Construction Stock

Currently, Construction stocks are running up. Those big boys like IJM, Gamuda, WCT, UEM, etc are getting to explore more on oversea project, especially Middle East.

As announced in last November 2006, MMC got the city development of about US $30 billion over the 30 years. Friend, it is going to be RM 3.5 billion per year. it is going to be long term development.

WCT and Gamuda have already long step in to Middle East and started to expand their biz and growing up to be more establish at Middle East..

In view of the oversea project, when combine the kick off of mega project under 9th Malaysia plan. Those active construction companies will easily to have over billion ringgit of order book this year.

Double track is going to resume soon.. Extension of LRT, Second Penang Bridge, Iskandar development, etc.. this is the main reason pushing the construction stock to hike up to year high. Besides that, those raw construction material are growing up as well under the second wave of the boom. Cement price has gone up like CIMA, Lafarge, YTL cement, etc.. soon to be the steel bar will be going up again..

For the conclusion all development/ construction are pushing up the KLCI.. Well.. let see the wave can hike up to what extent.. this is what we have expecting ... hope we will get this wave go as high as it can..

Super Boom in Construction

Under 9th Malaysia Plan, in the outline, few hundred billion is going to spend out through the implementation of 9th MP.

Believe it is going to be a Super Booming time again in the construction industry after 1994. Raw material price for construction is increasing, such as cement, later on, it will follow up with others, e.g. steel, etc.

Other than government annouced projects like LRT extension which is about 4 billion project, those private project such as bullet train project is also another mega project to be boost from KL straight down to Johor or most likely penetrate direct into Singapore. It is also another billion ringgit project that target to complete within 4 years time.

Obviously, the trend is focusing into the develpement in SSC super Southern Corridor. This is expecting to be a construction booming in southern region.

Heat is getting up. let's see how efficient is the government in the implementation of such scheme as, i believe, most of us are wishing the plan can be carried out as per what has planned for.

ZEHN

ZEHN....

Bukit Pantai Condominium.. another high end condominium project at Bangsar area... selling at Rm 1.3M up..It consists of two tower block with 25 story and low density - only 187 units.

The sales is selling like hot cake. Wondering where are those potential buyer come from? The adjacent condominium penthouse unit is renting at RM 19k.. Friend.. it is RM 19,000 per month. no wonder this Bukit Pantai is so hot. The market rental can be easily found from the existing renting unit.

New Low Cost Selling Scheme.

Normal Low Cost unit price is fix at RM 42,000 only.

Recently, a friend of mine called up to inform me a new low cost at Cheras, somewhere nearby Damai Perdana is releasing and the location is quite good. so i decided to take a day off to visit that low cost flat.

In fact, there is selling at max. RM 70,000. It sells in a packages RM42,000 unit price plus renovation cost of RM 28,000. Total is RM 70,000. It is almost double of the regulated selling price.

In view of the unit condition and location, it has a potential of renting and good accessibility as soon-to-be-opened access road from MRR2 to the end of the Damai Perdana..

Try to think about it.. and for sure, a great applause shall be given to this creative developer to come out with such scheme to attract buyer cum maximise their profit on this suppose to lose money project..