/// Hot Topic
PH Expo Ventures to Hong Kong in
September 2014
/// HOT TOPIC
property investment. For example,
the stamp duty for locals is as high
as 8.5%, whilst foreigners have to
pay a compulsory levy of 15% of the
property price.
Tightened mortgage policy is
making loan packages less viable
for investment purpose. Property
investors have since then turned to
overseas properties to park their
money. To people from Hong Kong,
Malaysia is a familiar place due to
its proximity, similar language and
culture. Most of them are also very
familiar with key cities such as Kuala
Lumpur, Penang, Johor and Sabah.
Besides, Hong Kong is also well
connected by flights to many cities in
Malaysia. In Sabah alone, there are
four airlines serving the Hong Kong
to Kota Kinabalu KK route on a daily
basis. And Hong Kong is also the
T
he flagship exhibition Property
Hunter Expo (PH Expo)
organized by Maxx Media (S)
Sdn Bhd will be holding their event
for the first time in Hong Kong. The
decision to venture into this market
is due to the demand from loyal
developers who have been exhibiting
at the PH Expo. According to
Director Michael Hiew, there is great
opportunities to market Malaysian
properties in Hong Kong due to the
property prices here being the lowest
in the region. Plus, cost of living in
Malaysia is relatively low.
For example, a newly launched
property in the prime Central
Business District (CBD) area in Hong
Kong and Singapore fetches about
USD2,000 to USD3,000 per sq ft as
compared to properties in a CBD
in Malaysia, which fetches about
USD500 to USD600 per sq ft. The
phenomenon now is that a middle
class wage earner cannot afford
a property in Hong Kong, but can
afford a luxury property in prime
area in Malaysia.
Overall, property in Malaysia also
provides a much higher rental yield
in the region. The yield in Singapore
and Hong Kong is typically 3%, whilst
32
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in Malaysia it ranges between 5% 8%. Despite the cooling measures
introduced in Malaysia last year
where foreigner can only purchase
property in excess of RM1million and
higher in some states, it is believed to
have little impact in attracting foreign
investment.
According to a report by The Wall
Street Journal on 25 Nov 2013,
Chris Hahn, a director at property
consultant Jones Lang LaSalle noted
that most transactions by foreigners
have been in excess of RM1 million
even before the fresh curbs were
announced, therefore he believes
that properties in Malaysia will
remain attractive to foreign investors,
who mainly come from Singapore,
Hong Kong, China and Japan where
residential prices in their home
markets are much higher. Aside from
this pricing threshold, there are no
other restrictions that hinder nonresident foreign buyers in Malaysia.
The Property market also benefits
from the Malaysia My Second Home
(MM2H) program. There has been an
upward trend in MM2H applications
in recent years. The number of
application approvals increased
to 3,227 in 2012, from 2,387 in
According to a report by The Wall Street Journal
on 25 Nov 2013, Chris Hahn, a director at property
consultant Jones Lang LaSalle noted that most
transactions by foreigners have been in excess
of RM1 million even before the fresh curbs were
announced, therefore he believes that properties
in Malaysia will remain attractive to foreign
investors, who mainly come from Singapore, Hong
Kong, China and Japan where residential prices in
their home markets are much higher.
2011, 1,499 in 2010. From 2002
to 2012, the MM2H programme
attracted 19,488 foreign buyers. As
of November 2013, around 22,320
foreigners were given long-stay
approvals under the MM2H program.
The property prices in Hong Kong are
way too high even for the locals. The
average middle class finds it difficult
to invest in a property in Hong Kong
due to limited supply and very high
prices. And the