian households monthly income rose from
MYR4,025 in 2009 to MYR5,000 in 2012. Its a 7.2% increase in total. It was even
announced that all states in Malaysia recorded better average monthly household
incomes with Kuala Lumpur leading with the highest growth of 14.9% from
MYR5,488 to MYR8,586. However, with the prices of everyday items rising, the
significance of this means very little as our spending power remains weak.
Most of respondents (79%) are from Selangor and Kuala Lumpur. The most
affordable house in the Sime Darby-UM study is in Melawati and the household
income required to own a property in Melawati is MYR9,360. This means that even
the most affordable property is already beyond the reach of the majority in Kuala
Lumpur, Putrajaya and even Selangor. The property listed in Nilai requires a
household income of MYR9,430 which is almost twice the mean household income
of Negri Sembilan and even exceeds the mean household income of Kuala Lumpur.
Hence, it can be concluded that some properties in the selected areas are beyond
the reach of the majority in Kuala Lumpur, Putrajaya and Selangor.
Currently Residing in
Labuan
Terengganu
Pahang
Perlis
Kelantan
Negeri Sembilan
1%
Malacca
1%
Kedah
1%
Putrajaya
1%
Sarawak
2%
Sabah
2%
Perak
2%
Johor
5%
Penang
6%
31%
Kuala Lumpur
48%
Selangor
0%
17
20%
40%
60%
80%
100%
Slightly more than half the respondents (53%) are interested in buying property,
while 21% are first-time homebuyers. That amounts to a whopping 74% who are
looking at property purchase either for own stay or investment.
Consider Themselves
1%
Expatriate
Looking to Rent our a Property
3%
Interested in leasing and renting property
3%
Interested in Selling Property
3%
5%
Real Estate Professional / Property Agent
11%
Just Monitoring the market
21%
First Time Home Buyer
53%
Interested in Buying Property

0%
20%
40%
60%
80%
100%
Almost half (drop from 56% from previous survey to 49%) of respondents have
stayed in their current premises for 5 years or less, while almost a quarter (23%)
have been in the same abode for 6 to 10 years.
Years in Current Premises
49%
50%
45%
40%
35%
30%
23%
25%
20%
15%
15%
9%
10%
3%
5%
0%
0 - 5 years
18
6 - 10 years
11 - 20 years
More than 20
years
All my life
95% of respondents currently own residential property, and they are mainly living in
terrace houses (48%) or condominiums/apartments (28%). This might mean that
married respondents would prefer to live in houses with their families.
Residential properties are the most transacted type of properties in the Klang Valley,
making up 75% in the last three years, and condominiums received the highest
demand from homebuyers. This trend is similar in Selangor.
Properties Owned
Land
9%
Car Park
9%
10%
Shop/Commercial Buildings
95%
Residential Property
0%
20%
40%
60%
80%
100%
Currently Residing In
Factory / industrial property
0%
Hotel / resort
0%
Retail Space
0%
SOHO
0%
1%
Shop Office
5%
Bungalow
8%
Semi-detached House
10%
Flat/Walk-up Apartment
28%
Private Condominium / Serviced
48%
Terrace House
0%
19
10%
20%
30%
40%
50%
As always, online is the preferred source of information for respondents. A distant

second is newspapers / magazines, while real estate agents and professionals are
third in the list.
Source of Information
6%
Television / radio
Attend porperty seminars /
exhibitions
21%
29%
Refer to Family members and friends

Talk to Real Estate Professional /
Property Agent
32%
49%
Other Web Portals
53%
Newspapers / magazines
93%
iProperty.com
0%
20
20%
40%
60%
80%
100%
A large percentage (57%) are interested in purchasing new properties, while 34% are
on the fence. The top three sources of information for new properties are:
1. Online property websites and search engines
2. Directly from developers
3. Property exhibitions
According to an industry body, Malaysian Internet Exchange (MyIX), Malaysias
Internet usage rose 51% in 2013. Internet traffic consumption today showed the
biggest annual percentage increase ever in more than a decade. Plus, in early 2014,
On Device Research published a report on Mobile Malaysia: ahead of the pack,
which showed that 47% of Malaysians own more than 1 mobile phone. These
figures, plus respondents sentiment, confirm a known fact digital media is here to
stay (and is growing rapidly!).
Interest in New Property
No
4%
More Interested in resale property
5%
34%
Maybe
57%
Yes
0%
21
20%
40%
60%
80%
100%
Apart from detailed information about the property, which is still the most
important information property purchasers require, the type of information
respondents seek has changed quite a bit.
This survey
Detailed information about
the property
Property price comparisons
Reviews on property/location Property price comparisons
High quality photos
Neighbourhood information
Price growth comparison
Compare features
Compare features
Read reviews
Display of average asking Interactive maps

prices
Last survey
Detailed information
property
High quality photos
about
the
Information Required
85%
Detailed information about the property

73%
Property price comparisons
66%
Reviews on the property/location

54%
Hi-quality photos
48%
Price Growth comparison

Compare features
41%
Neighbourhood information
40%
Display of average asking prices
40%
Interactive maps
32%
Home mortgage calculator
32%
A home-buyers checklist
26%
Agent contact information
26%
23%
Update/Summary on Government Regulations

Home buyer assistance
20%
Research mortgage financing
19%
Video presentation on the property
18%
Currency convertor
6%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
22
The main percentages remain relatively unchanged from the previous survey. A
quarter of respondents (25%) are looking into property purchase in the next 6
months.
There does not seem to be an increased urgency despite the uncertainty of whether
buyers will have to bear any rise in costs for new houses from the implementation of
the Goods and Services Tax (GST) on 1st April 2015.
CIMB Research said the impact of the measures introduced during the governments
Budget 2014, is going to be negative in the short-term, but should be positive over
the longer-term as it will help remove froth from some segments in the market.
Some measures introduced in Budget 2014 include Real Property Gains Tax (RPGT)
to 30% for gains on properties disposed of within the holding period of up to three
years. For disposals within the holding period of up to four and five years, the rates
are decreased to 20% and 15% respectively. The government also introduced a new
minimum price for property that can be purchased by foreigners, from MYR500,000
to MYR1 million.
When to Purchase
6%
Not interested at the moment
13%
At least 2 years or more from now
26%
1 - 2 years from now
30%
6 - 12 months from now
25%
Within the next 6 months

0%
23
20%
40%
60%
80%
100%
Most respondents still feel that property prices are too high (up from 57% in the
previous survey to 67%), while the other two co-related reasons are trouble finding
properties that they can afford, and insufficient funds for a down payment.
Affordability seems to be a constant and growing concern. Plus, with the lack of
wage increase and assistance for the middle-income group, these might be the
reasons that a higher percentage of respondents compared to the last survey, are
motivated to purchase property as a long-term investment and for rental income.
The desire to accumulate asset surpassed respondents desire to own a home of their
own (which was the main motivation in the last survey).
1
2
3
4
5
H2 2014
For long-term investment
H1 2014
Desire to own a home on my own
Desire to own a home on my For long-term investment

own
For rental income
For rental income
Desire for a home in a better Desire for a larger home
area
Desire for a larger home
Affordability of homes
Reasons for Not Purchasing

Having too much debt from from college
and student loans
6%
Lack of good financing options
16%
Concerned that that the value of the

property will decline after buying it
Banks making it too hard to qualify for a
home mortgage
17%
18%
21%
Unpredictable proeprty market

Waiting to see what measures will be
announced in Budget 2015
24%
Cannot find a property that is affordable
36%
Not having enough money for a down

payment
36%
67%
Property prices are too high

0%
24
20%
40%
60%
80%
100%
Motivation to purchase
2%
Desire for a smaller home

Desire to be closer to family/friends/relatives
6%
Job-related relocation or move
6%
8%
Purchase home for family member or relative

Desire to be closer to job/school/transit
10%
Retirement
11%
12%
13%
Change in family situation

For short- term investment capital gain
24%
Affordability of Homes
25%
26%
Desire for a home in a better area
27%
40%
For rental income
44%
45%
0%
20%
40%
60%
80%
100%
The top five considerations when purchasing property remain unchanged from the
previous round Location, Price, Size, Security and Facilities.
Factors of Consideration
2.89
Recommendations
3.54
Eligibility for housing
4.83
Financing eligibility/process
5.65
Status of property
5.88
Developers track record and
6.15
Facilities
Potential rental yield
6.56
Potential capital Appreciation
6.63
7.55
Size
7.90
Security
Price
10.17
Location
10.24
0.00
25
2.00
4.00
6.00
8.00 10.00 12.00
As the main motivation is for long-term investment, respondents might have

preferred high-rise buildings as they fetch better rental yield and provide additional
income, and can achieve a substantial amount of capital appreciation as well
(although this would likely be less than a landed property).
During the second half of 2013, rents of existing high-end condominiums in Kuala
Lumpur city have remained stable, ranging from MYR3 to MYR5.50 per square foot
(psf) per month, according to Knight Franks report. Next to KL City, Bangsars highend condominiums have rents ranging from MYR2.50 to MYR4.50 psf, followed by
Damansara Heights with rents between MYR2.50 and MYR4.00 psf.
According to Global Property Guides website, Malaysia has a small rental market.
Only 6% of the housing stock is in the private rental sector. About 85% of total stock
is owner-occupied, while government-provided housing accounts for 7% of the
stock.
This round, there is greater interest in homes under PR1MA, Malaysia My First Home
scheme, and Malaysia My Second Home scheme. On a separate note, the National
Housing Council was set up in 2014 to develop strategies and action plans in a
holistic manner, coordinate legal aspects and property price mechanism, and ensure
provision of homes in a more efficient and expeditious manner.
Types of property interested in
Not considering
Hotels
Industrial
Retirement Homes
Government Housing
Student Housing
Homes under Malaysia My Second
Office / Retail
Bungalow
Flat/walk-up apartment
Homes under Malaysia My First
Detached House
Homes under PR1MA
Semi-detached house
Terraced House
Private condominiums/serviced
0%
26
1%
3%
4%
6%
9%
10%
12%
15%
16%
18%
19%
19%
25%
40%
69%
70%
10% 20% 30% 40% 50% 60% 70% 80%
Consistent with previous surveys result, the top three preferred locations to
purchase property is Klang Valley, Selangor, and Putrajaya. Penang and Johor is at a
distant fourth and fifth position respectively.
Preferred Location
0%
Perlis
Terengganu
1%
Kelantan
1%
Pahang
2%
Kedah
2%
Sarawak
3%
Sabah
3%
7%
Malacca
Negeri Sembilan
8%
Perak
8%
15%
Johor
22%
Penang
25%
Putrajaya
78%
Kuala Lumpur
82%
Selangor
0%
27
10%
20%
30%
40%
50%
60%
70%
80%
90%
There is a big dip (from 68% in the previous survey to 54%) for those with a budget
of less than half a million Ringgit. On the other hand, these respondents have
increased their budget to the MYR500,001 to MYR800,000 range.
This sentiment is in tandem with the rise in average prices in properties. By property
type, nationally, during the year to Q3 2013:
The average price of terraced houses rose by 7.8% y-o-y to MYR238,337
The average price of detached houses increased 15.1% y-o-y to MYR458,858
The average price of semi-detached houses rose by 14.7% to MYR421,622
The high-rise price index soared 13.7%, to an average price of MYR248,567
Budget to Purchase
1%
Above MYR3 million
5%
MYR1 Million - MYR 3 million
8%
MYR800,001 - MYR1 million
33%
MYR500,001 - MYR800,000
53%
Below MYR500,000
0%
28
10%
20%
30%
40%
50%
60%
OVERSEAS PROPERTY: SEEN AS A

GOOD
INVESTMENT,
AND
AUSTRALIA IS STILL THE PREFERRED
INVESTMENT LOCATION
There is a drop (from 51% to 45%) of those who are not considering overseas
properties, while there is a slight increase of those who are interested (from 21% to
23%).
Interest in Overseas Property
23%
Yes
33%
Undecided
45%
No
0%
29
20%
40%
60%
80%
100%
94% of respondents do not own properties overseas. The remaining 6% purchased

properties In Singapore (43%), Australia (28%), and United Kingdom (16%).
Currently Own Property Overseas
94%
No
6%
Yes
0%
20%
40%
60%
80%
100%
Country Property Is Located In

