Initiative lures investors
'Malaysia My Second Home' campaign opens eyes of many foreigners, writes Peta Tomlinson
It was the "Malaysia My Second Home" campaign which really put the country on the map for overseas property investors.
The government programme, launched a decade ago, not only invited foreigners to live in Malaysia, it also opened their eyes to the lifestyle possibilities of cheaper housing, a pleasant climate, welcoming locals and affordable living costs.
It was just the fillip the nation needed. Property sales were fuelled by generous lending laws, whereby participants can borrow up to 80 per cent of a home's value - unlike many countries, which require a cash purchase. Knight Frank says that Malaysia has the most liberal policies in the region as far as foreign ownership of property is concerned - foreigners are allowed to buy landed properties and second-hand properties, and in any quantity.
Prices have shot up by 60 per cent since 2008, according to the International Monetary Fund, but Sarkunan Subramaniam, managing director of Knight Frank Malaysia, says this is in line with global property trends.
While the market has cooled as of late, the period of hot demand raised the bar in terms of national infrastructure and, in particular, residential construction. As Sarkunan points out, the latter-day developments are considered world standard, with many winning globally-recognised FIABCI Prix de Excellence awards. "The formation of the Construction Industry Development Board in 1994 has truly uplifted the capacity and capability of the construction industry, with training and improving skilled labour," he says.
Many high-end residential projects in the country incorporate innovative design concepts and offer quality in terms of finishing and fittings, as well as lifestyle amenities, says Herbert Leong, associate director, project marketing, at Knight Frank Malaysia, citing completed or upcoming projects such as The Troika designed by Foster + Partners, and 8 Conlay, master planned by RSP Architects with interiors by YOO.
"The country - particularly the capital, Kuala Lumpur - is also witnessing the entry of branded residences," Leong adds. The first - The Residences at St Regis Kuala Lumpur - is slated for completion this year. Other notable brands making inroads in the city include Pavilion Banyan Tree Signatures, Four Seasons Place, The Ritz-Carlton and Kempinski.
