Malaysia is fast becoming one of Asia’s preferred investment destinations considering its relatively affordable and stable property market. One of the reasons why is the fact that its market is sensible and performs more steadily that most of the nation’s in Asia. At the same time, Malaysia’s property market is well regulated; making it harder for speculators to buy and sell properties fast. This in turn controls the entire market lowering the chances of a boom and bust scenario from taking place.
In the past 19 years alone, there has only been a 5.3% growth in the market. As a matter of fact, the only time Malaysia’s real estate market went through a difficult time was during the financial crisis that took place in the 90’s. The reason as to why the nation’s, particularly Kuala Lumpur’s, property market is the way it is can be explained by the fact that it is driven by domestic consumption and owner occupiers instead of rampant speculations as is the case with most of Asia.
Interestingly, a data from Property Circles the property market in Kuala Lumpur is valued as the second cheapest for any residential capital city within the region. This is quite unique in the sense that it is the only market cheaper than Jakarta, which is considerably difficult for most foreigners to invest in when different factors are put into consideration.
It is without a doubt that Kuala Lumpur is Malaysia’s key investment location. One of the prime properties here is Mont Kiara – Chester Properties Due to its relatively low purchase and operating costs, it is today the preferred location for many. This explains why many global companies have relocated to the city. While the city continues to attract more international property developers and investors, one major setback is the fact that it still has not addressed the needs of the mid to luxury housing market. However, considering the potential the city’s property market has, this is a problem that is likely to get solved in the near future as demand for more housing increases.
The great thing is that there is hope for the mid-to-luxury properties tier. With so many projects already in place, Kuala Lumpur’s market growth is very robust as most of the launched projects are already selling quite well. For anyone looking to invest in property in Kuala Lumpur, this would be the best time.
Showing great promise with the expectation that the property market in both Malaysia and Kuala Lumpur will grow due to optimism and positive economic sentiments, it is very likely that the market is soon going to be prime. As more people take notice of the city’s properties market potential, it is likely that in a few years to come, buying or investing in property in Kuala Lumpur will be relatively hard and quite expensive. The good thing however is that despite the current increase in prices, the city’s property affordability is still amongst the lowest around the Asia Pacific region.
There are many issues currently that make investing in Kuala Lumpur’s property market right now the best thing to do. With an abundant supply of properties to invest in and fewer people to invest in them, taking advantage of the situation at the moment could be the soundest decision to make as soon enough, buying or investing on property in the region is going to be a problem.