It’s always funny. Those who loves to buy, loves to buy the most during slow or bad times. Those who are afraid to buy during great times tell you that they want to wait for bad time but during bad time, it is not likely that they can suddenly become courageous. Well, this is the world of property investment and it applies for stock market as well. Recent few weeks have seen more actions from foreign buyers but I have started to take profits for stocks I bought much earlier during worse times. I could not predict when the market would correct itself. If it does, well, great for me as I can then buy back. If not, well, the profits would be enough for me to do a lot of other stuffs. Haha.
Land buying continue to be active even during current slow time. Greenland Holdings Group Ltd bought land in Plentong from the Iskandar Waterfront City Bhd (IWCB) with RM2.37 Billion! Land size is 128 acres. if they are paying RM2.37 billion for just the land, I think the GDV would be at least a few times higher and this also meant that the development would take many years to develop.
They are not stopping with this. A report has emerged that they may also be buying another piece of land in Tanjung Langsat. For this piece of land, fortification of the land is needed for industrial purposes. It is reported that the company would like to diversify from just property development in Iskandar currently.
Another prominent developer, Malaysian Resources Corporation Berhad (MRCB) has won a tender to buy the land on which the German Embassy is situated on for RM259.15mil. The size is ONLY 1.8661 acres and it has buildings on it which meant additional cost to demolish it. According to appraisal from CH Williams Talhar & Wong and Raine & Horne International Zaki & Partners, this price is 6% higher than the market value of the land.
Well, it is always more advantageous to buy during bad times. Perhaps this is a good reason to buy because good deals would be hard to come by when the whole world wants the same piece of land.
written on 8 Apr 2015
Next suggested article: Forest City. GDV down but it’s full steam ahead