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Foreign Malaise In Far East Property Market
June 8, 2009Article by Ray Withers
The Malaysian government is trying to encourage more immigrants to the country to buy property.
Under the Malaysia My Second Home Scheme (MM2H), 11,738 people have plumped to make Malaysia their new home since 2002 but only 510 have bought a property.According to government figures, purchases by foreigners accounted for only 0.62% of the 756,000 homes sold in the country since the MM2H scheme started.Out of those who did buy, the top four nationalities were China, the UK, Iran and Japan.
“Distressed properties in the other countries like the United States, Britain and Singapore offer attractive opportunities to international investors as property prices and exchange rates in those countries have dropped,” said Tang Chee Meng, a technical advisor to the MM2H scheme.
“The challenge now is to convince international investors that Malaysian properties offer better value than sub-prime properties elsewhere and that property values will hold steady despite the uncertain economic environment,”
Typical Malaysian property investments include a range of apartments in Kuala Lumpur, just a few minutes travelling distance from the business district and city centre a portfolio offered by UK based international property consultants Property Frontiers:
Axis Pandan is two major developments – the midmarket Axis Residence Deluxe Kuala Lumpur, a 33-storey serviced apartment block including pools, gym and a sky lounge and the top-of-the –market Axis Crown Premier, Kuala Lumpur offering luxury living in a prime location with fantastic views over the city centre and the Royal Selangor golf club.The street levels of the blocks house the region’s largest shopping mall.All apartments are delivered in a ‘ready-to-let’ offering gross yields of more than 8% and with 60% loan-to-value mortgages. Investments are available for just £19,000 cash plus purchase costs.Prices start at £50,000 for a two-bedroom apartment.
Sunway Vivaldi Mont Kiara is a six tower block development of 228 apartments over 7.7 acres.The apartments, due for completion in 2011, will be finished to luxury standards. The investment offers a range of spacious four bedroom apartments, all over 3,400 square feet. Finished to the highest standards, each bedroom has its own en suite bathroom.To sweeten the investment, add to that, a 10% reduction on launch prices, a 75% loan-to-value mortgage and guaranteed yields of 7%, for four bedroom apartments starting at £545,000.