Bursa Malaysia Stock Watch
Bolton...Another "Turning Back The Clock"
kltrader
Publish date: Mon, 29 Mar 2010, 10:24 PM
kltrader
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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.
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