Print this article if you're a tour operator, accommodation provider or touristMalaysia is not just a preferred tourist destination - it is also a large property hub. The place is naturally endowed, beautiful and yet very modern. It has also made immense progress in trade, business and commerce. Its metropolitan cities are as beautiful and rich as its islands and beaches. In addition, Malaysia is already a central meeting point of cultures and ethnicity.
Property & Real Estate Hub
Malaysia’s emergence as a property hub has been a priority of the government, which has introduced new policies designed to make the wonderful country an international real estate investment location. The Malaysian government has plans to attract yet more investment by inviting public and private investors to take on their own properties. The price of the property in Malaysia, however, remains far lower than equivalents in locations like London and Singapore!
There has been immense improvement in the Malaysian property industry during the last 20 years. These changes have been really significant in making the country a favored investment bolthold for foreign parties.
Primarily, improvement is seen in the quality of design and architecture of new buildings springing up across Malaysia. It does not imply that, all properties that were earlier constructed were bad or that all properties built today are of a higher standard. However, the technology has made new constructions stronger and more adventurous, as there has been an increased focus on quality and the use of better materials. The designs are modern and innovative too. Today, Malaysia is considered amongst the most developed and modernized countries not only in South East Asia, but across the wider continent.
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The government encourages foreigners to buy property in Malaysia through the following initiatives:
- By eliminating restrictions on foreign purchasers completely.
- The limit on the number of residential properties a foreigner can buy has been completely removed.
- A foreigner may also buy a freehold land in Malaysia now.
- The sale and purchase agreement will be in their name and is written in English.
- The need to seek approval from the Foreign Investment Committee (FIC) before buying property is removed. Although, one has to acquire State authorities consent to buy a property and it may take some six months time. The leasehold land owned by the state can also be bought in some areas. The leases usually last for 99 years.
- Property prices are low. They are lower even more as one proceeds away from immediate city. Consequently, Penang city property prices are around half of the central Kuala Lumpur prices.
- The real estate capital gains tax has been removed. It implies that the buyer is not supposed to pay tax on profit earned on sale of the property.
These factors, when combined with the fact that the cost of living in Malaysia is low, have been a major attraction to invest in property here.
Some bottlenecks, however, remain.
- Certain parts of Malaysia have been made into Malay reserve. The property in these areas can only be purchased by the Bumiputra population of Malaysia (indigenous Malays).
- Orchard land, with minimum building density of one property per acre, cannot be purchased by foreigners either.
- Real estate prices in Malaysia have increased significantly in the past 10 years.
With economic progress and increased foreign interest, even Malaysians are investing in property.
Types of property available in Malaysia:
- A bungalow is any detached property that covers all sizes and some may be indeed very large.
- Semi-D are semi-detached houses that are connected on only one side of the building.
- Terraced houses are those that stand in a row and are connected on both sides.
- Apartments and Condominiums are synonym terms, though condominiums have quite a few facilities like that of a pool, tennis court and gym.
- Gated Community is the most secure type of house with main entrance guarded by security personnel's and a fence on perimeters.
Investors in property have a good opportunity to put their money into Malaysian housing at this point in time. Value for money here is considered to be excellent and even as foreign money flows in, opportunities for growth and development still exist in burgeoning and industrializing cities across the peninsular and into Borneo.
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Photo Credits: Jean-Marc
