CSI Prop's Gamany advised investors to explore markets beyond Malaysia.
KUALA LUMPUR: Malaysian investors looking for opportunities in the real estate sector should consider investing in foreign markets, says an expert.
Real estate consultancy CSI Prop executive director Virata Gamany said that while Malaysia’s market faces demand challenges, particularly in urban areas, overseas markets, such as the United Kingdom – could offer more promising opportunities.
For instance, he noted that about a third of properties around the prime Kuala Lumpur City Centre (KLCC) area are vacant, with the overall vacancy rate in Kuala Lumpur averaging around 15%.
“This is a level that, in tighter markets, could signal a property market crash,” Virata said.
“For context, vacancy rates in Western countries are closer to 5% to 7%, while Singapore averages around 7% and the United Kingdom’s rate is just 2%.”
In view of this, he told investors to explore markets beyond Malaysia, especially in countries like the United Kingdom, where housing shortages are driving up demand.
Yet, supply and demand are not the only part of the equation, he noted.
He said, when investing in a property, other key factors like financing, taxation and economic stability are critical considerations in any investment decision.
“If you only focus on supply and demand, you’re in trouble,” he said.
Ultimately, he said building wealth through property isn’t only about picking the right market.
He said a solid foundation in financial knowledge is essential to navigating the complexities of property investment and avoiding common pitfalls.
From understanding financing structures to analysing vacancy trends, he said education is key to any investment opportunities.
Similarly, during a panel discussion with a group of experts from various asset classes, it was highlighted that a strong foundation in financial knowledge has never been more critical.
Whether it’s learning about market fundamentals, leveraging financing options or understanding the volatility of cryptocurrency, the consensus is clear – well-informed investors are best positioned to capitalise on the opportunities each asset class offers.
Equitiestracker Holdings Bhd
chief executive officer Alvin Vong highlighted the accessibility of stocks as a multi-asset class vehicle, noting that stock markets are finely tuned over the years and provide a safe avenue for investment.
“Regardless of asset classes, what separates professionals from amateurs is the knowledge they possess and the tools they use,” Vong explains.
Meanwhile, digital asset platforms DefiDive and Magnr chief executive officer Joe Lee said cryptocurrency investments are often misinterpreted as a complex or risky asset class.
“Cryptocurrency should not be underestimated. It (cryptocurrency investment) is now more accessible than property and equity investments,” Lee, who previously was a banker, said.
He said that investing in cryptocurrencies has never been easier, with numerous regulated platforms available.
The debate, organised by CSI Prop Sdn Bhd (CSI Prop), featured a three-way battle among property, cryptocurrency, and equities, with experts representing each of the asset classes.
CSI Prop is a real estate investment and research consultancy based in Malaysia, Singapore, and Hong Kong.
