Property Prospecting 101: Is This Place Gonna Be Hot? (Part 2)

Picture of a nice looking girl posing for GoodPlace.my

Note: This is the continuation of the previous guide on property prospecting (or, the art of predicting if an area is going to be ‘hot’). In the first part, we have discussed about the two major drivers of demand: population growth and adjacency (if you have not read Part 1 yet, click here). In the second part of this mini-guide, we will delve into the other three factors: availability of jobs, income levels and ease of doing business.

Step #3: Are Jobs Available?

As the ‘fringe’ townships begin to grow in the Klang Valley (think Puchong South, Cyberjaya, Putrajaya, Nilai, Equine Park, Seri Pajam, Rawang, Kajang) we expect that jobs will be more “localized”. This means that workers will have stronger preferences for jobs which are near (within 30 minutes) from where they live. Traveling to downtown Kuala Lumpur to work may not be feasible anymore especially when you are in the aforementioned fringe areas.

Late memeIt took me two full hours to reach Pusat Bandar Damansara for a meeting from SetiaWalk last week; to say that the traffic was horrendous would be an understatement. I could never bring myself to spend hours on the road each day to commute to work, and this means that I will always choose to live near where my office is (in this case, central Puchong). And with more “self contained” townships in development (as well as mixed projects such as Gateway Kiaramas) we expect people to want to stay off the roads as much as possible. This means that they will want to live near where they work.

For an upcoming area, there must be employers that bring the money flow INTO the area. My Mentor has got a handy checklist that he uses when he assesses the economic prospects of a new area which you can also use below.

GoodPlace.my Sector Prospecting Checklist

SectorDescriptionExamplesCheck?
GovernmentCentres of government which draws in tax ringgit from throughout the country. Also, government led initiatives and growth corridors.Putrajaya, Cyberjaya. To some extent, Iskandar.Yes / No
TourismTravel and tourism hotspots are almost a good bet. Look for new travel destinations.Certain areas in Melaka and Penang.Yes / No
ManufacturingIncrease in manufacturing activity (or FDI) is usually correlated to property price growth.Penang.Yes / No
EducationLook out for new education hubs; colleges, universities AND international schools.Cyberjaya, and certain areas in Petaling Jaya (Subang Jaya, for example).Yes / No
RetailLarge shopping malls and warehouses.IOI Resort City and its surrounding areas (with the impending IOI City Mall)Yes / No

Step #4: Check Income Levels

Income levels are obviously related to availability of jobs, and in a broader sense, the primary sector which drives the local economy. For example, if you are considering a condominium in Cyberjaya next to a cluster of colleges then you’ll most probably be renting out to students. On the other hand, if you’re buying a Mont Kiara or KLCC apartment unit then your return on investment will be largely determined by the expatriate sector.

Cyberjaya used to attract technology companies looking for employees who want to live in an area with a relatively lower cost of living (compared to central Kuala Lumpur). Now with the escalating property prices in Cyberjaya it no longer offers cost advantages, which means that there will be a few “adjacent” hot spots for high tech in the future. Where will these be? Your guess is as good as mine. πŸ™‚

Step #5: Is It Easy To Do Business?

“Brain drain” does not only happen on a national level. Cities or towns suffer from economic decline because entrepreneurial individuals leave to look for places which are conducive for business.

I would stay away from investing in areas outside the major economic centres (Klang Valley, Penang and Iskandar) simply because young people are moving into the cities, not out.
The Mentor

For an area to prosper, the entrepreneur’s drive to create and capitalize on opportunities is as essential as the presence of a qualified workforce in the area. As such, an area’s “friendliness” to business could make or break its long-term prospects. No city (or, to a larger extent, country) can increase its wealth unless it enables the entrepreneur to freely innovate and grow.

To Summarize…

Analyzing “technicalities” like population growth and income levels may be boring to some, but unless the buyer does some simple due diligence like this he or she is just gambling with money. You may have had success without doing the homework, but you might not get that lucky the next time. Trust me, I am speaking from experience. πŸ˜‰

The Malaysia property market is predictably cyclical, and it’s possible to somewhat “predict” its direction by looking at demand and supply. Be on top of the market by tracking the LEADING demand and supply indicators (and not make the rookie mistake of looking into past trends), and you’ll be at a better place than most property investors.

