How To Write A Good Property Blog

Best Advice From A CEO I Know

“Stick the story at the front, and leave the numbers at the back” GC

That's the excellent advice I got on how to write industry and company reports from the CEO of a start up stockbroking house I joined as a rookie investment analyst 30 years ago. I think that's also great advice to property bloggers : be a flamboyant story teller, backed by facts.

When I started out as a property blogger last August, though, I didn't know if I had enough material to post. But after one year, I have posted more than 100 times at my blogs, 360 KLCC and Real Estate Marketing 101. Some of my recent posts :

“Is the Residential Property Market Really Recovering?”

“Are Properties Near MTR Stations Worth More?”

“Will Property & Stock Markets Crash in Malaysia?”

I find most of my competitors (many are self professed Property Gurus) rely on regurgitated pap from social media PR posts. A few blogs seem to be written by “aspiring” academics. Because these property bloggers like to pepper their market analysis with hard to read tables, flashy infographics and just about useless statistical analytics. Folks, as a former professional stock picker aka investment analyst I expect more rigorous analysis of the property market from these Property Experts and self professed Investment Gurus.

In my opinion, virtually all property market research reports by real estate agencies in Bolehland (with some notable exceptions like Knight Frank, JLL and Nawawi Tie Research) are written with few actionable insights for high end KL property investors. Most are frankly speaking just boring to read, a “sin” to avoid in the blogosphere.

Little Innovation in 30 Years

I am also sorry to say this :There has been little innovation in the way property market statistics are presented by the major real estate agencies since I started out as a rookie investment analyst 30 years ago. Well except maybe for PropertyGuru. I like PropertyGuru’s novel “interactive” Asking Property Price & Rentals, Demand & Supply Indices. Note to Joe Hock Thor, GM PropertyGuru Datasense: “More, please”.

The focus of my two blogs on the KL property market is entirely different from the competition out there in the blogosphere. I aim to deliver my own original take on property industry news. I should add - filtered through the lens of a ex investment analyst. In short, I aim (as GC advised me 30 years ago), to tell a good story supported by facts.

Unique Selling Propositions

In stockbroking parlance, the USP of my property blogs is my “added value” commentary and my analysis of market trends based on solid empirical research. For example too many property pundits are happy to simply trot out industry chestnuts like “property is a good inflation hedging asset”. But I ask, ‘Is that true for all types of properties (landed terrace, landed detached bungalows and semi Ds, high rise KLCC luxury condos, branded serviced residences, RumahWIP public housing) or just true for only landed properties?” See my post “Lies, damn lies and Statistics” to find out.

Using Free Financial Toolkits

My property blogs provide suggestions on how to access free financial toolkits by major portals like EdgeProp Analytics and PropertyGuru's Pricing Insights charts. I provide concise tips to investors (eg how to find a property's USPs, Walkability Score, and tips to real estate agents (eg how to write effective LinkedIn profiles , how to use social media to build your personal brand, how to start your own website for under RM1000 ).

Why I Blog

My blogs give me an avenue to push a agenda to make buying properties more transparent for first time home buyers (FTHBs) and to hold elected MC/JMB committees to greater accountability for their decisions to spend sinking fund money belonging to all owners .

1. Greater disclosure from real estate agents is needed

   I think real estate agents should disclose the quantum of commission or “marketing fee” they get from developers for New Projects properties if home buyers want to know. Unlike sub sale properties (the bread & butter business of real estate agents) that are subject to a maximum cap of 3% commission, there is currently NO requirement to disclose how much commission or marketing fees real estate agents get from developers to sell $$$ New Projects branded serviced properties, etc

   You see from time to time some 28-year olds in the real estate industry flaunting their new Rolex watches or BMWs on YouTube and LinkedIn. They can of course afford to buy expensive cars and watches. Based on anecdotal evidence gleaned from social media postings, I think professional fees from developers for New Projects properties may range from 4% to 10%. I heard some marketing fees might be even higher than 10% for Sxxxx New Projects properties that are difficult to find buyers. Now don't get me wrong.

   I think there is of course NO problem if the developer wants to pay 10% or even 15% commission to a real estate agent to sell a property. For example, when I sold my fountain pen collection of 25 years via auction I paid Bonham's auction house more than 10% in sellers premium aka sales commission. But of course Bonham's like all auction houses is upfront about its commissions (premiums) it charges vendors and buyers.

   Let me give another analogous example from the sales charges levied in unit trust investing. Say I want to invest RM100,000 in Amanah Saham. If a unit trust consultant were to refuse to tell me the sales charge (IE the commission payable to the consultant) she would get into big trouble if I were to lodge a complaint with SFC.

2. Better corporate governance from MC/JMB commitees is needed

   I want to see MC and JMB commitees and property management teams at condominiums committ to provide regular updates to fellow owners on important maintenance issues, financial statements, legal issues and Covid19 issues beyond the bare minimum required by law.

   At older high end KL condominiums, the quality of maintenance is crucial to maintaining the capital values of properties and their ability to attract quality tenants. Increased supply of new condominiums and a dwindling tenant pool means maintenance issues will only get more important. Also for out of state or overseas owners of high end properties, a mechanism to allow virtual voting at AGMs and EGMs.

Post Script & Disclaimer

I am not a Property “Guru”. My property blogs are written from the perspective of a property investor with more than 20 years experience. They do not provide investment advice. If you are interested in buying an investment property in Malaysia you should consult a BOVEA registered valuer or real estate agent.

If you can spot a mistake or an exception to a post at 360 KLCC or Real Estate Marketing 101, please contact me using the form here, attaching some empirical evidence eg a price chart etc to support your claim. You will become eligible to win the fountain pen below, made of solid brass and in a polished chromed finish (or a substitute of equivalent value).

In Memory of GC (1954-2006) and TC (1958-2018)