Version: BM

TL;DR
Buying property in Malaysia is not just about “can I afford the instalment”.

The safest buyers do 6 checks: research, budget, property type and title, developer credibility, location reality, and the risks investors often underestimate (cash flow, rental demand, and doing DLP properly).

If you get these right, you reduce expensive surprises and buyer’s regret.

Why This Matters

Buying a home should feel exciting, not stressful. But the truth is, many people only realise what they missed after they sign the SPA.

This guide keeps it simple; just focus on these 6 factors!

Key Takeaways

• The best property decisions are not made by “best deal”, but by the best fundamentals.
• Your biggest mistake is usually not the house. It is the developer, the location, or the hidden costs.
• For investors, ROI alone can be misleading if rental demand and cash flow do not support it.
• Always use DLP (Defect Liability Period) properly. It is your strongest protection after vacant possession.

Do Proper Research Before Purchasing a Unit

Most people start by browsing portals. That’s fine, but research must go deeper than photos and price.

Checklist

• Can you see yourself living there daily (commute, safety, noise, parking)?
• What is nearby (schools, LRT/MRT, shops, hospital)?
• Is it a new launch, under construction, a subsale, or a completed unit?
• What is the real selling point: lifestyle, convenience, rental demand, or future growth?

Quick tip (BM)
Jangan tengok harga sahaja. Tengok juga akses, kemudahan, dan siapa pembeli sebenar di kawasan tu.

Budget Properly, Not Just the Monthly Payment

The common trap: “instalment ok”, then you get hit by legal fees, stamp duty, insurance, and renovation.

Budget items you should prepare (simple view)

If you want a safe buying experience, keep an emergency buffer after paying your down payment. Do not finish all your cash just to “secure the unit”.

Understanding Property Types and Titles

Before you choose based on design, understand what you are buying legally.

Property types

• Condo, serviced apartment, SOHO
• Terrace, semi-D, bungalow
• Dual key

Title basics

• Freehold: permanent ownership
• Leasehold: fixed term (commonly 99 years), renewal terms may apply
• Strata title: common for high-rise and gated communities, shared facilities
• Individual title: landed properties

This affects:

• resale appeal
• maintenance responsibility
• management quality
• long-term value perception

Developer Credibility is Essential

If you buy under construction, you are not only buying a home. You are buying the developer’s ability to deliver.

What to check

• Track record: completed projects and delivery reputation
• Licensing and approvals (ask for proof)
• Financial strength and contractor stability
• How they handle defects and complaints

Buyer mindset you should keep
A nice showroom is not proof of quality. Track record is.

Study the Location and Sight Thoroughly

This is where many first-time buyers and investors regret later.

You must do a real site check:

• Morning rush hour and nighttime
• Flood risk, traffic bottlenecks, nand oise level
• Surrounding supply (too many similar units can hurt rental)
• Who actually lives there: families, students, workers, expats?

Simple principle:
A cheap property in a weak location is not a bargain. It is a long-term headache.

Risks Investors Often Underestimate

This factor is the difference between “good on paper” and “good in real life”.

Q1. What risks do investors underestimate most?

Some investors focus too much on ROI percentages, but forget that strong cash flow, good location, and real rental demand are what keep Malaysian property investments stable.

ROI alone can be misleading

• High ROI on paper does not mean the property is easy to rent or sustainable
• Some projects show “nice numbers” but struggle with vacancy
  Investors who ignore fundamentals are the ones who regret it later.

Q2. How have market conditions changed the risk level today?

Malaysia’s interest rate is actually very friendly nowadays, and this causes the monthly instalment to be lower, and people find it easier to get a loan.

Meaning: buyers feel more confident to enter, but investors still need to check fundamentals because cheaper instalment does not guarantee rental demand.

Q3. One risk you’ve seen investors regret not considering enough?

Many first-time investors chase cheap properties, but ignore the location and don’t take the time to really visit and understand the site.

The best correction: stop looking at ONE factor only. Use DLP and the DLP mindset properly

Here is the simplest way to stay grounded before you buy:

And after you get vacant possession, use DLP (Defect Liability Period) seriously:

• Inspect carefully
• Record defects with photos
• Submit in writing within the timelines
• Follow up until fixed

This is how smart buyers protect themselves.

Final Thoughts

If you remember one thing, let it be this:

Buying property in Malaysia is safest when you check the developer, location, price, and you stay realistic about rental demand and cash flow. Promotions come and go. Fundamentals stay.

If you want, send me your target audience (first homebuyer, upgrader, investor, foreigner) and preferred angle (more financial, more lifestyle, more legal), and I will tailor the same 6-factor structure to match your exact campaign.

Ready to take the next step in your property investment adventures? Enquire here to get in touch with our trained professionals to find the right fit for you!

Continue Reading:

1. How to Avoid Buying an Abandoned House Project in Malaysia
2. Earn in SGD With Your Property: Why Investing in the Johor-Singapore SEZ is a Smart Move!
3. 6 Common Home Mistakes That Could Stop You From Owning a Second Property

The post 6 Factors Investors Must Check Before Investing in Properties appeared first on IQI Blog.

Version: BM, CN

Buying a home is supposed to be a milestone you look forward to. But when a project slows to a crawl or suddenly stops, the worry begins. 

An abandoned housing project is not just a construction issue. It affects your finances, your plans and your emotional well-being!

To protect yourself, you need to know how abandoned projects happen, the early warning signs and the steps you can take before and after committing to a property.

Key Takeaways: 

• More than 100,000 housing units in Malaysia are linked to abandoned or troubled projects, showing that the risk is bigger than many buyers realise.

• Silent developers, repeated delays and inactive construction sites are clear early warning signs that buyers should never ignore.

• Buyers are legally protected under the Housing Development Act, including the right to refunds, compensation and access to funds safeguarded in the HDA account.

• The most effective way to avoid abandoned projects is to choose developers with a proven track record, valid licences and transparent financial practices.

1. What Is Considered an Abandoned Project?

A project is usually considered abandoned when construction is delayed far beyond the promised timeline or when the developer can no longer continue work. 

Most buyers affected have already signed their SPA and started paying their housing loans, yet the building remains incomplete for months or even years.

In Malaysia, abandoned projects are painful because they trap buyers in a difficult financial position while offering very little clarity about the future.

How Big Is the Abandoned Project Problem in Malaysia?

To understand the scale of this issue, it helps to look at recent data from KPKT and national news agencies. 

The numbers below show how widespread delays, sick projects, and abandoned developments are across Malaysia.

Summary of Abandoned, Sick and Delayed Housing Projects (2023–2025)

These figures show that abandoned and troubled projects are a significant national issue, affecting hundreds of thousands of units and buyers.

2. Why Do Projects Get Abandoned?

There is rarely a single cause. Most abandoned projects happen due to a combination of financial, operational and approval issues on the developer’s side. Common reasons include:

1. Developer cash flow problems: When developers cannot pay contractors or suppliers, construction halts.
2. Rising construction costs: Material and labour prices may increase beyond the project’s budget.
3. Weak early sales: Poor sales reduce the cash flow needed to fund construction stages.
4. Land or approval complications: Delayed permits, compliance issues, or unresolved land matters freeze progress.
5. Inexperienced developers: New or untested developers may lack experience and financial discipline.

Understanding these causes helps buyers recognise early signs of trouble.

3. The Difference Between a Delayed Project and an Abandoned Project

Understanding the difference between a delayed project and an abandoned one helps buyers avoid unnecessary panic and recognise real risks early.

Below is a simple comparison:

2. How Abandoned Projects Impact Homebuyers

When a housing project stops, the first thing buyers feel is financial pressure. 

Many end up paying their home loan while still renting a place to stay, which quickly drains their monthly budget and savings. 

Money that was meant for a new life now gets stuck in a property that is not even close to completion.

This uncertainty brings stress, frustration and a sense of being trapped in a situation they cannot control.

At the same time, big life plans are also affected. Some postpone marriage, delay moving closer to work or put off starting a family because their home is not ready. 

In short, an abandoned project does not just stop construction. It disrupts a buyer’s finances, emotions and future plans all at once.

3. Early Red Flags Homebuyers Should Not Ignore

Buyers often sense something is wrong long before a project is officially declared abandoned. These warning signs should prompt immediate caution:

1. Slowed Construction Work: If workers appear less frequently or machinery is no longer active, this is an early red flag.
2. Lack of Communication: Developers who stop sharing progress updates or keep delaying announcements are often struggling behind the scenes.
3. Frequent Changes in Contractors: Sudden replacement of construction teams can signal payment issues or disputes.
4. Completion Dates Keep Shifting: Minor delays are normal, but repeated postponements show a deeper problem.
5. Buyers Complaining Online: Property forums and social media are usually the first places where early alarms appear.

Watching for these signs can help you act early before the situation worsens.

4. Why Buyers Still Fall for High-Risk Projects

Many buyers unintentionally commit to high-risk developments because the projects appear attractive at first glance. 

