I love Melaka and I think I go to Melaka at least twice per year. If you ask me if Melaka can be a property investment destination, my answer in brief is yes. Objectively, Melaka is NOT within the top 4 property investment destinations in Malaysia. Those 4 would be Greater KL, Penang, Johor and Kota Kinabalu. I do not have a property in Melaka but I would love to own a place there eventually. What could we buy in Melaka then? Here’s one potential buy. Click here. Actually, even the landed properties are pretty affordable! However, high-rise units would be much easier to maintain, especially if we are buying the units which are focused on AirBnB. Here are 6 reasons why I think property investment in Melaka is possible.
Oversupply issue is not an issue. At a time when the whole Malaysia is worried about the unsold and completed units which is at a record high, Melaka’s oversupply numbers are so subdued that it does not seem to be an issue at all. In an article just a few months ago in TheMalayMail Online, it was revealed that within the past 10 years, there were ONLY a total of 725 residential properties which were unsold. In brief, only 73 units unsold every year. This is versus the total population of 900,000 in Melaka.
Tourism is a big issue. For 2018 alone, it is estimated that 17.8 million visitors will visit Melaka. Article here. This is 18x more people than whole population of Melaka; 900,000. Yes, this is one major reason why everytime I am there, I would have ever more choices when it comes to accommodation. Potentially here’s one potential we could buy. Yet, if I were to book very close to my holiday there, the choices become limited. Tourism remains the top focus for Melaka which meant that the number of tourists could only be increasing in the very near future.
Industrial sector is still huge. Just in case everyone thinks Melaka is only about tourism products and services, this is what the Melaka Menteri Besar said, “The industrial and manufacturing sectors are the backbone of Melaka’s development, accounting for around 43 per cent of the state’s Gross Domestic Product over 15 years.” Now I understand why a relative of mine is still an engineer with a MNC in Melaka today. Here’s that article for reference. This is not all as developments of three main ports – the Melaka Gateway Port, Tanjung Bruas Port and Kuala Linggi Port are continuing.
Multiplier effects from Melaka Gateway. This is a RM43 billion development. It consists of three man-made islands and a natural island that will include the Melaka International Cruise Terminal, developed in partnership with US-based Royal Caribbean Cruises Ltd (RCL) on its first island. Chief Executive Officer and Founder of Melaka Gateway Datuk Michelle Ong shared that the project is estimated to create between 40,000 and 45,000 jobs over 10 years. Projected economic multiplier anticipated is RM1.188 trillion for the local economy as well as drawing further local and regional investment.” Full report here.
Many people like Melaka. There are many Singaporean registered cars in Melaka every time I am there. However, it is not the largest group yet. They are the Chinese and followed by Singapore, Hong Kong and Taiwan. Many KLites love to drop by Melaka because it’s just 1 hour and 40 minutes away. In other words, the growth of Greater KL is actually benefiting Melaka as well. Report here. Even more people will enjoy Melaka when it becomes one stop under the High Speed Rail KL – SG. In case you did not read, this was what our PM Tun Dr. Mahathir said yeah, Dr M reiterates KL-S’pore HSR postponed, not scrapped.”
Attractions APLENTY. It is a UNESCO Heritage city. It has diversity of food (which is one reason why I always get heavier every time I visit Melaka) which does not even lose to that island state, seriously. The roads are well maintained and the city is cleaner than many cities and towns in Malaysia. Recently, ENCORE Melaka has opened. This is a dazzling theatre journey through history and this is part of Wang’s Impression series. It is the 10th Impression series (established in 1998 by renowned directors Zhang Yimou, Fan Yue and Wang) and the first (show series) outside of China. Report here.
Happy investing in Melaka yeah. If you like to know what’s awesome about Marina Point, just fill up the below.
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