The government of Malaysia has made great efforts to make property in Malaysia more attractive to foreign direct investment. It is now easier for overseas buyers to purchase property and to profit from it by letting it out. A foreign buyer in Malaysia can now purchase multiple property units, each costing in excess of MYR 250,000 (£36,460) without requiring permission to do so from the Foreign Investment Committee. According to international property advisors Amberlamb, the changes are "expected to push up international demand for property in Malaysia, and the predicted demand increase is expected to result in a firming up and increase of real estate prices in the most popular and affluent parts of the country."

The nature of these popular and affluent areas tell us much about Malaysia's twin economic strengths. Malaysia's competitive advantage lies in its large tourist industry and in its robust business performance and financial sector. This dual focus is reflected in the demand for new property in Malaysia, which covers a wide commercial and residential spectrum. Tourist property tends to focus on the coast, whereas business building takes place around the capital Kuala Lumpur. All manner of new units are being built to meet this demand, creating a large potential for profit.

Two new propery developments currently being constructed show the diverse nature of property in Malaysia at present. Turning first to the business side of the market, Hampshire Residences is located in Kuala Lumpur's financial and business hub within easy reach of embassies, international schools and shopping malls. One to four-bedroom, fully furnished apartments are available. Facilities include landscaped gardens with water features, swimming pools, saunas, jacuzzis and a gymnasium. All apartments have balconies and two-bedroom apartments also have separate dining, living and study areas. Completion is due in September 2008 and prices start from £85,000.

The Golden Palm Tree development on the Sepang Golden Coast of Malaysia is made up of 366 water villas built in the shape of a palm tree stretching 1.2 kilometres into the Straits of Malacca. Located within 25 minutes of the Sepang F1 race track and Kuala Lumpur International airport, the properties are designed to be the world's first eco-friendly sea hotel, and an integral part of the large Sepang Gold Coast development. The one-, two- and three-bedroom villas all have sea views and direct access to the sea. Completion date is mid 2009 and prices start from £73,500.

Taken together the two property developments show the variety of property in Malaysia, and the potential the country currently has for investors. If it continues to maintain its healthy foreign exchange reserves, its low inflation, and small external debt, international confidence in Malaysia is likely to keep on growing and the property market will continue to show healthy returns.

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For further information about property in Malaysia:
Property Frontiers
The Golden Palm Tree, Sepang Golden Coast 
International Property Estates

Article first published 24th April 2007