Developers may offer low entry costs, rebates or promotional packages that make the property seem affordable. Strong marketing or impressive showrooms can also create a false sense of confidence.

Some buyers assume that if a bank approves their loan, the project must be safe. In reality, loan approvals evaluate the buyer more than the developer. 

Without proper research, buyers may rely on the wrong indicators and miss early red flags.

Understanding these common traps helps buyers make decisions based on facts, not emotions.

5. What Legal Protections Do Buyers Have?

Wenn, a Real Estate Negotiator from IQI Global, explained that buyers should understand their legal protections under the Housing Development Act before assuming they have no options when a project stalls.

As long as your project is under the Housing Development Act, your rights are protected by law.

Wenn, IQI Global Real Estate Negotiator

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Under the Housing Development Act (HDA), buyers are not completely helpless. Several important protections exist:

1. You can lodge a formal complaint

The Ministry of Housing and Local Government (KPKT) handles buyer complaints and project monitoring.

2. You can check the project status

The e-Perumahan portal lets you verify if your development is progressing, delayed or under watch.

3. You may claim compensation

If your SPA includes a late delivery clause, you can claim liquidated damages once the delay exceeds the agreed timeline.

4. You have the right to official updates

Developers must respond to legitimate buyer inquiries and provide status updates.

While these protections help, they do not erase the stress buyers face. They simply provide a structured way to seek answers and accountability.

6. If Your Project Is Already Declared Abandoned

Don’t panic. Follow the proper steps and check the status officially.

Wenn, IQI Global Real Estate Negotiator

Once a project receives official abandoned status, the government steps in. The process usually involves several structured phases:

This process can take time, but it provides hope for buyers who have been left waiting for years.

7. How to Prevent Yourself from Becoming a Victim

Careful research before paying a booking fee can protect you from unnecessary risks. Here is a buyer-friendly checklist:

1. Check the developer’s reputation: Look at completed projects, delivery records and customer feedback. A trustworthy developer reduces your risk by half.

2. Verify the license and APDL: Make sure the project is legally approved. You can request this from the sales team or check official listings.

3. Assess the project’s progress online: The e-Perumahan website is a reliable tool for buyers to monitor construction status.

4. Visit the site physically: A real visit reveals more than brochures. You can see activity levels, surrounding developments and accessibility.

5. Observe buyer communities: Facebook groups, Telegram channels and property forums often hold early discussions about project issues.

Doing your homework helps you avoid long-term regret.

8. Is Malaysia Moving Toward Safer Housing Delivery?

Malaysia has been exploring a safer way for people to buy homes through the Build-Then-Sell (BTS) concept. 

This system differs from the traditional method used today, in which most homes are sold before construction even begins.

a) What is Build-Then-Sell?

Under BTS, developers must finish building the house first before selling it. Buyers get to see the actual home, check the quality and understand the surroundings before committing. 

This greatly reduces the risk of delays or abandonment, as the project already exists.

b) Why is the government encouraging this model

BTS gives buyers more protection! When a house is already built, you avoid many common risks such as long construction delays, poor workmanship or buying into a project that may later be abandoned. 

Developers are also encouraged to plan better financially because they cannot rely on early sales to fund construction.

c) How it benefits homebuyers

BTS helps buyers avoid the biggest risks in the property market:

• No need to pay for a house you cannot see yet
• No loan instalments while waiting for construction
• No risk of buying into an abandoned or “sick” project
• Fewer surprises in quality, finishing and layout
• Higher confidence because the house already exists

Choosing the right developer is choosing peace of mind. Price and promotions are never worth the risk if the developer cannot deliver.

Wenn, IQI Global Real Estate Negotiator

Final Thoughts

An abandoned project is one of the most painful experiences a homebuyer can face. 

But with the proper awareness, due diligence and understanding of your rights, you can minimise your risk and make better decisions.

Buying a home should bring peace, not anxiety! Take the time to research, ask questions and verify every detail before committing. 

A few extra steps today can prevent years of financial and emotional stress later.

Grow with IQI, where every agent is equipped with the right tools, mentorship and market insights to succeed. Complete the form below and take your first step toward a successful career.

Continue Reading:

1. Understanding Condo Management Fees: The Lower, The Better?
2. Auction Home vs. Blacklisted: Key Differences to Know Before Buying Property
3. 6 Common Home Mistakes That Could Stop You From Owning a Second Property

The post How to Avoid Buying an Abandoned House Project in Malaysia appeared first on IQI Blog.

Version: CN, BM

On January 7, 2025, Malaysia and Singapore took a transformative step forward with the official signing of a Memorandum of Understanding (MOU) to develop the Johor-Singapore Special Economic Zone (JS-SEZ).

This bold, ground breaking move promises to reshape the economic landscape of both countries, including streamlining business operations, and fostering talent development. 

By narrowing the wage gap with Singapore, Johor is poised to become a competitive powerhouse for skilled professionals, attracting a younger, high-income demographic.

As a result, the property market is expected to see a rise in demand for quality housing, especially near business areas like Johor Bahru and Iskandar Puteri. 

As of October 2025, approved investments in the JSS have reached RM 37.1 billion, driven by growth in data centres, healthcare, logistics, and advanced manufacturing.

Early-stage investments totalling RM 40–50 billion are also in the pipeline, underscoring investor confidence in the zone’s long-term potential.

Discover how Johor Bahru is transforming Malaysia’s economic landscape and how property buyers can gain from this growth. 

1. Insights on Johor Property Market

In Johor Bahru’s city center, the average price per square foot currently ranges from RM950 to RM1000.

Prior to the state’s re-development, the property prices were around RM750 to RM800. This is an increase of almost 15% over the past six months.

This shows that the upcoming economic zones can bring in very promising growth for the Johor Bahru property scene. Even before, we can see a daily influx of Singaporeans into Johor Bahru for various activities.

Now with JS-SEZ come into focus, it’ll be easier and quicker to commute and do daily transaction between Johor and Singapore.

How Singaporeans Are Turning to Johor Bahru for Property Investment? 

In Singapore, rental and property prices, especially for four-bedroom condominiums, are steep, with rents ranging from SGD$4000 to $5000.

When converted to Malaysian Ringgit, this translates to over RM15,000. So, it’s clear as a day that buying homes in Johor Bahru is a lot cheaper for Singaporeans.

They can rent out their Singapore property for additional income while enjoying passive income to cover installments in Malaysia. With higher demand and accessibility, Johor property prices will continually rise.

The JS-SEZ Key Areas

In line with the memorandum signing, nine key areas have been pinpointed within the JS-SEZ, including Johor Bahru City Center, Iskandar Puteri, Tanjung Pelepas, Pasir Gudang, Senai, Sedenak, Forest City, the Pengerang Integrated Petroleum Complex (PIPC), and Desaru.

Each of these zones is set to specialise in different economic activities.

For example, Iskandar Puteri being the largest urban integrated development in Southeast Asia that spans 24,000 acres is designed with families in mind, featuring a range of parks, educational schools, and modern facilities.

While, Forest City was envisioned as a green, smart city, utilising advanced technology to create a sustainable living environment.

Forest City is designed to eventually house up to 700,000 residents, making it a significant player in Johor-Singapore region.

The JS-SEZ Impacts on Money and Property

With the recent signing of the JS-SEZ, the agreement will profoundly impact real estate markets in both countries.

Additionally, if both nations fully commit to the project, Johor could see GDP growth of 0.5 to 0.9 per cent, contributing up to RM20 billion in the short term, and possibly exceeding RM30 to RM50 billion in the long term.

This economic growth aligns with the International Monetary Fund’s (IMF) prediction, which estimates Malaysia’s GDP in 2025 at RM2.245 trillion, mainly fueled by substantial foreign direct investment, especially from China and the United States.

As demand increases, Johor is likely to see a decrease in its residential property surplus, giving homeowners a chance for their property values to rise.

2. Earn in SGD: An Untapped Market

The hidden opportunity here is making Johor Bahru the centre of Singaporean business or industry operations.

What can be done is establishing a virtual office in Singapore, while setting up their main operations in Johor Bahru.

Consequently, business owners in Johor Bahru may adjust their pricing to capitalize on this demand. In some Johor families, the husband may be permanently employed in Singapore.

Some work as a driver in Singapore, where they earn around SGD$3,500 to $5,000. When converted to Malaysian Ringgit, this translates to more than RM10,000.

In such cases, the husband works in Singapore while the family resides in Johor, and they send money back regularly to sustain themselves.

And with the future of RTS in operation, and seamless transportation, the possibility arises for Johor locals to work together in Singapore, potentially earning a combined income of up to SGD7,000.

That translates to an approximate combined income of RM24,500.

With this much earning potential, it’s become more than feasible to to purchase property in the town city center.

Economic Centre and Tech-Boom

Singapore is also known as an international economic powerhouse.

