Malaysia, a former British colony, is a fusion of culture and spectacular scenery that is becoming an economic hub and property investment draw for southeast Asia.
Boosted by increased tourism numbers which topped 20 million in 2007, Malaysia has fostered a strong economic climate with a host of new government policies aimed at encouraging foreign investment in real estate. After the real property gains tax (RPGT) was scrapped the economy was boosted, and even before that it was the third-largest economy in South East Asia.
Kuala Lumpur (KL) is the nation's hub. Its landmark Petronas Twin Towers are the centrepiece that kicked off Malaysia's construction boom, propelling the city to become the regional headquarters of many of the world's major corporations. With rapid urbanisation underway throughout the city, districts such as Mont' Kiara and the Central Business District are becoming highly sought-after property locations with the international affluent ex-pat community and Malaysian city executives seeking upmarket serviced residences close to international schools and attractive shopping plazas.
Mont' Kiara is condominium central with upmarket residences popping up on every corner. Developed by the enclave's second largest developer Ireka, Kiara 1 condominium launched a few years ago.
One Mont' Kiara was almost been sold out before it was officially launched. Property Prices in KLCC and Mont' Kiara have been reported to be stable achieving good capital appreciation and prices are likely to continue to rise given the increase in land price. In addition, average occupancy is about 90% and rents remain stable ensuring investors enjoy attractive rental yields averaging 8-10%, with the better properties fetching as high as 15%. The high-end and niche market is expected to continue flourishing with the outlook for these property developers looking bullish, enjoying the benefits of a recent Government ruling relaxing the rules on foreigners owning residential properties.
"There are plenty of foreign buyers who fancy a bit of urban familiarity with a twist of Eastern exoticism," says Chintan Mahida, international property expert of the Overseas Property Blog. "But remember Malaysia is still regarded as an emerging market, and despite the positives of a stable economy and government, low transaction costs and high yields on luxury condos there are negatives, high rental income taxes and a pro tenant rental market make buying a property there not without risk."
