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Performance of Malaysian property investment vehicles

Comparative performance analysis on all property investment vehicles is necessary for investment decision-making. However, published studies have yet to evaluate the performance of direct commercial properties against the other available property investment vehicles in Malaysia....

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Main Authors: Abdul Jalil, Rohaya, Abdullah @ Mohd. Asmoni, Mat Naim, Lee, Yim Mei Janice
Format: Article
Published: Royal Institution of Surveyors Malay 2014
Subjects:
HD1394-1394.5 Real estate management
Online Access:http://eprints.utm.my/id/eprint/59877/
https://rism.org.my/download/international-surveying-research-journal-vol-4-no-1/
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spelling my.utm.598772022-02-13T07:31:57Z http://eprints.utm.my/id/eprint/59877/ Performance of Malaysian property investment vehicles Abdul Jalil, Rohaya Abdullah @ Mohd. Asmoni, Mat Naim Lee, Yim Mei Janice HD1394-1394.5 Real estate management Comparative performance analysis on all property investment vehicles is necessary for investment decision-making. However, published studies have yet to evaluate the performance of direct commercial properties against the other available property investment vehicles in Malaysia. This paper addresses the research gap by analyzing the performance of all direct property and indirect property investment vehicles in Malaysia from 2001-2010. Direct property vehicles are benchmarked by Malaysia House Price Indices (terraced, high-rise, detached and semi-detached houses), while commercial properties represented by Retail Index and Office Index. Indirect property vehicles are proxied by Kuala Lumpur Property Index (KLPI) and Malaysia Real Estate Investment Trust Index (M-REIT). The sample period is further categorized into pre-crisis, crisis and post-crisis according to Malaysian economic cycle. Vehicle performance is based on risk-adjusted return calculated using Sharpe Ratio. The results show that KLPI had highest average quarterly return and risk characteristics throughout the entire timeframe. In terms of risk-adjusted return, Retail Index outperformed all property investment vehicles followed by semi-detached house investment throughout the entire sample period. Direct retail property investment would be the best choice for crisis and non-crisis period. It is also recommended to invest in M-REIT during crisis to minimize the impact of the downturn. Royal Institution of Surveyors Malay 2014 Article PeerReviewed Abdul Jalil, Rohaya and Abdullah @ Mohd. Asmoni, Mat Naim and Lee, Yim Mei Janice (2014) Performance of Malaysian property investment vehicles. International Surveying Research Journal, 4 (1). pp. 21-28. ISSN 2232-1306 https://rism.org.my/download/international-surveying-research-journal-vol-4-no-1/
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/
topic HD1394-1394.5 Real estate management
spellingShingle HD1394-1394.5 Real estate management
Abdul Jalil, Rohaya
Abdullah @ Mohd. Asmoni, Mat Naim
Lee, Yim Mei Janice
Performance of Malaysian property investment vehicles
description Comparative performance analysis on all property investment vehicles is necessary for investment decision-making. However, published studies have yet to evaluate the performance of direct commercial properties against the other available property investment vehicles in Malaysia. This paper addresses the research gap by analyzing the performance of all direct property and indirect property investment vehicles in Malaysia from 2001-2010. Direct property vehicles are benchmarked by Malaysia House Price Indices (terraced, high-rise, detached and semi-detached houses), while commercial properties represented by Retail Index and Office Index. Indirect property vehicles are proxied by Kuala Lumpur Property Index (KLPI) and Malaysia Real Estate Investment Trust Index (M-REIT). The sample period is further categorized into pre-crisis, crisis and post-crisis according to Malaysian economic cycle. Vehicle performance is based on risk-adjusted return calculated using Sharpe Ratio. The results show that KLPI had highest average quarterly return and risk characteristics throughout the entire timeframe. In terms of risk-adjusted return, Retail Index outperformed all property investment vehicles followed by semi-detached house investment throughout the entire sample period. Direct retail property investment would be the best choice for crisis and non-crisis period. It is also recommended to invest in M-REIT during crisis to minimize the impact of the downturn.
format Article
author Abdul Jalil, Rohaya
Abdullah @ Mohd. Asmoni, Mat Naim
Lee, Yim Mei Janice
author_facet Abdul Jalil, Rohaya
Abdullah @ Mohd. Asmoni, Mat Naim
Lee, Yim Mei Janice
author_sort Abdul Jalil, Rohaya
title Performance of Malaysian property investment vehicles
title_short Performance of Malaysian property investment vehicles
title_full Performance of Malaysian property investment vehicles
title_fullStr Performance of Malaysian property investment vehicles
title_full_unstemmed Performance of Malaysian property investment vehicles
title_sort performance of malaysian property investment vehicles
publisher Royal Institution of Surveyors Malay
publishDate 2014
url http://eprints.utm.my/id/eprint/59877/
https://rism.org.my/download/international-surveying-research-journal-vol-4-no-1/
_version_ 1725972656598024192
score 13.211869

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