As part of their strategic planning, Singapore aims to elevate its position further, offering benefits to neighbouring countries like Malaysia.

This presents a valuable opportunity to attract Singaporean industrial players to Johor Bahru.

This isn’t just speculation; it’s a reality. Singaporean industrial players are already expressing interest in purchasing land in Johor Bahru.

Additionally, there’s the exciting development of a data center in collaboration with our government’s economic initiatives.

Located in Sedenak within Johor Bahru, this data centre presents opportunities for Singaporean players in AI and data-related industries to establish a presence, further enhancing job prospects in the region.

Connecting Two Economies

Infrastructure remains central to the JS-SEZ vision. The RTS Link, slated for completion by December 2026, is expected to significantly reduce border congestion and improve daily commutes for cross-border workers.

Beyond transport, the integration of payment systems — including Visa, MasterCard, GrabPay, and Touch ’n Go — underscores broader efforts to create a seamless cross-border experience.

Complementary measures, such as enhanced customs systems and digital QR code clearance, further aim to streamline border processes and strengthen overall connectivity between both sides.

Hidden Opportunities: JB’s Open Secret

There are other hidden opportunities that many overlook, particularly in the third or fourth layer, including agricultural land.

This presents a chance to attract international players, industries, or factories to Johor Bahru.

For instance, cultivating agricultural land could supply vegetables to Singapore, offering a lucrative business opportunity where you can earn in Singapore dollars while operating in Malaysia.

3. What sets Johor apart from other states?

Currently, property prices range from RM900 to RM1500 per square foot.

There’s a significant gap between these prices, and it’s because of the comparison between Johor Bahru and other cities like KL or Penang.

Unlike these cities, Johor town center lacks five-star hotels and entertainment options, with only a few shopping malls available.

However, there’s vast undeveloped land in JB, making it ripe for development, especially with the influx of population expected with the RTS.

With this in mind, there’s a great opportunity for the development of high-end properties in the Johor town.

Opportunities For Commercial Development

In Johor Bahru, particularly in the town city center area, commercial listings are relatively scarce.

Currently, there are only three shopping malls serving the area, primarily catering to Malaysian workers commuting to and from Singapore.

This high traffic flow contributes to the demand for commercial space.

However, despite the demand, leasing prices remain reasonable, with retail spaces averaging around RM23 per square foot per month.

Looking ahead, with the impending completion of the RTS, developers have a prime opportunity to capitalize on this demand by introducing more commercial spaces in the city center, especially those tailored to entertainment purposes.

Higher Salary Compared to Other States

In a bold and strategic move, Johor has set new salary benchmarks to attract top talent and boost its competitiveness in the regional job market.

By offering attractive minimum salary standards, the state aims to position itself as an appealing destination for skilled professionals, especially compared to other states in Malaysia.

• RM4,000 minimum for diploma holders
• RM5,000 minimum for degree holders

Shorter Workweek

Starting January 2025, Johor will shift its weekend rest days back to Saturday and Sunday.

This may sound simple, but for businesses, it’s a game changer. Aligning with the rest of Malaysia, and globally recognised rest days, will improve collaboration for Johor-based businesses, especially those with regional and international partners.

In addition, Johor is also taking a progressive approach by considering a 4.5-day workweek for civil servants.

• Monday to Thursday: 7:30 AM – 3:30 PM
• Friday: 7:30 AM – 12:00 PM

This shorter workweek, combined with flexible and remote working options, is aimed at improving productivity and work-life balance.

While currently focused on the public sector, its successful implementation could inspire private companies to adopt similar practices, making Johor an attractive destination for professionals seeking flexibility.

4. Where to invest in property in Johor

Investors are keen on the RTS in Johor Bahru’s town center, which is already a hotspot.

Prices have surged, reaching up to RM1100 or even RM1500 per square foot. However, these properties come with comprehensive management services, which match the high price point.

So experts advice investors to prioritise Johor Bahru.

Here, prices range from RM900 to RM1000 per square foot, making it a prime investment opportunity.

Properties below RM800 per square foot are rare but worth buying if you come across them.

For the next option, consider the second layer, including areas like Danga Bay, Taman Pelangi, Taman Sentosa, Tebrau and Permas Jaya.

While many prefer the city center due to its proximity to Singapore, the second layer offers greater convenience and quality of life.

Despite heavy traffic, these areas are more livable, with fewer congestion issues.

5. Will Johor be the next KL?

We believe that Johor Bahru is attracting significant interest from investors across Malaysia, not just Kuala Lumpur, especially after hearing the JS-SEZ news.

Its strategic location next to Singapore, coupled with developments like the Johor-Singapore SEZ and booming tech infrastructure, position Johor as the next big opportunity for property investors.

This means higher demand for residential properties (for workers and professionals)

If you’re looking for a market that blends affordability, growth, and demand, Johor offers all three. The transformation is happening now—and those who act early could see some of the biggest gains.

This article includes contributions from Leong and Connie Lee from Juwai IQI and Chris Tan, founder of Chur Associates.

Larry is the Founder of Dreammakerz Team with Juwai IQI, with 12 years of experience in real estate. Larry has created a team all over Malaysia, assisting other IQI Warriors to achieve 6-digit income. He is committed to creating gross development value in his team.

Connie is a registered estate agent from IQI Dreammakerz, with 8 years of experience. She specializes in the Johor Bahru and Kuala Lumpur markets, and is the recipient of several awards such as the StarProperty Regional award, IQI Champion and more.

If you need help to invest in Johor or Malaysian property, leave us your details and we’ll connect you to a professional soonest possible.

Continue reading:

1. The Beginner’s Guide to Property Investment in Malaysia | Real Estate 101
2. Must-know fees when selling property in Malaysia 2024
3. Top 7 Smart Strategies for using AI in Successful Property Investment in 2024

The post Earn in SGD With Your Property: Why Investing in the Johor-Singapore SEZ is a Smart Move! appeared first on IQI Blog.

Version: BM, CN

To reduce crime and safeguard landlords’ investments, Malaysia could implement a policy requiring all rental transactions to be handled by licensed real estate agents.  

These professionals would be responsible for conducting document checks and sharing blacklists of criminal tenants, according to Muhazrol Muhamad, Head of the Bumiputera Segment at IQI Global. 

Mr. Muhamad’s comments follow statements made by Bukit Aman’s Commercial Crime Investigation Department Director, Ramli Mohamed Yoosuf.  

Mr. Yoosuf suggested that landlords could face prosecution for criminal conspiracy or abetment if their tenants engage in illegal activities, such as running fraudulent call centers, mining bitcoin, operating brothels or gambling dens. 

“The main challenge is that too many parties are involved in handling rentals,” said Mr. Muhamad.

“Today, homeowners can rent out their units directly through platforms like Mudah, iBilik, or Facebook without involving a licensed real estate agent.”  

Muhazrol Muhamad, Head of the Bumiputera Segment at IQI Global

“The main challenge is that too many parties are involved in handling rentals,” explained Mr. Muhamad.

He also pointed out that many rental agreements are facilitated by unregistered agents, middlemen, or subletting companies, making it difficult to enforce regulations effectively. 

This situation is far from ideal. Mr. Muhamad argues that only registered real estate agents (REAs) or real estate negotiators (RENs) should be responsible for handling leases to ensure a more regulated, accountable system.  

“If the government wants to make rental property regulation more manageable, only registered real estate agencies should be allowed to manage property rentals,” he added. 

He also emphasized that regulations should focus on entities that are properly trained and equipped with the resources to enforce the rules effectively.  

By doing so, landlords and tenants would be removed from the regulatory spotlight, and enforcement would be concentrated on licensed professionals. 

Furthermore, requiring agents to handle all rental transactions would ensure that official contracts are in place and that thorough, know-your-customer-style due diligence is completed.

However, Mr. Muhamad acknowledged that this approach might be challenging for landlords who prefer renting their properties independently without an agent. 

“This proposal does have its challenges, as it may burden individual landlords who prefer to rent out their properties without an agent. But from a regulatory standpoint, it could be a more effective solution to ensure a safer and more structured rental market in Malaysia,” concluded Mr. Muhamad. 

In conclusion, requiring licensed real estate agents to handle all rental transactions would strengthen Malaysia’s rental market by ensuring proper regulation, reducing crime risks, and protecting landlords from potential liability.  

This approach would foster a safer, more organized environment for both landlords and tenants, ultimately creating a more reliable and accountable rental system. 

Juwai IQI is the world-renowned property company that provides insights on property, locally and globally

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The post How Real Estate Agents Can Help Reduce Crime and Safeguard Landlords | IQI Global appeared first on IQI Blog.

Version: CN

Desmond Sin, a seasoned real estate agent with nine years of experience specializing in the Penang and Kuala Lumpur regions, contributed the contents of this article.

Penang (or Pulau Pinang), known for its colorful culture and beautiful oceanside views, has always been an intimidating area to invest in due to its high property prices and Airbnb restrictions.

