WORLD-CLASS city living has come to Kuala Lumpur. The Malaysian capital is dotted with new, amenity-filled, chic apartments and the city has never been as cosmopolitan and vibrant as it is now.
Kuala Lumpur's St Mary Residences
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With the recent influx of expatriates, joined by affluent younger Malaysians moving out of their parents' suburban homes to live in the city, Kuala Lumpur is becoming a top Asian spot for high-end city living.
The demographic shift of city dwellers has fuelled a new range of better class condominiums and office-cum-residences in and around Kuala Lumpur and property prices are edging up, with the swankiest dwellings nearing RM3,000 per sq ft.
Much of the action is around the pride of Kuala Lumpur, the gleaming Petronas Towers, which also houses the KL Convention Centre (KLCC).
With its two beautiful sparkling silver spires visible from just about every spot in the city, to say you are residing five minutes away - or for that matter even five kilometres away - from the landmark towers, gives residents the ultimate address for fine city living.
But property developers are not content with what they say is just a trickle of foreign interest in Malaysian property in general. The Developers Association of Malaysia (REHDA) thinks the sector can do better, although Kuala Lumpur is in a league of its own.
A survey of its members revealed that only about 5 per cent of Malaysian property is bought by foreigners. Singaporeans, undoubtedly, are the biggest foreign buyers, followed by investors from Europe, China, Indonesia and Korea.
The survey noted that foreign buyers mainly purchased properties in Kuala Lumpur and in the states of Selangor, Penang and Johor.
Developers have been eyeing Singaporeans and offering them Malaysian properties as a viable investment option. Eric Chan, executive director of Malaysian property and lifestyle player E&O Group, believes there are many positive factors to make it happen.
"Price-wise, the exchange rate which is in favour of Singapore makes Malaysian properties much more affordable," he told BT in an interview.
"In fact, the Malaysian property market is an 'unpolished gem' with immense upside potential. Neighbouring countries have experienced vast increment in values over the last few years but property prices in Malaysia remained relatively more realistic but no less attractive."
Malaysia's "foreigner-friendly" property investment policies, including allowing foreigners to own freehold properties, should be a boon to Singaporeans who are just a couple of hours drive away from Kuala Lumpur and other cities, he said.
Kuala Lumpur's Malaysia My Second Home (MM2H) programme is a factor that is now helping to drive foreign ownership of properties, with its easy entry and hassle-free residence permits, multiple entry visas and renewable social visit pass.
Mr Chan added that Malaysian banks extend "friendly lending terms" to foreigners as well.
He touts Kuala Lumpur and Penang as Malaysia's highly liveable places, with both in joint position as the eighth Most Liveable City in Asia in 2010, according to EAC International, an agency that rates living conditions in major cities for expatriates.
"Malaysia's marketability to foreigners also rests on its relatively low cost of living, widespread use of English, as well as quality education and healthcare," said Mr Chan.
"The development process in Malaysia is fairly local and homegrown. From a developer's point of view it is not really worth the cost for foreigners to buy raw land and then develop it.
But we would wish to have more foreign buyers because it stimulates the prices, and that is not necessarily a bad thing to attract," said REHDA president Michael Yam.
"Unless Malaysian property prices appreciate, it is still the cheapest in South-east Asia," he added.
E&O itself has built up a reputation for being a niche high-end property player.
This reputation is built across a series of exclusive addresses in Kuala Lumpur and Penang. In Kuala Lumpur, some of its landmark developments include the high-end condo Dua Residency in the heart of the city, which is almost fully occupied or owned by foreigners.
But its recently launched St Mary Residences, in the heart of the Kuala Lumpur business district, might well prove to be the city's classiest living address.
St Mary's is a three 28-storey tower block project touted as the only residential complex in the central business district. With residents expected to be able to occupy their units in the first quarter of next year, it has attracted considerable participation from foreign investors, including a big Singapore presence.
The development is another indication of Kuala Lumpur's growing residential property sophistication. With selling prices ranging between RM1.45 million (S$592,140) and RM11.08 million for 4,000 sq ft penthouses, Mr Chan described them as "luxurious, but practical".
All units come with timber flooring, air-conditioning, kitchen cabinets, fridge, kitchen hob, microwave oven and washing machines and the project will have its own 1.2-acre central park in its midst.
With St Mary Residences raising the bar for Kuala Lumpur city living, the property sector can only go up in sophistication with building standards, design and finish much better all round, said a Singapore-based property consultant.
The sector is poised to remain buoyant with continuing government support, favourable regulations and a thriving economy able to attract foreign direct investment flow.
For its neighbours, the Malaysian residential property sector is still attractive and affordable.
With political stability and no major blocks towards foreign investment, investors will continue to see its property sector as one of the more liquid hedging assets.
