Hong Kong Buyers Snap Malaysian Properties For Retirement

Posted on: 2019-06-20

Homebuyers in Hong Kong are turning to Malaysia for their retirement homes and second homes, with Penang, Johor Bahru and Kuala Lumpur getting a lot of interest due to affordable prices and a supply glut, reported the South China Morning Post.

According to Centaline Property Agency Senior Principal Project Director Terence Law, more than 50 percent of the 21 units released at a condominium project in Johor Bahru on 7 June were bought within the weekend by Hong Kong buyers.

He noted that around 35 percent of his clients were buying Malaysian properties as a retirement or secondary home.

This comes as property prices in Johor Bahru are much lower compared to other cities in Southeast Asia. Law estimates that they are around half the price of an average house in Bangkok and “about 20 times cheaper” than homes in Singapore’s prime locations.

The cost of living in Johor is also one of the lowest in the world, said Melissa Lee, Colliers International’s Associate Director of Valuation and Advisory Services.

“Particularly with the Malaysia My Second Home (MM2H) programme … it remains a target for retirees,” she said.

The MM2H is a government programme that gives 10-year renewable visas to non-Malaysians in an attempt to get foreigners to reside in Malaysia. It also allows visa holders to buy residential properties priced over RM1 million.

Prospects for price appreciation, however, are weak due to an oversupply of housing units.

Last year, around 32,000 residential units valued at about RM19.9 billion remained unsold, almost a threefold increase in four years, according to the National Property Information Centre (NAPIC). Of these, 6,066 units are found in Johor, which is the largest among the states.

“Currently, the occupancy rate for high-rise apartments in Johor is about 50 percent. For newer high-rise apartment developments, present occupancy rate is estimated to be about 30 percent or less,” said Tan Ka Leong, CBRE-WTW director in Johor.

He noted that these estimates do not take into consideration the unsold units in Forest City, a US$100 billion project in Johor that is touted to house 700,000 residents upon completion in 2035.

Share:

Source From: Propertyguru

Other News & Articles


Penjana Ringan Beban Pembeli Rumah - REHDA

Kerajaan memperkenalkan beberapa insentif cukai bagi merancakkan semula pasaran hartanah tempatan termasuk memperkenalkan semula Kempen Pemilikan Rumah (HOC)....

Posted on: 2020-06-16

Property Buying Activities to Increase with Penjana Incentives

The National Economic Recovery Plan (Penjana) incentives announced yesterday are expected to heighten property buying activities in the next few months....

Posted on: 2020-06-16

How to Spot Good Investment Property

Buying investment property that you rent to tenants can bring reliable cash flow, assuming you have bought the right property. The question on every investor's mind is...

Posted on: 2020-06-03