Buying condos and apartments in Kuala Lumpur
Fancy waking up to a view of the Petronas Towers?
It’s little wonder that Kuala Lumpur has the highest cost of real estate anywhere in Malaysia, and expat interest in the city has only served to increase the appeal. A large proportion of foreign nationals who stay in KL for extended periods consider purchasing property here, and normally this comes in the form of condos and apartments.
There are less restrictions on foreign nations buying apartments in affluent areas than terraced houses in traditionally Malay neighbourhoods where key sector workers normally stay. While the government is very keen to encourage investment from abroad, it is also mindful of house prices and not betraying the bumiputra class.
Condos in fashionable areas such as Bangsar and Kenny Hills have great transport links and are perfect for people wanting a comfortable home with an easy commute to the office. These apartment complexes are usually awash with leisure facilities such as gym, sauna and swimming pool. And there are normally supermarkets and convenience stores attached which may stock Western staples such as pasta and brown bread, depending on the proportion of expatriates in the building. Laundry facilities and perhaps even beauty parlours can be included, reducing the need to venture out and brave the city streets.
However, many people find this sort of ‘gated community’ a little enclosed and sterile, thinking that to live in Kuala Lumpur but not embrace the local culture is a little narrow-minded. So there is all manner of middle ground to be explored that provides security and convenience with an authentic Asian experience.
Buying apartments and condos in KL – small print
Amcorp Mall and apartment complex
Attitudes with regards foreign ownership of property have changed remarkably in Malaysia in recent times. Other nationalities are now allowed to own residential property freehold and some of the best value real estate in metropolitan Southeast Asia is available in KL at around RM850 per square-metre.
Since the middle of 2009, the Malaysian government has been actively searching out overseas investment and particularly targeting people from the UK, Hong Kong and China. Typical condos and apartments are only minutes from the city centre and delivered ‘ready-to-let’. Investments start at only RM100,000 or RM250,000 for a two bedroom apartment in a five star luxury development.
Despite the global economic downturn Malaysian property prices have been doing comparatively well, with only a six per cent drop experience last year. And the government has liberalised the sector by removing the necessity for key approval except where foreign transactions exceeds the RM40 million mark and dilutes bumiputra interests.
Buying condos and apartments off-plan in Kuala Lumpur
Buying off-plan apartment and condos in Malaysia offer investors the chance to take advantage of the lowest prices (often up to 30 per cent below market value) and therefore make the maximum profit on their investment. However, there are downsides which makes buying off-plan is not suitable for every Kuala Lumpur expat.
It is always a risk parting with your money before you actually see the finished product. Perhaps the dimensions are not exactly as you imagined them, that prize piece of furniture will not fit or that gorgeous sunrise is more a hindrance than a dawn delight.
And there could be problems with the project should not enough investors be found. There are always external forces at work and a downturn in the economy, prohibitive government legislation or constructor’s misfortune elsewhere could turn a dream project into a nightmare one.
And when buying off-plan, by the scheme’s very nature, you will have to wait a considerable period (perhaps even several years) before you can actually move into your dream home. If retiring to the city or settling here with a family then this may still be a good option.
But for many expats thinking of buying condos in Kuala Lumpur this is too far in the future, and the more pressing consideration is to find a home, avoid shelling out in rent and hopefully turn a profit at the end of the day.
Most of the difficulties about buying off-plan can be circumnavigated through careful and considered planning. Check out the developer thoroughly, investigate their reputation in the industry and find out what has happened to prior projects – tracking down previous customers if necessary.
The figures for buying apartments in KL off-plan are certainly impressive, with value rises commonly exceeding 14 per cent each year and rental yields occasionally touching 10 per cent of the overall cost, depending on the area. But as with all property deals, restraint and meticulous planning is the name of the game.
