Koon Yew Yin's Blog

Property Developers comparison - Koon Yew Yin

Koon Yew Yin
Publish date: Mon, 04 Mar 2024, 12:31 PM
Koon Yew Yin
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An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.

All materials published here are prepared by Mr. Koon Yew Yin

Koon Yew Yin, 4th March 2024

All property developers have just announced their annual profit for 2023. All of them reported increased profit.

Why property prices are going up?

One key reason for the high property prices is the escalating cost of construction materials. The rising prices of raw materials such as steel, cement, and timber have significantly impacted construction expenses. As developers face growing bills, these costs are inevitably passed on to buyers, leading to higher property prices.

Additionally, rising inflation has contributed to the high property prices. With inflation going up, property developers face higher construction costs, which ultimately leave buyers with higher property prices. This is coupled with a rising interest rate environment. During the pandemic in 2020, the overnight policy rate (OPR) in Malaysia dropped to a record low of 1.75 per cent. However, Bank Negara Malaysia raised the OPR by 25 basis points to 3.00 per cent on May 3, 2023. As borrowing becomes more expensive, construction costs and property prices inevitably increase in tandem.

Furthermore, development in infrastructure, particularly transportation networks, has also led to property appreciation. As Malaysia continues to expand its Mass Rapid Transit (MRT) network, more residential areas are connected to key areas such as business districts and educational institutions. Improved accessibility and connectivity raise the appeal and value of properties located near these new MRT stations.

In summary, the combination of rising construction costs, inflation, and improved infrastructure connectivity has contributed to the high property prices in Malaysia.

The list below is the comparison of the top 10 property developers in Malaysia based on their Earning Per Share (EPS) for the latest 4 quarters.

EPS for 4Q Sen
RM 1.50
RM 2.38
Mah Sing
97.5 sen
RM 4.95
SP Setia
84.5 sen
IOI Prop
RM 2.18
RM 2.8
RM 2.15
RM 1.01
ECO World
RM 1.29

KSL announced its total 4 quarter EPS of 40.76 sen and its net tangible asset (NTA) backing of Rm 3.65. Its profit increased by 230% more than last year. KSL is the cheapest in term of 3.1 PE ratio. ECO World is the most expensive selling at 68 PE ratio.

KSL Holdings Bhd is a holding company. It is engaged in real estate services. The company has four reportable segments Property development; Property investment; Investment holding and Car park operation. Property development includes the development of residential and commercial properties; Property investment includes an investment of real properties and hotel; Investment holding includes the provision of management services to the subsidiaries, and Car park operation includes car park management services. KSL derives most of its revenue from Property development. For example:

The KSL Esplanade Mall in Klang, Malaysia, spans an impressive 650,000 square feet. It features four floors of retail space, making it a substantial shopping center. Additionally, the mall includes a landscaped park, an event space of up to 10,000 square feet, an outdoor dining terrace, and a children’s playground. Operated by KSL City Management Sdn Bhd, this mall aims to be more than just a shopping destination, offering a variety of experiences for visitors. It’s definitely a significant addition to Klang’s retail scene!

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Be the first to like this. Showing 5 of 5 comments


everyday trying to push KSL

1 month ago


KSL share price cannot move because Directors won't pay dividend to minority shareholders, but paying millions and millions to themselves.
10 sen dividend will be good enough to make share price at 4 ringgit justifiable, based on PE 10.

1 month ago


Surely Crescendo can move up to 4 ringgit by next Friday, profit from daily operation is 20 sen per share, but we are expecting Crescendo to declare 20 sen dividend a share by Friday.

1 month ago


Why housing price started to move up since last year?

One very important reason is many young people were holding back since 2016 when DIBS bit back really hard starting from that year. Since then, 7 long years passed and property prices were sliding downwards non-stop. It was in 2023 most developers bite bullet offering discount between 25 to 35%.

For many young people who could have bought houses 7 years ago are now at 37 or 40 years old, they are earning more now and can get more housing loan. They are not buying one, but 2 or 3 more for investment. These buyers are matured enough to take note housing price already at rock bottom and hardly fall any more. As matured investors, they also notice rental have moved up by 10% in 2023, further 10% increase in 2024, to be in tandem with regional rental.

House price is moving up for sure. How much increase will depends on wages, building material like cement and steel, cost of petrol/ diesel, hike in sale and service tax from 6 to 8%, land price appreciation, and statutory requirement for PPR, Rumah Selangor Ku etc.

1 month ago

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