2%
Vietnam
3%
India
Indonesia
5%
Thailand
5%
Philippines
5%
Hong Kong
8%
China
8%
10%
New Zealand
13%
The United States
16%
The United Kingdom
28%
Australia
43%
Singapore
0%
30
20%
40%
60%
80%
100%
The properties were mainly purchased via developer (45%) and local agent (42%)
from country of origin.
How They Purchased
Contacted agent online from the

country where the property is located
13%
Used a local agent from country of

origin to purchase
42%
Purchased via developer

show/seminar/exhibition in your
country of origin
45%
0%
10%
20%
30%
40%
50%
The top three preferred overseas property location has remained consistent
throughout four surveys Australia, Singapore, and the United Kingdom. These
investment locations are chosen probably because Malaysians are familiar with
them, perhaps having studied or worked there. According to HSBC, Australia appeals
to Malaysian investors for its proximity, quality education and lifestyle.
Where they want to Purchase
0%
1%
1%
2%
2%
2%
3%
3%
3%
5%
Macau
India
Philippines
Hong Kong
Japan
Vietnam
China
Indonesia
United States
Thailand
New Zealand
United Kingdom
Singapore
Australia
9%
12%
20%
39%
0%
31
5%
10%
15%
20%
25%
30%
35%
40%
Private Condominium / Serviced Apartment (67%) is still the favourite type of

property to purchase overseas.
Type of Property They Want to Purchase
2%
Factory / Industrial Property
4%
Hotel / Resort
Shop Office
6%
Retail space
6%
SOHO
14%
Bungalow
14%
16%
Semi-detached house
26%
31%
Terrace house
67%
0%
10% 20% 30% 40% 50% 60% 70%
The main budget for overseas properties are Below MYR500,000 and MYR500,001
to MYR800,000.
Budget
2%
MYR3 million and above
13%
MYR1 million - MYR3 million
22%
MYR800,001 - MYR1 million
31%
MYR500,001 - MYR800,000
32%
Below MYR500,000
0%
32
5%
10% 15% 20% 25% 30% 35%
40% of respondents are only looking into overseas property investment two years
from now, while 35% do not have any plans of purchasing.
When to purchase
40%

35%
No plan
15%
1 to 2 years from now

7%
6 to 12 months from now

3%

0%
10%
20%
30%
40%
The main reason for entertaining the idea of overseas property investment is the
same as local properties good investment. Migration is the second reason that
respondents find overseas properties attractive.
Why They Want to Purchase
The country has housing policies that
encourage foreign ownership
The economic slowdown in that country
has brought prices down
Favourable exchange rate
The potential yield is high
For my children to study aboard
For vacation / residential purpose
Expect to migrate or retire to that
country in the future
It is a good investment
2%
4%
5%
9%
10%
12%
19%
39%
0% 5% 10% 15% 20% 25% 30% 35% 40%
33
Consistent with answers for information search for local properties, respondents
look to online sources, followed by newspapers / magazines.
Where They Source for Information
Refer to family members and friends
Talk to real estate professional /
property agents
Attend exhibitions that feature
overseas property projects
Newspapers / Magazines
Other web portals
iProperty.com
23%
25%
31%
34%
54%
61%
0% 10% 20% 30% 40% 50% 60% 70%
34
SENTIMENTS: DESPITE MEASURES

OUTLINED IN BUDGET 2014,
PROPERTY PRICES ARE STILL SEEN
AS NOT AFFORDABLE. MOST
BELIEVE THAT THE 6% GST WILL
LEND TO AN INCREASE IN
PROPERTY PRICES.
Affordability and rising house prices are still the biggest concerns, followed by
stringent home financing policies and high interest rates, and poor building quality.
Current Views on the Property Market
31%
Economic and political uncertainties
36%
Errant developers
Stringent home financing and high
interest rates
46%
53%
Poor building quality
83%
Affordability and rising house prices

0%
35
20%
40%
60%
80% 100%
Additionally, on a scale of 1 (very affordable) to 10 (not affordable at all), the

respondents chose an average of 7.29, slightly lower than the previous survey which
was at 7.5.
Current Views on the Property Market
7.29
Current Property Prices
10
The affordability index has been trending down since 2009 after the hikes in the BLR
(to 6.6%, from 5.6% over 2009-2011) and higher property prices (+12.5% CAGR vs
income growth of +6% between 2010 and 2013). This would impact investment
decisions for new purchases and could eventually lead to a decline in property sales.
Maybank IB Research also pointed out that household debt had reached a high of
86.8% of nominal GDP at the end of 2013, and could possibly climb to 88% by the
end of this year. It also said that it remained neutral on the property sector, and
that key risks included further tightening measures and interest rate hikes.
On 10th July 2014, Bank Negara Malaysia (BNM) raised the overnight policy rate
(OPR) by 25 basis points to 3.25%, the first time since May 2011 with economists
expecting the rate hike to address the potential rise in financial imbalances. BNM
said going forward, the overall growth momentum was expected to be sustained
while inflation has been relatively stable.
CIMB Research said loan growth may slow down in an environment with a higher
interest rate but the impact would not be big as the magnitude of the rate hike is
expected to be small (less than one percentage point) at 25bps to 50bps in 2014 to
2015.
36
Respondents are loyal to their favourite investment hotspots in and out of Selangor.
The three main areas that respondents think will be the next investment hotspots in
Selangor are Petaling Jaya, Ara Damansara, and Puchong.
Outside Selangor, the top three areas remain the same as the last survey, with a new
state appearing in the third spot to tie with Melaka:
1. Iskandar Malaysia, Johor
2. Georgetown, Penang
3. Melaka, Melaka & Nilai, Negeri Sembilan
Hot Spots in Selangor
Rawang
Gombak
Klang
Rawang
Putrajaya
Bangsar
Seri Kembangan
Sungai Buloh
Shah Alam
Bukit Jalil
Cyberjaya
Kajang
Puchong
Ara Damansara
Petaling Jaya
0%
6%
10%
12%
16%
18%
18%
22%
23%
24%
24%
26%
29%
32%
41%
5%
15%
25%
35%
45%
Hot Spots Outside Selangor

Kuching, Sarawak
5%
Kuantan, Pahang
5%
11%
Kota Kinabalu, Sabah
21%
Ipoh, Perak
24%
Johor Bahru, Johor

Seremban, Negeri Sembilan
28%
Nusajaya, Johor
29%
Nilai, Negeri Sembilan
29%
Melaka
29%
58%
Georgetown, Penang
60%
Iskandar Malaysia, Johor

0%
37
20%
40%
60%
80%
100%
47% of respondents opined that transactions will remain more or less the same,
while slightly more compared to the previous survey, from 35% to 37%, provided
positive sentiment.
Will property Transactions Pick Up in the Next 6 Months?
Not Sure
Yes, Definitely
It will remain more or less the

same
16%
37%
47%
0% 10% 20% 30% 40% 50%
38
Most respondents are not interested as they deem that properties in Iskandar
Malaysia are either too expensive (27%), or they are just not looking for properties in
Johor Bahru (37%). This might be due to the lack of knowledge of properties in Johor
Bahru and respondents might also be more comfortable purchasing properties in
Kuala Lumpur or Petaling Jaya.
Iskandar Malaysia has always been the influencing factor in Johor property. Iskandar
Malaysia has five flagship zones, two of which are now inundated with upcoming
property developments and catalytic government plans to develop the regional
socio-economic hub.
Iskandar Malaysia property projects have been largely marketed to attract
Singaporeans, hence many Malaysians might be less familiar with the masterplans
for each zones.
Kuwait Finance House Research (KFHR) said for the first-half of 2014, cooling
measures will dampen speculation but Iskandar is a long-term play, with the
foundation and infrastructure for Phase 1 (2006-2010) already laid down and with
raised cumulative committed investments reaching MYR131.6 billion. The report also
said that the whole of the Iskandar project is expected to be completed in 2025, and
by then it is set to prosper and live up to its vision to be a preferred location to
invest, live, work and play.
Interest in Purchasing Property In Iskandar Malaysia
No, I am not looking for properties

anywhere in Johor Bahru
33%
27%
No, the properties are too expensive
Yes, but I will wait for a few years

before I purchase
20%
Yes, I think Iskandar is a safe and good

investment
20%
0% 5% 10% 15% 20% 25% 30% 35%
39
74% of respondents feel foreign property buyers have led to the escalation of
property prices.
Under Budget 2014, Prime Minister Datuk Seri Najib Tun Razak doubled the
minimum property price for foreigners from MYR500,000 to MYR1 million.
Specifically, the MYR1 million price threshold took effect on 1 March 2014 for all
federal administered territories Labuan, Putrajaya and Kuala Lumpur. Johor
followed in May and the Johor government also eyed an additional two percent tariff
for overseas buyers across all property segments. Penang is the only Malaysian state,
where foreigners are subject to a MYR1 million minimum price on the mainland and
MYR2 million if it is a landed property on the island. Penang is also considering a
three percent levy on foreign property buyers, according to its Chief Minister Lim
Guan Eng.
According to CBRE Malaysia, in spite of the curbs, Malaysian properties are still
cheaper than those in Singapore. A 1,000 sq ft condo in the city-state sells for
USD800,000 (MYR2.61 million) to USD960,000 (MYR3.14 million), while a similarsized flat in Kuala Lumpur goes for about USD374,000 (MYR1.22 million).
According to real estate consultancy Knight Frank, luxury residences in Malaysia sell
for between USD2,300 and USD5,600 per square meter, much lower than
USD27,600 to USD33,700 in Singapore and USD43,700 to USD53,500 in Hong Kong,
Average rental yields are also more attractive in Malaysia at 4% to 6%, compared to
3% in Singapore and 2.5% in Hong Kong.
Mortgage terms are also better for non-residents in Malaysia, with buyers able to
borrow 70%of a property's value. That's more generous than the 40% to 60% in
Singapore, and 30% to 50%in Hong Kong.
Are Foreign Buyers Driving up Property Prices
11%
No
14%
Uncertain
74%
Yes
0%
40
20%
40%
60%
80%
100%
43% of respondents surveyed feel that the measures are Average, while 20% feel
that they are Fair.
Views on Budget 2014
2%
Excellent
8%
Undecided
11%
Good
18%
Bad
20%
Fair
43%
Average
0%
20%
40%
60%
80%
100%
As for Budget 2014s impact on the industry, majority are split between Too early to
tell (33%) and No (36%).
Effectiveness of Budget 2014 on the Property Market
11%
Yes
21%
Unsure
33%
Too early to tell
35%
No
0%
41
10%
20%
30%
40%
50%
Analyst from RHB Research believes that Malaysias property sector will recover in
the second half of 2014 driven by a stronger 2014 gross domestic product (GDP)
growth outlook and the implementation of the goods and services tax (GST) in April
2015. However, with the fresh hike in interest rates due to the OPR increase by Bank
Negara Malaysia, there might be a slight hinge in recovery.
The implementation of the GST from 1 April 2015 is expected to spur demand for
big-ticket items, such as white goods and properties, as consumers rush to make
purchases to avoid paying the tax.
Having said that, 41% of respondents replied that GST will not stop them from
investing. This coincides with the fact that there is no increase in respondents who
are looking to purchase property in the next year.
Will GST Stop Them from Investing
25%
I Don't Know
34%
Yes
41%
No
0%
42
10%
20%
30%
40%
50%
Almost half (45%) of respondents feel that loan applicants should be offered loans
on a case-by-case basis. This might be due to the respondents psychographics as
53% of respondents are interested in purchasing property, and might also be
stemmed from the affordability factor where they might fear denial of loans.
Is Bank Negaras Loan-to-value ratio on net income as opposed to gross income
fair?
No, people should be able to purchase
any property they desire
17%
Yes, people should not be able to

purchase something they cant afford
38%
Yes, but they should offer loans on a

case-by-case basis
45%
0%
10% 20% 30% 40% 50%
26% of respondents surveyed think that the penalty is fitting. However, 40% of
respondents feel that a bigger penalty should be implemented.
Changes to National Housing Development to fine developers RM 500,000
and jail time for up to three years for abandoned projects fair?
6%
No, it is too severe
26%
Yes, it is fitting
28%
No, it is too small a penalty
40%
Yes, but it should be a bigger penalty

0%
43
20%
40%
The top five schemes that respondents would like delivered in Budget 2015 are:
1. Better control on house prices
2. Better public transportation
3. More low cost & affordable housing in strategic locations
4. Reduction in income taxes
5. Reduce interest rates on housing loans
Increase the Sin Tax on Tobacco

Impose stricter enforcements
Schemes for Budget 2015 to Deliver

3%
4%
7%
Improve road conditions

Continue to provide subsidies on
8%
9%
Better healthcare
Remove the Stamp Duty
10%
Lower the Real Property Gains Tax
11%
13%
Abolish Tolls
Stricter regulations on foreign
12%
14%
Free education across all levels
16%
Reduce import duty taxes on cars
25%
Reduce interest rates on housing
27%
Reduction in income taxes
39%
More low cost & affordable housing
40%
Better public transportation
62%
Better control on house prices

