Malaysia Property Buyer’s Country Guide

International and local property buyers looking to invest in Malaysia have a wealth of urban residential real estate and tropical holiday accommodation to choose from.  All generic options currently offer both strong yield potential and medium to long term stable growth and mean that the real estate sector in Malaysia is considered to be a good long term bet by industry analysts.

The attraction of the property market in Malaysia comes from a number of sources but the fundamental reason is that the Malaysian economy has some incredibly strong factors underpinning its predicted sustainable long term growth and as a direct result foreign investment into many economic sectors including the real estate sector in Malaysia is significant.

Since the early 1970’s Malaysia gradually transformed its economy into a multifaceted manufacturing based economy exporting mainly to the US, China and Japan and until early this millennium the levels of growth enjoyed by Malaysia were impressive.  The Asian economic downturn, SARS and then a worldwide economic downshift all negatively impacted the Malaysian economy quite dramatically but rates of recovery and growth since 2002 have been equally dramatic.

As export opportunities particularly to China expand rapidly for Malaysian businesses and the country benefits from having healthy foreign exchange reserves, low inflation, and a small external debt, international confidence in the future stability and sustainable growth in Malaysia is now incredibly strong.

In addition to these factors driving general investor confidence in Malaysia there are two further attractions from a real estate developer and corporate or large property investor’s point of view.  Firstly the country has a very fast expanding tourism market which is built upon Malaysia’s diverse attractions and beauty together with its cost effectiveness as a resort destination, and secondly the country’s capital city of Kuala Lumpur is expanding as one of the most exciting and vibrant worldwide city prospects for companies and individuals alike - meaning that there is demand for all classes of commercial and residential property and that there is room for development of new units to meet that demand, thus creating profit potential.

For property buyers examining the real estate market in Malaysia for the first time the majority of opportunities exist in Kuala Lumpur, Malacca and in the resorts of Langkawi and Penang which sustained some Tsunami related damage but which have now fully recovered and rebuilt. 

Kuala Lumpur is a vibrant city with an international and young population; it is home to the regional headquarters of many of the world’s major corporations and has a fast developing property market.  A lot of speculative purchasing of high end units is occurring off plan at the moment, rental yields are steadily increasing, demand for resale and rental property remains strong and international developer interest in the city is intensifying with plans submitted for a number of very desirable and attractive residential communities and commercial concerns.

The tourist resorts on the North Western Island of Malaysia are also proving strong for FDI from the international property investment community.  The numbers of visitors to Malaysian resorts is increasing substantially annually - visitors are aware that the tourist attractions of Malaysia are diverse - from tropical sandy beaches to a fantastic nightlife, plenty of culture and heritage, affordability and a freshness no longer associated with similar destinations such as Thailand.  All of these factors mean that there is massive room for expansion of facilities and amenities from the construction of hotels to the development of servicing industries and that second homers, buy to let investors, retirees, Malaysia My Second Home qualifying persons and expatriates have all shown strong interest in properties to purchase in and around the main resorts for rental profit, for personal enjoyment and for medium term underlying investment growth potential.

Malaysia remains a cost effective country for property buyers; even in the capital city of Kuala Lumpur real estate prices are far lower than in other international capital cities across the world.  As a resort destination Malaysia’s affordability is an added attraction bringing growing numbers of visitors annually to boost the economy.  While the country’s economy keeps growing, inflation remains low, overseas export opportunities continue to expand and more businesses establish regional centres in Malaysia, so the amount of foreign investment into the country will continue to expand and international investment into the property sector in Malaysia is predicted to grow unabated.

Asia:- Malaysia Property Reports
Complete listing of all current property reports for region: Asia:- Malaysia

Malaysia Property Buying Process

Malaysia Property Investment Potential