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Kuala Lumpur Rides Out Property Storm
February 20, 2009Article by Ray Withers
Kuala Lumpur ranking as one of the top Asian property hotspots is unlikely to change despite the global battering of property markets. Malaysian property experts are confident that Kuala Lumpur real estate will weather the financial storm with little or no disruption of property prices. The main reason for this lack of worry is unlike many other markets, Kuala Lumpur has little or no oversupply of new properties. Developers postponing new projects will also bolster demand, meaning existing Malaysian property projects underway are at a premium and still rate as good value when compared to other Asian property markets, like Shanghai, Singapore and Hong Kong. While Western property markets, especially in the UK and US are still to hit the bottom, Kuala Lumpur has no flood of distressed priced properties on the market and prices are holding, although sales are slowing year-on-year.
Property in Kuala Lumpur also thrives on a strong local market – with 70% of sales coming from Malaysians and the rest going to a growing ex-pat community. The city is also benefitting from direct investment from overseas companies looking for an Asian headquarters and is set to become a hub for cheap £99 flights from Europe – including London’s Stansted Airport from March. International property consultants Property Frontiers offer two apartment development choices in Kuala Lumpur:
Axis Pandan, is two towers –
* Axis Residence Deluxe Kuala Lumpur, a 33-storey serviced apartment block including pools, gym and a sky lounge
* Axis Crown Premier, Kuala Lumpur offers luxury life-style 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’ condition with a covered parking space and views either overlooking the pool area or towards Kuala Lumpur city centre. Gross yields in excess of 8% can be expected when compared with today’s rental rates and with 60% loan-to-value mortgages, available investments can be secured with £19,000 cash plus purchase costs. At these figures, an annualised return on investment of 58% should be achievable.
Prices start at £50,000 for a two-bedroom apartment.
Sunway Vivaldi Mont Kiara is six tower blocks comprising 228 apartments over 7.7 acres.
The apartments will be finished to luxury standards. The investment options available are a range of spacious 4 bedroom apartments, all over 3,400 square feet in design. Finished to the highest standards, each bedroom has its own en suite bathroom and the apartments come with family living areas, kitchen and breakfast kitchen, and powder room. 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. Both developments give good investment options at the top and bottom of the market for rental or owner-occupation.