Property Hunter Magazine Issue 63- February 2015 | Page 15

“

The properties are already
very expensive there but
paying rental is likely to be
almost the same if not more.
Thus, if my kids are studying
there, of course I would
buy a property there. That’s
why Malaysians are huge
buyers of UK and Australian
properties

of the important elements related to student
accommodation investment.

Investing Overseas

If you are already thinking of investing in student
accommodation, your next option would be to
decide on whether to invest overseas or locally, as
a buyer-occupier or buy-to-let.
Local property analyst Charles Tan opined that
investing in student accommodation overseas
would be a sure thing for him.
“Yes, I would do it if my kids are studying there,”
he explainss. “I would not want to pay rental.
Once they have graduated, I can sell if there’s
profit in it or get an agent to rent out for me. UK
or Australia, both are matured markets and the
agents are used to all these rental arrangements.
“The properties are already very expensive there
but paying rental is likely to be almost the same
if not more. Thus, if my kids are studying there,
of course I would buy a property there. That’s
why Malaysians are huge buyers of UK and
Australian properties.”
Charles adds that even though investing in
student accommodation can be an attractive
option, he would still do further research before
making a final decision.
“If buying for investment, I would ask myself
a few questions first. What is the institution
they are talking about? Is it considered a good
university? If it is an unknown college / university
or not considered a good school when I search
online, I would immediately say ‘no’ to the

investment scheme no matter how attractive it
would be,” he says.
Project design and surrounding facilities such as
other schools and malls nearby would also affect
his decision. “Students do not normally like to
stay in places where there’s nothing for them to
do after school.”

Investing Locally

If the boom in student accommodation
investment in the UK and Australia are anything
to go by, investors in Malaysia would now be well
prepared to take advantage of the huge potential
that already exist in the local market.
Purpose-built student accommodation can already
be found in several university towns in Malaysia
such as Kampar, Perak where Masa Handal Sdn
Bhd has just completed its 2,000-unit Kampus
West City project in 2014. About 95% of the units
with an average floor area of 323 sqft and currently
priced at RM90,000 has been sold to date. Kampar
is home to the Universiti Tunku Abdul Rahman
campus with a student population of 15,000
and with no on-campus housing, the need for
student accommodation will always be present.
Masa Handal has already embarked on a 2-tower
condominium project with 360 units ranging from
713 sq ft to 856 sq ft selling from RM188,000
onwards and targeted