However, investing in Penang can give you high investment returns if you know how to tackle these restrictions!

Prices are only going higher (plus the upcoming LRT in the area), so if you’re considering investing in Penang, continue reading to understand everything about the Penang property market.

1. Who is buying property in Penang?

Young first-time homebuyers

Young first-time homebuyers

A rising amount of homebuyers come from those in their early 20s.

Some individuals started buying homes as they entered the workforce at a young age, started earning money, and felt ready to purchase property.

Since young homebuyers enter the market every year, there is no shortage of people buying houses, which means the demand for properties remains consistently strong.

Recently, a 21-year-old refreshed my record for the youngest client, so there’s no lack of people who want to buy a house every year.

Desmond Sin, IQI agent

Investors

Of course, investors are another audience for Penang property, local and foreign.

With different goals from the average homebuyer, they usually do their homework. Some are inclined toward, for example, sea-view properties, while others are specifically interested in below-market-price opportunities.

Investors tend to wait until the perfect opportunity arises before taking action.

2. What properties do people buy in Penang?

Penang is sought after for its sea-view properties

With Penang’s reputation for breathtaking sea views, there is significant interest in sea-view properties, which typically start at around RM1 million and can go up to RM2 million for the latest launches.

Due to these high prices, not everyone is prepared to invest.

Investors interested in sea-view properties usually have multiple properties already and will carefully evaluate their choices before making a decision.

Do people buy high-rise or landed property in Penang?

Depending on the buyer’s financial capacity, both landed properties and condos are being purchased.

Why do people choose landed homes?

For those with a budget over a million, a landed property in Penang is often preferred.

In central and strategic areas of Penang, an older single-story house that needs renovation might cost around RM800,000.

These properties often involve buying the land itself, with the house’s condition varying. Some buyers may opt for minor renovations, while others might choose to demolish and rebuild.

Why people buy high-rise properties

For condos, especially new projects, prices in desirable locations typically start at RM700,000 to RM800,000.

Buyers looking for better locations and lower-density options will find condos in this price range appealing.

Ultimately, it comes down to securing a prime location and choosing a reputable developer.

3. Reasons people invest in Penang property

1. Job opportunities

Batu Kawan is a hotspot in Penang that attracts interest not only from Penang residents but also from people in Kedah, Perak, and even KL.

Due to the high concentration of factories in the area, Penang is often the second-choice destination for engineering students after Singapore.

Batu Kawan is a more industrial area, and the Penang Chief Minister has recommended it for larger factories. Finding space for big factories in Bayan Lepas is relatively challenging.

Consequently, many large factories are relocating to Batu Kawan. The industrial zone there is already home to numerous factories, with more large-scale facilities expected to be established in the future, making it an ideal location for such operations.

2. Affordable price

First-time homebuyers often focus on properties in Batu Kawan. Homes priced below RM500,000 can qualify for a government stamp duty exemption, which can save them approximately RM9,000 to RM10,000.

Batu Kawan is an attractive area for these buyers, offering potential finds within this price range. Additionally, Batu Kawan is a rapidly developing area with significant future growth potential.

3. Booming international tourism

Penang, in particular, appeals to tourists due to its balanced lifestyle pace.

The extension of the visa exemption for Malaysians traveling to China until next year benefits both Malaysians visiting China and attracts more Chinese tourists to Malaysia.

During the recent durian season, a notable number of Chinese, Hong Kong, and Taiwanese tourists visited Penang to enjoy the fruit, indicating a growing interest in the region’s tourism.

The government is actively working to draw more Chinese tourists, as Malaysia offers relatively affordable spending options.

4. Relaxed MM2H requirements

Additionally, some individuals might consider investing in properties through the Malaysia My Second Home (MM2H) program.

With the relaxed requirements to purchase homes in Malaysia through the MM2H program, more international investors will turn to Penang for overseas investment.

4. Hotspots in Penang

Jalan Macalister is the place to be for Airbnbs

Currently, the top area for Airbnb remains around Jalan Macalister.

This location is highly popular due to its proximity to food, entertainment, and medical facilities, allowing visitors easy access to these amenities on foot.

It’s also a short walk to KOMTAR, Penang’s iconic building, and new attractions atop KOMTAR offer panoramic views of the entire Penang skyline.

Many tourists visit Penang for its renowned food, and you’ll frequently encounter Indonesian visitors. The journey from Indonesia takes only about 30 to 45 minutes, quicker than traveling to KL.

Bayan Lepas Free Industrial Zone brings in more residents

Bayan Lepas is also starting to show more growth potential in its industrial area, where many workers commute on foot and use alternative transportation methods like biking.

I’m very optimistic about that area because many people work there, and a lot of them prefer not to drive. Some even choose to bike to work. Essentially, every place has its own strategy, even if it’s just a small area.

Desmond Sin

5. Up-and-coming areas in Penang

Upcoming projects in Queensbay

Queensbay has already seen significant growth and is expected to continue expanding, especially with the upcoming Marriott Hotel and Marriott Hotel Residences adjacent to the property.

These high-end developments could drive prices up to RM20-RM22 per square foot, given the strategic location.

Tanjung Tokong to become a more valuable area

Tanjung Tokong, where the Andaman development by E&O is located, also has a high potential for growth.

With Straits Quay 1 already completed, E&O is now reclaiming land for Straits Quay 2, which will eventually cover 70 acres.

Over the next 20 to 30 years, this area is set to become increasingly prominent. Investing during Phase 1 was ideal, as prices then were RM700-800 per square foot.

Currently, Phase 2 prices are around RM1,100, and Phase 3 could reach RM1,300-1,400.

Foreigners relocate to Tanjung Tokong for its environment

As for prospective buyers in Tanjong Tokong, it is likely to attract primarily foreigners.

Expatriates working in local factories might prefer the area for its relaxed environment.

Additionally, some foreigners may relocate here with their families for better educational opportunities, as international school fees in Penang are relatively affordable.

I’ve spoken to some parents who moved here to enroll their children in international schools, leaving behind their jobs abroad. Some even open businesses like Japanese or Korean restaurants to support their families.

Desmond Sin

Penang Turf Club boasts opportunities for developers just outside the city

The iconic Penang Turf Club, previously well-known as one of the very few legal gambling spots in Malaysia, holds opportunities for developers keen on leveraging suburban areas.

The 202-acre Malaysian institution located just outside of George Town, near Jalan Batu Gantong, is set to be sold for up to RM6 billion.

With its prime location and high potential ROI, the Penang Turf Club area is expected to attract many potential investors, locally and globally.

6. Are Airbnbs banned in Penang?

In Penang, not all properties allow Airbnb, especially those with a commercial title under the Housing Development Act (HDA).

Airbnb rates can differ significantly, with some units priced between RM1,000 and RM1,500 per night.

This might make some investors hesitant, especially considering the restrictions on Airbnb in Penang.

It’s crucial to check these details before purchasing, as restrictions could arise, making it risky to invest in properties with a commercial title under the HDA.

7. How will the new Penang LRT affect property prices?

The new Penang LRT eases commute

The Penang LRT will provide greater convenience, especially for those commuting from other states or individuals who rely on public transit.

Unlike buses, which can face delays due to traffic and accidents, LRTs are typically more punctual and efficient.

Property prices will continue to rise despite new LRT

Living near an LRT station could offer a significant advantage, possibly raising property values by around 20%.

However, property prices in Penang are increasing year after year due to land scarcity, regardless of the LRT’s impact.

List of affordable housing in Penang that are RM500k and below

1. Elements Garden

elements garden

kampung baharu, 13400 butterworth, penang

3 - 4 beds | 2 baths

MYR 428,000

2. Imperial Grande

Error: Unable to fetch property details.

3. Rubica @ Harbour Place

Error: Unable to fetch property details.

4. Emerald Residence

emerald residence

cangkat bukit belah, teluk kumbar, 11920 bayan lepas, penang

3 beds | 2 baths

MYR 448,618

5. Epic Avenue

Error: Unable to fetch property details.

8. What to take note of if you want to invest in Penang property

For Penang residents, it’s important to note that properties in prime locations are likely to be quickly acquired by foreign investors.

Penang’s government has extended opportunities for foreigners to purchase property until the end of this year.

Foreign buyers can now acquire properties valued at RM700,000 or above, which is a relatively modest amount for many international buyers, especially with the recent strengthening of the ringgit.

Additionally, there are savings on levies and fees; for example, the state consent fee might be as low as RM12,500, with some developers waiving it entirely.

Do you think that owning a property in Penang will be a worthwhile investment?

Desmond Sin is a seasoned real estate agent with 9 years of industry experience, focusing on Kuala Lumpur and Penang. As team leader of IQI Elite, his outstanding performance has earned him several awards, including the Overall Champion in Project Sales in 2019 and the Million Dollar Achiever (Platinum) in 2023.

