Following the 2008 financial crisis, Malaysia has re-emerged as one of the hottest spots for property investing. Here are a few surprises about our country’s real estate market:<\/p>\n
Malaysia ranks 9th as the hottest real estate market in the world<\/p>\n
In 2012, globally influential real estate consultancy Knight Frank put together their list of the \u201810 hottest real estate markets in the world\u2019, based on a series of factors including house prices, market growth and investment opportunities. Malaysia was awarded 9th place in the rankings, and was commended for its rapid growth in house prices, openness to foreign investors, and most importantly its future potential.<\/p>\n
Annual GDP growth of over 5 per cent<\/p>\n
All good property markets need to be built on the foundation of a strong economy, and Malaysia\u2019s has gone from strength to strength in recent years. Despite the recent economic crisis, GDP growth in Malaysia has consistently remained at an average of 5 per cent for the last decade, while other countries have seen their economies grind to a halt.<\/p>\n
8 per cent increase in house prices in 2014<\/p>\n
Often the best indicator of a real estate market\u2019s potential is house price increases, and Malaysia\u2019s have been consistently rising \u2013 by 8 per cent in 2014 alone, and a huge 77 per cent since 2004.<\/p>\n
The prolonged nature of this growth in house prices is a clear sign that the \u2018property bubble\u2019 that has devastated so many housing markets around the world has not affected Malaysia.<\/p>\n
$2,616 average square metre property prices<\/p>\n
The rapid development of property markets in other South East Asian real estate hotspots like Singapore and Hong Kong combined with their small size means that space is now at a premium.<\/p>\n
In Singapore, average property prices are $15,251 per square metre, and a similarly sized area of real estate in Hong Kong will cost you an eye-watering $22,814.<\/p>\n
Malaysia blows these prices out of the water, with an average square metre of property only costing $2,616.<\/p>\n
This highly competitive pricing is down to a combination of factors, including the relative infancy of Malaysia\u2019s property investment market, and the wider range of sought after development locations.<\/p>\n
Household income growth of 175 per cent<\/p>\n
Any experienced property investor knows that the strength of their investment is heavily reliant on the spending power of the local population.<\/p>\n
Malaysia\u2019s recent investment into the local workforce, thanks to the introduction of the New Economic Model in 2010, has led to an increasingly skilled population who are earning more money than ever before.<\/p>\n
26.6% GDP investment<\/p>\n
Continued growth in GDP has allowed Malaysia\u2019s government to invest money back into the economy in a series of development initiatives, many of which have either directly or indirectly benefitted the housing market.<\/p>\n
In 2014 26.6 per cent of Malaysia\u2019s GDP was investment, including work on improving public transport infrastructure, training of the labour force, and programmes to help people buy their first home. This was above the world average of 22 per cent.<\/p>\n
These high levels of internal investment have also led to a Growth Competitive Index score of 5.16 in Global Property Guide\u2019s real estate world rankings, which puts Malaysia in the second highest bracket of competitiveness.<\/p>\n
*City Scape Malaysia<\/p>\n","protected":false},"excerpt":{"rendered":"
Following the 2008 financial crisis, Malaysia has re-emerged as one of the hottest spots for property investing. Here are a few surprises about our country’s real estate market: Malaysia ranks 9th as the hottest real estate market in the world In 2012, globally influential real estate consultancy Knight Frank put together their list of the …<\/p>\n