Signs indicate that the Malaysian property market is improving as the country shifts towards an endemic phase. It may be a long time before recovery yet, but the buzz is slowly returning as real estate activity slowly picks up entering the second quarter of 2022.
ALSO READ: Malaysian Property Outlook 2022 Signals Brighter Days
While the market remains soft, experts are quoting a Chinese proverb in saying that with every crisis or challenge, there are always windows of opportunity.
Chong U Kian, Principal and Founder of Avid Estates. (Photo: Avid Estates)
Having closely observed the market on ground alongside his team, Avid Estates’ principal and founder Chong U Kian says this is certainly true. In fact, the real estate specialist offered five good reasons to invest in a property now.
1. Seize the moment
“It’s a buyer’s market now. With that comes lots of opportunity in terms of price flexibility and supply. The low interest rate environment we are currently in also means that the cost of financing is cheaper. Suddenly, rental yields have become a bit more attractive than deposit rates. It’s a good reason to take advantage of cheaper home loans.”
2. Spoilt for choice
“There are a lot more product choices in the Malaysian property market now than ever before. We are getting newer and more interesting layouts, more and more world-class architectural and interior design options, and variations in amenities that offer buyers more options to suit their lifestyles of choice. There are also more attractive and innovative sale incentives from developers as encouragement.”
The Malaysian property market is on the upswing for 2022. (Photo: Umar Mukhtar/Pexels)
3. Good value
“When it comes down to it, Malaysia still offers amazing value to home buyers. Compared to other countries, the price we pay per square foot affords us greater quality and larger spaces. Certainly, for the luxury and ultra-luxury market, Malaysia offers arguably the most affordable entry into high-end designer or branded properties among global markets. And these properties have generally seen their value hold despite economic challenges.”
In fact, in its 2022 outlook, Henry Butcher outlined that niche high-end projects in good locations will continue to be a key focus by investors and property buyers.
4. Hedge against inflation
“The pandemic inflation is already showing its effects in the market. But real estate investment can actually protect against inflation. For one, property value tends to stay on a steady if not upward trajectory. Secondly, as inflation increases, rental also tends to go up. And since there are costs and fees borne by the tenant and not the landlord alone, this partially insulates property owners from the effects of rising costs.”
5. Desirability of brand association
Chong goes on to share that the demand for luxury property has been fast evolving. “I think as buyers become more discerning and exposed, there is going to be more and more demand for properties that are distinguished or special in their offerings.” He adds that brand associations, in particular, will become a prominent factor in the property market, be it for own occupancy or investment.
8 Conlay YOO8 Water Lounge
“Putting myself in the shoes of a high-end consumer, I think there’s always an appeal in owning something rare and different. Globally, brand crossovers are already a trend in many industries, the same would be so for real estate.”
Having recently hosted a high-net-worth event at the 8 Conlay gallery, Chong observes that brand associations like the ones 8 Conlay have – with luxury hotel group Kempinski and famed design studio YOO founded by Philip Starck – not only ushers in different target markets, but also bring excitement.
“This is so especially among discerning and knowledgeable property seekers. Just the other day, I was sharing with someone about YOO8, the twin residence towers here at 8 Conlay, and she said her family member owns a YOO property in the UK, so she knows exactly what the brand offers. The association with prestigious brands is definitely the selling point for YOO8,” he highlights.
YOO8 Serviced by Kempinski marks globally-renowned YOO’s first project in Malaysia. Featuring interior designs by Steve Leung and Kelly Hoppen, it will be the world’s tallest ‘twisted’ twin residential towers when completed.
The residence sits within 8 Conlay, a residential, retail and hotel mixed-development right in the heart of Kuala Lumpur City Centre. Sharing the prominent address will be luxury hotel group Kempinski’s first and only five-star hotel here. The hotel’s hospitality team will also service YOO8, making it a truly hotel-led branded residence.
Tower A of YOO8 is set to be ready for handover by end 2022 and Tower B by mid-2023. To visit our 8 Conlay Gallery, contact us here.