Property Investment in Malaysia for Foreign Investors

Malaysia has long been a haven for international property investors, with its exotic holiday destinations, rich culture, and stunning natural beauty. Today, it has taken on impressive growth dimensions matched by its strong rate of economic development, infrastructure expansion, and increased foreign investment.

Property purchasers are confidently buying into the property boom in Malaysia, safe in the knowledge that prices are relatively low by international standards – property prices per square metre in even the most exclusive location like Mont’ Kiara are a fraction of the costs of similar investments in London and New York.

The value of the local currency, the ringgit, is far below the euro, dollar and pound sterling, allowing foreign investors to buy a lot more for their money in Malaysia. With careful selection of the most attractive Malaysia properties, investment in it can be a highly lucrative option. Buying costs are also very low in Malaysia at between 3.4 to 6.75 percent of the property value, including 2.75 percent of the agent’s commission (for the first RM500,000).

Foreigners are now able to purchase residential properties worth more than RM250,000 per unit, without having to gain prior approval from the Foreign Investment Committee (FIC). There are also no restrictions in terms of the number of properties that can be purchased, or the usage of the property.

With more liberalized policies, Malaysia has experienced a surge in demand for quality new real estate from an affluent expatriate market. Malaysia property developers have reported higher take-up rates by foreign investors. The appreciating Ringgit and stable economy has further strengthened interest from foreigners and created a positive impact, especially on luxury properties.

High-end residential properties are the most sought-after for foreigners, and are best leveraged at this very moment. Development projects in prime locations such as Mont’ Kiara, KLCC, Bangsar, Damansara Heights, Ampang, Bukit Bintang, and Kenny Hills are some of the locations catching the eye of discerning property investors with a sharp vision for a shrewd investment.

These are usually perceived to be attractive residential up-graders markets, as home owners sell off their existing properties, and upgrade to a higher-value or better located property, as well as to invest for capital appreciation.

As competition amongst other emerging property markets heats up, Malaysia has stayed ahead of the game by actively encouraging all forms of foreign investment to its shore. It has attracted a high influx of foreign purchase in its industry and real estate, as it establishes itself as an enticing destination for high net worth foreigners looking to set up home.

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