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The housing market in Malaysia has recently noticed an increase in transactions, costs are under control through excess inventory, according to brokers.
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By Alison Gregor
This rehabilitated tent built around 1890 among the colonial buildings in the historic center of George Town, a town on the island of Penang that functions as the capital of the state of Penang, in northwest Malaysia.
The two-story brick-and-mortar store, which was deserted before being renovated more than a decade ago, has two bedrooms and 3 bathrooms, as well as other unique features of historic Asian terrace homes, said Russell Channon, who heads the global auction of hotel and residential assets in Asia for Prestige Property Group. The search engine optimization agency.
Like other city spaces evolved more than a century ago, with a business on the ground floor and apartments upstairs, the space has an 18-foot narrow street front with a covered arcade, called the “five-foot lane,” which has been preserved. with its classic façade of Chinese porch wall, pillars and air well.
“They have generally ensured that all renovations strictly adhere to heritage guidelines,” Mr. Channon said.
The moment ground has an outdoor patio at the rear of the space and overlooks a side lane that has been sealed at both ends with government permission, to protect the privacy of the owner.
The front doors open to a reception domain with black, white and gray tiles and 15-foot upper ceilings with original beams. Like the rest of the house, the domain is decorated with period pieces and antiques. Furniture is included in the sale price. .
The main living room has the bright air and a staircase leading to the current floor. At the rear of the 97-foot-deep interior of the house is the kitchen, with dark gray concrete floors, a central island, and traditional cabinetry. There is also a pantry and bathroom, and a closed-looking door to the lane.
The blinds line the air duct at the time of landing, with a pulley formula to open the retractable transparent roof. The master suite, at the front of the house, has a dressing room, a bathroom and a laundry area. The 12-foot top and a row of shuttered windows overlook the street. The land is made of wood, according to heritage guidelines.
Towards the rear of the space is a living room, separated from a momentary bedroom through partial walls. Beyond the bedroom there is a terrace that leads to the outside patio. other bedrooms,” M. Channon said.
The 3,600-square-foot home is wholly owned and is located on historic Carnarvon Lane in downtown George Town, a UNESCO World Heritage Site. Nearby is Armenian Park, a green oasis in the neighborhood; Beach Street, which is covered with restaurants, department stores, and other amenities; and the bustling Chowrasta Market,” said M. Channon.
“Penang in general has a wealth of things to do and caters to all interests: beaches, mountains, hiking, museums, galleries, nightlife, spas, gardens, street food and world-famous grocery shopping would be the most sensible thing on the list,” he said.
The space has easy access to the road leading to Penang International Airport, about 12 miles to the south, M said. Channon. Parking is on the street and there are many means of transportation to choose from, such as buses, sold cars, and tricycles.
Malaysia’s property market, which was relatively stagnant when the global coronavirus pandemic hit, has recently noticed an increase in transactions, costs are under control through excess inventory, agents said.
“For now, costs are solid and have remained close to pre-pandemic levels, despite an increase in transaction volume,” said Serena Tan, Prestige Property Group’s wife agent for Penang.
According to the National Property Information Centre, average space costs in Malaysia increased by approximately 3% between the first quarter of 2020 and the first quarter of 2022, from 430,786 ringgit (USD 92,800) to RM444,230 (USD 95,800).
In Penang state, which includes the island of Penang and the city of Seberang Perai on the Malay Peninsula, the average value fell by about 1% during this period, from 439,015 ringgit ($95,000) to 434,291 ringgit ($93,640), falling below the national average.
“It’s a buyer’s market lately,” Tan said. Typically, real estate costs do not increase due to an oversupply of new condos and apartments. This is very smart news for those who buy other types of properties.
This includes those of townhouses, where the average value on Penang Island has fallen 1. 25% from 873,787 ringgit ($188,300) to 862,814 ringgit ($186,000) in the past two years.
Unlike other housing sectors, historic boutique homes will most likely have been affected due to restrictions imposed on foreign buyers by the pandemic, agents said.
While Malaysia continues to face challenges, such as emerging interest rates, a volatile political landscape, weakened ringgit and fewer loan approvals, sales indicate a stronger market than before Covid, said Jericho Lo, chief operating officer of Jalin Real Estate.
“We’re seeing more home buyers than investors in the market lately and, in a way, that’s cooling asset values to general and affordable,” he said. “It’s worth mentioning the big upticks in the rental market, where demand is increasing, and average rental value has also increased. “
House prices, even in Malaysia’s most expensive component, its capital and largest city, Kuala Lumpur, remain a reduced price for neighboring Singapore and a relatively low price for other Asian cities such as Bangkok, Jakarta and Manila.
“Malaysia is one of the countries in Asia where you get the most for your dollar,” he said. The.
Most foreign home buyers in Malaysia come from Asian countries, plus China, Hong Kong, Thailand, Vietnam and Japan, he said. There are also many buyers from Singapore, the agents said.
More recently, there has been an influx of Sri Lankan investors, fleeing the current political crisis there, Mr. Lo. “According to our unofficial records, the number of such buyers has increased by more than two hundred percent,” he said.
Tan said he also sees many foreigners from English-speaking countries such as Britain, Australia and the United States.
“The pandemic has replaced that a bit, as some have returned home to be close to their families or due to adjustments to the Malaysia My Second Home program, and some have not been able to leave their country due to closures, so they have to get around,” he said.
Foreigners want state approval to buy a house, and every Malaysian state regularly has a minimum purchase price for foreign buyers, sir. Rengit ($215,000) to purchase a condo.
“Restrictions are updated from time to time across the state, so customers are asked to check before committing to a purchase,” Choong said. Currently, consent is conditional on the foreign customer not being able to sell within 3 years of purchase,” this condition could be waived by the state in certain circumstances.
The Malaysia My Second Home program, aimed at attracting foreigners for long-term stays with renewable visas, was suspended by the pandemic and reinstated in 2021 with new and stricter conditions, he said.
Foreigners holding a Malaysian My Second Home visa can purchase two residential properties, land or condominiums, but each must be worth at least 500,000 ringgit ($107,800), Mr. Channon said, adding that buyers hire a lawyer to buy a property. . , usually between 0. 5% and 1% of the sale value of the home.
Sales are subject to stamp duty calculated on a graduated scale of 1 to 4% and other charges. Buyers plan between 8 and 10 percent of the property’s value for final costs, adding real estate agent fees and legal fees, M said. Channon.
Mortgages can be obtained from Malaysian banks, but foreigners can get better rates from banks in their home countries, he said. The.
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Malay; Malaysian Ringgit (1 ringgit = $0. 22)
Annual taxes on this space are around 800 Malaysian ringgit ($172), M said. Channon.
Russell Channon, Prestige Property Group, 011-44-19-3581-7188, prestigeproperty. co. uk
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