Real estate investment in Malaysia is becoming more popular day by day because of increased demand throughout the world. Malaysia is a great spot for foreign investors and buyers to settle down and find a retreat in Southeast Asia. As one of the central countries in Southeast Asia, Malaysia has many top-notch places to visit.
Whether you are looking for a place to build your dream home or looking to gain huge profits by building capital, Malaysia has got the iconic spot for your needs.
1. Kuala Lumpur
Kuala Lumpur is the capital of Malaysia and is one of the most prosperous cities in Southeast Asia. The city’s surrounding urban areas form the most industrialized and economically, fastest-growing region in Malaysia. As of 2015, the GDP per capita in Kuala Lumpur was RM94,722, with an average annual growth of more than 5%.
Kuala Lumpur was listed as the second most liveable city in Southeast Asia, making living a healthy and shining life. The city has thousands of shopping malls, restaurants, international schools, tourist spots, as well as Southeast Asia’s largest bird park.
Tourism also plays an important part in Kuala Lumpur’s growth, with almost 9 million tourists per year. Foreign investments have been flourishing in the city for a long time. Though property prices are the highest in Kuala Lumpur than all over Malaysia, it’s still relatively cheap compared to living standards. On average, a housing unit’s price is RM785,000, which is not much if you look at the benefits you are getting.
Penang is the second smallest state in Malaysia, located on the northwest coast of peninsular Malaysia. Though Penang is a tiny state, it is known as the “Silicon Valley of the East,” with a GDP per capita (RM49,873 as of 2017) in Malaysia. Services and manufacturing are the primary industries in the state.
Penang is also well-known worldwide for its advanced city life. Penang has the right climatic conditions, and the state also has low-cost medical facilities, allowing foreign investors to save up to 65% on medical costs. The state has good job opportunities with the lowest unemployment rate in Malaysia, which is quite useful for property buyers.
Penang is also the top destination within Malaysia for foreign investors. The state holds the record for the highest share of foreign direct investment in 2017, gaining 40% of its total allocation. Penang’s minimum investment requirement is USD$740K for villas.
Sabah is the second biggest and one of the most populous states in Malaysia, with more than 3 million people. The state economy is based mainly on the primary sector like agriculture, the mining industry, and petroleum refining. The tourism sector also contributes a 10% share of the state’s GDP with a growth of 5% from 2017 to 2018.
The state’s popularity among tourists is still not widespread, but the state has majestic biodiversity with lots of rainforests and wildlife species. The state also has proper infrastructures with good healthcare and education systems. The cultural diversity is also enormous, with lots of non-Malay people living in the state.
Sabah has experienced declines due to the pandemic, but has is expected to remain stable and steady in the long-term. The minimum threshold is USD$240K.
Johor is a state situated in the southern part of the Malay Peninsula, with Singapore in the south and Indonesia to both the west and east. Johor has a population of more than 3 million people. The tourism industry is the primary contributor to the state’s economy and agriculture and tertiary services.
Johor has high diversity in ethnicity, culture, and language. The state is known for its traditional dance of Zapin and Kuda kepang. As a major tourist spot, Johor has everything from international schools to high-tech hospitals and even many restaurants.
Due to close tie-up with Singapore, it’s common that major foreign investments come from Singapore. The prices in Johor are much lower than in the capital city, with the minimum requirement for buying a property in the international zone being USD$490K.
Melaka is a small state in Malaysia known for its historical value, with a population of more than 800,000. Melaka attracts many tourists because of its picturesque historical architecture and cultural diversity. It was declared as a UN world heritage site in 2008.
The state offers a less busy and relaxing life compared to Kuala Lumpur, which is only about two hours away. Housing prices are also lower, and the state has many international schools, quality hospitals, good job opportunities, and a nice climate. Melaka opened its doors for foreign investors in the early 1970s.
Since then, real estate investment in Malaysia has been prospering, accompanied by skyrocketing sales. According to Wikipedia, in 2014, the state achieved over USD$1 billion through investments, out of which USD$445 million arrived from foreign investors. The state also has a well-educated population with a literacy rate of about 99.5% calculated in 2015.
Selangor is one of Malaysia’s most prosperous states, with the largest economy in terms of GDP as Selangor’s GDP comprises almost 23% of the national economy. According to this report, Selangor has the highest population in Malaysia and the lowest poverty rate, making it an ideal city of glory.
From good communication networks like highways and airports to international schools, universities, entertainment outlets, proper healthcare systems, and an excellent economy, Selangor is an amazing city for investment.
When it comes to real estate investment in Malaysia, Selangor offers a wide range of opportunities for new and experienced investors. Though the minimum amount for investing in Selangor from a foreigner is a bit expensive, we can ensure you that it’s worth it. With more than 7500 manufacturing projects, an overall 7% annual GDP growth, and one of the top countries in the UN Human Development Index, Selangor is a perfect spot for buying a property in Malaysia.