Malaysian Property in 2012

According to a government backed statistic, in recent years, the property investment inMalaysiahad escalated. The recent world economy is unstable and it is at an alarming state. Besides, if being confronted with the same question, 10 different economists will give you 10 different answers and observations on this matter. However, the consensus and safest advice an investor will give is to hold cash in hand during a weak economy. However, the statistical review that was published say otherwise. Presently, there are continuous growths in the demand for apartment, condominium as well as landed properties around the world.

The world’s weakened economic and financial markets inadvertently affectMalaysia. Understandably, most people adopt a wait and see attitude and choose not to invest at times like this leading to the slowdown in the Malaysian property investment. However, the Malaysian Government, despite bad times around the world, is of the opinion that the Malaysian property market is prosperous and flourishing. This can be seen during the past years, when the sales on apartment had increased by 60% and the sales on landed properties had a stable 20% growth. Such statistic indicated that despite a weakened world economy, the Malaysian property market has shown excellent development.  In other words, more and more Malaysian are investing in new apartments or houses and such trend looks destined to sustain in the near future, thus showing a bright future in the property market in Malaysia.

Despite the promising property market, some of the potential buyers are still resistant to invest in the property market since the average budget per worker is flinching. They tend to choose a smaller home or accommodation, such as an apartment or condominium; some even opt for town houses due to its value. Presently, property investor suggested that, this is the best time to liquidate any landed property, since the market is still flourishing. Regardless of the worries faced by potential buyers, Malaysia proves to be in a stable and secure condition.

Malaysia’s strong property investment market might be due to the following reasons:-

• The availability of loan of 70% which allows perspective buyers to obtain a maximum of 70% loan in the purchases of property, thus producing strong pool of buyers for the properties.
• Migration of population to city areas, for instance there are approximately 6 million people residing insideKuala Lumpurcity centre, and it is estimated by 2020, the population rate will reach 10 million.
• Increasing rate of new home buyer due to improved surrounding amenities including guarded areas, fibre optics internet connectivity, club house, gymnasium, etc.
• Limited land space for new property development
• Availability and sustainability of constant and regular growth in the property market

With the availability of loans and the increase in migration of population to urban areas shall ensure a strong and sustaining pool of investors and house buyers or occupiers, if these two factors are indeed at play; thus might be a viable option to invest in Malaysian properties.

Picture courtesy of: limkokwing

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