Foreign Property News | Posted by Si Thu Aung
Homebuyers in Hong Kong are looking at Malaysian property as second homes and for retirement, with Kuala Lumpur, Penang and Johor Bahru garnering a lot of interest because of affordable prices amid a supply glut.
Terence Law, senior principal project director at Centaline Property Agency, said that more than half of the 21 units released on June 7 at a condominium project in Johor Bahru were snapped up within the weekend by buyers from Hong Kong.
The units were priced from HK$787,331 (US$100,000) to HK$2.27 million.
Law said about 35 per cent of his clients were buying Malaysian property for retirement or as a second home.
According to data from the National Property Information Centre (Napic), the median cost for a house in the state of Johor is 350,000 ringgit (US$84,000).
A 300 sq ft apartment in Hong Kong, much smaller than the average flat in Malaysia, would still cost six times more.
Compared to other Southeast Asian cities, property prices in Johor Bahru are “much lower”, Law said. He estimates they are roughly half the price of an average home in Bangkok and “about 20 times cheaper” than prime locations in neighbouring Singapore.
Melissa Lee, associate director of valuation and advisory services at Colliers International, said the cost of living in Johor remains among the lowest in the world.
The Malaysian city of Johor Baharu has caught the of property investors from Hong Kong. Photo: AFPThe Malaysian city of Johor Baharu has caught the of property investors from Hong Kong. Photo: AFP
The Malaysian city of Johor Baharu has caught the of property investors from Hong Kong. Photo: AFP Homebuyers in Hong Kong are looking at Malaysian property as second homes and for retirement, with Kuala Lumpur, Penang and Johor Bahru garnering a lot of interest because of affordable prices amid a supply glut.
Terence Law, senior principal project director at Centaline Property Agency, said that more than half of the 21 units released on June 7 at a condominium project in Johor Bahru were snapped up within the weekend by buyers from Hong Kong. The units were priced from HK$787,331 (US$100,000) to HK$2.27 million.
Law said about 35 per cent of his clients were buying Malaysian property for retirement or as a second home.
According to data from the National Property Information Centre (Napic), the median cost for a house in the state of Johor is 350,000 ringgit (US$84,000). A 300 sq ft apartment in Hong Kong, much smaller than the average flat in Malaysia, would still cost six times more.
Malaysia’s southern state of Johor calls for property purchase restrictions by foreigners to be halved to bolster real estate sales Compared to other Southeast Asian cities, property prices in Johor Bahru are “much lower”, Law said. He estimates they are roughly half the price of an average home in Bangkok and “about 20 times cheaper” than prime locations in neighbouring Singapore.
Melissa Lee, associate director of valuation and advisory services at Colliers International, said the cost of living in Johor remains among the lowest in the world.
“Particularly with the Malaysia My Second Home (MM2H) programme … it remains a target for retirees,” she said.
The MM2H is a government initiative that offers 10-year renewable visas to non-Malaysians in a bid to get foreigners to live in Malaysia. It allows visa holders to buy residential property that cost more than 1 million ringgit.
Ref: Property Report