0%
44
20%
40%
60%
80%
100%
The three more important considerations for PR1MA affordable homes are still the
same as the last survey:
Location
Public Transport
Amenities
The 1Malaysia Peoples Housing (PR1MA) project has received 500,000 applications
since registration was opened last year. In March 2014, Minister in the Prime
Ministers Department Datuk Seri Shahidan Kassim said the online applications were
for 80,000 houses. The 80,000 houses approved under this first phase are in the
analysis and planning stages. He also said that the government would also have a
meeting with PR1MA Malaysia Corporation to discuss the second phase involving an
additional 80,000 houses for this year. These units form part of the 500,000 to be
rolled out by the company by 2018. Property consultants have said that Perbadanan
PR1MA Malaysia should develop them in or near city centres where the demand is.
To date, PRIMA homes are in Nusantara Prima, Johor Baru and Alam Damai, Cheras.
As at August last year, out of the 20,519 units that were approved by Perbadanan
PR1MAs board of directors, 31.7% are in city centres, including 4,636 units in Kuala
Lumpur and 1,877 units in Kuching, Sarawak.
In May 2014, MRT Corp Chief Executive Officer Datuk Azhar Abdul Hamid said that
the progress on the highly anticipated MRT project is slightly ahead of schedule, with
more than half of its tunnelling works completed.
With the two key considerations in the early stages of development, time will tell if
measures taken will address the issue of affordability.
Factors With Regards to PR1MA

3.24
Highway Adjacent
3.45
Gated &guarded property
4.01
Amenities
4.24
Public Transport
4.44
Location
0
45
More than half (55%) of respondents think that Goods and Services Tax (GST) will
affect their purchase decision, as they (85%) believe that it will increase property
prices.
With the imposition of GST next year, the cost of local residential properties is
estimated to increase by 3 to 4%. Whether the increased cost will be transferred to
house buyers depends on demand for the property concerned. For highly-demanded
residential properties, the increased cost is expected to be borne by house buyers.
For those in the less demanded areas, extra cost due to GST would likely be
absorbed by the developers.
Goods and services will be categorised under three groups standard rated where
6% GST will be imposed; zero rated and exempt rated.
Will GST affect Their Decision to Purchase Property
19%
Unsure
26%
No
55%
Yes
0%
20%
40%
60%
80%
100%
How will GST affect the Property Market
3%
Property prices will not be affected
Property prices will only increase in

prime and high-density areas
10%
85%
Property prices will increase
0%
46
20%
40%
60%
80% 100%
INDONESIA: BUYERS ARE IN STILL

IN WAIT-AND-SEE MODE AFTER
THE ELECTION
Prospective buyers are in a wait-and-see mode, hence there is reduced demand in
the second quarter, the lowest in the past five years. Market is expected to pick up
again later this year as the elections are over.
The real estate sector has shown growth since last year, with property shares on the
Indonesian Stock Exchange rising by more than 70% in the first five months of this
year. Occupier demand has been propelled by strong economic growth, growing
middle class, purchasing power, and an attractive market for business and foreign
investment.
The World Bank predicts solid future growth for Indonesia's economy, although
there is much work to be done in improving infrastructure within Jakarta to ensure
further expansion in the property market.
A joint study by the Washington-based Urban Land Institute (ULI) and the Jakarta
branch of PricewaterhouseCoopers, Emerging Trends in Real Estate: Asia Pacific
2013, found that Jakarta ranked first as the most preferred destination for real
estate investment in the region.
PriceWaterHouseCoopers (PWC) and Urban Land Institute USA have placed
Indonesia as one of the big three Asian countries with the highest potential for
property investment. Jakarta and Bali are the two cities in the country that offer
great prospects.
Barriers for housing mortgage
Prospective buyers are in a wait-and-see mode, hence there is reduced demand in
the second quarter, the lowest in the past five years. Market is expected to pick up
again later this year as the elections are over. Jakarta Governor Joko Widodo,
popularly known as Jokowi, will lead Indonesia as its new president as he faces the
challenge of uniting the countrys population of 250 million.
70% of Indonesias total workforce are informal sectors, under non-payroll and most
of them are associated with poverty. Hence, they are deemed as non-creditworthy.
The vast majority of low-income housing are self-help housing, with incremental
housing based on financial ability.
47
http://siteresources.worldbank.org/FINANCIALSECTOR/Resources/Session2_NugrohoTriUtomo.pdf
Indonesia was ranked 53rd in a survey of distribution efficiency of countries by the

World Bank. By comparison, Thailand ranked 35th and Malaysia 25th. President Joko
Widodo has pledged to accelerate administrative and budgetary efforts to expand
and upgrade facilities like roads, ports and airports. Whether Indonesia will be able
to build up necessary infrastructure fast enough depends on the new
administrations commitment to budgetary and policy reforms.
However, even as the government tightens control on property sales, there is also a
long-standing housing shortage. The report cited a developer as saying that the big
cities would need about 13 million new housing units, including 200,000 in Jakarta.
Real estate firm Knight Frank said that Jakarta topped the list of its index of price
growth in the worlds luxury real estate markets. Prices in the city have increased by
38% last year. Average property prices in Jakarta currently stand at USD346 per
square foot, up from USD250 in the previous year.
A senior BI (Bank Indonesia) official has said that housing demand is approximately
13 to 15 million units, while yearly supply was 1 to 1.5 million.
48
DEMOGRAPHICS:
MARRIED
INDIVIDUALS
WITH
SLIGHTLY
MORE BUDGET LOOK FORWARD
TO OWNING THEIR OWN HOUSE,
PREFERABLY IN JAKARTA
The breakdown of gender and marital status is the same as Malaysia majority are
males (from 64% in the previous survey) to 69%. The number of male respondents
has increased steadily since the past two surveys.
Gender
31%
Female
69%
Male
0%
49
20%
40%
60%
80%
100%
Similar to the previous survey, most respondents (43%) fall into the 31 - 40 age
bracket.
The National Population and Family Planning Board (BKKBN) estimate the nations
young age population will likely peak between 2025 and 2035, when the productive
age population outnumbers the elderly and children. Around 60% of Indonesias
population of about 250 million population is in the working age of 15 to 64 years
old. Such a youthful population is attracting companies abroad to tap into
Indonesias potential labor pool.
By comparison, in developed countries such as Japan, birth rates are not keeping up
with an aging population that would ensure strong economic growth for the future.
Age Group
5%
Above 50
20%
41 - 50
43%
31 - 40
31%
20 - 30
1%
Below 20
0%
50
10%
20%
30%
40%
50%
Majority of respondents (72%) are married and almost all respondents (99%) are
citizens of Indonesia.
Marital Status
72%
Married
26%
Single
2%
Other
0%
20%
40%
60%
80%
Residency Status
0.5%
Not living in Indonesia
0.5%
Non Citizen Residing in Indonesia
99%
Indonesian Citizen
0%
51
20%
40%
60%
80%
100%
The percentages are similar to the previous survey. The respondents are mainly from
Capital City District of Jakarta (37%), while 20% of respondents are from West Java,
and 12% of respondents are from East Java.
Where They Are From
1%
1%
1%
1%
1%
1%
1%
2%
2%
2%
3%
7%
9%
12%
19%
Sumatera Selatan
Nusa Tenggara Barat
Kepulauan Riau
Kalimantan Timur
Kalimantan Selatan
Kalimantan Barat
Aceh
Yogyakarta
Sumatera Utara
Sulawesi Selatan
Bali
Jawa Tengah
Banten
Jawa Timur
Jawa Barat
DKI Jakarta
37%
0%
20%
40%
60%
80%
100%
Most of the respondents are Clerks/Administrators (up from 36% in the last survey
to 39%), while 17% are entrepreneurs. Those who are Executives/Managers
comprised 12% of respondents.
Profession
0%
1%
1%
3%
4%
5%
8%
9%
12%
17%
Unemployed
Retired
Student
Homemaker
Sales
Professional / Technical
Civil Servant
Executive / Managerial
Self Employed
Clerical / Administrative
40%
0%
52
20%
40%
60%
80%
100%
A large percentage (60%) fall into the Below IDR100 million annual household
income, and 21% belong to the IDR101 million and IDR200 million group.
According to government data, of 114 million workers in Indonesia last year, 86.5%
were unskilled, while only 8% were trained and 3.8% skilled, and the remaining
lightly skilled.
If Indonesia does not upgrade its human resources and provide skilled workers as
well as adequate job opportunities, many of its youth will face unemployment.
9%
Prefer not to say

Lebih dari IDR601 million
1%
IDR501 million IDR600 million
1%
1%
2%
5%
20%
60%
Less than IDR100 million

0%
10%
20%
30%
40%
50%
60%
There is an increase of respondents who are first-time homebuyers (from 33% to

37%), and more than a third (33%) are on the sidelines watching the market.
Consider Themselves
4%
Looking to Rent our a Property

Real Estate Professional / Property Agent
6%
Interested in Buying Property
6%
7%
Interested in Selling Property
8%
Interested in leasing and renting property
33%
Just Monitoring the market
37%
First Time Home Buyer
0%
53
10%
20%
30%
40%
44% of respondents do not own any property, which corroborates with the fact that
there are more first-time homeowners in this survey. There is also a slight drop
(from 40% to 36%) of those who own a property.
Those who own a property are living in houses (88%).
No of Properties owned
3%
More than 4
1%
4%
11%
36%
44%
None
0%
10%
20%
30%
40%
50%
Currently Living in
2%
Boarding / Home Office
3%
Rented Apartment
38%
Rental Property
56%
Parents/Family Home
0%
54
10%
20%
30%
40%
50%
60%
More than half (52%) of respondents have been living at their current place for 5
years or less, while 61% of respondents have 4 or more people living under the same
roof.
Years lived in current premises
3%
All my life
10%
More than 20 years
14%
11 - 20 years
21%
6 - 10 years
52%
0 - 5 years
0%
10%
20%
30%
40%
50%
60%
No of people in a household
34%
More than 4 people

27%
4
21%
3
12%
2
6%
1
0%
55
5%
10%
15%
20%
25%
30%
35%
Respondents who do not own any property are either currently living with their
parents or in their family home (56%), which co-relates to the larger number of
people living under one household. 38% of respondents surveyed are renters.
These demographics are similar to the previous survey.
Owns No property, Living in
Boarding / Home Office
2%
Renting an Apartment
3%
38%
Contract / lease homes
56%
Parents Home / Family Owned

0%
10%
20%
30%
40%
50%
60%
The top four sources of information for property are:

1. Online search engines
2. Property exhibitions
3. Magazines
4. References from family and friends
Sources of Information
9%
Television / Radio
13%
Real Estate Agents / Professionals

37%
Family and Friends
38%
40%
Property Exhibitions
54%
Other websites
87%
Rumah123.com
0%
56
20%
40%
60%
80%
100%
52% of respondents are interested in new developments, while 37% are ambivalent
about it. They would seek information online, at property exhibitions, newspapers
and directly from developers. It is interesting to note that they would reach
developers directly only after scouring three other sources of information.
Interest in New Developments
More interested in second hand
property
5%
No
5%
37%
Maybe
52%
Yes
0%
10%
20% 30%
40%
50%
60%
Source of Information on New Developments

SMS Ads
TV / Radio
3%
14%
31%
Directly from developers
34%
Print Ads
35%
Online Search Engines
53%
66%
0% 10% 20% 30% 40% 50% 60% 70%
57
34% are looking to purchase property in the next year, while 29% would purchase at
least two years from now.
When to Purchase
29%

25%

20%

14%
12%

0%
5%
10% 15% 20% 25% 30%
The top three motivations for purchasing property are:

1. Want to own their own house
2. For long-term investment / increase assets
3. Want to own a house in a better area
Motivation to Purchase
1%
4%
For short- term investment capital
7%
Desire to be closer to
10%
Purchase home for family member
10%
For rental income
11%
Desire to be closes to
13%
Retirement
16%
16%
Desire for vacation
18%
23%
25%
34%
47%
68%
0% 10% 20% 30% 40% 50% 60% 70% 80%
58
The top two reasons across three countries (Malaysia, Singapore and Indonesia) are
the same for these two questions.
Most respondents either do not have enough to place a down payment, or property
prices are too high.
Location, Price and Size are the three factors that respondents look into when
considering to purchase a property.
Concerned that the value of the home will decline
after buying it
Having too much debt from college and student
loans
4%
5%
7%
Unpredictable property market

Waiting to see what measures will be announced
in Budget 2015
9%
11%

Banks making it too hard to qualify for a home
mortgage
25%
44%
Cant find a property that I can afford
45%
Property price is too high
55%
Not having enough money for a down payment
0%
10% 20% 30% 40% 50% 60%
2.1
Recommendations
Eligibility for housing schemes/programs
Financing eligibility/process
Developers track record and reputation
Potential capital Appreciation
Status of property (freehold/leasehold)
Facilities
Security
Size
Price
Location
3.8
4.0
5.0
5.2
5.7
6.1
7.3
8.5
8.7
10.7
10.8
0.0
59
2.0
4.0
6.0
8.0
10.0
12.0
The three types of preferred properties are as below.