In a future GoodPlace mini-guide, I will share a simple framework which anyone can use to estimate the SUPPLY side of the equation. It will be in the form of an Excel checklist provided to me by the Mentor (similar to the table above), but I can email the template out to anyone who reads this blog. πŸ™‚ Just leave me a message below.

About Khai Yin

When I am not writing for GoodPlace.my and helping my readers find properties though the DealMatcher service, I spend time doting on my three kids: Wenyi, Qinyi and Eian. My personal stuff, some published essays and contact details can be found at khaiyin.com

Comments

  1. Hi Khai Yin,

    Really enjoy following your blog. Any chance of getting a copy of that template? Hope you don’t mind if I have some questions after. Learning heaps from your weekly postings. Keep up the good work! πŸ˜‰

    Justin

    • Will email, Justin. Thanks for checking out the guide. πŸ™‚

    • Enjoyed the articles

      Can i have the templates

      Many thanks

    • Marc Dan says:

      Hi Khai Yin,

      First of all , very good article thanks.
      Second, could you give a piece of advice to a novice here ☺️. Is Berjaya Park at Shah Alam a good location? Im thinking whether or not to buy the new Apartment here, a Built-to-sell apartment.What is your advice? The rental yield calculated is a mere 2% , negative cash flow rental. What is the cap appreciation like?
      thanks
      Marc

  2. Really enjoyed these series of articles. Looking forward to going through the template. Thanks in advance.

    PC

  3. Hi Khai Yin,

    Thanks for all your sharing. I really enjoyed your articles and surely learned a lot about the real estate market in Malaysia from you. My property investments are concentrated in Singapore and Australia currently but am looking to invest in Malaysia properties next, specifically in KLCC and Mont Kiara area. I would very much appreciate your template too! Thanks again πŸ™‚

  4. Good reading, looking forward for more valuable articles.
    Pls send me the template, TQ.

  5. William says:

    Thanks Khai Yin
    Please email me the template.
    Cheers

  6. Hi Khai Yin,

    Just invested in cyberjaya area by osk next to mmu. Can sharw the template?

    Also what do you think about duplex unit in service apartment?

    Thanks.

  7. Hi Khaiyin! I’ve really learnt a lot from this article. Looking forward to receiving the template from you soon πŸ˜‰

  8. Hi Khai Yin
    Please email to me as well.
    Thanks

  9. Thanks Khai Yin for your effort on giving useful guide.
    Keep it up πŸ™‚ Can I have the template? Cheers

  10. Hi Khai Yin,
    Thanks for such an insightful article, and I have learnt a lot from your other reads as well. Would be grateful if you could email me the template, thanks!

  11. Hi Khai Yin
    Have intention of buying property in PJ. Appreciate some advice. Please send the template. Tq.

  12. Lip Kar Lock says:

    Hi Khai Yin, thanks for the article. Appreciate if you can send the template too. Thanks.

  13. I enjoy reading your article…. Like to have the template, pls email. Thanks

  14. jason chui says:

    Template !!! Arigato

  15. Please email me the template, thank you.

  16. Find your articles really useful.
    Hope your template can help to pull me
    out of the rookie trap….
    Thanx.

  17. Jerry Lim says:

    Hi,

    Mind to give me a copy of your template? Thanks.

  18. KATRINA says:

    Your articles are really beneficial to new investors.
    Thanking you in advance for sharing the template

  19. Hi Khaiyin, can I have a copy of the template too? Thanks!

  20. Hi Khai Yin

    thanks for your very informative write-up each week.
    Great job!rk
    please also extend a copy of the framework to estimate supply to me.

    Many thankz!

  21. Hi, thanks for your amazing insights. Please so forward a copy of above mentioned checklist to me. would appreciate that.

