Understanding the Malaysian Property Market and Residency Programs
This article discusses current trends in the Malaysian property market, particularly focusing on opportunities for Hong Kong residents, and provides insights into residency programs like MM2H (Malaysia My Second Home). It addresses common questions and concerns regarding property investment and residency, outlining key considerations for potential buyers.
Addressing Viewer Concerns: Property Pricing
There's been discussion among viewers about the actual cost of property, specifically references to "2,000 feet" and "$1,000." The speaker clarifies that the 2,000 feet refers to the size, in square feet, relating to potential high-end clothing purchases or decoration costs. He clarified he was talking about more than 100,000 in Malaysian currency. The focus is on finding affordable options, especially in the current economic climate.
Recommendation: Discounted Goods and Golf Course Properties
The speaker suggests considering discounted goods and properties near golf courses as potential investment opportunities. He highlights that golf course management is generally well-maintained, and these areas attract a high-end clientele, including Koreans and Singaporeans. This suggests good overall management and quality of food and beverage services in these locations.
Comparing Old and New Residency Plans
Policy Differences and Requirements
The speaker contrasts older and newer versions of residency programs. The old plan had stricter requirements, including an age limit of 35 and a HK$40,000 monthly income requirement. The new plan has a lower threshold, with the age limit reduced to 25 and no specific employment requirement. However, the latest policy does necessitate proof of regular income or retirement funds.
Living Requirements
For those aged 50 and over, the new program does not impose stringent living requirements. The previous requirement was a 90-day stay in Malaysia per year for a family, which is considered relatively manageable.
Real Estate Investment Options and the $500,000 Plan
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Special Plan: A specific plan allows residency application with a real estate purchase of $500,000. This is aimed at customers who cannot afford the 3.2 million US dollars (older plan). The lowest requirement is 1.5 million US dollars for other programs.
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Forest City Focus: Currently, only properties in Forest City can be used for residency applications under the $500,000 plan.
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Property Size: The properties available under this plan differ from traditional small apartments.
Government Support and Economic Zone Development
The government is supportive of the economic development in designated special zones, which offers favorable policies. This creates a positive environment for investment and enjoying the benefits of growth in these areas.
Impact of Global Events on the Market
Global events have affected the customer base. Previously, many customers were buying properties without intending to reside there permanently. However, the current trend shows more people, including Malaysians and those working in Singapore, are living in these areas.
Commuting and Lifestyle
Commuting between Malaysia and Singapore is common, with many working in Singapore and living in Malaysia due to more affordable housing options. This includes renting and buying properties. The convenience of commuting and the relative affordability of rent compared to Kuala Lumpur are emphasized.
The Importance of Due Diligence
The speaker strongly advises potential investors to do their homework and conduct thorough research before making any decisions. This includes visiting the area, checking its suitability for their lifestyle, and understanding the terms and conditions of the residency programs.
Key Considerations for Hong Kong Residents
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Affordability: The speaker suggests that Shenzhen City in Malaysia is a good option for Hong Kong residents looking for an affordable second home option.
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Family Benefits: The second family program offers benefits beyond immediate family members, potentially including parents of the applicant's spouse or dependent children over 21 who are still students or require parental care.
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Long-Term Planning: Given the 10-year special district plan, consider the affordability and the long term value of investment.
Future Developments
The speaker anticipates continued development, including the expansion of services and facilities such as hair salons, government agencies, medical institutions, and international schools. These factors contribute to the overall appeal and potential of the area.