Bursa Malaysia Stock Watch
Bolton...Another "Turning Back The Clock"
kltrader
Publish date: Mon, 29 Mar 2010, 10:24 PM
kltrader
0 20,414
This blog provides consolidated Bursa Malaysia stock market research, analysis, news and blogs from various sources. You can search and find all the past analysis and coverage on stocks and news by searching within this site. While this blog re-publishes contents from other sites, it does not own the rights nor responsible for the accuracy of the contents. If you disagree to your content from being published here, please add a comment, and your article will be removed from this site.
In search of laggards that still hover around the 2008 Financial Crisis price levels, my quest was answered in "Bolton". FBM KLCI is "back" to 900 again...
Bolton is a property developer that offers:-
1. Major projects in good location
- To launch 4 projects worth RM1billion GDV in 2010...
i.) The redevelopment of Bolton Court into SixCeylon in Bukit Ceylon worth RM200mil GDV
ii.) Arata Condo in Kenny Hills worth RM130mil
iii.) 51 Gurney in Gurney Heights with a GDV of RM200mil
iv.) The RM500mil "The Wharf" in Taman Tasik Prima Puchong.
2. Reasonably low gearing of 0.28 times in 2009.
3. Lucrative margin. The gradual interest rate normalisation process by BNM is not expected to affect property fever in prime locations anytime soon, still far from levels that will "eat" into consumer's pocket. In view of the sharp price increase in some of the prime locations esp. in secondary market below, you will find the margin for developers are very lucrative since the key investment costs in land were fixed.
High End
- Surian Condo, Mutiara Damansara: Launched in 2003 at around RM300,000+ for a 1,200 sq feet unit, asking for RM400,000 upon completion till 2007. In 2008, price went up to around RM450,000, RM500,000+ in 2009 and now around RM575,000.
- Desa Parkcity, 2-storey terrace: Launched at RM550,000+ in 2005, rose to RM700,000 in 2007 and now at around RM1-1.1mil. Latest being the developer is in the midst of launching the last landed project in the township very soon with an indicative price tag of a whopping RM1.6mil!
Mass
- Pelangi Utama, BU. Launched at around RM200,00 for a 1,000 sq feet unit and were completed in 2006. Now asking for over RM300,000.
(Please note the above was merely Alpha's personal observation of the local property market over the last few years.)
For launches at these levels, you bet who will benefit the most?!
My logical mind tells me that developers will generally emerge as prime winners. Why? Simply because property developers could enjoy higher price premium on their launches while keeping cost (land and building materials) and buyer's interest (low mortgage rate) intact.
A low-risk entry, indeed.
Bolton is a property developer that offers:-
1. Major projects in good location
- To launch 4 projects worth RM1billion GDV in 2010...
i.) The redevelopment of Bolton Court into SixCeylon in Bukit Ceylon worth RM200mil GDV
ii.) Arata Condo in Kenny Hills worth RM130mil
iii.) 51 Gurney in Gurney Heights with a GDV of RM200mil
iv.) The RM500mil "The Wharf" in Taman Tasik Prima Puchong.
2. Reasonably low gearing of 0.28 times in 2009.
3. Lucrative margin. The gradual interest rate normalisation process by BNM is not expected to affect property fever in prime locations anytime soon, still far from levels that will "eat" into consumer's pocket. In view of the sharp price increase in some of the prime locations esp. in secondary market below, you will find the margin for developers are very lucrative since the key investment costs in land were fixed.
High End
- Surian Condo, Mutiara Damansara: Launched in 2003 at around RM300,000+ for a 1,200 sq feet unit, asking for RM400,000 upon completion till 2007. In 2008, price went up to around RM450,000, RM500,000+ in 2009 and now around RM575,000.
- Desa Parkcity, 2-storey terrace: Launched at RM550,000+ in 2005, rose to RM700,000 in 2007 and now at around RM1-1.1mil. Latest being the developer is in the midst of launching the last landed project in the township very soon with an indicative price tag of a whopping RM1.6mil!
Mass
- Pelangi Utama, BU. Launched at around RM200,00 for a 1,000 sq feet unit and were completed in 2006. Now asking for over RM300,000.
(Please note the above was merely Alpha's personal observation of the local property market over the last few years.)
For launches at these levels, you bet who will benefit the most?!
My logical mind tells me that developers will generally emerge as prime winners. Why? Simply because property developers could enjoy higher price premium on their launches while keeping cost (land and building materials) and buyer's interest (low mortgage rate) intact.
A low-risk entry, indeed.
More articles on Bursa Malaysia Stock Watch
Tambun Indah - The 2nd Penang Bridge To Narrow Property Price Gap
Created by kltrader | Oct 11, 2012
Plantation ' Share Prices Not Reflecting CPO Price Movement ' Is A Correction Coming? (Neutral)
Created by kltrader | Oct 11, 2012
Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment
Featured Posts
Introducing MY's First IPO Fund for Sophisticated Investors!
New Update. Discover investment communities that resonate with your ideas
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
Apps
Top Articles
1
2
MQ Market Updates
3
TA Sector Research
4
PublicInvest Research
5
BFM Podcast
6
7
M+ Online Research Articles
8
BFM Podcast
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
MQ Trading Signals
Stock
Time
Signal
Duration
Stock
Time
Signal
Duration
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
