Jul 21, 2010
Property — A hedge for inflation
DON’T let inflation be the tiger in your forest. Invest in property as a hedge for inflation!
Emerging Markets Real Estate specialist Dr Christopher Shun will address these issues and more at his talks at the upcoming Star Property Fair in Penang.
He will deliver a talk on ‘Is it a good time to invest in real estate?’ at 3pm on Friday and on ‘Real Estate Bubbles; An Asian Perspective’ at 4.30pm on Saturday.
On the former, he will undertake a review of Malaysian macro-economic factors that make the perfect recipe for a buoyant real estate market as well as examine the state’s economy and the impact of the recent interest rate rises on future property prices.
“Interest rates and inflation go hand-in-hand in influencing investor behaviour as people view property as an inflation hedge asset class,” he said, adding there had been much euphoria recently in the Malaysian equity markets with what appeared to be a series of “cocktail ingredients making for a strong brew of irrational exuberance”.
Dr Shun, who is the group deputy managing director of Menang Corporation (M) Berhad and a Securities Commission Licensed Financial Planner, said sentiment had turned remarkably bullish with the return of momentum trading on the KLCI after a long hiatus in 2006-2008.
“Whilst the equity market is making ‘hay whilst the sun shines, it is also timely to adopt a wider perspective to see what the future augurs for the fixed asset markets namely commodities and real direct property.”
“We will examine the China Promethean Model and see if there are lessons to be learnt for Malaysian property investors,” said Dr Shun, whose area of research is in Property Risk Management, Property Portfolio Management, Islamic Financing and Property Finance.
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