Find out what’s happening in the property investment arena both in the UK and internationally
Malaysia Boosted By Buyer Desires
February 10, 2010Article by Ray Withers
Property in Malaysia is becoming one of the few markets in the world to have actually benefited from the doom that was the international financial episode known forever-more as the credit-crunch.
This is because the credit crunch caused thousands of people millions of pounds, dollars, Yuen and real on poorly chosen, and/or poorly thought-out, and or poorly-researched property purchases and investments around the world. So now, anyone considering buying a property is conducting never-seen-before levels of due-diligence before stumping up any cash, and — more importantly in Malaysia’s case — putting far more weight on the potential safety of an investment than the potential return on the investment.
This is great news for the Malaysian property market. When prices of property and most other assets throughout Asia were rising fast enough to make the wheels fall off, the Malaysian government was carefully and strategically opening and restricting the markets to prevent the formation of any bubbles. So, when things went south, Malaysia didn’t feel it anywhere near as hard as the rest of Asia in terms of falling prices.
Now, if the drought on sales had been a prolonged one, then, yes, property in Malaysia would have started to see prices falling pretty sharply. But, because of the change in what buyers were looking for had changed, sales of property — which really only dropped off in the second half of 2008 — picked up quickly starting in April 2009.
According to international property investment consultancy Property Frontiers, Malaysia is also benefiting from the growing numbers of young British and European professionals considering the bold move to the growth sectors of Asia.
“More and more young professionals are looking to Asia to build their careers, because of the potential for growth, as well as the low cost of living, buying and owning property in most Asian countries,” said David Cox, the firm’s director.
“Malaysia always comes up favourite with that demographic because it is like a home from home; the people speak English, — some would say and more importantly — the bars sell English beers, all contracts on property are in English, foreigners can get finance and the health service is world class — not to mention the favourable tax regime and immediate citizenship for property owners,” he explained.
Property Frontiers is currently marketing the Axis Crown Premier development in central Kuala Lumpur. The development offers 3 bedroom apartments from the incredible price of £90k. Seeing those apartments, which offer the pinnacle of modern-living in one of the fastest growing metros in the world, and you can see why so many professionals are flocking to Malaysia.