Leverage on the potential of high returns on investment or a future home for retirement in Perak! If you’re on the lookout to buying property, let our experts help you in your purchasing journey.

Frequently Asked Questions:

Yes, foreigners can purchase property in Penang. However, certain restrictions apply, such as a minimum purchase price of RM1 million. Additionally, foreigners are generally restricted from owning land in certain areas, especially cultural buildings and heritage properties in Penang, particularly around Georgetown.

The average property price in Penang can vary greatly depending on the location, type of property, and size. However, according to data from iProperty.com.my, the median transacted price for residential properties in Penang is RM 595,000, with a median transacted price of RM 520 per sq. ft.

Rental yields in Penang vary by property type and location. For instance, the average rental yield for apartments in Penang is approximately 5.74%. You may read about this research at Property Purchase and Rental Price In Malaysia Market

In the first half of 2023, Penang’s residential property market recorded strong annual growth of 5.6%, securing the second-best position in Southeast Asia. This growth is attributed to government initiatives, infrastructure development, and increased foreign investment. Read more about this at IQI Global

Continue reading:

1. Guide to Buying Property in Penang! | Real Estate 101
2. Penang Turf Club: From Racing Legacy to Future Land Prospects
3. Foreigner’s Guide To Buying Property In Malaysia

The post Penang Property Insights: Beautiful Homes by the Sea, Upcoming Mutiara LRT Brings High Return Potential appeared first on IQI Blog.

You have been wanting to own a home for some time. Now, you hear that a new property area is being developed in the location you’ve always dreamed of.  

It’s near your workplace, with charming cafes nearby and easy access to shopping centers and public transport.  

However, there is a challenge: the houses are still being built and are only in the early stages. Heavy construction is ongoing, and the completion date is unclear.  

This leads to a dilemma: “Should I go ahead and put down a deposit on this new property, even though I’m unsure of what it will eventually look like? Should I take a leap of faith and invest despite the uncertainty?” 

Understand that investing in under-construction homes can offer both attractive opportunities and significant risks, as they come with uncertainties that need to be carefully considered. 

Here’s what you should know before investing in a home that is still under construction.  

The Good Side 

1. Lower Purchase Price 

Investing in an under-construction home or semi-complete home can be particularly appealing due to the possibility of a lower purchase price.  

Since the property isn’t fully finished, developers or sellers might provide substantial discounts, allowing buyers to secure real estate for much less than a fully completed home. 

For under-con properties, you usually just need to cover the booking fee, which can range from around RM 1,000 to RM 15,000. (Of course, this can change based on market trends each year.) 

Those looking to enhance their return on investment (ROI), this presents a great opportunity, as the lower upfront cost can result in greater profit margins when the home is eventually completed and either sold or rented out. 

2. Customization Potential  

When buying an under-construction home, buyers usually have a say in the final design and finishes.  

This includes selecting flooring materials, paint colours, kitchen and bathroom fixtures, or even altering the layout to meet specific needs!  

For homeowners, it’s a great opportunity to shape a property that matches their style without having to build from the ground up, especially if the existing structure is already close to what they envision. 

3. Higher Returns 

Investing in a property that’s still being built can often lead to better returns because there’s a longer gap between when you buy it and when it’s ready.  

If you decide to sell once you get the Occupation Certificate, you could see a nice increase in the value of your investment. 

4. Less Competition 

There may be less competition for semi-completed homes or homes that are still under construction, compared to fully finished properties, as many home seekers are wary of purchasing homes that aren’t finished, fearing hidden issues or prolonged timelines. 

This lower demand can give investors a stronger position to negotiate, helping them snag better deals! 

5. Improved Market Value Post-Completion 

This is a big plus for anyone looking to get into the rental business!  

When the house is finally completed, its market value can really shoot up, especially if it’s in a growing neighbourhood. 

You can boost its value with updates and changes that align with what buyers want today. Often, the increase in value from completing a home can be greater than the original investment. 

The Bad Side 

1. Higher Risk of Abandonment  

Investing in a project that is still under construction carries some level of risk.  

There have been instances where builders failed to meet deadlines or worse, completely abandoned the property project.

This can happen for a variety of reasons, including financial difficulties, rising costs of construction materials, and increased interest rates.  

Therefore, it’s imperative to do detailed research on the builder’s background before making any investment in an under-construction project. 

(If you’re already dealing with the monthly interest that keeps piling up, you better hope that the developer doesn’t suddenly ghost and flee away with your cash).  

2. Uncertainty Around Completion Timeline 

Although the idea of owning a ‘brand-new’ home is exciting, the timeline for its completion can often be uncertain.  

Delays may arise from contractor schedules, funding challenges, or permit issues. This unpredictability can affect financial forecasts and result in higher carrying costs, including mortgage payments, insurance, and property taxes. 

3. Quality and Safety Concerns 

Not every home is constructed with the same level of quality, and there could be hidden issues with the building.  

It’s wise to verify that the construction company provides truthful outcomes and adheres to local building codes. Bad construction can result in expensive repairs and safety risks, particularly if shortcuts were taken during the original build.  

Inspect and evaluate the property before agreeing to purchase, as unseen problems could lead to significant risks later. 

4. Legal and Compliance Risks 

Which leads to the next point, which is potential expose to legal complications.  

If the property is not properly permitted or does not meet local zoning laws, you may find yourself dealing with legal disputes, fines, or forced renovations to bring the home into compliance.  

Additionally, there could be outstanding issues with contractors that could complicate the transfer of ownership.  

Again, double check the property’s legal standing and ensure that all permits and approvals are in place before investing in under construction homes.  

5. Market Risks and Uncertain Resale Value 

While a new construction home may offer potential for increased value once finished, the real estate market can be unpredictable.  

The property’s value may not appreciate as expected, especially if the market experiences a downturn or if the home’s location becomes less desirable over time.  

If you are planning to sell the home after completion, there is always a risk that the final resale value will not justify the investment made in completing the home.  

Furthermore, changes in market conditions during the construction period—such as a shift in buyer preferences or an increase in interest rates—can impact the sale price.  

Mistakes To Avoid 

1. Neglecting Inspection 

One of the biggest mistakes you can make is neglecting a thorough inspection of the semi-completed home.

Simply assuming that everything is in order because the property is “almost finished” can lead to costly surprises.  

Always hire a professional inspector who can assess the structural integrity of systems like electrical, plumbing, HVAC and others.  

2. Underestimating Completion Costs 

It’s common to underestimate the expenses involved in completing a home, leading many investors to miscalculate the total costs.  

To avoid this mistake, get detailed quotation from contractors and professionals who can help you assess the total cost of finishing the construction.  

Add a buffer for unforeseen expenses to ensure you’re financially prepared.  

Consider: The total cost you need to cover, the 10% down payment, legal fees, rebates, cashback, and other hidden inspection, all of these are often hidden in the selling price and may be added to your mortgage loan. 

3. Not Verifying Legal and Compliance Status 

Never assume that the property is in good legal standing simply because it’s ‘under construction’.  

Always verify that the necessary permits and zoning requirements are in place. Make sure the previous owner or developer hasn’t left any unresolved legal issues.  

Doing this will help you avoid costly legal battles or the need to redo work to meet code requirements. 

4. Ignoring Market Conditions 

Even if a semi-complete home seems like a bargain, don’t forget to consider the broader market conditions.  

In some markets, the value of a property may not increase significantly after completion, or the cost of finishing might outweigh the potential profit. 

Always conduct a thorough market analysis before purchasing to ensure that your investment will yield a positive return.  

5. Fail to Plan Ahead  

If the property is delayed in terms of completion or if you’re facing long construction timelines, make sure you’ve planned your finances accordingly.  

Anticipate potential holding costs, such as loan repayments, insurance, and property taxes, and ensure you have the liquidity to cover these expenses during the construction phase. 

Investing in an under-construction home can offer enticing opportunities, but it also presents significant risks.

Uncertainty around completion timelines, unexpected costs, quality issues, financing difficulties, legal complications, and fluctuating market conditions can all turn a seemingly profitable investment into a challenging and costly endeavor.  

As our IQI Agent from AG Group, Putera Amirul Haziq suggestsed, home investors should conduct thorough due diligence, carefully assess the property’s condition, and look for potential risks to ensure they are making a sound financial decision.

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The post 5 Mistakes to Avoid When Investing in New-Construction Home  appeared first on IQI Blog.

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This article includes perspectives from IQI real estate negotiators; Vincy Lim from Tawau and David Leong from Kota Kinabalu, providing valuable insights into the primary property interests of investors in Sabah.

If a country were to have a favourite child, Sabah would be Malaysia’s golden child.  

Located on the island of Borneo in Malaysia, the state is known for its natural beauty, rich culture, and economic potential.  

In recent years, the property market in Sabah has witnessed dynamic growth, particularly in key cities and hotspots like Kota Kinabalu and Tawau.   

