I am just quoting Knight Frank Malaysia executive director research and consultancy Judy Ong. She said that the recent rebound in Malaysia’s economy and strengthening of the Malaysian ringgit offer a ray of hope for recovery in the local property market. (we were not exactly having negative growth rates in previous few quarters, so recent rebound may not be the best description here. As for the currency, I think it is more of US$ depreciating recently) She also added, “Malaysia remains as an attractive investment destination in the region due to its political stability, well developed infrastructure and stable property market with relatively lower entry prices that continue to offer reasonable returns.” Do read the full article in TheStar here. So, yes in brief, the view is pretty positive for property market Malaysia by a very famous property research firm.
Knight Frank Malaysia senior manager for international project marketing Dominic Heaton-Watson offered his views that it is important for investors to keep in mind the fundamentals which underpin property markets. (Very true indeed. Let’s be reminded again that fundamentals do not change overnight. As for Ringgit, well whatever will be, will be, right? Hopefully our neighbour cares to listen to Bank Negara’s ‘advice recently) Beyond his comments, the findings from Knight Frank’s Global Currency Report shows that fundamental market indicators such as price performance and yield should not be overlooked. Knight Frank Asia Pacific head of research Nicholas Holt said currency is always a factor driving purchaser patterns and property asset performance. He said, “Currency can influence returns at the purchase, hold and disposal stages and investors need to be aware of how fluctuations can impact total returns over the lifetime of an investment” Again, that full article here.
I personally think property market should also take into account a very important factor, the demographics of the population. I know, some people think Malaysia is an awesome place to retire. I do agree but if I were to retire, I would not want to retire at a place where everyone is as old as me or older. Somehow I need more vibrancy. A younger population also mean there are a lot more happenings, progress and of course, a continuous price appreciation for the assets, along as the economy keeps moving. Malaysia definitely have a young demographics. Our median age is below 30, by the way. To all the property buyers who are buying because they are intending to stay here, you have definitely made a good choice. The reason? I love Malaysia too. Haha.
written on 29 Aug 2017
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