Malaysia’s property market has become one of the best investment options for overseas investors, particularly Singaporean investors, as the country offers better property deals compared to Singapore.
“Property market in Malaysia is more stable unlike the roller coaster situation in Singapore,” said Steve Melhuish, CEO of PropertyGuru Group, during his opening address on the Malaysia Property Show (MPS) 2011, which was held in Singapore last week.
“Also rental yields for Malaysia property are better than in Singapore,” he added.
However, Melhuish said Malaysia’s population growth has led to an increase in demand for new homes which in turn pushed prices upwards.
“Various economic reforms such as ETP (Economic Transformation Programme) and development projects such as Iskandar are also factors responsible,” he said.
Mabel Ooi, General Manager for Marketing and Corporate Affairs at Lone Pine Group, agreed with this and said that the ETP has “helped in attracting foreigners towards Malaysian properties and has brought in foreign investments.”
“Demand for property to increase further in the coming two to three years, in turn pushing up prices.”
She noted that locals in Penang are attracted to landed properties and the younger generation looks for condominiums/high rise projects whereas the seafront luxury properties are more famous with expats and foreigners.
“Property prices in Penang are cheaper (30 to 50 percent) than in Kuala Lumpur,” she said.
Meanwhile, Lone Pine Group had showcased in latest project in Penang – 1 Tanjong project – during the MPS 2011 event in Singapore.
The project, which is expected to be completed in 2013, represents the company’s maiden foray into the luxury super condo market. It comprises 147 freehold units, with each floor having only two units, and features three layouts – a typical unit (4,760 sq ft), penthouse (9,600 sq ft), and top penthouse (18,600 sq ft).
“We’ve incorporated eco-friendly features that reduce heat absorption as well as energy and water consumption and have applied for the Green Building Index (GBI) certification,” noted Ooi.
“So far, response from both local and foreign buyers is good. We have potential purchasers from Singapore, Kuala Lumpur as well,” she said, adding that the project is among the rare breed of high-end condos along the Tanjung Bungah beachfront in Penang.
“There is limited land along the state’s beautiful coastline. 1 Tanjong sits on the former Tanjong Country Club site, just beside Penang Swimming Club. Residents will have direct access to the beach,” she noted.