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Scheme spurs interest among
foreign buyers
05/06/2006 The Star By ANGIE NG
THE spin-offs from a highly successful Malaysia, My Second Home (MM2H)
programme to the property sector would be tremendous if it spurred greater
demand for residences from the participating foreigners.
Developers hope that allowing property purchase as an alternate to cash
deposits will add a progressive dimension to the property market.
The Tourism Ministry is looking into injecting further flexibility to the
programme by doing away with the need for a RM300,000 cash deposit so that
the foreigners would be able to use the money to buy their houses priced at
a minimum of RM200,000.
Under the recently introduced guidelines, residential properties purchased
by foreign buyers under the MM2H programme are exempted from requiring the
approval of the Foreign Investment Committee. The buyers only have to
produce a letter from the Ministry of Tourism certifying that they are
participating in the programme.
This hassle-free process makes it much easier for developers to market
properties to this target market.
Developers have given the thumbs up to the Government's efforts and expect
the programme to drive greater foreign interest in the local real estate
sector.
E & O Property Development Bhd director of marketing and sales, K.C. Chong,
said the programme would spawn more opportunities for foreigners to invest
in the country.
“Certainly the idea of being able to own a home here, without all the
previous hassles, is an attractive proposition for foreigners who work here
or have some connection with this country and would like to have ‘roots’
here,” he told StarBiz.
“We have customers who have worked or are working here who enjoy their time
in the country. Although they will eventually leave, they want to plant some
roots here so that they can return to this lovely country. This speaks
volumes for Malaysian hospitality and the Malaysian way of life,” Chong
said.
According to Mah Sing Group Bhd president and group chief executive Datuk
Leong Hoy Kum, with the updated and more flexible conditions, it would be
easier for foreigners to set up home in Malaysia. He said there was room for
the MM2H programme to grow and contribute significantly to Malaysia’s
property sales and FDI in the property sector.
According to Mah Sing Group Bhd president and group chief executive Datuk
Leong Hoy Kum, with the updated and more flexible conditions, it would be
easier for foreigners to set up home in Malaysia.
He said there was room for the MM2H programme to grow and contribute
significantly to Malaysia’s property sales and FDI in the property sector.
“Many of these foreign buyers seem to prefer landed homes in gated
communities or condominiums. Important considerations include security,
facilities and proximity to facilities such as reputable international
schools. While most of them appreciate locations with good accessibility and
amenities, no doubt some would also like to live away from city centres,
away from the hustle and bustle of life,” he added.
The programme is also expected to spur more positive changes in the property
fraternity, notably lifting the bar for developers who are keen to attract
foreigners to their projects.
E & O’s Chong said: “To ensure their projects are attractive, developers
have to lift their current offerings a grade higher, as they are literally
competing on the world stage.
Steven Lim
“An obvious area is in the delivery system - the most glaring being quality.
Developers really need to raise the bar in this regard. Our marketing skills
are already of high calibre, but we will also need to be better to compete
with the overseas players. We do have a price advantage in that our property
prices are among the cheapest in the region.”
Chong said the types of properties favoured by participants vary depending
on their lifestyles and needs.
“Most of our (E&O property) buyers liked our city developments, such as our
condominiums in Dua Residency, and our semi-detached homes in Idamansara,
which are located in well-known locations. I think this case is true with
other developers – foreigners will always tend to buy in places that are
known.”
He said managed properties tended to be more attractive as buyers knew the
properties were in good hands, and when rented, offered good yields on their
investments.
“Of late, we have had some interest from foreigners in our Seri Tanjung
Pinang project, which suggests that resort homes are equally attractive. The
key point here is still familiarity and comfort with the location, as the
project is very close to Penang’s Gurney Drive,” Chong added.
All these buyers have tended to come from Singapore, Indonesia, Hong Kong,
Britain and Australia.
The Mont' Kiara condominium units are a favourite among foreigners Syarikat
Permodalan Kebangsaan Bhd head of property division, Steven Lim, said that
as the participants were mostly retirees, medium sized apartments or
condominiums were the most popular.
Meanwhile, Mah Sing’s Leong said that with security being a main
consideration, the company’s gated and guarded communities would be
especially appealing.
Developers have to ensure they build quality homes in the relevant minimum
price range of RM200,000 in all states except Penang, Malacca and Johor,
which have a minimum price of RM250,000, and certain areas of Sarawak where
the minimum price is RM300,000.
As for developments in good locations, Leong said most developers would
build higher-end lifestyle homes that command better prices.
“The homes have to have certificates of fitness (CF), not built on Malay
reserve land or reserved for bumiputra quota or agricultural land developed
on the basis of the homestead concept,” he added. |
