Malaysia’s well-regulated market is drawing interest from Asia Pacific investors keen on expanding their portfolios by acquiring well-priced, mid-range properties in the country, according to property investment company IP Global.
Kuala Lumpur (pictured) was the top destination, driven by strong economic fundamentals, no property tax after a five-year ownership, freehold land title, a legal system fair to both citizens and non-citizens and a healthy rental market.
“The property market in Malaysia has remained stable during the global financial crisis and we are expecting it to improve substantially over the next 12 months,” said Tim Murphy, Founder and CEO of IP Global, adding that much of the demand would come from China and Hong Kong.
“In total, we have sold 754 units in Kuala Lumpur since 2006. Capital returns are impressive; assuming a 70 percent mortgage, absolute returns over a five-year period are up to 137 percent for USD based investor,” he added.
IP Global noted that the Malaysian government considers the real estate market as a major pillar of economic growth. Consequently, property investors look to the affordability and value of the KL market, picking it ahead of other cities in the region such as Singapore and Hong Kong.
“In addition, the city’s emergence as a regional hub for business and finance is being enhanced by huge government infrastructure spending, including the opening of Terminal 2 at Kuala Lumpur International Airport in 2013, and expansion of the LRT metro system,” it said.
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