Properties Interested In
2%
2%
3%
4%
9%
Hotels
Office / Retail
Warehouse
Villa
18%
24%
24%
25%
Student Housing
Land
Private condominiums/serviced apartments
Kiosk/Shop
91%
Houses
0%
20%
40%
60%
80%
100%
52% of respondents would consider Jakarta, while 34% would pick Bogor. The
growth in the economy, the buying power of the middle class, increase in traffic
issues and rise in fuel prices, have been major drivers for people to be located closer
to the areas of the workplace and within the more central Jakarta areas
In the Indonesian capital of Jakarta, not even the notorious traffic congestion can
slow the voracious demand for property. Roughly 10 million people live within the
urban core of this vast city while a further 28 million populate the suburbs.
With affluent cash-buyers and local businesses driving the housing market at a rapid
pace, anyone with a hope of climbing on the property ladder has to move fast to
secure value.
Where They Want to Purchase
19%
Depok
20%
Bekasi
24%
Tengerang
33%
Bogor
52%
Jakarta
0%
60
10%
20%
30%
40%
50%
60%
The top five information that respondents seek to help in the decision-making
process are:
1. Detailed information, including facilities
2. Price comparison
3. Quality photos
4. Facilities in area
5. Analysis of KPR (Kredit Pemilikan Rumah)
Information They Want to See
Currency Conversion
5%
Property videos
11%
A Home-buyers check-list
12%
20%
22%
22%
Compare Features
23%
Interactive maps
24%
Display of Average Asking Prices

Mortgage Calculator
Mortgage analysis
Amenities near property
Hi-quality Photos
Property Price Comparisons
Detailed information about the property /facilities
29%
35%
37%
39%
42%
56%
64%
80%
0% 10% 20% 30% 40% 50% 60% 70% 80%
61
In this survey, respondents have increased their budget. There are more
respondents with a budget between IDR201 million and IDR300 million (from 22% to
25%), and those with a budget between IDR300 million and IDR500 million (from
18% to 22%). Those with budget surpassing IDR3 billion also increased from 1% to
2%.
Budget
2%
Above IDR 3 billion
1%
IDR2 billion - IDR3 billion
5%
13%
IDR500 million- IDR1 billion
22%
IDR300 million- IDR500 juta
25%
IDR200 million- IDR300 juta
31%
Less than IDR200 million

0%
62
5%
10% 15% 20% 25% 30% 35%
OVERSEAS PROPERTY: GENERALLY

UNINTERESTED,
ALTHOUGH
AUSTRALIA
IS
GAINING
POPULARITY
Majority of respondents do not own overseas properties.
Currently Own Property Overseas
97%
No
3%
Yes
0%
63
20%
40%
60%
80%
100%
Those who own properties overseas purchased them in:

1. Singapore
2. Australia
3. Malaysia and the United States.
The property transactions were mainly made at property exhibitions in Indonesia.
Where They Purchased
4%
4%
Vietnam
Phillipines
Hong Kong
China
Thailand
New Zealand
The UK
USA
Malaysia
Australia
Singapore
7%
7%
7%
9%
16%
20%
20%
29%
58%
0%
10%
20%
30%
40%
50%
60%
How They Completed The Purchase
Contacted agent online from the

country where the property is located
Used a local agent from country of

origin to purchase
show/seminar/exhibition in your
country of origin
30%
36%
62%
0% 10% 20% 30% 40% 50% 60% 70%
64
60% of respondents are not looking to purchase properties overseas. For those who
are considering overseas property, they would only be interested at least 2 years
from now.
Considering to Purchase Property Overseas
10%
Yes
30%
Unsure
60%
No
0%
10%
20%
30%
40%
50%
60%
When They Want to Purchase

87%

8%
2%
3%

0%
65
20%
40%
60%
80%
100%
There is a slight drop in preference for Singapore, while the interest in Australia has
seen a steady increase.
Countries
Singapore
Australia
Malaysia
H2 2014
60%
38%
24%
H1 2014
69%
37%
24%
H2 2013
58%
26%
17%
H1 2013
56%
23%
15%
Preferred Overseas Location
1%
India
2%
Phillipines
Vietnam
3%
Macau
3%
China
6%
Thailand
6%
New Zealand
9%
Hong Kong
9%
12%
USA
14%
Japan
15%
UK
24%
Malaysia
37%
Australia
60%
Singapore
0%
66
10%
20%
30%
40%
50%
60%
Respondents budget for overseas property is similar to the last survey, with more
opting for budget between IDR1 billion and IDR3 billion.
38% would spend less than IDR1 billion, while those who would spend above IDR3
billion are 27% (up from 33%). 34% (up from 28%) would spend between IDR 1
billion and IDR 3 billion.
Budget to Purchase
5%
Above IDR10 billion
8%
14%
34%
38%
Less than IDR 1 billion

0%
67
10%
20%
30%
40%
The preference for local and overseas properties is rather different. Most would
prefer to purchase residential buildings overseas.
Local
House
Commercial
Land
1
2
3
Overseas
Apartment
House
Condominium
Warehouse
SOHO
Hotel
Boarding Home
Land
Retail space
Flat / walk-up apartment
Villa
Private condominium / serviced
Houses
Apartment
0%
68
Type of Properties Interested In

2%
4%
5%
6%
9%
11%
13%
15%
17%
48%
53%
10%
20%
30%
40%
50%
60%
The top reasons overseas property are attractive to respondents are:

1. Good investment
2. For holiday / stay
3. Potential capital appreciation
With the growing needs for childrens overseas education, holiday homes, a better
retirement life and diversified wealth opportunities among the affluent, overseas
property investments are becoming an integral part of their lifestyle and wealth
portfolios.
Why the Location is attractive
The economic slowdown in that country
has brought prices down
The exchange rate works in my favour
6%
11%
The country has housing policies that

encourage foreign ownership
16%
I expect to migrate or retire to that

country in the future
16%
The potential yield if high
For vacation/residential purpose
22%
40%
42%
61%
0% 10% 20% 30% 40% 50% 60% 70%
69
The main source of property information is consistent with local property

information search. Websites / online search engine is favoured, while exhibitions
are preferred over references from friends and family.
Newspapers and magazines dropped out of the top three sources; it was second
preferred channel in the previous survey.
Sources of Information For Overseas Property
Talk to real estate professionals /
property agents
Newspapers/magazines
Attend exhibitions that feature
overseas property projects
Other web portals (Google, Yahoo,
etc)
iProperty.com
16%
20%
24%
28%
60%
65%
0% 10% 20% 30% 40% 50% 60% 70%
70
SENTIMENTS:
AFFORDABILITY
CONCERNS ARE PREVALENT, WHILE
A LARGE PERCENTAGE ARE
UNAWARE OF SOME FINANCING
SOLUTIONS
AND
HOUSING
POLICIES
Most respondents (37%) are concerned about affordability and rising property
prices. Another key concern is financial policies for homes and interest rates.
Main Concerns On Property Market
14%

Errant developers and poor building
quality
19%

interest rates
30%
Affordability and rising property

prices
37%
0%
71
10%
20%
30%
40%
Affordability is again reflected. On a scale of 1 (very affordable) to 10 (very

unaffordable), the average rating sits at 6.9, slightly higher than 6.68 in the previous
survey.
An Al Jazeera report in May highlighted that a small two-room apartment far from
the city centre in Jakarta can cost up to US$80,000 (S$101,100) increasingly out of
reach of regular Indonesians.
View on Current Affordability Levels
6.9
Affordability
72
More than half (55%) of respondents disagree with the revocation of Housing
Financing Liquidity Facility (FLPP). Reportedly, starting April 2015, the government
will impose revocation of FLPP for residential homes.
Views on the Revocation of Housing Financing Liquidity Facility
22%
Unsure
23%
Agree
55%
Disagree
0%
73
10%
20%
30%
40%
50%
60%
However, another 55% agree that Bank Indonesia should maintain its LTV policy,
despite 57% saying it plays a role in their property purchase decision.
The growth of banking house mortgages (KPR) in Central Java slowed down due to
the implementation of loan to value (LTV) policy. After the implementation of LTV,
the banking house mortgages for large-house is at 0.38% (quarter-to-quarter), lower
than the growth of house mortgage in the previous period of 1.55%. The middlesegment house mortgage growth of 0.73% (quarter-to-quarter), is lower than the
growth of 2.89% in the previous period.
Should Bank Indonesia Maintain its LTV policy
19%
No
26%
Unsure
55%
Yes
0%
10%
20%
30%
40%
50%
60%
Has the LTV policy played a role in your property purchase?

18%
No
25%
Unsure
57%
Yes
0%
74
10%
20%
30%
40%
50%
60%
60% of respondents surveyed opine that the elections will affect the property
market, while 75% think that the property market will benefit in a positive way after
the election.
According to Jones Lang LaSalle Indonesia, once the new president is elected,
Indonesia can have clearer business projection. Residential property remains a
popular investment vehicle for cash-rich Indonesians.
A senior associate director for research and advisory of Cushman & Wakefield
Indonesia said that prospective buyers are in a wait-and-see mode, reducing demand
in the second quarter to the lowest in the past five years. But the market is expected
to pick up again later this year after the elections.
Will the property market experience an upward trend after the 2014
presidential elections
40%
No
60%
Yes
0%
10%
20%
30%
40%
50%
60%
Will the property market benefit in a positive way after the elections
25%
No
75%
Yes
0%
75
20%
40%
60%
80%
69% of respondents are accepting of super-block mega-projects in grade 2 cities in

Indonesia.
In a recent study by Moodys Investors Service, the agency stated that buyers are
holding off acquisitions until the results of the elections are determined. Combined
with higher mortgages, loan restrictions and Indonesias slowing economy, revenue
growth in the property sector is expected to slow to 11% in 2014, from 29% in 2013;
as a result of a high base of comparison last year and slower-than-expected
marketing sales.
Global property services firm Jones Lang LaSalle Indonesia forecasted a softer
market demand in the luxury apartment segment, although the 2014-15 outlook is
still upbeat due to limited luxury supply. The condominium segment, however, is
expected to weaken in the coming months as a reaction to increased interest rate of
7.5% recently imposed by the Indonesian central bank.
Positive about the presence of super-block mega-projects that are now
beginning to explore grade 2 cities in Indonesia
31%
No
69%
Yes
0%
76
10%
20%
30%
40%
50%
60%
70%
However, despite this acceptance, they (87%) are also worried about surging
property prices that might take place.
Concerned About Surging Property Prices if flooded with new mega-city
developments
13%
No
87%
Yes
0%
20%
40%
60%
80%
100%
60% are not aware of the governments Public Housing Saving programme
(Tabungan Perumahan Rakyat/Tapera).
Aware of the Governments Public Housing Saving Programme
60%
No
40%
Yes
0%
77
10%
20%
30%
40%
50%
60%
Regardless, 57% do not mind cutting their income by 3% each month for Tapera.
Agreeable to Income being cut by 3%each month for Public Housing Savings
13%
Unsure
30%
No
57%
Yes
0%
10%
20%
30%
40%
50%
60%
Majority of respondents feel that the increase in Sale Value of Tax Object (SVTO) will
affect the value of their property.
The governments policy to increase the SVTO of land and buildings at 140% is
expected to lead to decreased turnover for homes and property sales.
Will the Sale Value of Tax Object have an impact on the value of your
property
11%
Unsure
21%
Disagree
68%
Agree
0%
78
10%
20%
30%
40%
50%
60%
70%
According to respondents, the three main actions that will give developers a bad
reputation are:
Developers do not build as per promotion and promises after the sale and
purchase transactions
Developers that do not take care of the legality of the correspondence land and
buildings
Developers that do not build public facilities and social facilities
Which of the following will give developers a bad reputation?
Developers are very difficult to reach even tend
to avoid if you want to ask questions or ask
Developers do not actively communicate when
there are obstacles or problems in
The developer does not provide clear
information on a regular basis on the status
Developers are not taking care of
correspondence legality of land and buildings.
Reneges developers to build public facilities
and social facilities.
Developers do not build according to the
agreement that promoted or promised after
1
1.1
1.95
2.2
3.1
3.9
1
KPR (Kredit Pemilikan Rumah) is seen as the most beneficial, followed by staggered
cash payments.
A number of banks have stated their commitment to provide financing facility
through mortgage loan (KPR) which can reach the societys need in overcoming
housing backlog.
Most beneficial schemes for those buying a property
13%
Hard Cash
34%
Gradual Cash
53%
KPR
0%
79
10%
20%
30%
40%
50%
60%
59% dont know about financing solutions for KPR developers products, but they
(78%) think that is sufficient to utilise developers KPR as a mortgage solution.
Aware about financing solutions for KPR developers
41%
Yes
59%
No
0%
10%
20%
30%
40%
50%
60%
Is the move sufficient to utilize developers KPR
22%
Unsafe
78%
Safe
0%
80
20%
40%
60%
80%
The preferred sources of funds are:

1. Own savings
2. Bank loans
3. Combination of own savings and bank loan
Funds to purchase property
Borrow funds from the cooperative, or
other non-bank institutions
7%
Borrow from parents/ relatives
8%
Funds from parents
8%
The combination of personal savings and

funds from parents
9%
29%
Family/Couple Savings
The combination of personal savings and
borrowing from banks
37%
41%
Borrow from banks (mortgage / KTA)
58%
Personal savings
0%
81
20%
40%
60%
53% of respondents feel that the current home interest rates are high, while 14%
deem it as very high. The current Indonesian interest rate BI (base rate) is 7.5%.
According to a survey released by BI in May, creditors for home mortgage loans

