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Misconception Regarding Property Investment in Malaysia
Date: 2 December 2019   Published by: IBN

In the past decade, Malaysia has transformed into a popular investment hotspot. The property development market experienced strong growth as Kuala Lumpur continue to garner interests from property investors across the world. From 2000 to 2015, the overall property price in Malaysia rose by 127%, with Kuala Lumpur leading with an increment of 172%, which is the highest among all cities in Asia. With the launch of the Belt and Road Initiative and the Greater Kuala Lumpur programme, the property price in Malaysia is expected to continue to rise.

When we talk about property investment, most Chinese investors will opt for local properties or overseas properties from developed countries such as US and Europe. However, property investment in Malaysia is equally as good, if not better. We are here to uncover some of the reasons behind the sudden bloom in Malaysia’s property investment market so that you will not miss out from this golden opportunity!

According to the statistics, the property price growth rate for Kuala Lumpur is the highest within Asia. Despite that, the property price is much lower than that of China Hong Kong and Singapore, which is one tenth of the property price per square metre of properties in Hong Kong, Singapore and Tokyo. It also offers more affordable homes at a city with a higher GDP per capita as compared to Bangkok, Manila and Jakarta.

If you are wondering if the property price will continue to rise after the continuous upward trend that lasted from the year of 2000 to 2015, we can assure you that there is more room to grow. The launch of Belt and Road Initiative and Greater Kuala Lumpur programme has resulted in rapid economic development and population growth to meet the business needs. As a result, there is a huge demand for houses, regardless of whether it is from local Malaysians that are moving into Kuala Lumpur due to the higher job opportunities or the travelling businessmen and expatriates that migrated into the city due to the company’s investment.

The property price in Malaysia typically experiences 20% to 30% growth from the project launch until delivery of VP. If you are able to purchase properties that have excellent geographical location, you can maximise your capital gain. In addition to good capital appreciation, Malaysia has a very high rental yield, ranking 6th in the world. If you are looking to purchase house for investment purposes (renting out), you should definitely consider Malaysia.

Properties in Malaysia often offers GRR for up to 10 years and are delivered fully-furnished, making it ideal for foreign investors. Since 2016, the Malaysian Government has stopped distributing hotel operation licenses, which has greatly reduced the available accommodation choice for tourists in Kuala Lumpur. By investing in serviced apartment, you will be able to tap into this market and maximise your return on investment!