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Ascertaining disposal price of commercial properties with guidance from the property market

The right timing of disposing commercial properties is important particularly to investors, as this will have an impact on the disposal price. This paper demonstrates that the disposal price of properties differs excessively during the different points of the property market cycle. Monitoring the p...

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Main Authors: Kamarudin, Norhaya, Lim, Choon Yong
Format: Conference or Workshop Item
Language:English
Published: 2005
Online Access:http://eprints.utm.my/id/eprint/1311/1/norhaya-REER_SEMINAR.pdf
http://eprints.utm.my/id/eprint/1311/
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spelling my.utm.13112017-09-10T04:24:55Z http://eprints.utm.my/id/eprint/1311/ Ascertaining disposal price of commercial properties with guidance from the property market Kamarudin, Norhaya Lim, Choon Yong The right timing of disposing commercial properties is important particularly to investors, as this will have an impact on the disposal price. This paper demonstrates that the disposal price of properties differs excessively during the different points of the property market cycle. Monitoring the property market changes and understanding property market cycles may provides some guidance for investors and fund managers to make beneficial decisions in determining disposal and acquisitions time. Although the practice of monitoring property market has not been widely accepted in Malaysia, studies on the variations of occupancy rates and office rents in prime commercial area in Kuala Lumpur revealed the existence of the property market cycle and that it provides guidance for disposing and acquiring properties. During the period of market depression owners are forced to dispose of properties at extremely low prices in view of the increasing numbers of NPL. However if disposal can be delayed, there are chances that properties can fetch higher prices. Analysis on disposal price when the property market cycle was its lowest point during depression period has deprive the owner of a potential gain of about 70% if they were to hold on and dispose a year later when the property market was at its recovery period. This finding suggest that the commercial property market need to be analysed monitored and kept up to date to enabled it to be utilised for any decision-making. This has important implication on the utilisation of property analyst to investors holding property assets. 2005 Conference or Workshop Item NonPeerReviewed application/pdf en http://eprints.utm.my/id/eprint/1311/1/norhaya-REER_SEMINAR.pdf Kamarudin, Norhaya and Lim, Choon Yong (2005) Ascertaining disposal price of commercial properties with guidance from the property market. In: Real Estate Educators and Researchers (REER) Association Malaysia 1st Annual Conference & General Meeting, 26 - 27 September 2005, UTM City Campus Kuala Lumpur. (Unpublished)
institution Universiti Teknologi Malaysia
building UTM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Malaysia
content_source UTM Institutional Repository
url_provider http://eprints.utm.my/
language English
description The right timing of disposing commercial properties is important particularly to investors, as this will have an impact on the disposal price. This paper demonstrates that the disposal price of properties differs excessively during the different points of the property market cycle. Monitoring the property market changes and understanding property market cycles may provides some guidance for investors and fund managers to make beneficial decisions in determining disposal and acquisitions time. Although the practice of monitoring property market has not been widely accepted in Malaysia, studies on the variations of occupancy rates and office rents in prime commercial area in Kuala Lumpur revealed the existence of the property market cycle and that it provides guidance for disposing and acquiring properties. During the period of market depression owners are forced to dispose of properties at extremely low prices in view of the increasing numbers of NPL. However if disposal can be delayed, there are chances that properties can fetch higher prices. Analysis on disposal price when the property market cycle was its lowest point during depression period has deprive the owner of a potential gain of about 70% if they were to hold on and dispose a year later when the property market was at its recovery period. This finding suggest that the commercial property market need to be analysed monitored and kept up to date to enabled it to be utilised for any decision-making. This has important implication on the utilisation of property analyst to investors holding property assets.
format Conference or Workshop Item
author Kamarudin, Norhaya
Lim, Choon Yong
spellingShingle Kamarudin, Norhaya
Lim, Choon Yong
Ascertaining disposal price of commercial properties with guidance from the property market
author_facet Kamarudin, Norhaya
Lim, Choon Yong
author_sort Kamarudin, Norhaya
title Ascertaining disposal price of commercial properties with guidance from the property market
title_short Ascertaining disposal price of commercial properties with guidance from the property market
title_full Ascertaining disposal price of commercial properties with guidance from the property market
title_fullStr Ascertaining disposal price of commercial properties with guidance from the property market
title_full_unstemmed Ascertaining disposal price of commercial properties with guidance from the property market
title_sort ascertaining disposal price of commercial properties with guidance from the property market
publishDate 2005
url http://eprints.utm.my/id/eprint/1311/1/norhaya-REER_SEMINAR.pdf
http://eprints.utm.my/id/eprint/1311/
_version_ 1643643298659696640
score 13.211869

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