THE KL Property Index (KLPI), which is basically a market capitalization index of all Bursa Malaysia listed property companies, recently hit a low of 765 pts.
Since hitting an all-time high of 1,524 pts in August of 2014, the KLPI has dropped an astonishing close to 50% of its value to its current level. In fact, the KLPI is now hovering at its lowest point since May of 2010 and clearly has emerged as one of the worse performing sectors in recent times.
Why is the sector in the doldrum? Are property companies suffering from the overhang and unsold properties? Have the dynamics of market changed so much or are people simply not interested in property stocks anymore, no matter how cheap they are?
