Irresistible Malaysia

One of the “big deals” anyone can afford is an investment in a charming location that gives peace of mind. Although real estate investment is not for those without steel in their spine, Malaysia, a racial melting point, remains an ideal destination for investors all over the world.

With a small populace, a low cost of living and all-year-round tropical climate, Malaysia is one of the twelve most biologically diverse countries in the world. It is the home of unspoiled beaches, clear tropical waters, and some of the world’s most pristine islands – dazzle your senses and soothe your soul with the peaceful rhythms that come from Malaysia. An investment in this awe-inspiring location is a rise above the mundane. Situated between Thailand and Singapore, Malaysia is known as the most liveable Asian nation. Here, some of the new world’s most celebrated architectural masterpieces rise above historic buildings. Although Malay is the official language, English is widely spoken – giving Nigerians a reason to indulge in the magnificence of this nation. Being a federation of thirteen states with eleven on the Malaysian Peninsula and two on the Island of Borneo, some of its cities would leave you wild-eyed and mystified!

Malaysian Economy: Time to Invest, Now Or Not?

Property prices are subject to economic shocks all over the world. In 2017, Malaysian real estate got to its peak with property values skyrocketing! But the bubbles didn’t last long. It burst amidst the economic crisis in Q1 2018. It’s easy to question the Prestige editorial team asking – why Malaysia? Seeing the decline and perceiving the destination as a “no-no”.

Let’s do a bit of history. Times and times again, experts have talked about the importance of investing in real estate amidst the economic crisis, but let’s bring it home. Nigeria experienced a recession less than thirty months ago, the result of this was a sharp decline in the occupancy of high-end properties in highbrow areas. Gbenga Olaniyan took us down the history lane in an interview with Prestige: “We had the first recession at the end of Babangida days in 1989/1991. At this point, so many people were selling properties, but that was the time that discerning investors started buying. A wing of a duplex in Dolphin estate was £50,000. Today, the same property type in Dolphin estate is about £170,000.” Just a few months after this, the real estate market in Nigeria started picking up and it wasn’t difficult for those that invested during the recession to admit that they made a wise decision.

Now that we’ve done a bit of history, let’s take a sneak peek to the cause of the decline in the Malaysian economy. Data from the Malaysian’s Department of Statistics showed that the economy expanded by 4.5 per cent compared to a year ago. The country’s growth slowed by less than expected in the first quarter of 2019 – in fact, slower than the 4.7 per cent recorded in the preceding fourth quarter. The economy declined because as a significant exporter of intermediate goods to China, Malaysia is one of those countries in the firing line
following the Trump administration’s move to raise tariffs on Chinese exports.

In Q2 2019, after the economy lost momentum in the first quarter amid a slowdown in industrial production, growth likely picked up. The bank’s decision in mid-May to trim rates, coupled with tepid inflation, should be propping up domestic demand. With the silver lining, the best time to invest in Malaysia is now!

Investing in Malaysia: Where?

There are many criteria to look at when choosing a luxury property, of all, location is key. For instance, a single-storey terraced house in Bangsar costs RM375,000 in 2001. With the tremendous growth in 2017, the house is valued at about RM1.27 million, a capital appreciation of 239 per cent. Of course, apart from comfort, everyone wants a property that would appreciate. The kind of Return On Investment (ROI) on the property above may make you enthusiastic about investing in Malaysian real estate, but the same return can’t be guaranteed in another location as the Malaysian Institute of Estate Agents (MIEA) regulates property prices. Our top three locations tick all boxes:

Putrajaya

You never thought of Putrajaya? Well, Kuala Lumpur steals the shine always. Putrajaya is the country’s third and latest federal territory – taking over the administrative functions of the capital. Located south of Kuala Lumpur, this city is renownedfor its late-20th-century architecture including the Putra Mosque, the 3-tiered Putra Bridge and the man-made
Putrajaya Lake. Built on former oil palm estate in Selangor, Putrajaya spans an area of almost 5,000 hectares. If you desire that charming historical location with high-end properties, Putrajaya is the catch! Life is better in a location with a lot of shopping malls, hangout spots and nature’s most comforting locations – that’s Putrajaya.

Kuala Lumpur

“Kuala Lumpur arguably has the highest value in the Malaysian real estate market, being the country’s capital.”

Now, here’s the location you are waiting for: Kuala Lumpur. Home to iconic Petronas Twin Towers and many top-notch commercial properties, Kuala Lumpur is not just the capital of Malaysia, it also a major city in Asia. Considered doing business in Malaysia? Invest in Kuala Lumpur! Like in every major city, government policies affect real estate in Kuala Lumpur. However, this does not affect its population of investors, especially in the luxury market. The properties are more spacious than other Asian cities. This city is a dream
destination for anyone looking to own a serviced apartment or condominium. And for potential investors, Kuala Lumpur arguably has the highest value in the Malaysian real estate
market, being the country’s capital.

Selangor

Selangor surrounds Kuala Lumpur and Putrajaya, both of which were originally part of it. While Selangor is probably not as well known internationally as other states in Malaysia such as Malacca, Penang, or Sabah, it is a state that has many things to offer. For the foreigners, it is hard to discern where Kuala Lumpur ends and where Selangor begins. In
fact, many of Selangor’s attractions are wrongly identified as Kuala Lumpur’s. One of the states most popular spots is the Batu Caves. The economy of Selangor is a progressive market economy whose core sectors are commerce and agriculture. Being the richest state in Malaysia in terms of gross domestic product (GDP) per capita (PPP), Selangor has the highest Human Development Index among the states in Malaysia. The state’s history and economic development have been closely linked with two rivers, the Kelang and the Langat, which were the main settlement routes for Malays and immigrant Chinese.

The Buying Procedure

Good news for luxury lovers, Malaysia is for those who can only afford luxury! Foreigners cannot purchase low and medium cost residential units as defined by state authority. Under the country’s Foreign Investment Committee (FIC)’s guidelines, all properties purchases must be at least RM1 million and if acquired, cannot be sold for the first three years starting from the acquisition date. Properties on Malay reserved land and properties distributed to Bumiputera interest are “no-go” areas. Here, foreigners can easily own bungalows, terrace houses, condominium, flat, landed property, studio unit, commercial property, industrial property and agricultural land.

If Asia were a cup of coffee, Malaysia would make up its cream in luxury, opulence and class.

Author: Aderinsola Jolaosho