(Kredit Pemilikan Rumah / KPR) for houses or type70 loans have reached 25.9% , an
increase of 60.3% over the three months since May. Meanwhile, creditors of
mortgage loans for apartments (Kredit Pemilikan Apartmen / KPA) or type 22 to 70
loans reached 18.7% and increased by 111.1% over the same period.
BI Deputy Governor said that the significant growth in property loans will result in it
being difficult for middle and lower income people to access KPR loans. The high
level of property loans will trigger a hike in the price for smaller types of houses that
are intended for middle- to lower-income earners.
Views on the current home interest rates
14%
Very High
53%
High
30%
Average
2%
Low Enough
1%
Very Low
0%
82
10%
20%
30%
40%
50%
60%
Most respondents (72%) are unaware of AREBI (Real Estate Brokers Association of
Indonesia).
Aware of on an organization called AREBI
72%
No
28%
Yes
0%
83
20%
40%
60%
80%
HONG KONG: GOVERNMENTS

PROPERTY CONTROL MEASURES
BECOME ONE THE CHIEF FACTORS
AFFECTING THE DESIRE TO BUY
AND SELL
According to a report by CNBC, despite a slew of measures aimed at damping down
Hong Kong's runaway home prices, some segments of the market are heating up
again, potentially spurring further tightening measures.
Since 2008, property prices in Hong Kong have surged nearly 120 percent due the
ultra-low interest rate environment, tight supply and abundant liquidity. Residential
property prices in Hong Kong are still rising after four years of continuous house
price rises, but at a slower pace, amidst government efforts to cool down the
housing market.
According to the Ratings and Valuation Department (RVD), house prices rose by 9.7%
year on year to end-October 2013 (5.19% inflation-adjusted), a sharp slowdown
from the 22.11% year-on-year increase in October 2012 (17.64% inflation-adjusted),
As such, its no surprise that Hong Kong consistently ranks among the world's most
expensive property markets.
The Hong Kong government imposed three measures between 2012 and 2013 in
response to soaring property prices caused by an influx of cash into the citys
property market. These measures include the expansion of stamp duties on those
who resell their property quickly, a 15 percent levy on both corporate buyers and
non-permanent residents of the city and double stamp duty on all properties costing
more than HK$2 million, except for those bought by permanent residents who are
either first-time buyers or sell their only home to buy another.
84
In the past three years alone, the government has introduced a number of cooling
measures:
Year
November
2010
October
2012
February
2013
85
Measures Introduced
Special Stamp Duty
implemented
(SSD)
was -
A 5% - point increase in the SSD rate and an extension of the restriction

period from two to three years.
Reasons
To curb excessive
property speculation
and
short-term
trading activities in
the residential sector
To curb investment
and buying activities
attributed to nonlocal buyers.
Introduced a Buyers Stamp Duty (BSD)

for the first time ever, which imposed
an extra 15% charge on top of the
existing stamp duty for residential
properties bought by corporate and
non-local buyers.
Raised special transaction taxes to as
much as 20% on properties sold within
three years of purchase.
Doubled the stamp duty on all property transactions worth more than HK$2
million (US$257,902).
Intended to curb local

Investment demand,
not
just
for
residential but also
non-residential
properties.
Stamp duty is now charged on an agreement of sale and purchase of nonresidential

properties,
including
commercial premises, offices, industrial
premises and parking spaces.
Measure aims to
increase the cost of
the transaction if a
buyer makes a subsale before the date
when the property is
delivered.
Imposed a 15% extra tax on foreign

homebuyers and raised the minimum
down payment requirements for some
mortgages.
Hong Kong's home prices have more than doubled since 2008, driven higher by a
flood of cheap money from developed markets' central banks in the wake of the
global financial crisis.
The special administrative region's property market has become the world's least
affordable, according to a Demographia International Housing Affordability Survey,
published in January. The survey found average home prices were 14.9 times gross
annual median household income, the highest level ever recorded in the survey's 10year history.
The number of new and existing homes sold in July jumped to 7,792, after remaining
below 6,000 a month for the past year, according to government data.
According to Colliers International, the increase in stamp duties and the impact of
SSD and BSD lead us to believe there is only very limited room for short-term
investors to play in the local residential market. The government is now actively
monitoring developments in the nonresidential property sectors as well.
Hypothetically, if it implements similar SSD and BSD in non-residential real estate
sectors, we would not rule out the possibility that real estate players, including some
long-term investors, will leave Hong Kong to seek real estate opportunities with
better risk-adjusted returns in other markets.
86
DEMOGRAPHICS: STILL CAUTIOUS

DUE TO OVERPRICED PROPERTY
PRICES
In comparison with H1 of 2014, there was an increase in female (57% to 60%)
respondents, while there was a slight decrease in the number of male respondents
(43% to 40%).
Gender
60%
Female
40%
Male
0%
10%
20%
30%
40%
50%
60%
60% of respondents were married.

Marital Status
3%
Others
37%
Single
60%
Married
0%
87
10%
20%
30%
40%
50%
60%
Majority of respondents were between the ages of 30 39 years old, an increase

compared to findings in the first half of 2014 (40% to 46%)
Age Group
10%
50 or above
10%
45-49
16%
40-44
35-39
23%
30-34
23%
14%
25-29
3%
20-24
1%
19 or below
0%
5%
10%
15%
20%
25%
The results also show that there is quite an even distribution between those with 2
and 3 people in their household. 33% of respondents have more than four members
in their household.
10%
More than 4
23%
29%
29%
9%
1
0%
88
5%
10%
15%
20%
25%
30%
There was an increase the number of respondents reporting that they held whitecollar jobs (28% to 31%). Professionals continue to remain the second largest
occupation group represented.
Occupation
CEO
Student
1%
Other
1%
Unemployment
1%
Senior Executive
1%
4%
Retired
Homemaker
6%
Technician
6%
Self-employed
7%
Salesperson
7%
15%
Executive Managerial
22%
Professional
31%
White-collar
0%
5%
10%
15%
20%
25%
30%
35%
58% of respondents reported a monthly personal income between HKD$15,000

HKD$40,000 while 15% reported an income of between HKD$40,001 HKD$60,000.
Only 5% had an annual income of HKD$80,000 and above.
Monthly Personal Income
5%
HKD 80,000 above
4%
HKD 60,001 - HKD 80,000
15%
HKD 40,001 - HKD 60,000
28%
HKD 25,001 - HKD 40,000
30%
HKD 15,000 - HKD 25,000

18%
Below HKD 15,000

0%
89
5%
10%
15%
20%
25%
30%
There was a slight decrease in the number of respondents who considered

themselves first time home buyers (23% to 22%) and property buyer (19% to 18%)
compared to findings in H1. Respondents who considered themselves tenants, real
estate professionals and expatriates remained unchanged. In this survey finding,
34% of respondents considered themselves property owners, a slight increase from
H1 (33%).
Consider Themselves
Expatriate
1%
Real Estate Professional
1%
5%
Property Seller
9%
Investor
18%
Property Buyer
22%
First Time Property Buyer
33%
Tenant
34%
Property Owner
0%
5%
10%
15%
20%
25%
30%
35%
Currently Staying In
Apartments under Home Ownership Scheme
(HOS)
0%
Public Housing
0%
Self-owned (mortgaged)
Self-owned
Rental
23%
36%
42%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
90
Respondents main source of property information continues to be from online

search engines.
Source of Property Information
Other
1%
3%
Radio
8%
Billboards
8%
10%
Flyers/Brochures
12%
15%
TV
31%
Direct Mailers from Developers/Agents
33%
81%
Online Search Engines (Google, Yahoo, etc)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
The top three information that respondents want to see when searching for
property related information and news is detailed property information, property
prices comparison and property photos.
Information They Want to See
0%
Others
Interactive map
16%
Agents contact
16%
23%
Property video
28%
Mortgage information
Mortgage analysis
31%
Mortgage calculator
32%
34%
Property facilities information

Estate ratings
36%
Property features comparison
37%
62%
Property photos
65%
Property prices comparison
73%
Detailed property information

0%
91
10%
20%
30%
40%
50%
60%
70%
80%
The survey findings continue to reveal that Hong Kong people trade up their
properties once every five years on average. There is a slight change in the number
of respondents who have stayed in their current premises for less than five years
(53%) compared to the previous findings (57%).
Years Lived in Current Property

3%
All my life
10%
More Than 20 years
17%
11 20 years
18%
6 10 years
53%
0 5 years
0%
10%
20%
30%
40%
50%
60%
83% did not sell nor purchase property in the first half of the year.
Did you sell or purchase any residential properties in first half of 2014
Purchased
5%
Sold and purchased
6%
7%
Sold
83%
None of the above
0%
92
20%
40%
60%
80%
100%
63% of respondents will consider shifting their capital to investment options, with
stocks, currency and securities being the top three investment choices.
Under the current uncertain property market environment, would you consider
shifting your capital to other investment options?
37%
No
63%
Yes
0%
10%
20%
30%
40%
50%
60%
70%
Other Investment Options

2%
Other
4%
Grave/Niche
10%
No Interest
12%
Retail/Commercial Building
17%
Car park
25%
Securities
47%
Currency
66%
Stocks
0%
93
10%
20%
30%
40%
50%
60%
70%
OVERSEAS
PROPERTY:
JAPAN
INCREASINGLY
ATTRACTIVE;
MAINLAND CHINA AND SOUTH
EAST ASIA PROPERTIES REMAIN
POPULAR
88% of respondents currently do not own properties overseas or in China, while 12%
reported that they do.
Currently Own Property Overseas or in China
12%
Yes
88%
No
0%
94
20%
40%
60%
80%
100%
Interest in overseas property investment has decreased compared to H1. The survey
showed that 22% of respondents want to purchase overseas properties compared to
last survey (25%).
Considering to Invest in Property Overseas
22%
Yes
78%
No
0%
10%
20%
30%
40%
50%
60%
70%
80%
Like last year, the most sought-after property markets for investors are South East
Asia regions (including Singapore, Malaysia, Thailand and Indonesia, etc.), reaching
48%. Mainland China comes next, amounting to 35%.
It is worth noting that Japanese properties have become the new target of Hong
Kong investors. The percentage of respondents interested in them has soared to
30%, a 12 percentage point increase from the 18% in the last survey, showing that
more Hong Kong investors are searching for investment targets in Japan recently.
Where They Want to Purchase
3%
Indonesia
6%
Other
10%
Thailand
12%
Macau
16%
Malaysia
17%
U.S.
19%
Singapore
U.K.
30%
Japan
30%
32%
Australia
35%
China
0%
95
5%
10%
15%
20%
25%
30%
35%
40%
Properties in mainland China also have their supporters. 35% of respondents

believe that Chinese properties are worth the investment. The most popular
Chinese cities are Shanghai (37%), Shenzhen (35%), Zhuhai (32%), Beijing (21%) and
Guangzhou (19%).
Where In China they want to Purchase
6%
Other
8%
Dongguan
10%
Foshan
Zhongshan
19%
Guangzhou
19%
21%
Beijing
32%
Zhuhai
35%
Shenzhen
37%
Shanghai
0%
5%
10%
15%
20%
25%
30%
35%
40%
50% of respondents had a budget of HKD 1 to HKD 3 million.

