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Demand Increasing for Pent-Up Kuala Lumpur Property Growth
September 15, 2009Article by Ray Withers
Now that demand for overseas property is rising once again, Kuala Lumpur property is picking up where it left off in terms of interest from overseas property investors.
“Kuala Lumpur real estate became very popular with overseas property investors in 2007, and continued to be popular in 2008. The main draws were the impressive rental yields and capital growth averaging 10% per annum. Like so many emerging property markets, Kuala Lumpur suffered from the exodus of foreign buyers, but now they are back so is the potential for growth,” said Frontiers’ director Ray Withers.
Kuala Lumpur is one of the world’s most vibrant capital cities. Before the international downturn Kuala Lumpur was busy growing into one of the world’s retail and financial giants. At the same time, prime city-centre property in Kuala Lumpur was becoming some of the most expensive in the world.
The downturn has taken its toll on the city, but Asia is emerging from recession faster than any other region, and all the factors driving growth in the Kuala Lumpur property market are still there.”The growth is there, pent-up like a coiled spring,” said Ben Jeffries, a portfolio consultant with Property Frontiers.
“While prime KL city centre property has held its value, the secret, we believe is to look outside the city centre, where you can find the next wave of emerging districts. These areas will see property values grow exponentially as Kuala Lumpur’s middle class continues to grow. We recommend Pandan, where we have some fantastic deals on off plan property,” Jeffries explained.
Pandan is a rapidly emerging region just minutes away from the bustlingly vibrant Kuala Lumpur city centre, and with excellent rail and transport links. It is a common trend in Asia’s emerging markets, as prices in the city centre grow exponentially on both residential and retail lots, both residential buyers and retail outlets start to look for more cost effective areas and the potential for growth follows them.Currently, you can buy property in Pandan for a fraction of the cost of property in Kuala Lumpur city centre. For instance, Property Frontiers are currently marketing the Axis mixed use development.
The Axis development represents the pinnacle of modern Asian residential and commercial property development. Yet you can currently buy a fully furnished 2 bedroom apartment for £50,500. In short: the Axis offers some of the best properties (those who have seen it using the links will agree) currently available on the global market, for some of its lowest prices — excellent value for money.Of course, Malaysia has added benefits, including a very favourable tax regime. In April 2007 capital gains tax was abolished, which complimented the nominal 2% inheritance tax in Malaysia. Another benefit is the fact that Malaysia is an ex
British colony, which adds the following benefits:
1: The property buying process is very similar to that of Britain, and the contracts are in English.
2: Foreigners can easily obtain mortgage finance of up to 70% LTV in Malaysia.
Actually, mortgages are easier to come by in Malaysia than many other places at the world, because with the booming economy, high levels of FDI, inflation under control and low levels of international debt, the Malaysian banking sector is as confident now as it has ever been.