  22. Hey Khai Yin,

    Handover the template and nobody gets hurt πŸ˜›

    Thanks in advance and have a good weekend.

  23. Hui Fen says:

    Hi Khai Yin,
    Just found this informative blog.
    Insightful writing! Keep it up.
    Please share the template and enjoy your weekend ya!
    Thanks.

    Hui Fen

  24. Hellu Khai Yin..
    Thanks for sharing this informative article.Any chance of getting a copy of that template?
    Thanks πŸ™‚
    Mogala

  25. Hello Khai Yin..
    Thanks for sharing this informative article.Any chance of getting a copy of that template?
    Thanks πŸ™‚
    Mogala

  26. Hello,

    Can you please send me the template?

    Thanks!

  27. HI Khai Yin,

    Thanks for the article. I would like to have a copy of the template. Thanks .

  28. H Khai Yin,

    A great read i must say! Very enlightening. Would it be possible to have a copy of that template please? Thanks in advance

  29. hi, enjoy reading your website. Gives me new perspective. Could u kindly email a copy of the above-mentioned template? Thanks so much!

  30. Muniandi says:

    Hi. You are adding great value to people’s life.keep up the good job

  31. Thanks, please share your template.

  32. I’m following your blog since last month and I found out your article very useful for property buyer like me which no idea where can find a clue at all to get some important information for some property that I am intent to purchase. Thanks a lot. I will need the template as we’ll. Keep the good work.

  33. Hi, thanks for the sharing. I would like to have the template as well.

  34. Drake Leong says:

    Hello πŸ™‚ been reading your blog for quite some time … very informative and it is easy to understand. Like it alot.

    Do you mind sending me a copy of the mentioned template ?

    Appreciate it.

  35. Good write up!!

    Can i have the template pls?

  36. Long Haffiz Long Hassan says:

    Thanks a lot for the sharing bro.
    Keen to share the template? Would love to have a look on it.
    Thanks!
    πŸ™‚

  37. Impeccable analysis yet simple to apply.

    Great work Khai Yin and hope to receive the template for my future reference.

    Thanks.

  38. Hi khaiyin, would appreciate you can email the template, enjoyed reading your blog.

  39. Thanks Khai Yin
    Please email me the template.
    Cheers

  40. Eddie Tan says:

    This article is easy to understand even for non-investee. Great article and keep up the good job.
    Appreciate your sharing of the template.

    Thanks in advance.
    Cheers πŸ™‚

  41. Useful information!
    Appreciate if you could send me the template… thanks

  42. Thanks again for another insightful article…. do share the excel checklist!

  43. Would like to have the templates as well.
    Appreciate it a lot.
    Thanks

  44. Hi Khai Yin, thanks for informative tips. Appreciate can have a copy of the template. Good day

  45. Hi Khai Yin,

    Would like to have the templates as well.
    Appreciate it a lot.

    Thanks!
    Joey

  46. C.L. Yap says:

    Informative article. Thanksfor sharing…
    Appreaciated if you could send me template for my further reference.

  47. Hi Khai Yin,

    You are writing an amazing blog here. Keep it up !

    I would appreciate if you can kindly share a copy of your template.

    Thank you !

  48. Hi Khai Yin.

    Kindly share a copy of your template. Thank you.

  49. Hi Khai Yin,

    Really enjoyed reading your blog. Very informative without trying to sell anything. Would appreciate if you could share a copy of your template. Thank you

  50. May Tan says:

    Thanks Khai Yin, It is a very informative blog. Would appreciate you could share the template. Regards

  51. Marina Ong says:

    Hi,

    Really good blog!! Please email me your template. Thanks and keep up the great work!!!

  52. Hi Khai Yin,

    I only stumbled into your website this morning, and you know what, I have been reading posts after posts since this morning, if you don;’t mind would you email me the template? Thank you very much and great job on creating such a platform.

  53. Sukhwinder says:

    Hi Khai Yin,

    Brilliant article as usual. Keep up the good work. Very informative.
    Could you possibly email me the template pls?

