Industry News
Investment Value of Properties in Malaysia
Date: 29 November 2019   Published by: IBN

The recent Malaysia property price increment of approximately 20% has made Malaysia the top choice for property investment in Southeast Asia. Despite the high capital gain and rental yield, are properties in Malaysia worth your investment?

1. Malaysia is one of the top 3 countries in terms of GDP per capita among the ASEAN countries. The Belt and Road Initiative has led to the implementation of many mega development projects within the country, spurring the economic development and subsequently the property development.
2. The Malaysian Government announced Greater Kuala Lumpur programme – a billion dollar project that aims to make Kuala Lumpur a top 20 cities in terms of livability and economic growth. Under this programme, we expect the property price to rise up further and we recommend you to purchase property as early as possible to maximise your return on investment!
3. The land price in Kuala Lumpur city centre is very expensive due to the limited availability of undeveloped land. The high demand and lack of supply of land has resulted in a steep increase in property price.
4. The overall population median age in Malaysia is much lower than that of China and these young adults have decent purchasing power. In addition, there is a large accommodation demand due to a large influx of local and foreign talents in search of a better quality of life and job opportunities. Properties located in a matured neighbourhood with easy access to public transportation are preferred among tourists.
5. Malaysia My Second Home (MM2H) programme is a permanent residence programme that does not require the applicants to give up on their nationality. Successful application on the MM2H programme will grant the applicants and their next of kin a multiple-entry visa that allows them to stay in Malaysia for up to 10 years.
6. Malaysia is an ideal country for retirement – the country is rich in tourism resources, beautiful natural surroundings, pleasant climate, free from natural disasters such as earthquake and typhoon and the best healthcare system in the world with relatively low medical expenses as compared to other developed countries such as Singapore. The large overseas Chinese community minimises the language barrier and culture difference.
7. All properties in Malaysia are either freehold or 99-year leasehold properties with no shared areas and inheritance tax. Most of the apartments have free parking bay for the owner. These are the main reasons Chinese choose to invest in properties in Malaysia.
8. Singaporean Prime Minister Lee Hsien Loong and Malaysian Prime Minister Dato’ Sri Najib Razak signed a Memorandum of Understanding to build a high speed rail that connects the capital city of both countries on 19 July 2016. Upon completion, the HSR will be able to cut down the travel time to 90 minutes, making Kuala Lumpur a very attractive place for Singaporeans to invest in. The project is expected to be fully operational by 2026.

Keyword: IBN, Property, Permanent Residence, Investment, Malaysia