Not to mention, there’s an influx of international investors, particularly from China, who are purchasing land to develop hotels and resorts.  

Hence every year, the Malaysia government would allocate over millions of ringgits to develop Sabah and Sarawak economic infrastructure projects.   

And this tradition continues with 2025 Budget Malaysia tabling revealing RM6.7 billion to be allocated under Sabah, focusing on essential infrastructure such as roads, electricity, and clean water.   

So besides being a top tourist destination, what else does Sabah have to offer?   

Above all, what gives buyers, investors, and tourists the confidence to choose this state? 

Sabah Property Insight  

Different Types of Housing in Sabah  

According to Vincy Lim, Tawau serves as one of the regions in Sabah where affordable housing schemes are a major focus.  

The Rumah Mesra Rakyat and PR1MA programs have become popular among middle-to-low-income families due to their affordability.  

These schemes typically offer homes priced below RM 250,000, with prices depending on income levels, family size, and location.   

However, for those looking for larger landed properties, the prices are much higher.  

If you opt for private sectors, the price for landed terraces typically starts at RM 800,000 and above. While Semi-detached homes range between RM 1.3 million to RM 1.4 million. 

As for Kota Kinabalu, David Leong mentioned that the capital city of Sabah, is a bustling urban center with a diverse range of properties, from luxurious condominiums to landed homes and commercial real estate.  

And unlike Tawau, Kota Kinabalu (KK) has a larger urban population and a greater demand for both landed properties and high-rise condominiums.  

Landed homes in KK can be quite expensive, with prices reaching up to RM 1.5 million for larger properties in desirable areas.  

On the other hand, condominiums in the city typically range from RM 1.2 million to RM 1.5 million for units between 1,200 and 1,500 sq ft.  

These condominiums are particularly popular for Airbnb rentals, as KK’s tourism sector continues to grow.” 

David Leong

First Time Homebuyers Incentive  

During the 2025 Budget tabling, the government also highlighted their strong commitment of RM5.93 billion for housing initiatives, suggesting a major investment in making homes more accessible for all Malaysians. 

This includes first-time home buyers who can get up to RM7,000 tax break when buying residential properties that cost up to RM500,000. 

Families are the primary applicants for affordable housing schemes, which offer a great opportunity for residents to own homes at subsidized prices.” 

Vincy Lim

Investment Potential in Sabah  

As for investment opportunities, Samporna is the best spot to invest in Sabah.  

The town is famous for its proximity to Sipadan, a world-renowned diving destination.  

In Semporna, rental prices for properties in prime tourist locations can range from RM 5,000 to RM 10,000 per month, reflecting the high demand due to the area’s popularity among tourists.  

For this, investors often start Airbnb businesses to attract tourists who prefer the flexibility of renting a property instead of staying in costly hotels.  

Furthermore, the expansion of Tawau Airport is expected to further stimulate tourism and property development in Semporna, making it an even more attractive location for real estate investors. 

The investment market in Semporna is geared towards the tourism industry, with many new hotels being built.” 

Vincy Lim

Over the past few years, there has been an influx of both local and international investors, particularly from China, who are purchasing land to develop hotels and resorts. 

As of September 2024, Sabah’s Chief Minister, Datuk Seri Hajiji Noor revealed that the state’s economic ties with China were driven by strong trade, investment, and collaborative projects across sectors.  

This includes hospitality like hotels and beach homes to turn into villas.

Additionally, Watervillas and properties on the nearby islands are also increasingly sought after by high-end investors.  

Sabah as Tourism Destination 

The Beauty of its Nature  

The pristine beaches, lush rainforests, and lively culture make it a favourite spot for those who love nature, crave adventure, or appreciate cultural experiences.  

The expansion of the tourism industry in Sabah has led to a significant increase in demand for commercial properties, especially those located close to major tourist attractions. 

Vincy recommends Kundasang as the prime location for relocation or investment in Sabah, particularly for those interested in mountain areas. 

Situated in the highlands of the Ranau, Kundasang boasts a tranquil and cool climate, making it an ideal retreat from the tropical heat.  

The town provides stunning views of Mount Kinabalu, the tallest mountain in Southeast Asia, and it’s refreshing mountainous climate offers a welcome escape from the heat and humidity.” 

Vincy Lim

Local Festivals  

Its local culture also plays a role in shaping the real estate market.

One of the key cultural events is the Harvest Festival (also known as the Kaamatan Festival), which mainly targets local visitors.  

Traditional events, such as the Rekata Lebah, are also part of the region’s rich cultural heritage.  

These major tourism contributors directly contribute to Sabah’s economy through visitor spending on accommodation, food, transportation, shopping, and activities. 

As it also helps the industry create employment opportunities in various sectors, including hospitality, transportation, retail, and entertainment.    

These festivals not only attract tourists but also promote cultural exchange and foster a sense of community.” 

David Leong

Second-Home Purchases 

As mentioned earlier, Sabah is a popular destination for both local and international property investors.  

Though KK is a well-known area in Sabah, the lively city can be challenging for those looking to connect with nature.  

Instead, many nature lovers and investors from Sarawak, Brunei, Taiwan, Korea, and China are keen on purchasing second homes in beautiful locations such as Manukan and Sapi islands, as well as the cooler highlands of Kundasang and Danum Valley. 

Sabah’s Economic Development  

Pan-Borneo Highway 

The Pan-Borneo Highway, which gained the likes and support of both locals and tourists, has now entered its 1B Phase, according to reports. This will make access to the city from Brunei easier and potentially drive further economic growth.  

The highway stretches around 2,000 kilometers, linking the Malaysian states of Sabah and Sarawak, as well as Brunei.  

The highway has facilitated cross-border engagements, improving transport, trade, and tourism in the area. It enables Bruneian investors to explore opportunities in Sabah’s property market and vice versa. 

Conclusion  

To wrap it up, Sabah’s real estate market offers a range of opportunities for both local and international investors.  

With its affordable housing schemes and tourism attraction, the region provides great potential for those looking to enter the property market at an affordable price point.  

And with its developing and diverse property landscape, the opportunities in high-end condominiums, landed homes, and commercial real estate also arises.  

As more buyers capitalise on these offerings, the demand for residential properties in Sabah is likely to rise in the coming years.

This positions Sabah as a vibrant and promising destination for property investors. 

Based in Tawau, Vincy Lim has years of experience in real estate and has recently been recognised as IQI Top Subsales Performers for the Tawau area. For more information, follow Vincy’s Property Facebook page.

Based in Kota Kinabalu, David Leong boasts years of expertise in the real estate field, consistently earning awards and accolades from IQI each year. Stay up to date with David by following his Property Facebook Page.

You’ve discovered the key factors that position Sabah as a prime property investment opportunity! With its affordable housing schemes and tourism attraction, the region provides great potential for those looking to enter the property market at an affordable price point. If you’re interested, drop us a message and we’ll connect you with our experts!

Continue Reading:

1. Sarawak Property Insight: Tourism, Education & Festivals Contribute To Airbnb’s Businesses
2. Budget 2025 Malaysia: RM900 Million For Affordable Housing, Tax Break and More!
3. New funding cuts Sarawak Pan-Borneo Highway project costs by RM3.1b

The post Sabah’s Housing Boom: How It Became More Than Just ‘Tourism Spot’  appeared first on IQI Blog.

This article features insights from IQI real estate negotiators from different cities in Sarawak; Lester Anak Surai, Jamie Tiew, Eva David and Afza Shalqimie to assist investors in grasping the current trends in the area.

When you think of Sarawak, what comes to mind? You might picture rural landscapes, rich cultures, and stunning nature.

Yet, Sarawak—the largest state in Malaysia—is rapidly transforming into a centre infrastructure and economic progress. A shift that significantly increases the value of real estate. 

Situated on Borneo Island and Sarawak’s economy is undeniably emerging as a significant player both nationally and globally, positioning it as an appealing choice for property investors.

Cities like Kuching, Miri, Sibu, and Bintulu are seeing many local and international buyers eager to explore the region’s affordable and promising housing market.

From the growth of infrastructure and education hubs to exciting events, here’s how Sarawak’s property is drawing tourists globally. 

1. What’s the current property market like in Sarawak?

Landed home

Landed residential properties are undoubtedly experiencing the highest demand in Sarawak. IQI Kuching Real Estate Negotiator, Lester anak Surai, observed a rise in property demand in the area. 

This includes single individuals and newly married couples looking for homes, showing an increasing interest in landed houses as the year goes on. 

Reasons being, most landed houses in Sarawak are considered ‘affordable‘, thanks to the government’s Rumah Sri Pertiwi initiative which allows buyers to purchase a landed house for between RM 270,000 to RM 290,000. 

In contrast, the priciest single-story homes from private housing projects can reach around RM 400,000 or higher. Home buyers find these options attractive because they are affordable and have the potential to increase in value by about 10% each year.

