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Property: Get excited about M’sia, Manila

In Malaysia, Property on 17/01/2020 at 5:16 am

Victoria Garrett, head of residential, Asia Pacific, at Knight Frank writes

The Knight Frank Prime Global Cities Index, which tracks the movement in luxury residential prices across 45 cities, saw 1.1 per cent average annual price growth in Q3 2019, down from 3.4 per cent for the same period in 2018, with secondary cities in Asia — including Taipei, Manila, Guangzhou and Delhi — creeping into the top 10. We expect those markets with strong local economies (Manila, Shanghai and Taipei) to perform strongly in 2020 as well as those cities where wealth forecasts are above the regional average (Bengaluru, Manila, Guangzhou, Ho Chi Min City). [Note she doesn’t mention us. LOL.]

Manila’s prime residential market continues to sprint ahead, with prices rising 5.6 per cent in the first nine months of 2019, adding to the 11.1 per cent rise seen in 2018, according to Santos Knight Frank Research. This is driven by investors buying prime residential property to lease out to employees working in business process outsourcing (BPO) and for Philippine offshore gaming operators. While there are some supply concerns this year, demand should keep pace, and we expect prices to continue rising given the ever-expanding BPO sector.

Malaysia’s residential property market appears to be bottoming out, although it will take time before the market sees a significant improvement. We expect the market to improve gradually with support from government initiatives. The lowering of the price threshold for foreign buyers from RM1m to RM600,000 ($243,000-$146,000) in 2020 for unsold high-rise units in urban areas is expected to help address the overhang, particularly for units in the RM600,000 to RM700,000 range in selected areas.

Remember you read this here first.

Related post: Soon can buy M’sian apt for less than 2-room HDB flat

  1. Penang & KL are the only 2 locations a foreigner should buy in M’sia.

    Yeah, Manila has been a hot property topic in recent weeks. Used to be Ho Chi Minh.

    HK riots haven’t been able to really knock down those damn housing prices, only property stocks. LOL.

  2. Oh … one thing about these 3rd world countries … taxes tend to be much higher than what Sinkies are used to, either property or municipal or income(rental) or combination.

    And as always, go for units in their financial districts or where expats are located. Prices can be 3X or 4X higher than those typically bought by locals, but if you want good rentals & long term appreciation, better bite the bullet … or don’t eat at all.

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