Budget to Purchase
Above HKD 50 million
1%
HKD 30 - HKD 50 million
0%
2%
6%
22%
50%

19%
Below HKD 1 million

0%
96
10%
20%
30%
40%
50%
32% plan on purchasing property overseas in 1 to 2 years from now, while 25% plan
to do so in at least 2 years or more.
When they want to Purchase
No plan
24%
25%
32%
15%
5%

0%
5%
10%
15%
20%
25%
30%
35%
44% of respondents indicate they would consider overseas real estate investment
due to the potential high investment return. Another 23% of respondents expressed
a desire to migrate to, or enjoy their retirement in an overseas market.
Why they want to Purchase
Other
For my children study aboard / in China cities
1%
10%
For vacation / residential purpose
11%
The exchange rate works in my favor
11%
I expect to migrate or retire to that country in

the future
The potential yield is high
23%
44%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
97
SENTIMENTS: FEELING PRESSURE

FROM
THE
GOVERNMENTS
PROPERTY CONTROL MEASURES;
RESPONDENTS BEGIN TO SUPPORT
EASING AND ELIMINATION OF
CONTROL MEASURES
Home purchase issues and property prices have been widely discussed and debated in the
community in recent years. The survey reveals that 84% of respondents consider properties
to be too high. The result is similar to the last survey half a year ago and the one last year,
showing that overpriced properties have long been the situation.
View on Current Property prices in Hong Kong
3%
Prices are too low
14%
Prices are reasonable
84%
Prices are too high
0%
98
10%
20%
30%
40%
50%
60%
70%
80%
90%
The public generally holds a more conservative view towards property prices. 46% of
respondents expect property prices to remain stable in 2H 2014. 33% of respondents,
however, believe property prices will go down. The higher income group, accounting for
37% of them, by and large expects a slowdown in the property market. There is a 4%
increase (to 21%) in the proportion of respondents which believes property prices will rise, a
revival after a drastic drop in the last survey (half year ago). An increasing number of
respondents hold a positive attitude towards the property prices. Yet 40% of respondents
predict the market will shrink by between 6% and 10%.
Prediction for Hong Kong property prices in the second half of 2014?
21%
Property prices will remain the same
33%
Property prices will increase
46%
Property prices will decrease
0%
10%
20%
30%
40%
50%
63% of respondents believe that the residential flat supply in the second half of 2014
is not adequate.
Believe the residential flat supply in the second half of 2014 is adequate?
37%
Yes
63%
No
0%
99
10%
20%
30%
40%
50%
60%
70%
Compared to previous years, Hong Kong people show that they hold a more
positive attitude towards property prices. Yet there is a decline in both the number
of respondents who would consider purchasing and selling property in 2H 2014.
28% of respondents would consider purchasing property in H2 2014, a drop of3%
points compared to the 31% in the last survey. Meanwhile, 14% of respondents
would consider selling property in H2 2014, a slight decrease of 1% point compared
to the last survey.
The Hong Kong SAR Government extended DSD change flat period recently.
Have these changes led you to consider selling your properties?
14%
Yes
39%
No property
46%
No
0%
10%
20%
30%
40%
50%
60% of respondents will adjust their property asking price when selling their
residential property. 67% of respondents shared that they will adjust the property
price by below 10%, while 21% will adjust the price from 11% to 20%.
Will adjust property asking price when selling residential property?
40%
No
60%
Yes
0%
100
10%
20%
30%
40%
50%
60%
The extension of the six-month waiver period has had a certain influence on
market transactions, with 23% and 24% of respondents expressing an intention to
sell or purchase properties respectively.
The Hong Kong SAR Government extended DSD change flat period for the
second-home buyers recently. In the H2 of 2014, the government should:
11%
Withdraw all special measures
22%
Introduce additional special measures
Reduce the number or level of special

measures
23%
45%
Make no change
0%
10%
20%
30%
40%
50%
The latest government measure to relax the double stamp duty (DSD) affects
respondents decision to buy or sell a home, indicating that this new move has had a
certain effect on the market.
The Hong Kong SAR Government extended DSD change flat period recently.
Have these changes led you to consider buying properties
64%
No
36%
Yes
0%
101
10%
20%
30%
40%
50%
60%
70%
In response to the series of control measures launched by the government,

developers are offering discounts and subsidies on recent new launches to boost
sales. 56% of respondents believe that there is a narrowing in the price gap
between new and second-hand properties. The discounts and promotions offered
by developers do help motivate respondents to consider purchasing first-hand
property.
The price difference between new properties and 2nd hand properties are
narrowing, developers are offering a number of special offers and subsidies.
Have these special offers led you to consider buying new properties?
44%
No
56%
Yes
0%
10%
20%
30%
40%
50%
60%
Discounts and subsidies offered by developers (91%) have, for the first time,
become one of the top three factors to consider when purchasing new properties.
The other two factors include; geographical environment (97%) and location and
transportation (97%).
70%
Political and economic climate

Clubhouse & facilities
73%
73%
79%
Property appearance and architectural design
82%
Potential capital appreciation/ROI
85%
Developer & property management
86%
New properties completion date and move in date
89%
Price difference between new properties and
91%
Concessions provided by the developer

Location & transportation
97%
Living environment
97%
0%
102
20%
40%
60%
80%
100%
SINGAPORE: HOME PRICES ARE

EXPECTED TO CONTINUE TO BE
MODERATE AS MARKET SHOWS
SIGNS OF STABILISING
Singapore has become the most expensive city in the world to live in following rise in
house prices after an influx of foreign workers boosted the island's wealth and
demand for homes. According to a February Economist Intelligence Unit (EIU) report,
entitled The Worldwide Cost of Living Survey, a strengthening of the Singaporean
dollar and expansion of the republic's financial industry contributed to the country's
wealth.
According to the EIU statement, the survey is meant to let human resource line
managers and expatriate executives compare the cost of living in 140 cities in 93
countries, which would allow hiring companies to calculate a fair remuneration
package for relocating employees.
Some quarters have argued that the rank does not entirely reflect the true cost of
living of ordinary Singaporeans. Deputy Prime Minister and Minister for Finance,
Tharman Shanmugaratnam said that the survey is aimed at comparing cost of living
for expatriates in different cities or countries.
According to Global Property Guide, Singapore is at the 4th spot on the worlds most
expensive cities list. Figures are typically based on the average for a 120 square
metre apartment in most locations. The apartments are typically in a prime inner city
area, except in the Caribbean or Pacific.
Country
1
2
3
Buying Price
US$
per
Sq.M
53,026
32,745
Hong 20,660
Price / Rent Rent Per Gross Rental

Ratio (x)
Month ($) Yield
Monaco
53x
10,099
UK, London
48x
6,856
Hong Kong,
33x
6,198
Kong Island
4 Singapore
17,709
41x
4,276
5 Russia, Moscow
16,509
26x
6,277
http://www.globalpropertyguide.com/most-expensive-cities
103
1.90%
2.09%
3.00%
2.41%
3.80%
Cooling measures
Singapores private home prices dropped by the most in almost 5 years following
efforts that began in 2009 to curb property market speculation, with government
curbs ranging from taxes on property sales, additional levies on foreign buyers and
mortgage limits.
According to preliminary data released on 1 July 2014 by the Urban Redevelopment
Authority (URA), an index tracking private-residential prices retreated 1.1% to 209.3
points in the three months to June, following an approximate 1.3% decline in the
previous three months.
Monetary Authority of Singapore (MAS), Singapores central bank, said that it is too
early to ease property restrictions after prices in Asias second-most expensive
housing market fell for three straight quarters. As it is still an initial stage of a price
correction, the government will probably look at the pace and period of correction
before deciding on relaxing measures. Home prices in Singapore will probably extend
declines as the government sticks with curbs.
Caution issued by the central bank
In May 2014, Singapore's central bank issued a warning to investors about the risks
posed by buying property overseas, as high house prices prompt a growing number
of Singaporeans to invest in real estate abroad.
MAS said the value of overseas properties dealt with by Singapore real estate
agencies was S$2 billion ($1.6 billion) in 2013, up from S$1.4 billion in 2012. A strong
Singapore dollar and curbs on mortgage lending at home have encouraged more
Singaporeans to buy property in United Kingdom and Australia. MAS reported a 43%
rise in the value of overseas property transactions handled by local real estate
agencies in 2013 compared with 2012.
Global Real Estate Transparency Index 2014
In a recently released Global Real Estate Transparency Index 2014, published by
consultancy firm Jones Lang LaSalle (JLL), Singapore kept its 13th place finish.
Hong Kong slipped to 14th place from 2012s 11th place, making the Singapore the
most transparent real estate market in Asia. JLL explains Hong Kongs downgrade to
lower scores caused by cooling measures initiated by the government as well as in
accounting standards and corporate government.
It is the second time that Singapore ranked higher than Hong Kong since JLL started
to publish the index in 1999. The 2014 study covers 102 markets globally.
104
Below are the JLL indexs top 20 most transparent real estate markets and their
respective scores.
1. United Kingdom 1.25
2. United States 1.34
3. Australia 1.36
4. New Zealand 1.44
5. France 1.52
6. Canada 1.52
7. The Netherlands 1.67
8. Ireland 1.62
9. Finland 1.69
10. Switzerland 1.73
11. Sweden 1.79
12. Germany 1.79
13. Singapore 1.81
14. Hong Kong 1.87
15. Belgium 1.92
16. Denmark 1.96
17. Poland 2.02
18. Spain 2.05
19. Norway 2.07
20. South Africa 2.09
105
DEMOGRAPHICS:
MARRIED
HOMEOWNERS MONITOR MARKET
AS AFFORDABILITY CONCERNS
REMAIN
There is a significant drop in the number of male respondents from the previous
survey, 63% to 49%.
Gender
51%
Female
49%
Male
48%
49%
49%
50%
50%
51%
51%
There are many more married respondents compared to the last survey, from 64%
to 71%.
Marital Status
2%
Others
27%
Single
71%
Married
0%
106
20%
40%
60%
80%
Similar to the previous survey findings, respondents in the 31 40 age brackets

remain at 36% %), followed by the 4150 age brackets (23%).
Age Group
19%
51 and above
23%
41 - 50 years old
36%
31 - 40 years old
19%
20 - 30 years old
3%
Below 20
0%
107
10%
20%
30%
40%
The top 5 districts (in descending order) that respondents currently reside in are:
District 19 - Serangoon, Hougang, Punggol, Sengkang
District 23 - Bukit Panjang, Choa Chu Kang, Bukit Batok, Dairy Farm, Hillview
District 18 - Tampines, Pasir Ris, Simei
District 20 - Ang Mo Kio, Bishan, Braddell, Mei Hwan, Thomson
District 22 - Boon Lay, Lakeside, Jurong
There are more respondents from District 18 this time around, jumping from fifth
spot (previous survey) to the third spot.
Currently Residing In
1%
District 28
District 27
District 26
District 25
District 24
District 23
District 22
District 21
District 20
District 19
District 18
District 17
District 16
District 15
District 14
District 13
District 12
District 11
District 10
District 09
District 08
District 07
District 06
District 05
District 04
District 03
District 02
District 01
5%
1%
3%
0%
7%
5%
2%
6%
12%
7%
2%
5%
4%
4%
3%
6%
3%
3%
2%
7%
2%
5%
4%
4%
3%
6%
3%
0%
108
2%
4%
6%
8%
10%
12%
The percentages are relatively the same. Most respondents (30%) are
Executives/Managers, while 19% are Professionals and 11% are
Clerical/Administrative.
Profession
2%
2%
2%
Part - timer
Unemployed
Student
Retired
3%
4%
5%
6%
Civil Servant
ClericalAdministrative
Homemaker
Self Employed
6%
10%
11%
Sales
19%
Professional/ Technical
0%
5%
10%
15%
20%
There are less respondents earning less than SGD$60,000 per annum in this survey
(from 35% in the previous survey to 27%). 11% of respondents preferred no say what
their annual household income was.
11%
Prefer not to Say

Above SGD$240,001
4%
SGD$180,001 SGD$240,000
4%
SGD$140,001 SGD$180,000
5%
SGD$120,001 SGD$140,000
5%
8%
SGD$100,001 SGD$120,000
16%
SGD$80,001 SGD$100,000
21%
SGD$60,001 SGD$80,000
16%
SGD$40,001 SGD$60,000
11%
Below SGD$40,000
0%
109
5%
10%
15%
20%
25%
The results remain relatively unchanged from the last survey. 31% of respondents
have 4 people in their household, while 22% have more than 4 in their homes.
22%
More than 4
31%
4
24%
3
19%
2
4%
1
0%
5%
10%
15%
20%
25%
30%
35%
More than a third of respondents (30%) are adopting the wait-and-see approach by
monitoring the market, while 16% are first-time homebuyers. There is a much
smaller group of real estate professionals/agents in this survey (from 15% in
previous survey to 5%).
Consider Themselves
Real Estate Agent Professional/Agent
5%
Interesting in leasing and renting

property
5%
12%
Looking to rent out a property
15%
Interested in buying property

Interested in selling property
16%
First time home buyer
16%
0%
110
5%
10%
15%
20%
Most Singaporean respondents have been residing in their current abode for less
than five years (44%), while 24% have been living in the same place for 1120 years,
and 23% have been in the same place for 610 years.
Years Lived in Current Premises
5%
All my life
12%
More than 20 years
27%
11 - 20 years
24%
6 - 10 years
32%
0 - 5 years
0%
5%
10%
15%
20%
25%
30%
35%
More than half of respondents (50%) own one property, while 21% do not currently
own a property.
No of Properties Owned
2%
More than 4
3%
5%
19%
50%
1
21%
None
0%
111
10%
20%
30%
40%
50%
Most respondents (80%) own a residential property, and combined with the fact that
50% of respondents own one property, it can be deduced that this group is made up
largely of property owners. In tandem with the previous three surveys, most
respondents (85%) live in residential buildings HDB Flat (60%) and Private
Condominium (25%).
Overall, respondents profile seems to be largely consistent with the previous survey.
Type of Properties Owned
2%
Other
12%
Land
16%
Shop/Commercial Building
80%
Residential Property
0%
20%
40%
60%
80%
Currently Living In
Factory /Industrial Property
0%
Hotel/Resort
0%
Retail Space
1%
Office Space
1%
2%
SOHO
5%
Bungalow
7%
Semi-detached house
9%
Terrace House
24%
Private Condominium
51%
HDB Flat
0%
112
10%
20%
30%
40%
50%
60%
According to government data, 9 out of 10 Singaporean households own their own

home.
http://www.singstat.gov.sg/statistics/visualising_data/chart/Home_Ownership_R
ate_Of_Resident_Households.html
113
Online property sites are the preferred way of gathering property-related

information. Newspapers and magazines are second favourite, while real estate
professional/agent is third.
Source of Property Information and News
Other
4%
14%
17%
Television / radio
21%
Attend property seminars/exhibitions

Talk to real estate agent
39%
Other web portals
39%
48%
53%
iProperty.com
0% 10% 20% 30% 40% 50% 60%

Almost half of respondents (38%) are in a contemplative mind-set when it comes to
newly developed properties.
Looking to Purchase a Newly Developed Property
6%
More interested in resale property
25%
Yes
30%
No
38%
Maybe
0%
114
10%
20%
30%
40%
Respondents top three sources of information on new launches are:

Developers
Online
Print ads
Source of Information on New Developments
2%
Other
16%
SMS Ads
23%
26%
TV / Radio
38%
50%
Print Ads
Online Search Engines
52%
Directly from developers
52%
0%
115
10% 20% 30% 40% 50% 60%
The more details, the better it is. After all, property is a big-ticket item that requires
plenty of research and consideration prior to purchase. The main information that
respondents seek are:
1. Price comparisons
2. Detailed information (facilities)
3. Reviews on property/location
4. Price growth comparison and Display of average asking prices
Information Looked for Online
1%
Other
10%
Currency Conversion
16%
17%
Property videos
19%
Interactive maps
23%
Home mortgage calculator
24%
Mortgage analysis
29%
A Home-buyers check-list
31%
Amenities near property
32%
36%
Compare Features
39%
Hi-quality Photos
41%
Display of Average Asking Prices
44%
48%
58%
Detailed information about the property /facilities
64%
Property Price Comparisons

0%
116
10%
20%
30%
40%
50%
60%
70%
Majority of respondents are not looking to purchase property in the short-term.