This statement is also supported by IQI Bintulu Real Estate Negotiator, Afza Shalqimie bin Muhammad Arbi, who has been working in the field for 5 years. 

He pointed out that many residents in Bintulu are families who want to settle in landed neighbourhoods as these areas offer greater convenience and a safer environment. Even those living alone tend to seek out landed properties.

Surprisingly, the property market is performing better now than before. We are seeing more people in Bintulu purchasing landed homes.” 

Afza Shalqimie

Condominiums and apartments

In contrast, condominiums and apartments are becoming popular with investors who want to rent them out on Airbnb or lease them to students and workers. 

Jamie Tiew, IQI Sibu Real Estate Negotiator with more than 21 years of experience, pointed out that these types of properties are especially appealing to investors.

Sarawak is becoming a hotspot for events and recreation, such as SUKMA Sarawak, Le Tour De Langkawi, Borneo Sonic Music Festival, and the upcoming Sukan SEA 2027. This trend boosts the demand for Airbnb rentals for tourists.

With annual events like these, hotels tend to fill up, and prices usually rise. Therefore, Airbnb becomes the best choice, attracting investors to grow their businesses.” 

Jamie Tiew

2. Why do people buy / invest in Sarawak?

The rise of infrastructure, education opportunities and valuable events are one of the main reasons why people are looking to buy or invest in Sarawak. 

The Pan-Borneo Highway, also known as Pan-Borneo Expressway, is a controlled-access highway on Borneo Island.

It stretches around 2,000 kilometers, linking the Malaysian states of Sabah and Sarawak, as well as Brunei. This has made the previously difficult journey much easier. 

The highway has also facilitated cross-border engagements, improving transport, trade, and tourism in the area. It enables Bruneian investors to explore opportunities in Sarawak’s property market and vice versa.

Other than that, Sarawak’s attractiveness is also bolstered by lower living costs, good traffic conditions, and its proximity to leisure destinations, including National Parks, Museum Galleries, and annual festivals that draw both locals and tourists to buy and invest in Sarawak. 

While Sarawak’s property market resembles Kuala Lumpur, the key differences lie in the cost of living and superior work-life balance.

I have a property in Kuala Lumpur, and I’ve noticed that the competition in the property market is quite comparable, especially regarding lower rental yields.”

Jamie Tiew

3. What’s the investment trend like in Sarawak?

The increasing education options in Sarawak, especially in Kuching, made it simpler for investors to start rental or Airbnb businesses for college students. 

Kuching is home to several leading universities and hospitals, including Institut Jantung Negara, UiTM 1, UiTM 2, UNIMAS, and Hospital UNIMAS. 

Because of this, many students and parents are likely to either assist in finding a place to live or seek investment opportunities for a second home. 

I have some buyers interested in buying a condominium unit in Kuching for their children who are studying there. When the child graduates, the whole family can stay over and use that home instead of paying for a costly hotel. This is quite interesting.”

Lester Anak Surai

In Sibu, the city has become a popular tourist destination, attracting visitors with its natural attractions and unique local experiences. This growth in tourism has led to increased demand for accommodation related services, mainly Airbnb.

4. Which areas identified as Sarawak’s hotspots? 

Miri’s rising population is boosting growth in important cities like Senadin, Permyjaya, Lutong, and Taman Tugu, resulting in more property activities. 

Eva David, an IQI Miri Property Consultant, stated that the rise in population due to economic growth, migration, and natural increase is leading to a steady demand for housing and related services.

The demand for housing in these cities is on the rise. There are many types of properties, both residential and commercial, giving buyers and investors various flexible choices.”  

Eva David

In Kuching, Samarahan is the hotspot for both property buyer and investor. Almost 80% of property demand in Kuching would likely be around Samarahan, as the area is high in job opportunities as well as educational hubs like UiTM 1, UiTM 2, and UNIMAS. 

Other than that, the easy transportation access such as Autonomous Rail Transit (ART) Kuching, making it easier for them to get around Kuching now. 

Most of what people are looking for are in Samarahan; hospitals, universities and job opportunities. These significant factors contribute to the rapid increase in property values in Sarawak.”  

Lester Anak Surai

5. What’s the demand difference between project and sub-sale? 

Sarawak is not completely dismissing sub-sales, but they are not focusing on it as a priority. The people of Sarawak are very interested in new housing projects. 

These properties usually offer modern features, warranties, and an appealing financing options, which attract buyers.

Moreover, Sarawak is a large state with urban growth, which means it has more land for new developments than areas with high population density. This allows for a steady flow of new property ideas and projects.

6. The misconceptions on Sarawak’s property market

It’s a common misconception that Sarawak’s property market is solely focused on rural areas. While Sarawak does have a significant rural population and beautiful countryside, its urban centres are experiencing substantial growth and development.

Besides their stunning natural landscapes, cultural heritage, and adventure activities, Sarawak has become a popular tourist destination, attracting both domestic and international visitors. 

Not just solely focusing on leisure and entertainment, Sarawak is a major player in Malaysia’s oil and gas industry, providing a significant boost to its economy. 

And the state’s abundant forests have made timber a valuable resource, contributing to its economic development.

These factors contribute to the boosting of Sarawak’s property growth. With more infrastructure being developed and economic growth happening in the state, the property market is thriving.

7. Advice for people who want to invest in Sarawak

All the agents had one common point: research the type of property you want.

There are countless options for buying and investing in property, but with the right research and by understanding your target market, you can save both time and money.

Regarding finances, they emphasised the importance of money management. Only purchase a property if you can afford it, not the other way around. If your savings aren’t quite there yet but you’re eager to buy, consider options that provide some flexibility.

For investors, it’s important to clarify your goals. Are you interested in catering to students through rentals or Airbnb? Or are you looking to provide accommodations for travellers? In summary, always conduct your research and understand your audience.

In summary, Sarawak is emerging as a highly desirable property destination in Malaysia. 

Whether you are looking to purchase a new home or invest in Airbnb for tourists and students, the rich land of Sarawak, coupled with significant infrastructure development, is sure to yield substantial advantages.

Based in Kuching, Lester Anak Surai, has two years of experience in real estate and has recently been recognised as IQI Top Project Performer for the Kuching area. For more information, follow Lester’s Property Facebook page.

Based in Sibu, Jamie Tiew boasts over 21 years of expertise in the real estate field, consistently earning awards and accolades from IQI each year. Stay up to date with Jamie by following her Property Facebook Page.

Based in Miri, Eva David joined IQI in 2022 and has been honoured with the Champion Top Regional Project Sale Performance award. If you’re interested about property in Sibu, connect with Eva on her Property Facebook Page.

Based in Bintulu, Afza Shalqimie balances his role as an IQI real estate negotiator and financial advisor for the Sarawak community, for eight years. He has actively received the IQI Top Performers Project & Subsales awards from 2020 to 2024. Follow Afza’s Property Facebook Page.

You’ve discovered the key factors that position Sarawak as a prime property investment opportunity! With its infrastructure development, educational hubs and exciting events, now is the perfect time to connect with our experts to explore your property purchasing options. 

Continue reading:

1. A Closer Look at the Sarawak Land Code: What You Need to Know
2. New funding cuts Sarawak Pan-Borneo Highway project costs by RM3.1b
3. Can Foreigners Buy Land in Malaysia? The Guide for Foreigners

The post Sarawak Property Insight: Tourism, Education & Festivals Contribute To Airbnb’s Businesses appeared first on IQI Blog.

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This article features insights from our real estate negotiators, Mohd Saiful, on why the state is ideal for homebuyers seeking to experience urban development and rich in natural resources.

Welcome to Pahang! Malaysia’s hidden gem tucked away on the lush, green side of the country. Known as the third largest state in Peninsular Malaysia, the city is not just big in size—it’s also big in charm.

From the cool hills of the Cameron Highlands to the pristine beaches of Cherating, Pahang offers a delightful mix of natural beauty and cultural richness.   

With its strategic location, affordable property options, and ongoing development projects like the East Coast Rail Link (ECRL), here’s how Pahang is quickly becoming a hotspot for both living and investment.   

1. What is the current property like in Pahang?   

1. Affordable housing

The rising cost of living has created a greater need for affordable housing in Pahang, especially for the B40 income group. To address this, the Pahang State Government has started projects like PRIYA Kuantan.   

Private developers, such as Lagenda Properties, are also providing affordable homes priced below RM200,000, competing with government programs like Priya and PR1MA. Other developers are offering homes in the RM250,000 to RM300,000 range as well.

2. Infrastructure development

Recent infrastructure developments have further influenced property values in Pahang. Notable projects include the LPT2 (Lebuhraya Pantai Timur 2) highway and the East Coast Rail Link (ECRL).  

The ECRL has significantly boosted property demand and values, particularly seen in the new township in KotaSAS, Kuantan. These infrastructure upgrades are linked to higher property prices due to better connectivity and easier access.  