  54. sunthari says:

    Hai Khai Yin,
    Am slowly improving my knowledge on
    property investment!
    Am interested in the template
    Thanks
    Sunthari

  55. Hi Khai Yin,

    Appreaciate you can share with me the template : )

  56. Hi Khai Yin,

    I enjoy reading your blog. It’s informative and insightful. Thanks for your sharing! Looking forward to learn more from you πŸ™‚

    Please email me a copy of your template. Cheers

  57. Hi Khai Yin,

    Great blog and wise words. Thanks for sharing!

    Appreciate it if you could email me the template.

    Thanks!

  58. Justine says:

    Hi thank you for sharing, I’ve really learnt a lot from this article. Looking forward to receiving the template from you soon=) thank you

  59. Hi,

    Thanks for the write up.

    Would love to have the template…

    Thanks

  60. samuel lau says:

    Would appreciate if you could furnish the template for viewing. Thanks.

  61. Thanks for sharing and enjoy reading your article. I’m looking forward for the template.

  62. Khai Yin,
    Thank you for your weekly sharing. Can email me your template?

    Tq
    TingKS

  63. Yow Kong says:

    Ur articles r getting interesting, keep it up. Appreciate the excel worksheet. Many thanks.

  64. Leslie Chong says:

    Hi Khai Yin,

    Would really like to have a copy of the Templates. Really learn a lot from your sharing… Thx in advance… Keep up the good work.

    Leslie

  65. Really enjoy reading your articles. Hope you can share your excel with me.

    Thanks in advance.

  66. Hi Khai Yin,

    Good work on the site. Do email me the template ok? Would definitely share with my friends your site=)

  67. angie lim says:

    Hi khai yin,
    enjoy reading ur blog every week. Can’t wait till next Wednesday! Can I hv a copy of d template too.

    thks

  68. Hi Khai Yin,
    Appreciate if u can send me a copy of the template. Thanks.

  69. Thanks for your free sharing πŸ™‚ which I seldom come across. Can I also have a copy of the template? What do you think about Mutiara Damansara?

  70. Your blog’s the only one out there for Malaysians to get educated on real estate. Love it.

    Could you email the supply TEMPLATE to me? Thanks.

  71. Sebastian says:

    Dear Khai Yin,

    I stumbled upon your site yesterday and haven’t been able to leave it ever since! Thanks for explaining the basics to a amateur like me! Pushing your irrelevant model pictures posted aside :D, the articles are good reads! Any chance of getting a copy of that template you mentioned? Don’t mind if i come up with more questions in the future! I want to get my first home in KL soon!

    Cheers

  72. Hi I enjoy reading your articles.

    Please do send me the templates as well. Appreciate.

    Thanks.

  73. Hi Khai Yin,

    Thanks for your sharing. Can I have a copy of the template please?

  74. Hi. Thanks for sharing. Enjoy it. Appreciate if you can share your templates. Thanks!

  75. Siew Lim says:

    Hi once again, tx for the wealth of info! wld appreciate a copy of the excel worksheet. Tx so much!

  76. Love your blog! Can I have a copy of the excel template? Thanks!

  77. Bartholomew says:

    Hi Khai Yin,

    Brilliant post, straight to the point and easy to understand.

    Mind to share the excel template to me?

    Thank you very much!

  78. rosalind says:

    Hi Khai Yin,
    thank you for your info/guidance..
    appreciate to receive your template.

    many thanks / cheers
    rosalind

  79. Khai.Yin,
    Your articles are very useful, appreciate if can email me your excel template.

    Thank you.
    Regards
    KS Ting

  80. Very useful info here. Looking forward for the template.

  81. Khee Kuan says:

    I enjoy reading your write-ups Khai Yin, keep you the good work! I was also hoping to receive the template from your good self. Cheers mate!

  82. May Phing says:

    Hi Khai Yin

    Good write-up! Appreciate if you can share your framework in excel template. Cheers!

  83. Hi Khai Yin,

    I’m a newbie here. So I’ve been browsing your website reading interesting articles. Thank you for sharing lotsa info with your readers. Please may I have a copy of your template?

