Above 36 years old investor prefer Malaysia, in contrast below 35 years old investor preferred New Zealand and Australia. Competitive of TPP and RCE

Date:2014/06/19

Gradually compressed profit margin of domestic real estate lead the investors transferred oversea investment. According to "Overseas Property Investment Area Preference Survey," made by TW House International Sdn Bhd, mostly 36 years old and above people preferred Malaysia, almost double portion compare to New Zealand and Australia. But for young generation aged (below 35 years old) more prefer New Zealand and Australia. Chief Executive Officer of TW House International Sdn Bhd analyze, Malaysia get the favor of over 36 age investor caused by the average temperature of 25 degree over whole year, climatic comfort, use of common language and similar tastes, others than gain of increment of investment value, but also as a second home for vacation. New Zealand, Australia, United State and England are English-speaking countries, four of them have similar water surfing attraction like California. Young generation favorite of these counties because of New Zealand and Australia property price is in the affordable range.

In addition, survey showed that 39% of investor’s investment budget located between 10-15 million Taiwan dollars. Mr. Fang suggested that within this budget, can be invest for Kuala Lumpur’s property. Within budget can get a standard type house of 2 or 2+1 bedroom, have the high demand on hire and 4-6 % of high return rate.

Mr. Fang suggested for those 29% who have about 10 million investment budget, within this budget have the optional of Iskandar Malaysia or Melbourne Australia. Iskandar is Malaysia’s special economic zone, just across abridge from Singapore, key development area for Malaysia and Singapore. Property has potential growth of 3-fold within 10 years, budget of 10 million can have a 2 or 3 bedrooms property with 4-6% of rental income rate. In the other way, Australia’s property has the growth of 7.9 % in last year, average doubled its value in 7 years. Expected China’s richest will divert their target to Australia’s real estate market after termination of investment immigration by Canada government at early of year 2014, supporting the growth of Australia’s real estate market, selectable of 3-4 bedrooms property located in Melbourne emerging area within 10 million budget. These type of property is quite attractive for families with children or who need a large space of privacy.

According to latest report of Asian Development Bank (ADB), although Taiwan’s economic had growth from 2.1% to 2.7% compare with year 2013, but still in the last between “The Four Asian Dragons” (Korea, Hong Kong, Singapore and Taiwan). Also in the last between 18 countries in Asian. By comparison, ADB estimates that Malaysia have up to 5% growth rate for year 2014 and 2015. Reserve Bank of Australia also revised their economic growth up to 3-4%. Financial expert said that U.S (TPP) and China (RCEP) positively draw of Malaysia and Australia to join them showed the important of these country. With the economic growth of both countries, highly expectation on real estate market.

 



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