Almost a quarter (24%) are looking to purchase within the year, while most of them
are probably waiting to see how the market performs in the next 2 years.
22% (up from 10% in the previous survey) are not interested to purchase at the
moment. The key reasons are due to affordability; property prices are deemed to be
too high, and they do not have enough to place a down payment.
When to Purchase
22%
27%
28%

16%

7%

0%
Having too much debt from college and student

loans
5%
10% 15% 20% 25% 30%
3%
5%

Concerned that the value of the home will decline
after buying it
6%
Banks making it too hard to qualify for a home

mortgage
6%
Cant find a property that I can afford
7%
Waiting to see what measures will be announced in

Budget 2015
7%
9%
Other, please specify
10%
Unpredictable property market
21%
Not having enough money for a down payment
26%
Property price is too high
0%
117
5%
10% 15% 20% 25% 30%
There is a slight change in respondents motivation to purchase property. This group

of respondents seems interested in changing their profile from property owners to
property investors, as most respondents own one home at the moment. However,
as stated in one of the previous pages, they are not in a rush to purchase property.
This survey
For rental income
Desire to own a home
1
2
3
4
5
Last survey
A long-term investment
For rental income
Desire to own a home
/ Affordability of homes
Desire to own a larger home
Main Motivation to Purchase

1%
Others - please specify
6%

Purchase home for family member or
Desire to be closer to
7%
8%
Desire to be closes to job/school/transit
9%
9%
11%
For short- term investment capital gain
14%
Retirement
Desire for vacation home/investment
15%
16%
17%
20%
23%

29%
34%
For rental income

0%
118
15%
5% 10% 15% 20% 25% 30% 35%
The three main types of property that respondents prefer are Private
Condominiums/Serviced Apartments, HDB flats, and Terraced Houses. It would
seem that many Singaporeans aspire to own a condo. Today, the price of an average
flat is between SGD$1 million to SGD$1.5 million, effectively pricing out many
middle-class and younger workers. According to the Global Property Guide,
Singapore is the 4th most expensive place in the world to buy an apartment, after
Monaco, London, and Hong Kong.
The districts that are more popular with respondents are:
District 19 - Serangoon, Hougang, Punggol, Sengkang
District 20 - Ang Mo Kio, Bishan, Braddell, Mei Hwan, Thomson
District 03 - Alexandra, Queenstown, Tiong Bahru
District 05 Clementi, Dover, Pasir Panjang, West Coast
District 11 - Novena, Newton, Thomson, Watten Estate, Meyer, Tanjong Rhu
Respondents seek properties that are not necessarily within the district that they live
in. Out of the top 5 in the list, only 2 districts are the same as where they live.
Types of Properties Interested In
1%
Student Housing
3%
Hotels
3%
Not considering
4%
Retirement Homes
4%
Industrial
6%
Retail
7%
Office
7%
Bungalow
Detached House
11%
16%
Semi-detached house
21%
21%
HDB
Terraced House
Private condominiums/serviced apartments
23%
25%
57%
0% 10% 20% 30% 40% 50% 60%
119
Where to Purchase
District 28 - Seletar, Yio Chu Kang
District 27 - Sembawang, Yishun
District 26 - Springleaf, Upper
District 25 - Kranji, Woodgrove,
District 24 - Lim Chu Kang
District 23 - Bukit Panjang, Choa Chu
District 22 - Boon Lay, Lakeside,
District 21 - Upper Bukit Timah, Ulu
District 20 - Ang Mo Kio, Bishan,
District 19 - Serangoon, Hougang,
District 18 - Tampines, Pasir Ris, Simei
District 17 - Changi, Flora, Loyang
District 16 - Bayshore, Bedok, Siglap,
District 15 - Amber Rd, Joo Chiat,
District 14 - Geylang, Eunos, Sims,
District 13 - Macpherson, Braddell
District 12 - Balestier, Serangoon,
District 11 - Novena, Newton,
District 10 - Ardmore, Bukit Timah,
District 09 - Cairnhill, Orchard Rd,
District 08 - Little India
District 07 - Golden Mile, Middle Rd
District 06 - Beach Rd, High Street
District 05 - Clementi, Dover, Pasir
District 04 - Habourfront, Mount
District 03 - Alexandra, Queenstown,
District 02 - Anson Rd, Tanjong Pagar
District 01 - Cecil, Marina, People's
0%
120
5%
8%
7%
9%
3%
12%
12%
9%
19%
19%
12%
7%
14%
15%
12%
9%
14%
16%
13%
10%
5%
7%
8%
16%
14%
18%
9%
7%
5%
10%
15%
20%
18% would spend less than SGD$500,000, while 12% would spend SGD$1 million to
SGD$1.5 million, and 18% would spend SGD$600,001 to SGD$700,000.
In early July, Deputy Prime Minister and Finance Minister Tharman
Shanmugaratnam, who is also chairman of the central bank, said that a further
correction in the Singapore property market would not be unexpected. Residential
prices have risen 40% since 30 September 2009 to their peak in September last year.
The managing director of the Monetary Authority of Singapore (MAS) said that debt
levels among highly-leveraged households remain high. The MAS has narrowed its
2014 inflation forecast to between 1.5% and 2%, from 1.5% to 2.5% as the property
curbs helped stabilise prices and rents.
Budget
3%
More than SGD$2 mil
5%
SGD$1.5 mil to SGD$2 mil
12%
SGD$1 mil to SGD$1.5 mil

9%
SGD$900,001 to SGD$1 mil
8%
SGD$800,001 to SGD$900,000
13%
SGD$700,001 to SGD$800,000
18%
SGD$600,001 to SGD$700,000
13%
SGD$500,001 to SGD$600,000
18%
Less than $SGD500,000

0%
121
5%
10%
15%
20%
53% of respondents surveyed are concerned about affordability and rising property
prices.
Concerns on the Property Market
1%
Other
Errant developers and poor building
quality
8%
13%

interest rates
25%
Affordability and rising property

prices
53%
0%
10% 20% 30% 40% 50% 60%
Singapores central bank said its too early to ease property restrictions after prices
in Asias second-most expensive housing market fell for three straight quarters.
Director of the Monetary Authority of Singapore (MAS) said that real estate prices
remain at elevated levels in its annual report released in July 2014. Singapore is
looking to secure the gains from stabilizing the market and restoring financial
prudence.
On an affordability scale, the rating average is 6.97 (1 being affordable and 10 being
unaffordable).
Perception on Affordability
6.97
Affordability
0
122
10
OVERSEAS PROPERTY: INCREASED

INTEREST
IN
THE
UNITED
KINGDOM,
WITH
OVERALL
PREFERENCE
FOR
PRIVATE
CONDOMINIUMS
/
SERVICED
APARTMENTS
Most respondents (82%) do not own properties overseas. For those who own
properties overseas, their properties are largely in:
1. Malaysia
2. United Kingdom
3. Australia
The properties were mainly purchased via developers/seminars/exhibitions, and
local agents from the country they purchased in.
Own Property Overseas
18%
Yes
82%
No
0%
123
20%
40%
60%
80%
100%
Where They Purchased

2%
3%
3%
3%
3%
4%
4%
4%
6%
8%
8%
10%
Vietnam
Hong Kong
China
New Zealand
Indonesia
Other
India
United States
Thailand
Australia
Phillipines
United Kingdom
Malaysia
42%
0%
10%
20%
30%
40%
50%
How They Completed the Purchase

Other
7%
Contacted agent online from the country

where the property is located
8%
Used a local agent from country of origin

to purchase
32%

show/seminar/exhibition in your country
of origin
53%
0%
124
10% 20% 30% 40% 50% 60%
52% of respondents are not looking to invest in property overseas. While there is
lesser interest in Malaysia and a constant interest in Australia, Singaporeans
surveyed have also shown more interest in the United Kingdom.
Preferred
overseas
location
Malaysia
Australia
United
Kingdom
Thailand
H2 2014
H1 2014
H2 2013
H1 2013
31%
18%
12%
35%
22%
9%
39%
19%
7%
42%
15%
7%
7%
9%
9%
7%
In May 2014, the MAS said Singapore investors poured SGD$2 billion into foreign
properties last year a 43% jump on year 2012. Malaysia accounted for slightly more
than half of real estate investments abroad last year by Singapore investors,
followed by the United Kingdom and Australia, based on the central banks
estimates.
MAS said the value of overseas properties dealt with by Singapore real estate
agencies was SGD$2 billion in 2013, up from SGD$1.4 billion in 2012. A recent
research report by estate agent Knight Frank found that buyers from Singapore
accounted for 23% of all purchases of newly built central London property in 2013,
second only to British buyers who accounted for 27%.
Considering to Purchase Property Overseas
15%
Yes
34%
Undecided
52%
No
0%
125
10%
20%
30%
40%
50%
60%
Preferred Overseas Location

2%
2%
2%
2%
2%
3%
3%
4%
4%
4%
4%
India
China
Vietnam
Macau
Japan
Other
Hong Kong
New Zealand
United States
Phillippines
Indonesia
Thailand
United Kingdom
Australia
Malaysia
7%
12%
18%
31%
0%
126
5%
10%
15%
20%
25%
30%
35%
Be it local or overseas property, respondents are not in a hurry to purchase. The

consideration period for overseas property is slightly longer, as 49% would only look
at buying overseas property 2 years from now.
When to Purchase
49%
27%
15%
9%

0%
10%
20%
30%
40%
50%
43% of respondents would budget less than SGD$500,000 for overseas property.
Budget
1%
More than SGD$2 mil
2%
SGD$1.5 mil to SGD$2 mil
7%
SGD$1 mil to SGD$1.5 mil
8%
SGD$900,001 to SGD$1 mil
7%
SGD$800,001 to SGD$900,000
10%
SGD$700,001 to SGD$800,000
9%
SGD$600,001 to SGD$700,000
17%
SGD$500,001 to SGD$600,000
40%
Less than SGD$500,000

0%
127
5% 10% 15% 20% 25% 30% 35% 40%
Property investment is a real concern in Singapore, where the government has

stepped in with tough rules to restrict foreigners buying homes. The government has
tightened up stamp duty restrictions on companies buying residential property.
Many Singaporean investors look outside their home country for property because
the government charges a 7% stamp duty rate on second homes and requires them
to pay a 25% deposit.
In Britain, the government is proposing to scrap a capital gains tax exemption for
non-residents. Sellers will have to pay tax at a rate of between 18% and 28% on sales
of property.
Singaporean investors are being lured by a combination of new, prohibitive taxes on
second homes in the island state, record low interest rates, a strong currency and
promises of attractive returns from Australian developers.
As long as the prohibitive conditions on the purchase of second homes exists in
Singapore and the economic climate remains favourable, it is believed that
Singaporeans will continue to look to Australian property as an investment haven,
spurred on by generous rental guarantees from Australian developers.
128
By far, Private condominium / serviced apartment is the preferred type of property

overseas. Coming in at a distant second and third are Bungalow and Semidetached house respectively.
Overseas
Private condominiums /
apartments
Bungalow
Semi-detached house
Terrace house
Flat / Walk-up apartment
1
2
3
4
5
Singapore
Serviced Private condominiums / Serviced
apartments
HDB
Terrace house
Flat / Walk-up apartment
Semi-detached house
Respondents seek overseas property because it is perceived as a good investment,

for migratory purposes, and vacation/residential purposes.
Properties Interested In
0%
2%
3%
3%
4%
4%
6%
10%
12%
13%
Factory / industrial property

