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Monday, March 21, 2011

Greater KL Hottest among Malaysian Investors

Gavin Tee, fourth from the left, together with his staff, posing with winners of 2011 Hotspot Contest. Adamin Corporation Sdn Bhd director Kok Pick Tong (third from left) won the grand prize worth RM3,000 which entitles him to an investment course with SwhengTee International Real Investors Club

Kuala Lumpur and KLCC emerged as the leaders in Malaysia and Klang Valley respectively, in a survey of investment hotspots conducted among 421 participants by Swhengtee International. Matching a prediction by SwhengTee International Real Estate Investors Club founding president Gavin Tee, of them being the top hotspots, their connectivity from the Kuala Lumpur International Airport to the City Centre would result in the eventual internationalisation of properties there.

Petaling Jaya came in second within Malaysia and the Klang Valley as a very attractive investment destination, because it is a matured city with lots of investment opportunities, which are present through usage conversion of its buildings, old factories, vacant land, and redevelopment value in its properties.

“However, What is HOT may not be good to invest,”commented by the Swhengtee International Real Estate Investors Club founder Gavin Tee. Education is still a problem, people are not aware of potential opportunities and hidden risks. He thinks that whatever people are dashing to buy are normally where the bubbles are. Investors should evaluate if the hotspot is in the stage of “Warming up, Hot or Overheated.”

Penang, Kota Kinabalu and Melaka took third, sixth and eighth places respectively, as they are international tourist destinations that are inscribed on UNESCO's World Heritage List. These places are tourism hotspots, making tourism-related real estate in these areas among investments with the most potential.

Johor Bahru took fourth place, due to the impressive development taking place within Iskandar Malaysia, with foreign and local investments surpassing expectations in recent years. Other property hotspots in Malaysia include Putrajaya/Cyberjaya (5th), Shah Alam (7th), Seremban (9th), Ipoh (10th) and Kuching (11th).

Within the Klang Valley, Kota Damansara came in at an impressive third rank, with a matured neighbourhood, excellent amenities, improved accessibility, and vibrant lifestyle. Its commercial and residential enclaves are set to benefit from the proposed Klang Valley Mass Rapid Transit Sungai Buloh – Kajang Line.

Bukit Bintang (4th place ), as Malaysia's premier shopping district, stands to be a more vibrant tourism destination, when it is linked to KL Sentral, which is also connected to KLIA, through the Sungai Buloh – Kajang MRT line. With two stations proposed to be at Bukit Bintang East and Bukit Bintang West, it will become conveniently accessible to tourists.

Other property hotspots in Klang Valley were Sungai Buloh (5th), Puchong/Kinrara (6th), Mont'Kiara/Sri Hartamas (7th), Jalan Klang Lama/Kuchai Lama (8th), Ampang (9th), Bangsar/Damansara Heights (10th) and Bukit Jalil (11th).

It is reasonable to be worried about property bubbles forming as they may be scattered around various places within the next 3 years. The bubbles may look similar to the 1997 property crash, where properties were oversupplied and overpriced in unpopular areas. However, the general market will remain strong.

The people from left are Lee Ding Ding, Gavin Tee and Olivia Wong

Gavin believes the hotspots are changing more rapidly since 2008 as Malaysia steps into Real Estate Globalisation process after Singapore, Hong Kong and China. Greater KL, MRT and Mega Project developments have moved Kuala Lumpur into a world class city. He predicts that service apartments or condominiums in Malaysia will hit RM5000psf within 5 years.

Globalisation will turn CBD and tourist spots (Melaka, Penang, Kota Kinabalu, Langkawi, etc) real estate into properties with international price tags, thus, RM5000 psf (equal to SGD2000+) is nothing to be surprised about. He also explain that high price is partly caused by high land and building cost, the country's economic development, properties being commercialised and people are much more willing to put housing as priority in life.

Gavin recommends to invest as the next 10 years are the 'Golden 10 years' in Malaysia real estate, However, he also reminds that identifying a hotspot requires a professional approach, study and high network. He concludes that hotspot may not be in the city centre. It can be a rural, river or new village development as long as the potential of growth exist. The hotspots will definitely distributed to all corners in the country.

By The Star

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