Skyrocketing property prices have sparked worries about asset bubbles hitting Asian Capitals such as China, Hong Kong and Singapore.
Real estate investors in China and Singapore are facing new measures to curb speculation, such as limitations on loans and options for affordable properties. they may be now looking for good investments elsewhere.
Singling out Malaysia, Tim Murphy, managing director of Hong Kong based property investment firm IP Global Ltd, says that the country might offer the best option given its steady market, better yields, sensible tax system amd ease of access to loans.
“There is still medium term capital growth without the scariness o fa boom-bust mentality because Malaysia regulates its property sales carefully. The strong performance of its property market in second half 2010 is expected to continue for the next two years”
Murphy says buyers can expect a yeild of between 5-6.5% for residential properties.
Robust foreign investment and dynamic urbanization will drive the Malaysian property market while rental rates will also be supported by the growing number of aspirational young people who dream of buying their own home.
Online real estate research house Global Property guide, in its mid 2010 Property Recommendations report, highlighted Malaysia as its preferred real estate investment destination, citing properties in most Asian countries except Malaysia, as overvalued.
It also noted Malaysia’s strong macroeconomic stability, consistently strong GDP growth, low debt, sound banking system and international reserves at a healthy nine months of retained imports.