Hotel / resort
Other
Retail space
SOHO
Shop office
Terrace house
Semi-detached house
Bungalow
Private condominium / serviced apartment
41%
0%
10%
20%
30%
40%
50%
Reasons to Purchase
2%

3%
The country has housing policies that encourage foreign ownership
3%
5%
The economic slowdown in that country has brought prices down
9%
The exchange rate works in my favour
11%
The potential yield if high
13%
For vacation/residential purpose
21%
I expect to migrate or retire to that country in the future
33%
0%
129
5%
10%
15%
20%
25%
30%
35%
The popular search for information is always online. There is a slight difference for
overseas properties as respondents would prefer to attend exhibitions featuring
overseas properties, and talk to real estate professionals. Face-to-face
communication is seen as more important compared to newspapers when it comes
to overseas properties.
How They Search
14%

Attend exhibitions that feature overseas
property projects
16%
16%
Talk to real estate professionals /

property agents
18%
iProperty.com
18%
19%
Other web portals (Google, Yahoo, etc)
0%
130
5%
10%
15%
20%
In tandem with the decrease in interest in investing in Malaysia, 45% of respondents

(drop from 51% in the previous survey) are not considering Iskandar Malaysia, while
35% are undecided.
More than half (58%) of respondents would purchase a property at Iskandar
Malaysia for investment, while 22% would purchase for their own stay.
A five-bedroom, two-story home with private pool in Iskandar advertised was for
MYR3.9 million in May 2014. A similar-sized home on Singapores prime Sentosa
district with a waterfront view would be on sale for about 15 times as much.
Considering Investing in Iskandar Malaysia
19%
Yes
39%
Undecided
43%
No
0%
10%
20%
30%
40%
50%
Reasons for Buying in Iskandar Malaysia

2%
Other
20%
For retirement
23%
For own stay
56%
For investment
0%
131
10%
20%
30%
40%
50%
60%
37% of respondents pick Johor Bahru, while 30% preferred to invest in Nusajaya.
This sentiment remains unchanged from the last survey.
Where They Want to Buy in Iskandar Malaysia
12%
Other parts of Iskandar Malaysia
21%
Medini
30%
Nusajaya
37%
Johor Bahru
0%
10%
20%
30%
40%
Respondents are attracted to Iskandar Malaysia due to its geographical proximity,

and affordable property prices.
Kuwait Finance House Research (KFHR) said that despite Malaysias property cooling
measures, Iskandar Malaysia is expected to continue as a preferred destination for
both domestic and foreign investment,
KFHR said that cooling measures will dampen speculation in the first-half of 2014 but
Iskandar is a long-term play, with the foundation and infrastructure for Phase I
(2006-2010) already laid down and with raised cumulative committed investments
reaching RM131.6 billion.
Why They Want to Buy
Other
Friendly foreign investment scheme
Affordable property prices
Close proximity to Singapore
3%
17%
54%
69%
0% 10% 20% 30% 40% 50% 60% 70%
132
Be it local, overseas or Iskandar Malaysia, respondents are firm on their preference

type of property to purchase - Private condominiums / Serviced apartments. The
other two that they are interested in are Semi-detached house and terraced house.
Types of Properties Interested In
Industrial
0%
Hotels
0%
Retail space
3%
3%
5%
Office
7%
Detached house
12%
Bungalow
13%
Terrace house
17%
Semi-detached house
38%
Private condominium / serviced
0% 5% 10% 15% 20% 25% 30% 35% 40%

The top three concerns about investing in Iskandar Malaysia are:
1. Crime and safety
2. Decline in property value after purchase
3. Lack of caveats and data
Concerns about Investing in Iskandar Malaysia
7%
No concerns
25%
Cooling Measures
36%
Property Prices is too high
38%
Infrastructure
39%
lack of caveats & data

Concerned that the Value of the
property will decline after purchase
52%
66%
Crime & Safety
0%
133
20%
40%
60%
80%
SENTIMENTS: AFFORDABILITY IS
STILL A KEY WORRY, EVEN AS
RESALE PRICES OF NON-LANDED
PRIVATE HOMES DROP
More respondents (from 18% in the last survey to 21%) are unsure about whether
the average Singaporean family can afford resale HDB Flat prices, while 52% opined
that these flats are not within their reach.
According to Singapore Real Estate Exchange (SRX), resale prices of non-landed
private homes dipped 1.3 per cent month-on-month in July, with the private resale
price index hitting the lowest level since October 2012, based on a flash report
released yesterday by the Singapore Real Estate Exchange (SRX). From the recent
peak in January, prices have slipped 6.5 per cent.
Declines in prices were seen across all three regions, with the Core Central Region
(CCR), or city centre, leading the fall at 4 per cent last month.
Prices in the Rest of Central Region, or city fringes, dropped 1.1 per cent, while those
in the Outside Central Region, or suburbs, were down 0.6 per cent.
Are The Current Resale HDB Flat prices affordable?

21%
I don't know
27%
Yes
52%
No
0%
134
10%
20%
30%
40%
50%
60%
43% of respondents would like more ownership restrictions on foreigners, while 33%
would like the implementations of regulations on housing prices.
The government's cooling measures have brought the percentage of foreigners
buying up Singapore property on par with most other countries, as pointed out at
the inaugural OPPLive Asia conference at Marina Bay Sands in April 2014.
According to Global Property Guide, Singapore has experienced an influx of
expatriates in recent years. Some foreigners have preferred to buy, rather than face
escalating rentals, especially if they are going to be in Singapore for more than a
couple of years. Singapore now has the sixth-highest percentage of foreigners in the
world; about 38% of Singapores populations are foreigners. Of these, 10% are
permanent residents, and the remaining 28% expats.
Foreign buyers have contributed to Singapores strong recent house price increases.
While there was a decrease in the number of transactions across all buyer groups,
the proportion of purchases by non-Singaporeans increased q-o-q by 4.0 percentagepoints in Q1 to 29%. This was the highest proportion of private home purchases by
non-Singaporeans since the Additional Buyers Stamp Duty (ABSD) was first
introduced in December 2011.
Measures the Government Can Implement to Ensure Affordable Prices
4%
Other
Introduce other cooling measures similar to

TDSR to benefit first time buyers
22%
Implement regulations on housing prices for

property developers
31%
Impose ownership restrictions on foreigners

who can invest or purchase Singapore
property
43%
0%
135
20%
40%
60%
The sentiment is the same as the previous survey. 45% of respondents prefer the
government to manage the prices of HDB flats only.
Should the Government be responsible for managing HDB prices?
18%
I don't Know
41%
No
42%
Yes
0%
10%
20%
30%
40%
50%
Slightly more than half of respondents (53%) think that new and resale private
condominiums would see a price drop in the second half of 2014. In the last survey,
more respondents chose HDB resale flats as the property to see a price drop.
Type of property that will see a price drop in H2 2014
30%
Resale private condominiums

23%
New private condominiums

18%
High-end luxury properties (non landed)

15%
HDB resale flats

8%
High-end luxury properties (landed)

4%
Landed Properties
0%
136
5%
10%
15%
20%
25%
30%
38% feel that their property will retain its value in H2 2014, while 38% also feel
otherwise. Overall, the sentiment is mixed, with more being unsure of the market
when it comes to their opinion on a propertys value.
Confident that their property will retain its value in H2 2014
25%
I don't know
38%
No
38%
Yes
0%
137
5%
10%
15%
20%
25%
30%
35%
40%
The reduction of Mortgage Servicing Ratio (MSR) has affected 51% of respondents
decision to purchase another property. This might be one of the reasons that
Singapores housing market continues to decline, despite a reasonable rate of
economic growth.
The private residential property price index dropped 1% during the year from Q1 to
Q2 2014, in contrast with the 4.1% annual rise seen year-on-year to Q2 2013. This
was based on figures released by the Urban Redevelopment Authority (URA). When
adjusted for inflation, house prices fell by 1.68% over the same period. On a
quarterly basis, private residential property prices fell 1.26% (-1.43% inflationadjusted) in Q1 2014.
Has the reduction of the Mortgage Servicing Ratio (MSR) from 35% to 30% by
the government in August 2013 affected your decision to upgrade or purchase
another property?
49%
No
51%
Yes
20%
138
30%
40%
50%
60%
Most respondents (65%) said that property remains unaffordable, despite lower
prices in certain regions.
According to reports by both URA and SRX, property prices in certain regions
have been lowered in H1 2014 compared to previous years. Thus, have
property prices become more affordable for you
65%
No
35%
Yes
0%
20%
40%
60%
80%
On a scale of 1 to 6 (1 being most important and 6 being least important),

respondents are for lowered price per sq ft and early-bird discounts. They are least
interested in vouchers for furniture. Affordability is again the top worry for
respondents.
With market exuberance for private homes tempered by the cooling measures and
TDSR framework, more developers are reviewing their marketing and pricing strategies
to entice buyers. Please rank the factors that you take into consideration for a new
property launch
4.95
Lowered price per sq ft

4.04
Option of smaller unit sizes
3.75
Early-bird discounts
3.43
Partial absorption of stamp duty
3.05
Direct Price Discounts

1.78
Furniture vouchers
0.00
139
1.00
2.00
3.00
4.00
5.00
6.00
Slightly more than half of respondents surveyed (56%) are satisfied with the
governments efforts in cooling the property market.
Last year, MAS said that lenders must consider a borrowers total debt when
granting mortgages. Under this loan framework, a borrowers loan repayments,
including mortgages, shouldnt exceed 60% of income, based on the policy
guidelines.
Declining home sales eased demand for housing loans. Mortgages increased just
7.9% in March 2014, the slowest pace since June 2007, according to central bank
data. Standard Chartered Plcs Southeast Asias head said that Singapores home
prices will probably fall further before the housing curbs introduced in the past five
years are scaled back.
Are you satisfied with the governments plans announced in Budget 2014 to
keep property market cooling measures in place for the time being?
44%
No
56%
Yes
0%
140
10%
20%
30%
40%
50%
60%
About the iProperty Group
Listed on the Australian Securities Exchange, the iProperty Group (ASX:IPP) owns and
operates Asias No.1 network of property websites under the iProperty.com
umbrella brand. Headquartered in Kuala Lumpur, Malaysia, the Company is focused
on developing and operating leading property portals with other complementary
offerings in Asian markets. It currently operates market leading property portals in
Malaysia, Hong Kong, Macau, Indonesia and Singapore, and has investments in India
and Philippines. With further expansion planned, the iProperty Group is continuously
working to capitalise on its market-leading positions and the rapidly growing online
property advertising market throughout the region. Along with 18 property websites
across the region, the Groups portfolio also includes the first comprehensive
regional commercial property website, CommercialAsia.com, as well as a regional
property exhibition business and monthly property magazines in Malaysia and
Indonesia.
* Disclaimer
Although every precaution has been taken in the preparation of this report, the publisher and author assume no
responsibility for errors or omissions nor is liable for damages resulting from the use of the information contained
herein.
141

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INDEX

CEOs Note ...........3

A survey by chartered surveyor and international property consultants CH Williams

Graphs show loan applications and approvals between 2006 to 2014

Foreigner Residing in the Country

Profession of respondents surveyed is consistent with the previous survey, where

CEO / Senior Management

Prefer not to say

Interested in leasing and renting property

Interested in Selling Property

Real Estate Professional / Property Agent

Just Monitoring the market

First Time Home Buyer

Interested in Buying Property

Years in Current Premises

Private Condominium / Serviced

As always, online is the preferred source of information for respondents. A distant

Refer to Family members and friends

Other Web Portals

More Interested in resale property

Reviews on property/location Property price comparisons

High quality photos

Price growth comparison

Display of average asking Interactive maps

Detailed information about the property

Property price comparisons

Reviews on the property/location

Price Growth comparison

Display of average asking prices

Home mortgage calculator

Agent contact information

Update/Summary on Government Regulations

Research mortgage financing

Video presentation on the property

Not interested at the moment

At least 2 years or more from now

1 - 2 years from now

6 - 12 months from now

Within the next 6 months

Desire to own a home on my For long-term investment

Reasons for Not Purchasing

Lack of good financing options

Concerned that that the value of the

Unpredictable proeprty market

Cannot find a property that is affordable

Not having enough money for a down

Property prices are too high

Desire for a smaller home

Job-related relocation or move

Purchase home for family member or relative

Change in family situation

Desire for a larger home

Desire for a home in a better area

For rental income

Desire to own a home on my own

For long-term investment

Eligibility for housing

Developers track record and

Potential capital Appreciation

8.00 10.00 12.00

As the main motivation is for long-term investment, respondents might have

Above MYR3 million

MYR1 Million - MYR 3 million