Kuala Lumpur
Fast developing into a cosmopolitan, high-tech city, Kuala
Lumpur is attracting increasing levels of investment from
commercial sectors and is seeing larger numbers of immigrants. It
is often the first location property buyers consider and as a
result prices here are the highest in the country. New residents
are drawn from both overseas and local markets and tend to be young
professionals seeking better employment prospects in a growing
city. Property is mainly in tower blocks, with many developers
offering luxury, serviced apartments, often with guaranteed rentals
of between 6% - 8% for those wanting a buy-to-let investment.
Strong economic growth, low interest rates, the ease of mortgage
borrowing and an element of volatility have all pushed prices in
Kuala Lumpur up over the past few years. Capital appreciation is
high here in comparison with the rest of the country, and prices on
average vary from £700 - £1,600 ($1,377 - $3,150) per square metre,
producing annual yields of up to 10%. A well located, spacious two
bedroom apartment is unlikely to go for anything under £80,000
($157,400).
Suburban locations are also popular and many new developments
are targeting high-income families with new communities offering
on-site facilities such as golf courses, pools, shops and services.
The Klang Valley and Monte Kiara in particular are attracting high
levels of investors and developers. A new development in the Klang
Valley is offering affordable units from £30,000 ($60,050) to
£50,000 ($98,400), whilst more high end properties are being sold
for between £75,000 ($147,600) and £160,000 ($315,000).
Sepang Gold Coast
This 22-kilometre stretch of coastline on the western coast,
around 25 minutes from Kuala Lumpur airport, is already the
location for the Formula 1 Grand Prix circuit and is earmarked for
further development. A great coastal project is planned featuring
hotels, retail outlets, leisure parks and a whole new residential
town. The first development is the vast Golden Palm, which will be
built offshore. Prices for properties in the first phase start at
£80,110 ($157,500). The resort is expected to attract a lot of
interest from buy-to-let investors.
Port Dickson
Port Dickson is a popular coastal resort, around an hour's drive
from Kuala Lumpur, and is attractive to the weekend and second-home
market. There has been an increase in development in this area over
the past three years with large numbers of condominiums and water
chalets appearing. Prices start at around £40,000 ($78,700) for a
standard one-bedroom apartment or chalet, whilst larger properties
sell for between £70,000 ($137,800) and £150,000 ($295,350).
Buy-to-let property is prevalent here with lots of developers
offering guaranteed rental returns of around 8%. Though the resort
has attractive beaches to the south there are also petrochemical
plants further north which may deter some buyers.
Penang
Penang is a heavily developed tourist island with a growing
resident population. Many believe it is now overdeveloped, with a
large number of new complexes and condominium buildings. Most of
the development is on the west coast with prices for average
apartments starting at around £40,000 ($78,700). High end
condominiums have prices heading towards £150,000 ($295,350),
whilst a luxury villa could see prices reaching £500,000
($984,500).
Langkawi
Langkawi is actually a cluster of 99 islands on the Straits of
Malacca, around an hour's flight from Kuala Lumpur. Most people
holiday and buy on the main island of the same name. Measuring
around 25 kilometres, the island is known for its long, white sand
beaches, traditional stilted fishing villages and upmarket resort
complexes. Much of the land here is jungle and designated as
reserve land, which means it cannot be sold to non-nationals. The
property market here is not as developed as in Penang and private
sales are common, with a standard-size townhouse or apartment in a
new development costing from £30,000 ($60,050) to £40,000
($78,700). Langkawi is a duty free haven.
Sarawak and Sabah
Situated on the island of Borneo, Sarawak is the largest state
in Malaysia and is a heavily forested region that the government is
actively targeting for growth. Tax incentives and protection of
foreign investment are two of the steps it has taken to encourage
investment in the region. Tourism is a major activity, as is palm
oil production. Property comes mainly in the form of new build
developments with prices starting from £125,000 ($246,000) per
unit, rising to over £400,000 ($787,400) for luxury villas. High
occupancy figures issued by the regional tourist board are
estimated to be 70% and with a shortage of holiday beds, prospects
for investors are strong. Further, with 4 million tourists expected
in the region by 2010, demand should be sustained.
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