Malaysian property market set to reap lucrative rewards for investors
News has just been released by Thinkproperty.my, a highly reputable news source specialising in the Malaysian property market, that there are strong signs that that the market is going from strength to strength, making a popular choice with investors.
Said Asim Qureshi, CEO of Thinkproperty.my has said that “data confirms that confidence has truly returned back into the Malaysian property market. The results of this survey suggest that we will see higher prices over the next few months, which will in turn likely lead to further confidence. Now is an excellent time to buy.”
The market has seen a 3% rise in equity and the survey also revealed that 61% of respondents favoured investing in the property market than the other two main classes of investment.
“Now is an excellent time to buy. Interest rates are low, banks are becoming increasingly aggressive, and of course, market confidence is returning.”
Malaysia Property Market Will Continue to Grow
There are reports on the web saying that Malaysia property market is set to plateau this year but it just isn’t true. Everyone knows that Asian markets are going to continue to grow throughout any global slowdown, and Malaysia is one of the biggest benefactors of its growth. Areas like Sabah, Borneo are seeing massively rising tourism numbers from Asia’s rapidly expanding middle class, and Kuala Lumpur is developing into a chique commercial hub, on par with any of the world’s great capital cities.
The rising cost of building materials had people running for the hills shouting about how it would cause developers to wait and see what the market held in store before bringing their new Malaysia property onto the market. But that has not been the case; there are still plenty of new developments being unveiled in Malaysia.
DSR have just brought the Vivaldi development in Kuala Lumpur onto the books, an amazing development of luxury off-plan apartments, in the stunning Mont-Kiara district of Kuala Lumpur. Residents enjoy unique luxuries like a private lobby and elevators opening straight into apartments etc, as well as the obvious benefits of capital city life: being walking distance from great restaurants, high-end shops and boutiques, and even international schools.
Liam Bailey, head of international research for DSR gave his views on Malaysia’s potential:
“With global markets and economies having become so intertwined, when a big market like the U.S. starts to wean, it does trigger a domino effect, and that makes it easy for everyone to start battening down the hatches. But global markets becoming intertwined, and companies becoming so multinational as flights got cheaper and the massive growth in internet use, means there is sufficient money in global business, even in the likes of China and India alone, to regenerate global economies through foreign direct investment. For instance: China and India buying massive amounts of grain from Brazil because it is the cheapest supplier.”
“Malaysia grows because Asia is growing, not least through regional and medical tourism, the former increasing by around 20% per year, as the Asian Middle Classes grow, (In India, the number of people earning more than $5000 will double to 20million in the next two years), through new employment, promotion, and rising affluence in start-up businesses.
“Not to mention, the massive number of graduates from Asia’s shining educational systems some, going off to be doctors and high-earning lawyers, but some starting up businesses and becoming the next wave of property tycoons, or any other business they think up. Make no mistake, Malaysia property will continue to grow in value, the only effect the global slowdown may have is bringing capital growth down from 15-20% to 10%, which is still solid growth for an established market. Rental yields will continue to be strong at around 8%”
Regroup: Market will take 3 years to recover
Malaysia’s property market will take three years to recover from its current slump, the slowest revival in more than two decades, reflecting the reach of the worldwide financial crisis, Regroup Associates Sdn Bhd said.
“In the past four weeks, I’ve been staring at an abyss,” said Allan Soo, managing director and founder of Regroup, a Kuala Lumpur-based property consultant and home seller. “What’s changed is the global recession.”
A worldwide slowdown has sparked real-estate slumps from the UK to Singapore, causing Malaysian developers such as Magna Prima Bhd to scale back projects. Values of luxury homes in Kuala Lumpur, where prices surged to a record last year, may fall as an oversupply looms, according to Soo, who declined to give a specific forecast.
Malaysia’s property market took about a year to recover from the 1997-98 Asian financial crisis, Soo said. The rebound from the latest slump may start in 2010 and take as long as the recovery from the 1985 recession, Soo said.
Compared with 2007, interest from prospective buyers has dried up, Soo said in an interview in Kuala Lumpur last Thursday.
“Inquiries would come in right after we put up a sign board on properties,” Soo said. “Now, there’s none.”
Home prices will come under further pressure as the number of high-end apartments in Kuala Lumpur doubles to more then 30,000 in the next three years, according to Regroup.
Economic growth in Malaysia in 2009 is expected to slow to 3.5 per cent from about five per cent this year, according to the government’s estimates. Still, losses for homeowners may be capped because most bought properties in 2006 before the peak for less than RM1,000 a square foot, Soo said. The entry of foreigners last year pushed prices to more than RM2,000, he added.
Signs of fewer home purchases have already emerged. Bank loans approved for Malaysian home purchases in October fell to its lowest since February, according to Bank Negara Malaysia.
SP Setia Bhd, Malaysia’s largest developer, expects a 22 per cent decline in property sales to RM1.1 billion in fiscal 2009, Citigroup Inc said last Thursday. SP Setia’s officials couldn’t be reached in their office last Friday for a comment. The Kuala Lumpur Property Index has slumped 51 per cent this year, outpacing the main index’s 40 per cent slide.
Magna Prima said last month it cut the projected revenue from its biggest property development in northern Kuala Lumpur by almost half.Malaysia’s property market will take three years to recover from its current slump, the slowest revival in more than two decades, reflecting the reach of the worldwide financial crisis, Regroup Associates Sdn Bhd said.
“In the past four weeks, I’ve been staring at an abyss,” said Allan Soo, managing director and founder of Regroup, a Kuala Lumpur-based property consultant and home seller. “What’s changed is the global recession.”
A worldwide slowdown has sparked real-estate slumps from the UK to Singapore, causing Malaysian developers such as Magna Prima Bhd to scale back projects. Values of luxury homes in Kuala Lumpur, where prices surged to a record last year, may fall as an oversupply looms, according to Soo, who declined to give a specific forecast.
Malaysia’s property market took about a year to recover from the 1997-98 Asian financial crisis, Soo said. The rebound from the latest slump may start in 2010 and take as long as the recovery from the 1985 recession, Soo said.
Compared with 2007, interest from prospective buyers has dried up, Soo said in an interview in Kuala Lumpur last Thursday.
“Inquiries would come in right after we put up a sign board on properties,” Soo said. “Now, there’s none.”
Home prices will come under further pressure as the number of high-end apartments in Kuala Lumpur doubles to more then 30,000 in the next three years, according to Regroup.
Economic growth in Malaysia in 2009 is expected to slow to 3.5 per cent from about five per cent this year, according to the government’s estimates. Still, losses for homeowners may be capped because most bought properties in 2006 before the peak for less than RM1,000 a square foot, Soo said. The entry of foreigners last year pushed prices to more than RM2,000, he added.
Signs of fewer home purchases have already emerged. Bank loans approved for Malaysian home purchases in October fell to its lowest since February, according to Bank Negara Malaysia.
SP Setia Bhd, Malaysia’s largest developer, expects a 22 per cent decline in property sales to RM1.1 billion in fiscal 2009, Citigroup Inc said last Thursday. SP Setia’s officials couldn’t be reached in their office last Friday for a comment. The Kuala Lumpur Property Index has slumped 51 per cent this year, outpacing the main index’s 40 per cent slide.
Magna Prima said last month it cut the projected revenue from its biggest property development in northern Kuala Lumpur by almost half.