Find out what’s happening in the property investment arena both in the UK and internationally
Malaysia Property Is Beating The Recession
September 2, 2009Article by Ray Withers
Malaysia property market is rebounding strongly from the downturn with more buyers seeking homes on the expectation that the country has pulled away from recession.The country has one of the most resilient economies in South East Asia, and the property market shrugged off falling demand and prices, in comparison with the more volatile UK and US markets.
Overall, residential property in Malaysia dropped just an average 5% against massive collapses in the USA, Dubai, the UK and Spain. Forecasts are that prices will even out over the next year or so.Malaysia has a strong local demand for rented housing as well as swelling tourism figures encouraging holiday let investment.
One of the reasons the country is experiencing a surge in tourism is investment by Air Asia Express to transform Kuala Lumpur in to a regional hub for budget flights.Air Express flies daily from London Stansted to KL from about £200 one-way. Fly on trips start at just £6 one-way to Singapore and £37 to Perth.
Industry observers are expecting a more robust revival in the region’s property market towards the end of the year, in tandem with a further pick-up in the global economy.Home prices are forecast to see further upside, driven by huge liquidity in the economy as well as further rebounds in residential rents.Low mortgage costs are influencing investors to hedge against inflation.
International property consultants Property Frontiers, based in Oxford, rate Malaysia as one of the hot places to invest.They are marketing several projects, including the popular combined Axis Pandan development – the midmarket Axis Residence Deluxe, Kuala Lumpur and luxury Axis Crown Premier, Kuala Lumpur.
The premier provides deluxe living space with fantastic views over the city and the nearby Royal Selangor Golf Club.The developments, marketed by international real estate consultants Property is built above the city’s largest shopping mall Apartments are turnkey developments, delivered ‘ready-to-let’ and offering gross yields of about 8%.
Investors can buy in to the Axis projects with 60% loan-to-value mortgages for just £19,000 cash plus purchase costs. Prices start at £50,000 for a two-bedroom apartment.