Rising global prominence for KL properties
Posted on July 15, 2011, Friday
KUCHING: Kuala Lumpur has emerged as the star performer in new property investment destinations within Asia and Southeast Asia, favoured in particular by high net worth individuals for the country’s political stability and its close proximity to Singapore.
The fact that this would only happen in a matter of time is unsurprising, said Wing Tai Malaysia Bhd (Wing Tai). Property investment was second-nature for Asians who had always preferred safe, tangible asset classes.
“Since the global financial crisis happened and recovered, the number of high net worth individuals (HNWI) has since rebounded and an excess of wealth had been created in Asia.
“This naturally finds its’ way to more volume in property investments and in familiar markets closer to home. Suffice to say, the property industry in Asia would continue to thrive, if not take off to new levels,” the company believed.
Wing Tai affirmed that property investment remained a global keen favourite, accounting for 19 per cent of aggregate portfolio. In Asia Pacific (excluding Japan), 31 per cent were in properties, with 51 per cent (highest) of their holdings in the residential sub-segment.
While there was some shift of wealth out of their home base in Asia Pacific (excluding Japan) to the cooler climates of Australia and Europe, the bulk of their wealth (57 per cent) still and would remain in familiar markets.
More notably, property prices in major Asian cities had jumped to new levels in the last few years. This sparked intervention measures by the governments in Hong Kong, China and Singapore to cool the overly-buoyant market and impede further price pressure upwards.
With Hong Kong property prices recording a hair-raising 19.5 per cent jump in 2010, Asia HNWIs had begun exploring alternative markets, and Kuala Lumpur had since attracted attention for Malaysia’s political stability and stable Gross Domestic Product growth.
In addition to that, Wing Tai was of the opinion that Malaysia is a direct beneficiary of any future economic spillover from Singapore thanks to its close proximity.
“Property prices in Malaysia are still undervalued at the moment. This will not be for long though; with Asia Pacific’s thriving economy, property prices in Malaysia are expected to only go one way – upwards,” it affirmed.
Since the unveiling of the Economic Transformation Programme (ETP), concrete steps had been announced to transform Malaysia into a high-income nation.
The whole stretch of Bukit Bintang along with Kuala Lumpur Convention Centre will be rejuvenated and rebranded as the new international shopping hub. At the same time, a new Kuala Lumpur Financial district will be created to house major banks, professional services firms, government institutions and syariah specialists.
There were already talks that banks from North Africa were considering relocation to Malaysia due to the catharsis of change taking place in that region.
“If the ETP takes off, there will be a huge amount of foreign talent converging in Malaysia. There will be a need for upmarket housing and property will take off,” said an industry specialist.
“Foreigners like Malaysia because it is safe and presents itself as a good medium-to-long term investment.”
Furthermore, the proposed High Speed Rail linking Kuala Lumpur and Singapore would reduce travel time significantly – from four hours to 90 minutes, enabling tremendous economic activity.
More Singapore-based high flyers will consider living in Kuala Lumpur while working in Singapore. These only point to further economic prosperity and fierce property demand.
To cap on this opportunity, Wing Tai Malaysia, under the banner of Wing Tai Asia and a subsidiary of Wing Tai Holdings Singapore, will be showcasing Verticas Residensi, Bukit Bintang in eight cities in East Malaysia from July 22, 2011.
Wing Tai is a leading property development and lifestyle group, with a Pan-Asian focus that has enabled an expansive presence across Malaysia, Singapore, Hong Kong and China.
For more information, contact 019-3223380 or 012-6573766.
