Positive Property Investment Potential in Malaysia

It’s apparent that the recent dramatic taxation and legislation changes made by the Malaysian government to make property investment more attractive for both local and international investors are paying dividends - quite literally.  A recent survey of members of the Malaysian Real Estate and Housing Developers’ Association about the effects they have seen on the industry as a result of the changes show that they have had a positive effect on both the numbers of investors, and also the conversion rate of ‘potentially interested parties’ into ‘active purchasers’.

In addition to these findings, the head of investment marketing at Prudential Asset Management and the chief investment officer of Prudential Fund Management Bhd both agree that there is significant and positive property investment potential in Malaysia for at least the medium term especially now that Real Property Gains Tax has been abolished.

Malaysia has definitely been successful in its endeavours to re-enter the global property investment marketplace as an exceptionally strong candidate for significant investment interest and commitment in our opinion. 

Where Malaysia had recently fallen in the favour rankings against the likes of China and India and secondary markets that they in part fuelled like Hong Kong and Singapore, Malaysia is now being re-recognised as a stable, lower risk investment opportunity as certain factors have come about to level off the playing field a little.

On the one hand the Malaysian government have taken impressively strong action to enhance the appeal of the nation’s property market for investors - such as by increasing the amount of property in Malaysia that foreign buyers can purchase while at the same time abolishing Real Property Gains Tax to allow a certain amount of speculation in - and on the other hand, traditionally cheaper markets like China and India have sold out of a lot of their well priced stock and are now offering properties on a pricing par with Malaysia (or cheap rubbish which is not worth the risk).

So now that Malaysia is in a position to compete once again, what’s stacking up in its favour to ensure it remains a favourite and to ensure the continuance of positive property investment potential in Malaysia?

1) The local currency is competitive
2) Locally companies in Malaysia are doing well, the economy is strong as a result and there is sufficient liquidity in the economy that’s domestically generated making the market less risky for external investors
3) Average dividend yields are competitive compared to that achievable in other regional property markets
4) The Ninth Malaysia Plan was greeted positively and has created a worldwide ripple of anticipation and interest in Malaysia
5) The government are doing everything they can to attract sustainable foreign direct investment into many sectors including the property sector
6) More tax cuts in the next budget are being seriously discussed

The government and the property industry just need to work together to iron out some inconsistencies that currently exist, because the policy of attracting greater investment into real estate has moved swifter than necessary legislation changes…this is restricting the market at the moment but is likely to be a situation swiftly corrected. 

Special Reports: Property News for Malaysia

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

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