Experts see now as a buyer’s market for the luxury sector as prices bottom out.
Things could be about to look up for the luxury market. One sector that has slowed down over the last couple of years due to a combination a factors. A less profitable oil and gas industry saw fewer expatriates moving to the country. A profile of tenants who demand luxury lettings thus influencing the buy-to-let market. Plus tighter lending conditions where a 30 percent tax was levied on property’s sold within three years of the initial purchase date, and financing was capped for people with more than two properties. This was on top of a surplus of supply.
But now experts are expecting a brighter future for this sector of the industry. Partly due to the value that can be snapped up in the country. The Ringgit is currently very low against the US Dollar offering a sizable discount for foreign purchasers. Plus improvements to infrastructure and the high-speed rail link in Iskandar go to add to Malaysia’s appeal.
Overseas investors
This foreign capital is welcomed in the country. Whilst foreigners have to buy property in excess of MYR 1 million, there are no restrictions on the types of property bought. Alongside Singapore, Malaysia is the only country in the region where foreigners are allowed to freehold properties. Also foreigners wanting to settle permanently in Malaysia can do with the Malaysia My Second Home visa scheme. With just a deposit of MYR 300,000, applicants can obtain a 10 year visa. Another string to Malaysia’s bow.
Kuala Lumpur is about to welcome shiny new projects with brand names such as Kempinski and Four Seasons firmly attached to them. These are just a couple of the 13,000 new luxury units that are expected in 2017.
Luxury schemes are already performing well. Considered affordable compared to similar properties in other capitals in the region, investors are taking advantage of this snapping up units at projects such as The Pavilion Group’s Banyan Tree. Activity has already increased for 2017 due to the weakening Ringgit drawing in investors from China, Hong Kong, Taiwan and even as far as America. An upbeat sentiment that is set to continue.