Ideal Location Leads to Great Return in Property Investment

In these several years, Malaysian property market were having rapid growth of pricing. Due to the circumstances, the price of property surging up leads to the difficulties for the young buyers, expanding families especially come from middle-income group and low-income group, to own a property especially on housing which the main basic necessities for human.

Besides that, the property market in Malaysia were also influenced by the local property investors, international and regional investors. Which means based on The Edge market in 2013 stated that the Malaysia have seen as an opportunity for the foreign investors to invest in as the property market have emerged, because of the government schemes Malaysia My Second Home (MM2H) that was introduced and good economic growth. As the result leads to luring the foreign investors to reside in Malaysia.

Datuk Siders Sittampalam, a managing director in PPC International Sdn Bhd stated that terraced houses and condominiums were some of the properties that benefitted of the best profit returns and capital appreciation due to the increasing of sky-scraping building units in Klang Valley property market starting from the mid-2000s. Therefore, renting housing property were more likely to be decreasing. The reasons are booming of populations which related to surging number of demands of housing which leads to the spareness of land and high cost of land development. Due to that cases, the developer decided to build the housing units vertically, in other words tall building or sky-high housing units.

Furthermore, last year were the most challenging situation as the Covid-19 pandemic hits globally with the replacement of new government in Malaysia and United States and China trade war leads to the decreasing sales in real estate market. Which means the property purchase for rental market have slowed down. However, there are still many properties plus locations were still in reasonable of rental demand.

The main reasons of why there still available of good rental demand is the locations of the properties which situated at good and strategic locations. According to several property agents stated that a good location of the properties especially for the sky-high building gives the good profits return than the landed properties. Besides, the excellent locations of properties that came with good facilities and amenities that give good access on to the residents that resides in the property. For examples, schools, malls, shop lot, public transport and many more. Usually, the property that have these features, allure the buyers and tenants who prefer efficient commute to workplaces.

While the other reasons why strategic location contributes as the good rental property in established and old residential housing properties such as Damansara Heights and Bangsar, because the old residential areas where developed focused more on terraced and detached houses. Besides, in modern era especially in early 2000, the lands are becoming scarce and causes cost of land and development becoming highly expensive especially in Kuala Lumpur area. Therefore, many people prefer to lookout for old residential properties and this shows rental property demand in old residential area were still relevant these days due to high demand and population in the certain location.

Next is about location properties that were segmented for student market. Locations that are near with educational institutions such as school, universities and college were main criteria of hunting good properties for investment. Amy Wong, a director in Savills Malaysia stated that locations such as Setapak, Bandar Sunway, Shah Alam, Kota Damansara and several others location were suitable for properties investments due to near locations to educational Institutions. Aside from that, the addition of those area was included with locations that are near with malls, offices and public transport, which a good condition for getting a good return in rental properties in long term period. For instance, Bandar Sunway and Subang give good yield at 6% until 7% due to high populations of students resides there.

Generally, the hot spot for property investment are based on the population in a certain area such as Kuala Lumpur. The conclusion is location of property is very crucial in order to achieve the targeted market and gain more return in property investment for long-term period.

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