Published on 30 June 2007 at 06:51 pm
Filed in Property News for Malaysia » Everything in Malaysia’s Investment Property Garden is Rosy
Here’s the question of the day - how much positive news about a nation and its real estate market does one property investor need? The reason we’re asking is because everything in Malaysia’s investment property garden is rosy right now - therefore how much positive news do you need before you’re ready to make a commitment to it?
No matter how much positive data you normally need before you make a move you should now find sufficient evidence to suggest that Malaysia is very ripe and ready for your investment. But if you don’t believe us perhaps you’ll believe those who contributed to the record levels of foreign direct investment that the nation enjoyed in the first five months of 2007 - or those who are heralding Malaysia as one of the world’s leading shopping capitals - or those who believe that the property sector is helping to underpin an incredibly successful economy?
It’s true - everything in Malaysia’s investment property garden is rosy as you can see and as we will now further demonstrate: -
The amount of foreign direct investment attracted to Malaysia between January and May of this year reached in excess of twelve million Malaysian riggits (1 USD = 3.44705 RM) and there is nothing whatsoever to suggest anything of a slowdown as we look forward to the rest of the year according to reporters from Malaysia’s financial and investment daily news website The Edge Daily.
Investment growth has risen sharply compared to last year and is on target to hit 13.5% before leveling off at around 8.9% next year according to Citibank Bhd Wealth Management Division, and in turn this investment growth is underpinning impressive GDP growth forecasts which in turn are boosting the property sector in Malaysia.
The property sector has already seen growth in the region of 77% in the last year alone with the construction industry seeing an 89% growth rate according to Lipper Hindsight, a fund performance and analysis presentation program designed to allow the measurement of historic investment performance.
On top of these strong statistics there are certain other facts a potential investor should be aware of – not only is local spending power strong and the appetite locally matching affluence when it comes to affording to buy real estate, but there is increased international interest in property in Malaysia as an investment commodity.
The retail property sector has particularly benefited from inward foreign investment because it is a sector successfully responding to the fact that Malaysia is being dubbed one of the shopping capitals of the world as Visit Malaysia Year 2007 brings in high levels of affluent visitors.
And this is not the only commercial sector of the nation’s property economy of interest to overseas buyers – apparently the vastly wealthy and successful Singaporean REITs industry wants to push for the inclusion of Malaysian commercial premises within local REITs structures which will mean competition for commercial property stock in Malaysia intensifies.
And the final piece of good news is that Malaysia’s Second Finance Minister Tan Sri Nor Mohamed Yakcop reported last week that increases in activity and underlying land and property unit value have been registered in virtually every single property market sub-sector including residential and that the number of transactions this year had already topped the 65,000 level.
So – how much good news do you need before you start taking a closer look at Malaysia’s investment property potential? Was that enough!
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