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Second to None
Kuala Lumpur remains one of Asia’s strongest investment and second home markets
| Text : Elizabeth Kerr | Photo : www.thinkstockphotos.com |
Kuala Lumpur is one of Asia’s urban jewels: Modern, with strong infrastructure, relatively liberal and increasingly international. Identified by its Petronas Twin Towers, the Malaysian capital is slowly but surely heightening its profile for tourism as well as multi-national corporations. Though KL saw a dip in retail spending and travellers entering the country last year (thanks to the lingering effects of the global financial crisis and influenza scares), 2010 looks like it will be a moderate rebound year — with a great deal of supply at reasonable prices to choose from.
According to research by Knight Frank, market trends and sentiment in the high-end condominium sector were improving in late 2009 and prices seemed to have bottomed out. In addition, Knight Frank predicts the supply of properties in the city centre — which were outnumbered by the suburbs in 2008 at a rate of 33:67 — will come closer to balance by 2011 (44:56) on the strength of new developments. Malaysia remains one of the most popular destinations in the world for retirees, who took full advantage of the Malaysia My Second Home programme over the past decade. But the government has re-branded the programme specifically to entice younger investors. Knight Frank’s market report points to a healthily competitive commercial rental sector with vast new supply, meaning Kuala Lumpur will remain one of Asia’s most economical business cities, “which is an advantage in attracting foreign companies seeking space for their business expansion in the Asian region.” In addition, multi-national energy giant Shell committed to lease over 300,000 square feet of office space for 15 years in the new LEED-certified 348 Sentral (scheduled for completion in late-2012). That could attract exactly the kind of young investors to the urban developments that MM2H is seeking.
Regardless of whether or not purchasers take advantage of the Malaysia My Second Home programme, Kuala Lumpur remains a strong investment. The statistics all play in Malaysia’s favour: the economy is steady and expects to see 10 percent growth in 2010; it’s politically stable; population growth is strong; there are no limits on foreign purchases; KL has sustainable rental yields (given Shell’s imminent arrival and all that cost-effective office space); and there is an increasing number of expatriate residents in the city.
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