Malaysians are generally confused with the rapid rise in prices of housing in Kuala Lumpur. Most cannot understand how even a private apartment located in a once shunned area like Sentul can rise from a launch price of RM240,000 3 years ago to RM500,000 in the sub-sale market today. Infact, a new record was set for condominiums in the city center when a penthouse unit at The Binjai was sold for RM38 million 3 months ago.
Unfortunately, the rise in Malaysia property prices is not entirely attributed to the demand from young graduates migrating to the city for jobs. Instead, one of the reasons is property speculators taking advantage of easy financing and low interest rates, to buy property for the purpose of flipping them for huge profits.
My friend Chee Yew Wen, a civil engineer also sharing his opinions saying that there are also property investors who buy high-end condo units, especially in expat areas like Mont Kiara, in the hopes of renting them out to foreigners for recurring income. This is hardly suprising considering the stock market is too risky to invest, while the banks are offering a paltry 2% returns on fixed deposits.
Best Time Of Your Life : Malaysia Truly Asia : 2012