I used to travel to Hong Kong on a monthly basis a few years ago when I was tasked to set up a specialist team there. I love the food and I love the vibrancy of the city. I know that the properties in Hong Kong is very expensive. So expensive that even if one were to earn RM50,000 per month, it will still mean many many years of huge savings in order to afford the downpayment and then to use more than 60% of the monthly salary just for the mortgage payment. This is why I personally think Hong Kong people are a tough lot. Their property market remain strong and well supported despite all these happenings. I could not imagine what will happen if most of everyone in Malaysia is using more than 50% of their income just for property mortgage alone. Well, they could buy properties in Malaysia…
Article in edgeprop.my here. According to the article quoting the South China Morning Post (SCMP) reported that many Hong Kong people are looking at the Malaysian property market as second home or retirement. The popular areas are Kuala Lumpur, Penang and Johor Bahru. the main reason is due to “affordable prices amid a supply glut.” Centaline Property Agency senior principle project director Terence Law shared that about 35% of his Hong Kong clients were buying Malaysian property for retirement or as a second home. He also revealed that “more than half of the 21 units released on June 7 at a condo project in Johor Bahru” were taken up “within the weekend by buyers from Hong Kong”. Main reason is because of the ‘much lower’ prices in JB compared to other cities in the region. When he said ‘much lower’ he meant half the price of an average home in Bangkok or 20 times cheaper than prime locations in Singapore. For even more explanation on the JB property market, do refer to the Article in edgeprop.my here.
If Hong Kong people are buying here for their own stay when they are retiring, I think it’s a great choice. Food is going to be easy and even Cantonese is widely spoken here, except perhaps in Penang where Hokkien and Mandarin will be more prevalent. Plus… Malaysia has good connectivities to all other places they may want to visit instead of staying just in one place. Recent demonstration in Hong Kong have also made some tycoons transfer some of their assets to this part of ASEAN. Article here: Uncertainties, tycoons and their assets As for the property prices, it’s already lower than most neighbouring nations as well as many highly speculative markets where the locals could not buy and the main buyers are foreigners. Let’s remember that too many foreign purchasers are not necessarily a great thing if the buyers themselves could no longer afford to buy…. Happy following.
Article written and edited by Charles. News article summarised by Dina Batrisyia.
Next suggested article: Johor’s highest in Malaysia, unsold property wise.