    It’s high likely that I will email you again for advice.

    Thank you
    Bazzie

  84. Hey Khai Yin,

    It is admirable how you smartly combine your knowledge, writing skills & passion to fight for the good guys all in one. You make it seem effortless.

    Seriously, keep up the good work man.

    Cheers,
    Josh

    p.s: as easy of a read as you already make it to be, could you add more examples and/or scenarios to your articles, so that newbie readers such as myself can better grasp your points and tips?

  85. Good guide. wished I had stumbled upon this blog earlier. Any chance I could get a copy of the excel template please?

  86. just found your blog 1 hour ago. i’m blasting thru the articles at lunchtime! especially important stuff here for a first time buyer like me!!

  87. Love the articles! Giving a newbie like me a place to start looking into the property market. Would appreciate the excel template πŸ˜€

  88. Hi Khai Yin,

    Thanks for sharing. Please email SUPPLY side template

  89. Thank you for your sharing and very enjoy to read your article..
    Appreciate if you can share the excel template. Thanks in advance..

  90. Hi Khai Yin

    Love yor blog. Can I have a copy of the template Thanks.

  91. Hope your template is still available. Appreciate if you could share it with me. TQVM

  92. HI KHAI YIN,

    APPRECIATE IF I CAN HAVE A COPY OF YOUR TEMPLATE πŸ˜‰

  93. Template please and thanks.

  94. Great article, KY. Appreciate if you can share the template with me.tqvm.

  95. Ronny Wong says:

    Great blog..wish I have bump into it earlier. Can you email me the template?
    Thanks

  96. Hello, can i have a copy of the excel template too? THank you.. πŸ˜€

  97. Christopher says:

    Hi Khai Yin

    Can I have a copy of the template? Many thanks to you.

  98. Good Day Khai Yin

    Can I have a copy of the template?

    Many thanks in advance

  99. Wished I found this blog earlier…

    May I have a copy?

    Thanks!

  100. Hi

    Could I have a copy too?

    Thanks.

  101. Hi Khai Yin, can I get a copy of the template please? I think your website is amazing, definitely a different perspective. Many thanks!

  102. Khai Sheng says:

    This website is a gem! Would appreciate your template too =) Thanks!

  103. Very Interesting read. May i have a copy of the template?

    Thanks heaps.

  104. Pick me! pick me! I wanna have it too =)
    Thanks KY!

  105. Hi khai yin,

    I’m glad i just find this valuable property blog…very good reading..may i get the templete?

    Thank you in advance

  106. HI,
    Could I have a share of the template. Thanks advance!

  107. Hi, I learn a lot from your article, keep it up:).
    May I have a copy of the template pls. Thanks

  108. Vincent Gua says:

    Hi, Khai Yin.
    Wonderful article to read.
    Can I request for the spreadsheet you mentioned?

    Thanks.

  109. Please share and e-mail the Excel template to estimate the SUPPLY side of the area.

  110. Great article.
    May I have the template too ? Many thanks.

  111. Hi Khai.

    Awesome article. As I want to buy property in Resort city… I got good introduction of Resort city through your post above. I will really appreciate your help if you send me excel template.

    Thanks.

    Abbey

  112. Jimmy Low says:

    Hi Khai Yin,
    Thanks for all the amazing articles. Can I get a copy of the template please?

    Thanks!

  113. Hi KY, please share the checklist with me also. Thanks in advance.

  114. Really a diligent work… hope to have a look at teh template as well

  115. Nice work, hope to hear more from you πŸ™‚

  116. Interesting article! Looking forward to see your template. Keep it up!
    Many thanks

  117. Hi Khai Yin,

    Mind sharing the template? Could really use the help. Much appreciated.

    Thanks,
    Jacqie

  118. zulfadli says:

    Hi Khai Yin, a good day to you.

    Can i have the copy of template?

    Thanks in advance. πŸ™‚

  119. Hi Khai Yin,
    Love your website a lot ! great stuff πŸ™‚
    Can i have a copy of your template please ?

    irene

  120. fei wen says:

    KY, thanks for sharing infos. I would like to have the template as well.
    TQ

  121. Hi Khai Yin!

    Thanks for the article! Mind if you can share the template pls? Many thanks in advance!

