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Government Power To Malaysian Property
April 2, 2010Article by Ray Withers
The Malaysian property market is expected to benefit from the “New Economic Plan” unveiled by the government this week. The details of the plan are pretty scarce at the moment, but it is aimed at increasing Malaysian GDP growth to an average of 6.5% per year from 2011 to 20020. According to international property investment consultancy Property Frontiers even the announcement of the plan will have an impact on demand for Malaysian property, Ray withers, the firm’s director said:
“The Malaysian government has an excellent track record for economic management, and if it says that it will be increasing GDP growth to 6.5% per year then I am inclined to give them the benefit of the doubt. The main buyers of Malaysian property right now — certainly from an overseas perspective — are young professionals, who are buying because of Malaysia’s favourable attitude to and environment for incoming property buyers and professionals, and its potential for economic growth.
“To this buyer group, the potential for higher economic growth can only increase Malaysia’s appeal, and therefore increase demand for property in the country.”
Malaysia wants to make the jump from its current $7000 income per capita, to $15,000 by 2020, which would qualify it is a high income country. A growth in this respect would undoubtedly mean a significant growth in property prices during the period, which will also compel potential foreign migrants to buy sooner rather than later, Wither said.
The Malaysian Central Bank is already forecasting 4.5% – 5.5% growth in the coming years, and foreigners have a lot of reasons to choose Malaysia as their destination of choice aside from its growth potential and job opportunities:
Foreign property buyers can obtain finance for their purchase and are automatically granted residency in Malaysia should they so wish. There are many remnants from its being a British colony, including the fact that all contracts on properties bought and sold are in English by law. It also has a first-rate healthcare system, a frequent choice for medical tourists.
Property Frontiers are currently marketing some excellent 3 bedroom apartments in Kuala Lumpur priced from just £90,000. The Axis Crown Premier development is a luxury tower apartment complex in the Pandan district of Kuala Lumpur. Owners benefit from use of the platinum facilities, including a gym and spas etc, as well as amazing views out across the city. The development is also within walking distance of transport links to the rest of the city.