In the past decade, Malaysia has experienced an average annual capital growth of 4%. By comparison, property values in the UK have surged by about 70% during the same period, with Manchester leading the charge at 83%. “London, however, has underperformed in the last five years, showing only 1–2% annual growth,” Gamany observes, highlighting the stark disparities within the UK market.
Local Market Realities
Malaysia’s property market is grappling with high vacancy rates, particularly in Kuala Lumpur, where it stands at approximately 14%. Gamany explains, “Economically, a vacancy rate of 5–7% is considered balanced. For context, Singapore’s rate is around 6–7%, while the UK boasts a remarkably tight market with vacancy rates below 2%.”
The tightness in the UK market underscores robust demand. “In Manchester, a single apartment can attract up to 21 applicants,” says Gamany, referencing property managers who have shared this data. This demand contrasts sharply with Malaysia, where, according to The Sun, 1.9 million residential units remain unoccupied. “To put it in perspective,” Gamany notes, “Greater Kuala Lumpur, with a population of roughly 2 million, has almost as many vacant properties as people—creating a ghost town effect in some areas.”
In contrast, the UK faces a housing shortage of about 4 million homes. Even with a target of building 300,000 homes annually, the shortfall is expected to persist for at least 13 years. “This supply gap gives investors confidence that prices will continue to rise,” Gamany explains, citing research from Oxford Economics.
Shifting Investment Approaches
The current property landscape demands a reassessment of investment strategies. “Flipping properties is no longer a viable option,” Gamany cautions. “Anyone who has tried to flip properties in the past seven to eight years would struggle now. That window closed long ago.”
Meanwhile, the UK’s housing shortage has propelled property prices upward. “Cities like Manchester have seen prices soar by over 80% in the last decade, driven by a shortage of about 200,000 homes,” he states. Manchester, the UK’s second-largest city, has experienced annual price growth of 8%, significantly outpacing London’s modest 2% growth over the same period.
Smart Investment Strategies with CSI PROP
At CSI PROP, Gamany underscores the importance of informed decision-making. “We guide our clients to make strategic investments and conduct masterclasses to help them identify opportunities for maximising returns,” he shares. “The key is to view property as an investment asset, not an emotional purchase.”
He also highlights differences in planning and construction processes between Malaysia and the UK. “In Malaysia, building approvals can be expedited with the right connections, leading to high-rise developments in unsuitable locations. In contrast, the UK operates under stringent regulations, where local councils wield considerable influence through the Town and Country Planning Act.”
A Positive Outlook
Despite its challenges, Malaysia’s property market holds promise. Gamany is optimistic about leveraging the country’s strengths in affordable housing, innovative development, and sustainability. “By capitalising on these strengths, Malaysia can position itself as a competitive player in the regional property landscape,” he concludes.
As Malaysia navigates these changes, the insights and strategies shared by leaders like Virata Gamany and CSI PROP will play a critical role in shaping a resilient and prosperous property market.
For more info , visit https://csiprop.com/
