Construction & Property 101 - Volume 5.

As the 2009 came to the end last week, 2010 started off with a lot of promise in store for the Construction and Property sectors.

Let me start on the Property sector first.

Based on what many analysts have put it, the two main influence factors for the property sector is indeed the economy, as well as the stock market. In this case, the economy has been looking a lot more promising than previously; and the stock markets have rebounded over 40% in 2009 alone. From these two major factors itself, we should be safe to say that the Property Sector is looking on its way up.

The KLCC Property scene.

The other major factor that has been the driving factor for the Property sector is the affordability of residential properties in Malaysia - especially at the prime locations, such as KLCC regions. The past 12 months have seen very little capital appreciations on the property prices, but with the all-time low interest rates, the affordability levels has been at its all-time best. Certain banks are offering very impressively attractive rates of BLR -2% to -2.4%, bringing the actual effective interest rates to just about 3%.

Katana II Residences.

So, like how I've mentioned before, I believe it is the best time to go into Property right now.

On the Construction sector, the strong push in the Property sector has turned out to be the main driver for the Construction sector. Various property launches has seen such great sales and have all gone ahead with the construction - and these properties are not just the ones I said before such as St Mary Residences, Sky Residences and so on. It includes even the smaller ones, in Greater PJ areas, Puchong as well as the Greater KL areas.

The Sky Residences.

Take the Property sector revival - coupled with the Government expenditures on the new LCCT and the extension of the LRT system, I believe 2010 will be an exciting year ahead for the Construction and Property Sector.