International companies seeking land investment in Malaysia have chosen the region because of its well priced, strong economy with sustainable growth and yielding over the medium to long term.
The government’s blueprint for economic growth and diversification for a four year period between 2006 and 2010, known as the “Ninth Plan”, aims at vast improvements to Malaysia’s infrastructure as well economic developments. This progress is predicted to directly and positively effect the real estate market in Malaysia, bringing with it strong growth potential.
As a resort destination Malaysia’s affordability is a great attraction, bringing growing numbers of visitors annually to boost the economy. Tourist arrivals in Malaysia rose to 16.5 million in 2005, a rise of more than 160% in five years. This is an astonishing achievement for tourism in Malaysia and is good news to many property investors in the coastal resort hotspots, such as Port Dickson.
While the country’s economy keeps growing, inflation remains low, overseas export opportunities continue to expand and more businesses are establishing regional centres in Malaysia. Malaysia is the Asian leader in terms of attracting interest from foreign investors, most of whom are from the Middle East. They see it as a viable and attractive emerging market with high medium term growth potential. The amount of foreign investment into the country continues to increase and international investment into the property sector in Malaysia is firmly predicted to grow at unprecedented levels.
Another particularly positive factor in favour of real estate in Malaysia today is the value of the local currency, the ringgit (MYR). Valued below the euro, dollar and British pound, foreign investors buying into Malaysia are reaping the rewards of buying so much more for their money. Meanwhile, property per square meter in all Malaysian towns, cities and resorts remains at a fraction of the cost of similar properties in the likes of London or New York.
Demand for real estate is high from an affluent expatriate market as well as an increasing Japanese, Indian and Singaporean market leaving many investment options open to shrewd investors in Malaysia.