Are Malaysia Real Estate Properties Expensive?

If you ask the local Malaysians, most of them will definitely reply to you that they think Malaysia properties are expensive and becoming less affordable. This is certainly what my friends have often told me when I asked them this question. Following the abolishment of Real Property Gains Tax (RPGT), what do you think the likely scenario will be? Prices will likely rise further (due to speculation) and property becoming less and less affordable! So depending on which perspective you are coming from, the reaction is certainly mixed. If you are a home buyer, you will probably end up more debt or can't afford one. If you are an investor, it is certainly money to be made if only you act swiftly.

As I mentioned in my earlier post, it is likely that the benefits will be across the board for all property segments. Nevertheless, it is likely that the high-end property segment will be the biggest beneficiary as in the eye of foreign investors, Malaysia has been a laggard to other major Asian cities in terms of valuation. Indeed, I have been told that many foreign investors are looking for high-end residential properties as well as shop-offices that offer good investment value, and this trend will definitely make the Malaysian property more vibrant! In most countries, such as Malaysia's neighbouring country Singapore, high-end property transactions were primarily foreign driven. I believe the same trend will happen in Malaysia too.

As per record, certain high-end residential condominiums surrounding Kuala Lumpur City Center (Twin Tower) have already priced beyond RM1,000 per square feet. If you think this price is crazy, wait until you hear this! A Singapore based property developer is understood to be close to launching another high-end property at possibly RM2,000 per square feet!!

Although many local Malaysians may not have the financial muscle to purchase such high-end properties, don't be dispirited! I believe there are still ample opportunities out there in the other property segments. The key is to act first before it happens! Good properties are always there to be hunted, so get ready for the action!