Malaysia Property Rental

It’s a fact - Malaysia is heating up as an emerging property investment destination with an active tourism and business professional rental market that’s luring in increasing numbers of international property investors.  Malaysia property rental is proving to be a profit centre for a growing number of investors seeking a medium risk emerging market with an increasingly transparent property purchase and ownership process, where rental rates are expected to rise and vacancy rates are expected to fall for at least the medium term. 

Here’s a breakdown of what’s available in terms of property for sale in Malaysia as well as the factors fuelling Malaysia property rental demand.

Firstly the Malaysian government is well aware that real estate and tourism are two factors that can greatly benefit their economy – gone are the dark days of the 1990s when the Foreign Investment Committee carefully guarded the nation’s assets against an invasion of overseas investment - rather the government of Malaysia are committed to raising the profile of their nation internationally in a bid to encourage visitors, investment and overall economic development. 

The government has been particularly successful in attracting multinational natural resources companies for example and these have contributed to a dramatic upswing in the Malaysian economy and business confidence in Malaysia in general.  Now the government of Malaysia is seeking to directly assist the real estate sector; they have established the ‘Malaysia: My Second Home’ programme to attract direct investment into property and which has proved an effective way to draw investment into the main cities and coastal resorts in particular; furthermore they have given a massive taxation reduction to those who purchase property in Malaysia and hold their property assets for more than five years.  These people no longer have to suffer the previous 30% capital gains taxation, instead only 5% capital gains tax is payable on profits from property sold after five years of ownership.

These efforts and more have helped to raise the profile of Malaysia and resulted in the announcement by ING Real Estate that the country is now considered ‘medium risk’ rather than ‘high risk’ which is the status the real estate giants bestow on all other Asian emerging nations.

Cutting to the chase, in terms of the profit potential available from property in Malaysia for investors, the key to short term success is generating an increasing income from Malaysia property rental with medium term capital appreciation also an active area of interest with property profits only attracting capital gains of 5% after five years as stated. 

In Kuala Lumpur, Malaysia’s capital city, the country’s economic success is apparent in the number of businesses establishing and expanding operations, in the numbers of construction projects underway and in the number of new professional migrants arriving in the city to take up positions of employment daily.

It is this perfect synergy that is creating a dramatically increasing demand for quality, completed rental accommodation and creating an exciting opportunity for property investors.  Property prices and rental rates are surging as completed real estate is becoming less available and this situation is predicted by ING Real Estate to last until at least 2013 as Malaysia’s professional workforce becomes the fastest growing in Asia.  Between 2003 and 2013 it is forecast that Malaysia’s workforce will increase by over 27%...naturally enough this means that an investor has a potentially increasing rental and resale client base to target thus reducing the risk of investing in property in Malaysia further.

A number of international property development companies are also excited by the transition that is occurring in Malaysia and this is why Kuala Lumpur in particular as well as a number of the more popular coastal resorts are benefiting from superior development projects.  In Kuala Lumpur the emphasis is very much on the creation of high end condominiums and in Malaysia’s popular coastal resorts the type of development now taking place is far superior to all that has gone before – thus reflecting the changing economic climate and also catering to the tastes of increasingly affluent visitors, citizens and professional expatriate migrants.

In Malaysia there is an air of change, expectation, anticipation and prosperity and this is proving infectious for increasing numbers of international property investors.

Special Reports: Property News for Malaysia

Malaysia Property Buying Process
The Malaysia property buying process is relatively straightforward, but raising local finance to buy Malaysian real estate is time consuming

Malaysia Property Buyer’s Country Guide
Luxury real estate developments across Malaysia are attracting international interest from property buyers attracted to the scope in the market.

Malaysia Property Investment Potential
Property investment opportunities in Malaysia offer strong rental yield potential and real estate investors draw confidence from Malaysia's strong economy