Kuala Lumpur, New York City, London are top picks for 2011

Kuala Lumpur, London and the ‘Big Apple’ are where Hong Kong’s savviest investors are now spending their money. Today, Hong Kongers are also investing in Malaysia after almost a decade of preferring London, Singapore and New York. With Malaysia’s economy expected to grow 5.3% in 2011 and London’s forecast to grow 3.8%, investors are venturing across the globe to invest in real estate.

Hot Pick 1: MALAYSIA 
“Malaysia’s property market is driven by owner occupiers and domestic consumption, not pure rampant speculation like many parts of Asia,” claims Tim Murphy, IP Global’s Founder and Managing Director.

Malaysia is growing in reputation as the prime investment location in Asia because of its stable property market and relative affordability. Investors across the region are seeking to diversify their portfolios with affordable, mid-range property and Malaysia’s well-regulated market is attracting the attention of buyers looking for long-term and relatively secure investment opportunities.

Compared with markets such as Hong Kong, where the property price is typically 5 times more expensive than that of Kuala Lumpur, Malaysia remains affordable. Property prices in the capital increased by only 3% over the past 12 months compared with 25% in Hong Kong and 38% in Singapore. It is predicted however, that due to the lack of supply of mid to luxury condominium properties, property prices will continue to increase over time.

“The property market in Malaysia has remained stable during the global financial crisis and we are expecting it to improve substantially over the next 12 months,” claims Tim Murphy. “You can own property as a foreigner, making the most of another market’s low taxes and strong economic fundamentals.”

Hot Pick 2: NEW YORK CITY
“Increased mortgage availability and positive growth trends in New York mean strong rental yields and solid returns,” says Tim Murphy.

Recently there has been an increase in the number of Asian investors purchasing property in the USA, most notably in New York. According to the Global Property News Service, Propertywire, 25% of the purchases of New York’s centrally located Armani-designed 20 Pine Building are made by overseas investors. Property investors are purchasing properties without even viewing them because the USA’s high unemployment rate and weak currency make for an attractive buyers’ market for an international investor.

IP Global research claims that since property prices reached their lowest point in May 2009, prices have increased by 3.9%, making New York a potentially lucrative investment opportunity. As the world’s leading financial hub, New York offers attractive options for the foreign investor. The economy and property market have proven to be more robust and have recovered more quickly than any other US market with steady price growth expected in the long term.

Hot Pick 3: LONDON
“In London, low interest rates and high rental yields will offer strong value over the next 12 – 18 months,” claims Tim Murphy.

Despite London’s property prices continuing to improve following the recession, prices still remain below their peak in 2007; however, over the last 12 months, property prices have increased by 11.4% marking the 11th consecutive month of positive price growth. There is also the highest supply shortage since records began for properties in London, with an average of 5.5 tenants competing for every property. With tenants preferring to purchase property due to high rents, investors should see a strong capital growth and healthy returns on their capital invested. As well, interest rates remain extremely low, which bodes well for the property market.