There are plenty of reasons to recommend a foreigner into investing in the Malaysian real estate. A booming real estate industry, a good return from the property sale, international standard infrastructure and world-class amenities are only a few handful benefits one can avail from making investments in property deals. In addition, the rapid transformation of Kuala Lumpur into a global hub for the start-ups is becoming an invitation for the young entrepreneurs as well as the traditional communities of retired foreigners.
The Malaysian Property Market
Since 2009, the prices of apartments, condos and landed properties in Malaysia are on the rise. Probably the most determining factor of price rise is the location. The price of a real estate property in Kuala Lumpur is more than double of the national average. However, here in the capital city, the price of a real estate property does not accelerate at the rate that has been recorded in the real estate of Penang and other states of Malaysia.
The Market Trend
Unlike other south-east Asian countries, here in Malaysia, people prefer to buy homes rather than rent them. The government backs up this trend with low-cost home loans thereby encouraging the millennials to invest in properties and own them. Also, the policies of property purchase are quite flexible for the foreigners.
Specific Rules for the Foreigners
As long as the property price is more than the threshold set by the state where one is planning to buy it, he/she is held as eligible. Depending on the state, the threshold price generally varies between 1 million RM to 2 million RM. In Penang, one can buy strata titled properties or apartments if agreed to cross the threshold price of 1 million RM. However, recently the local government has enhanced the threshold price of buying landed properties which now stands at 3 million RM.
The Approximate Cost
If you are planning to invest in the real estate, better to appoint a reputed and credible property agency who could guide you in the best possible way. The average price differs a lot between the 2 largest cities of the country- Kuala Lumpur and George Town.
The below-mentioned price list has been prepared on the basis of the data collected in 2016.
One interesting point to be noted is that in case of George Town, the property prices do not differ a lot between the one located in the city centre and the one located outside it. Chances are more that, if you could follow an off-beaten path, you would be able to buy a real estate property in Penang at a good bargain.
Unlike many other Asian countries like in India where the foreigners have no rights to buy real estate properties, here in Malaysia the rules are much friendlier. With a good deal of research and the services provided by able lawyers or property agencies, you would be able to sign an enviable deal for sure.