property burst ? bubble? most unlikely not...

AmInvestment Bank Group, one of the largest investment banks in Malaysia, said that a property bubble burst is improbable in Asia Pacific, including Malaysia, as there are no signs hinting at such a trend over the next two years.

“I don’t see a property burst (happening) in the next six months, one year or two years down the line” said Ng Chze How, Director for Retail Funds.

“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.”

He noted that the market will have more advantages with these factors, coupled with economic recovery.

Meanwhile, AmAsia Pacific Reits has invested in a diversified portfolio of Reits listed in Asia Pacific.

Ng is positive the Reits chosen by the group will witness high occupancy rates and growing rentals.

“Selected Asian properties have yet to reach their previous peak, as such, there is room for potential growth,” he said.