  122. Alex Choong says:

    Hi Khai Yin,

    Appreciate if you can provide a copy of template?

    Thanks in advance

  123. hi
    enjoy reading your blog. very useful information and i hope can have a copy of the template

    thanks

  124. Hey KY,

    Really like reading through your articles.

    Appreciate it if you’ll email the template. Thanks πŸ™‚

  125. Azlan Kamal bin Ibrahim Kamal says:

    Hello there Khai Yin, thanks for this amazing share.

    Hope to get a copy of the template πŸ™‚

    Thanks a million πŸ™‚

  126. Thanks Khai Yin
    Please email me the template.
    Very good article, appreciate!

  127. edward chin says:

    hi Khai Yin,
    Thanks for your reading info.Could you email me the template?
    Thanks a lot.

    regards,

    Edward

  128. Hi Khai Yin,

    Could you email me the template as well. Thanks for sharing your insight.

  129. Arif Sazali says:

    Hai Khai Yin,
    Your blog is very comprehensive. i make a brainstorm notes out of your blog !
    I hope you still have the template . Is it possible for me to have it too ??

  130. Hi Khai Yin,
    Learned a lot every time reading your article. Thanks in advance for sharing the template *thumb up*

  131. Excellent write up! I look forward to receiving the template πŸ™‚

  132. Am looking to invest in either a newly launched commercial property or a subsale condo nearer to city centre, hence found your blog.

    So far, it’s been interesting reading your blog, looking forward that you can email me the template too, tks KY.

  133. thanks for the write up. your article is very informative. it is a lot better than the so called property guru. by the way, may i know how do you assess the population growth of the area? Hopefully i can get the template from you too. thanks in advance

  134. Hello KY,

    New reader here. Have only read a couple posts, so far so good. Err, can i get the excel checklist ah? πŸ˜€

    Kamsia.

  135. Always an insightful read, and a good time well spent when reading your articles. Please do sent me your template for estimating Supply.

    Thanks for being so generous

  136. Dear khaiyin,

    I had read a few of ur articles and it is very insightfull and fun. Looking forward for more article in the future. Do u mind to sent me your excel template.

    Thank you for wiling to share your knowledge with us

  137. HI khaiyin,

    Good writing and hope you’ll continue your good work.

    Thanks for your info, really helps me a lot.

    Hope you can email me the template too.

    Thanks

  138. Hi Khai Yin

    Good work! Would greatly appreciate it if you can share the template pls.

    Thanks πŸ™‚

  139. thanks for the write up. your article is very informative. Hopefully i can get the template from you too. thanks in advance.

    Joe.

  140. fairuz says:

    Dear Khai Yin this article is really good.Can you hare with me the template.

    Thank You

  141. Hi Khai Yin, thanks for the sharing. Can share me the template as well

  142. Kam Sim Kwang says:

    Hi Khai Yin,

    Enjoy reading your blog.
    Can I’ve a copy of the template?

    Regards

    Kam

  143. Noor Salyena Hassan says:

    Hi Khai Yin,

    Thanks for the tips. Mind sharing the excel template with me? Tq!

  144. Hi Khai Yin,

    Can I please have the template? Many thanks in advance.

  145. Hi Khai Yin,

    Thanks for sharing and enjoy reading your article. I’m looking forward for the template.

  146. Hi Khai Yin,

    Thanks for the excellent write-up and guide! Would appreciate it if you could share with me the template.

    Thanks!

  147. Hi khai yin,

    Kindly share the template. Thanks a lot!

    Best regards,
    Zoe

  148. KY,

    Thanks for this. Am reaching out to request for the highly sought after template πŸ™‚

    Appreciate your help!

  149. Hi Khai Yin – Very interesting read.Could I have a copy of this template?

  150. Great article!! Can you send me a copy of the template too?

    Keep up the great job!

  151. Hi,. Good info and can i have the copy of the template?

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