Property Investment 101: Property related charts by Rahim & Co
A good friend of mine has just left Rahim & Co and joined another organisation. However, just before he left, he sent me a comprehensive report from Rahim & Co which I think i want to share with more people. Thus, I have looked through them and chosen some relevant charts for us to understand the property market a little better versus just listening to our FB friends who may be speaking from what they heard in their FB pages. Haha. Below are all charts based on actual numbers.
How’s the economy? Are people able to find and keep jobs?
It’s a positive one for both actually. The economy is growing every quarter and the unemployment is also dropping every quarter to except if we compare to the years prior to emergence of Covid-19 and all the Movement Control Order (MCO)
Are property prices dropping?
Please note that house price index is based on actual transactions yeah. If someone wanted to sell at a higher price but he / she did not get a buyer who completed the transaction, then this is not included into the house price index yeah. If we use 2018 as the starting point, it is clear that prices on average is inching upwards except for Kuala Lumpur and Penang which has remained almost similar to 2018. The answer to whether property prices are dropping is a firm No. In other words, there are more transactions with a higher price versus a lower price than what the seller paid for earlier.
Impaired Loans Ratio would tell us about the financial health of the home loan borrowers
1.2% for impaired loan is very low, in case you like to compare this to the world. 1.2% means only 1.2% out of 100% of the loan is impared. Impaired means there is a potential for it to turn into bad debts. (may never be repaid)
Actual Transaction Numbers would show what’s really happening on the ground
The below is a comparison between 1H2021 to 1H2022. We can start with the Northern Region In Penang, tt’s a significant rise of close to 40 percent more transactions when 1H2022 is compared to 1H2021. In Kuala Lumpur it’s close to 30 percent while in Selangor, it’s 16 percent up. Johor is showing a 20 percent increase while both Sabah and Sarawak are showing very positive numbers too.
We will go into more details on some selected states after this. Happy understanding and we thank Rahim & Co for such a detailed report.
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