Why are Malaysians Hooked on Property Investing?

Why are Malaysians hooked on property investing even when the market looks like things could take a turn for the worse at any moment?

Well, it seems that its because it is somehow in our blood. Ingrained into our systems that these concrete blocks and spaces of land (or air) are symbols of wealth and prosperity.

Let’s take a look at the reasons why we feel this way.

Is it simply rooted in superstition or have the numbers proven themselves to us once again?

Malaysia has maintained a stable political and economic climate over the past 50 years, which has contributed to the steady growth of its real estate market. Additionally, the government is taking steps to encourage homeownership and stimulate the construction industry, further boosting demand for real estate. In addition, the country’s strategic position in Southeast Asia and its focus on developing industries such as tourism, manufacturing and services also attract foreign investment.

According to a National Property Information Center (NAPIC) report, the entire Malaysian property market has seen steady growth in value over the past 50 years. According to the report, the average price of residential property in Malaysia increased by an average of 6.5% annually from 1970 to 2019. Additionally, the report finds that the total transaction volume of the real estate market has steadily increased over the years.

Malaysia’s stable political and economic climate, government policies, strategic location and growing industries have contributed to the continuous growth of the real estate market over the past 50 years, making it a good investment opportunity.

Malaysia has many residential estates that have been considered excellent investments over the last 50 years. Some examples are:

Mont Kiara: An upscale neighborhood in the city of Kuala Lumpur known for its luxury condominiums and apartments. Real estate in this area has greatly increased in value over the years and remains in high demand.
Tropicana: An apartment complex in Petaling Jaya on the outskirts of Kuala Lumpur. The development consists of a mix of plots and high rise condominiums. Real estate in this area has also increased in value year by year and is still in high demand.
Penang Island: Located in the northern part of Penang, this island is known for its heritage, beaches and delicious food. Real estate in this area has also increased in value year by year and is still in high demand.
Subang Jaya: A suburb of Kuala Lumpur known for its affordable real estate, good infrastructure and easy access to public transport. Real estate in this area has also increased in value year by year and is still in high demand.

In general, the ROI for Malaysian real estate is between 5% and 10% per year, but it can be higher or lower in certain areas and for certain properties. This of course does not mean that you’re guaranteed to even see such returns immediately year on year, it often takes time as the prices go through the cycle with price increments being seen over the course of 5 – 10 years. Overall, Malaysia is a good market for property investment, with many outstanding residential developments proving its resilience.

Even though these are not phenomenal returns but it that still makes property investing here not a bad store of wealth. It’s what we as a people regard as a ‘Safe’ investment.

Many property moguls have been born over our lifetimes and they have established themselves fiercely in the industry. Some of the most successful property billionaires are listed below:

Tan Sri Lim Goh Tong (deceased) – businessman and entrepreneur, founder of Genting Group. He was known for his investments in hotel and gaming industries and real estate development. He died in 2007 at the age of 88. His estimated fortune was in the billions.

Tan Sri Lee Shin Cheng– He is the current CEO of IOI Corporation, a large multinational company based in Malaysia. He is known for his investments in real estate development and the oil palm plantation industry. He’s 84 now and has an estimated net worth in the billions

Tan Sri Dato ‘Sri Leong Hoy Kum – He is the founder and chairman of Country Heights Holdings Berhad (and Mah Sing too), one of Malaysia’s largest property developers. He is known for his investments in real estate development and hospitality. He’s in his 80s now and his estimated net worth is in the billions

Tan Sri Dato’ Sri Liew Kee Sin – He is the founder of property developer GuocoLand. He is known for his investments in the real estate development industry. He’s in his 70s now and his estimated net worth is in the billions.

It’s hard to not still be in love with property despite the on-going mass building and oversupply and being knee-deep in a depression of modern times but we see what can be achieved by others and that is success for the best of the best. Surely the average property investor can carve out a nest egg for themselves at the very least.

That’s what I believe and that’s what’s the truth as far as I can tell.

Property investing still is within reach to us in the M40.

Owning real estate is considered important to many Malaysians for many reasons. First, cultural values play an important role in this regard. In many Asian cultures, owning a home is seen as a sign of stability and success, and is often seen as an important life goal. As Malaysian’s we see property ownership as a symbol of achievement and also as a way to pass wealth on to future generations.

Second, owning real estate gives you financial security. Real estate is considered a tangible asset that increases in value over time and can be sold or rented for additional income. It is also seen as a form of saving and investment for the future. In this way, owning property helps bring financial stability and security to the owner and their families.

Third, owning property also provides emotional and psychological benefits. It can instill a sense of belonging and pride in ownership, and it can instill a sense of security, peace of mind, and a sense of control over one’s living environment. Overall, property ownership is considered important to us for its cultural value, financial security, and emotional benefits.

I guess that means that it’s a little bit of superstition on the back of some decent facts and figures.