Asia Pacific including Malaysia is unlikely to meet a property bubble burst in the next couple of years as there are no signs of it at the current stage. Property value was consistently picking up without slowing down for the last few years. That shows that the growth in this industry is healthy and could be a good news to all the investors.
Director for retail funds Ng Chze How said real estate investment trusts (REITS) would also not experience a burst including those acquired by the group.
“I don't see a burst or a crash in the property market.”
“You have high wages, ample liquidity, small percentage of non-performing loans and these plus steps taken by the government to prevent the economy from overheating, augur well for the property market.”
“I don't see a property burst (happening) in the next six months, one year or two years down the line,” he told reporters at the launch of Malaysia's first Asia Pacific REITs fund, AmAsia Pacific REITs, on Tuesday.
He said with these factors in place coupled with an economic recovery, there would be more upside in the market.
AmAsia Pacific REITs invests in a diversified portfolio of REITs listed in the Asia Pacific region.
Ng was optimistic the REITS selected by the group would see high occupancy rate and increasing rental.
"Selected Asian properties have yet to reach their previous peak, as such, there is room for potential growth," he said, adding that properties were seen as a good hedge during the current inflationary period. - Bernama
Source: BERNAMA