KL calling foreign investors

By Khalil AdisOct 29, 2009

Khalil Adis is an experienced property writer, with in-depth knowledge of Singapore's and Malaysia's property market. During his career, he's written for Property Guru, Property Report and Property...

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I’ve always had a love-hate relationship with Kuala Lumpur. I love it because my dollar stretches further there and KLites are a bit more amiable compared to my fellow Singaporeans. But I also hate it because of the traffic jams and the poor design between the different rail systems that make it inconvenient for commuters, especially if you have luggage in tow.

Now I have another reason to love it – there are plenty of good opportunities to buy a high-end property in the KLCC vicinity that is within walking distance from the city’s famed Petronas Twin Towers.

The Malaysian government recently announced that it would be re-introducing the Real Property Tax Gains (RPGT) by January 1st next year to curb speculation in the property market and to keep wealth within Malaysia.

While this might be bad news for foreign investors hoping to quickly flip their properties, it is certainly good news for the long-term investors hoping to earn a good rental income.

Kuala Lumpur’s subsale market is now buzzing with activities as investors seek to offload their properties before the RPGT kicks in. It is currently a buyers’ market with great opportunities for Singaporean investors to touch and feel their condominiums before deciding on their purchase.

Investing in Kuala Lumpur makes sense since Malaysian Prime Minister Najib Razak has announced plans early this year to liberalise the country’s finance industry. Malaysia will now raise the foreign ownership cap in insurance companies and investment banks from 49 percent to 70 percent. In addition, five more foreign banks will be allowed to operate by 2011. This means there will be more expatriates moving to Kuala Lumpur providing a ready pool of professionals looking for high-end properties to rent.

Moreover, Kuala Lumpur’s property market is rather stable as its economy is not as exposed as Singapore's or Hong Kong's. 

With HDB flats becoming much more expensive, Singaporeans are better off investing in a high-end property in Kuala Lumpur to make their money work harder for them.

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