Malaysia dodges boom-bust cycle
A lack of frenzied activity in the property markets in Malaysia has helped save it from a property boom and bust, industry professionals are claiming...
Although interest from foreign property investors in Malaysian properties has slowed down in the last six months following the global financial meltdown, there are still investors who see potential in the market and are looking for value buys.
The fact
that local properties have not appreciated drastically in the past few years
like those in countries such as Singapore and Hong Kong, has turned out to be a
blessing, some are pointing out.
Stable market
Property
prices in Kuala Lumpur and other parts of the country are much lower than those
in other neighbouring high-cost cities.
Relatively speaking, the local property market is more stable and resilient
than in other parts of the world, partly due to the fact that the country has
not been severely affected by the global crisis.
Yu Kee Su, executive director of Malaysia Property Inc, says that low
capital appreciation in the regions has actually made them a more stable market
for real estate investors.
As
property prices have not escalated in a frenzied manner over the last few
years, the threat of an oversupply has been kept in check. 'Malaysia is not
suffering from any sharp price decline. The shortcomings have indeed become a
blessing in disguise for Malaysian properties,' he added.
Five times cheaper
According to the International Real Estate Federation, properties
in Malaysia are five times cheaper than those in Europe because of competitive
exchange rates against the euro. Its members report that food, lifestyle,
culture and heritage makes the country interesting for foreign buyers are who
are mostly from South-East Asia, Europe and the Middle East.
'As the Middle East, especially Dubai, is overheated and overbuilt, investors will look at other countries such as Malaysia to average out their risks. Besides, senior lifestyle relocations are gaining popularity in Japan and South Korea,' said the federation's vice-president for marketing and networking Michael Geh.
Overall property prices in Malaysia have fallen around 10% to 15% since the fourth quarter of last year, while the medium to high-end market is holding out better.
Meanwhile, markets in Singapore, Vietnam, India and China have seen price falls of 20% and 30%.
Source: www.propertywire.com