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Kuala Lumpur Property: My Day Is Coming
October 21, 2009Article by Ray Withers
During the last year, demand and occupancy has fallen considerably in Kuala Lumpur’s commercial sector, and rents have fallen considerably. That is all about to change however, as the economy is showing signs of recovery, and the International Monetary Fund forecasts that the declines of 2009 will turn into 2.5% growth in 2010 — among the strongest rebounds of all developed nations forecast by the IMF.
This means that Kuala Lumpur property currently presents an opportunity to buy at a bargain price, and watch demand and rents grow along with the capital value of your investment in the coming weeks months and years.
UK based property investment consultancy Property Frontiers are strong advocates of the potential gains from investments in Malaysia and Kuala Lumpur property. The firm has an impressive range of residential property in Kuala Lumpur, but also has a massive bargain on a commercial Kuala Lumpur property.
irector Ray Withers said:
“Just like elsewhere around the world economic indicators are turning positive in Malaysia. Kuala Lumpur is one of the world’s great business hubs, comparable to Dubai in terms of modern business infrastructure and prestigious office and retail space, but without the problems of commercial oversupply and with a growing rather than shrinking population.
“The lull in demand in the last year means that we can now offer our commercial units in Kuala Lumpur at a 20% discount on market value. As the global economy recovers demand for such space will grow rapidly as will rents, at which point the discount will vanish.”
The firm is currently marketing Southgate office suites; a commercial office space investment in Kuala Lumpur’s Jalan Tun Razak sector, just outside the famed golden triangle. The opportunity is currently offered at a 20% discount, and with a gross yield estimated at 8%. However this yield is likely to be revised up substantially as demand for quality Kuala Lumpur office space increases in the city centre.
Another benefit of buying property in Kuala Lumpur is the fact that foreigners can get mortgages relatively easily. Mortgages of up to 80% are available on the Southgate product, making the minimum cash investment just over £18,000.
“We were only able to secure 15 units for sale to our UK client base of professional investors, so this is very much a first come first served investment opportunity,” said Ben Jeffries, a sourcing manager with the firm.
“I can personally see someone buying one of these units and setting it up as a base of operations for a spree of residential property investments in the Kuala Lumpur recovery,” he added.