HIGHER-END LANDED PROPERTIES A RELATIVELY SAFE HAVEN, SAYS OSK RESEARCH

KUALA LUMPUR, Dec 30 (Bernama) -- There is recent evidence that higher-end
landed properties in well-established locations could potentially outperform the
overall property cycle in times of adversity, says OSK Research.

"This "hedging" opportunity, stems from the hypothesis that the fast-rising
"baby boomers" of the 50s, who tend to be more affluent but risk-averse, are
likely to hedge their wealth in mid-to-high end landed properties during
uncertain times," the research house said in its daily report here today.

"Given that households are still flushed with liquidity, this age group is
unlikely to plough all their wealth back into the banking system given the low
deposit rates amid the high inflationary environment," it added.

Nonetheless, as all the market players are still trying to assess the
severity of the potential collateral damage from the global financial crisis on
Malaysia's real economy, it said most home buyers are likely to stay on the
sidelines for a while and may not return until the second half of next year.

OSK Research said 2009 will be a year of reckoning for luxury condos.

It has estimated that more than 5,000 units of luxury condos priced more
than RM400 per square feet would come on stream in the Klang Valley by late 2008
and another wave of more than 5,000 units is expected to hit the market in 2009
before easing slightly to more than 2,000 units in 2010. (US$1=RM3.48)

"Notwithstanding the risk of dimishing demand, these waves of incoming
supply at about the same time, will severely depress rental yield by late 2008
and going into 2009/2010," it explained.
-- BERNAMA