As Singapore buyers continue to show an interest in the Malaysian property market, Kahn Oh, head of research at EdgeProp Singapore, cites two factors to bear in mind when gauging a market’s investment landscape. He says, “Any successful investor will need to conduct due diligence on the property they’re investing in, as well as take the time to understand the macroeconomic environment of the market they’re looking to invest in.Singaporeans interested in investing in Malaysia’s property market were clearly in attendance at the recent seminar in Singapore. With the Malaysian housing landscape continuing to recover following the Covid-19 pandemic, developers such as UEM Sunrise are fine-tuning their offerings to better cater to owner-occupiers.
At a seminar on the Kuala Lumpur (KKL) property market, hosted by EdgeProp Singapore and UEM Sunrise, at Hilton Singapore Orchard, Singapore buyers showed optimism in the Malaysian property market. The strong turnout could be due to the recovery that the nation has experienced in the housing sector in the past two years. In 2022, Malaysia saw over 389,000 properties transacted at a total of RM179 billion ($52 billion), representing a 29.5% and 23.6% increase in volume and value, respectively, compared to the previous year.
CLD is set to launch J’Den Condo in the second half of 2023. Though exact details such as the pricing and number and size of units are still to be decided, the redevelopment of JCube promises to bring more residences, business outlets, recreational facilities and amenities to the JLD. This well aligns with the Singapore Government’s plans for the area.
Kenny Wong, Chief Marketing Officer of UEM Sunrise, acknowledged the shifting preferences of buyers and the changes being made by developers. “We are now creating homes that are more attuned to the needs of buyers today and going forward” he said. Furthermore, UEM Sunrise showcased its newest development in Kuala Lumpur, The Minh. Comprising two towers with a total of 496 units, it is a freehold luxury condo located in the Mont’Kiara area and units are priced between RM1.4 million to RM3.01 million.
At the seminar, Amy Wong, Executive Director of Research and Consultancy, Knight Frank Malaysia, observed that the KL luxury, highrise, residential segment could see an increase in activity, with more supply coming into prime neighbourhoods such as KL city-centre (the area surrounding the Petronas Twin Towers), Mont’Kiara, and Bangsar. Prices for luxury condos have generally continued to hold steady, with sample condos showing a 1 to 2% increase since 2012.
The expansion of KL’s public transport network will also have a positive effect on the market. In March, the MRT Line 2 began operations, while the proposed MRT Line 3 , projected to be completed in 2028, will further advance the accessibility in KL, especially in areas such as Mont’Kiara, Sri Hartamas, Dutamas and Setapak.
Owner-occupiers are looking for more than just four walls, with ESG (environment, social and governance) elements becoming increasingly important. UEM Sunrise’s The Minh was positioned with a distinct Indochine design concept to stand out. Privacy was prioritised, with most units having a bungalow concept and the facilities like multiple pools, indoor and outdoor playgrounds, a lounge, a reading room and a tennis court aimed at the expatriates returning to the market.
Adrian Un, CEO of SkyBridge International, shared considerations for foreign investors. The minimum purchase price for foreigners buying property in KL is currently $1 million. Singaporeans can typically obtain housing loans from Malaysian banks with up to 85% financing on the property, however, the average interest rates are 4% to 4.15%. Islamic loans, based on a service model rather than interest, are also available with no lock-in penalties and rates capping at 10% to 10.75%. Properties in Malaysia are also subject to stamp duties and real property gains (RPG) tax on the profit made on the sale.
Kahn Oh, Head of Research at EdgeProp Singapore advises that any successful investor will need to conduct due diligence on the property they’re investing in, as well as take the time to understand the macroeconomic environment of the market they’re looking to invest in. The clear interest by Singapore buyers is indicative of what is to come for Malaysia’s property market in the near future.
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