2. Why do people buy/invest in property in Pahang?  

According to Saiful, residents are seeking opportunities, often referring to it as passive income. For locals, purchasing property in their own area makes it easier to keep track of and manage. Investors from other states are targeting a more affordable option since property prices are lower compared to Kuala Lumpur, Selangor, and Penang.   

Typically, there is a high rental yield, and investors are interested in the potential returns. In Kuantan, the return on investment (ROI) ranges from 7% to 14% annually.”  

Mohd Saiful

Additionally, Pahang is developing new urban areas, expanding city centres into smaller towns. New developments include KotaSAS in Kuantan and Bandar Putra and the KWRC Kuantan Waterfront Resort City in Tanjung Lumpur. By 2024, Pahang’s population is projected to reach 2.7 million, representing 79% of Malaysia’s total population.  

3. What are the housing trends like in Pahang?  

Single-story terraces, two-story homes, and semi-detached houses are in popular demand. Additionally, buyers are leaning towards greener and eco-friendly township developments, such as Aman Plus in Taman Kuantan Jaya, Tas Plus in Batu 10 Kuantan, and the Marina in Tanjung Lumpur.  

4. Which area of Pahang has good potential for property?  

Kuantan, Genting, and Cameron Highlands are well-known destinations for property investment, tourism, and entertainment. Additionally, Temerloh has been experiencing growth in residential property purchases.

Jengka, home to the largest Felda settlement in the peninsula, is also an attractive area for residential development.   

In Pahang, we have seven ECRL stations: Cherating, Gebeng, Kotasas, Gambang, Maran, Temerloh, and Bentong. These stations are prime for investment, as there’s a good chance people will want to rent nearby.”  

Mohd Saiful

5. What are the main opportunities for people to invest in Pahang?  

For those interested in seaside living, the Sea Crestz project by Exsim is a great opportunity for generating passive income through Airbnb without the hassle of managing guests or being on-site.   

On the tourism front, Pahang is making waves in Japan (yes, Japan!) with attractions like Cameron Highlands, Genting Highlands, and the National Park. Investors can also dive into agriculture by purchasing land for crops like oil palm, durian, tea, pineapple, rubber, and coconut.

They also have retail and commercial spaces available, including shop lots and corner buildings. These can be perfect for nurseries, colleges, or other educational institutions. 

6. What areas are identified as Pahang’s hotspots?  

Kuantan, the capital of Pahang, serves as the state’s number one hotspots. It has earned the title of ‘Event City’ due to hosting 10-11 events per week.   

Next, Saiful noted that Cameron Highlands is the go-to place for those who enjoy cooler weather. You can visit tea and strawberry farms, and Highland Tiles is a favourite spot for both locals and tourists.  

Heading in the opposite direction, Pekan is known as the Royal City, rich in historical and cultural significance. Raub is famous for its Musang King durian farm, while Jerantut boasts the National Park, home to some of the oldest rainforests on the planet.  

7. What are the differences between project and sub-sale?  

Projects primarily target residential and commercial sectors are more budget-friendly and ideal for individuals with limited savings. Additionally, the designs tend to be more contemporary and align with current trends.     

In contrast, the demand for sub-sale properties is lower than for new projects. However, sub-sale options are suitable for those with sufficient financial resources, as they can often be acquired at prices below market value.   

8. Why is Pahang a good place to live?  

Two words: natural beauty.  

By now, you have learned a lot about amazing residential spots in Pahang like Kuantan, Cameron and Genting Highlands, and why they’d make a solid investment choices.

Beyond the development projects like LPT2 and ECRL, Pahang boasts natural treasures like farms, plantations, and rivers, including the Pahang River, the longest in the peninsula; ideal for nature lovers. And let’s not forget the stunning beaches in Kuantan, Pekan, and Rompin.

The cost of living here is balanced—not too high, not too low.   

9. Advice for people who want to invest in Pahang   

According to Saiful, research plays a key role in determining market value. Always consider future developments.

Verify the value, whether you plan to take a loan from a bank or LPPSA. Focus on value rather than just price!”

Mohd Saiful

So there you have it, Pahang is set to become the next-big-thing in terms of property development!

Based in Kuantan, Pahang, Mohd Saiful is a Team Leader, Top Project & Buddy Manager IQI iRealty Group. His commitment and resilience in the real estate industry have earned him several accolades, including the ‘Top 10 Project Performer HI 2024’ award.  

For more real estate updates, be sure to follow Saiful Property’s Facebook page and the Kuantan Daily News Facebook page. 

You’ve discovered the key factors that position Pahang as a prime property investment opportunity! With its stunning scenery, and ongoing urban development, now is the perfect time to connect with our experts to explore your property purchasing options. 

Continue reading:

1. Green Mineral Boom A Trillion-Ringgit Opportunity for Malaysian Real Estate
2. Top 5 Real Estate Hotspots for Investors in Malaysia! A Sweet Spot in Southeast Asia with Affordable Living and Great Infrastructure
3. Can Foreigners Buy Land in Malaysia? The Guide for Foreigners

The post Pahang Property Insight: A Strategic Investment Location Rich In Natural Resources  appeared first on IQI Blog.

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The contents of this article were contributed by AG Sasidar, real estate professional with 5 years of experience.

Do you feel like it’s taking forever to finish paying off your mortgage loan?

We may think of paying more every month to reduce the monthly repayments, but if you’re looking to shorten your home loan tenure, this is not the way to go.

Is there a way to shorten the time taken to pay off your home loan, from 35 years to 30 years, or perhaps even 25 years? Read on to find out!

1. How to Calculate Monthly Home Loan Repayment (Principal + Interest)

The first thing you have to know is that what you’re paying is not just the price of the house – you are also paying interest on the home loan itself.

In order to solve this problem, you should know how much interest you’re paying for your home loan.

Let’s take an example:

Loan Amount: RM300,000
Interest Rate: 4.2% per year (0.35% per month)
Loan Period: 30 years

If we put this amount into a mortgage calculator, our monthly repayment amount would be RM1,467.05.

Try inserting this number into this home loan calculator:

For your first monthly payment, the interest is calculated by applying the 0.35% monthly rate to the RM300,000 loan amount.

This results in an interest charge of RM1050 for the first month (0.35% X RM300,000)!

That means, from the RM1,467.05 you paid, only RM417.05 goes to the principal payment. The bulk of it goes to interest!

Unless you want to pay it off earlier, this is how you’ll be repaying your 30-year fixed loan that covers both your principal and interest.

2. How to Pay Home Loan Faster

The best way to reduce your home loan tenure is by contributing more of your payments towards the principal payment, rather than the interest.

This is known as the reducing balance method.

Reducing-Balance method

In this method, interest is calculated on the remaining loan amount after each payment.

Which means, if your remaining principal loan amount is higher, then you’re paying more interest on it.

To solve this problem, we can try to lessen the principal amount, so that we’re paying less interest throughout the loan tenure.

Principal amount  ↑ = Interest  ↑

Principal amount  ↓ = Interest  ↓

What Should You Do To Pay Home Loan Faster?

As mentioned above, paying more every month will not reduce your principal loan amount.

So what you can do is to go to your bank’s Mortgage Department and let them know that you plan to pay the principal payment.

They will give you the minimum amount, and if you have enough money to pay off this amount, you can make a one-time payment through the bank itself or online.

This way, you will be able to reduce the duration of your loan, e.g. from 35 to 30 years, plus save up on interest payments.

Most will ask for help for this from agencies, but this just adds more cost, so we suggest to do it yourself.

Note: Before you do this, make sure that the loan you currently have does not penalise you for paying your loan early.

3. Should You Pay Your Home Loan Early?

There are some benefits to paying off your home loan quicker:

1. Save up to 50% of the house price with less interest paid
2. Peace of mind, assuming you have no other loans
3. Being debt-free, giving you protection from losing your home
4. More savings for other use such as travel or retirement

If you have the financial capability to pay off your home loan faster, you could be saving a whole lot of money in the long run.

4. What Happens if You Cannot Pay the Home Loan?

In cases where you don’t have enough funds to pay off your home loan, here’s what you should look out for:

Penalty fees

A reduced term might mean you’re paying more every month.

In cases where you might not be able to keep up with the instalments, you might be charged a penalty fee.

Don’t ignore this penalty fee, as it might compound into even bigger interest, which means more payments!

Inform your bank

If you’re going through a difficult time and don’t have the capacity to repay your home loan, visit and inform your bank as soon as possible.

Worse comes to worst, if you’re out of options, the bank might repossess your assets and file you for bankruptcy.

So make sure you contact your bank as soon as possible if any financial troubles occur!

The contents of this article were contributed by AG Sasidar.

AG Sasidar is one of the Head of Teams from IQI Elite, with 5 years of experience in the real estate industry. He is also the first Indian real estate influencer in Malaysia, focusing on helping Indian buyers realize their home ownership dreams and sharing real estate knowledge through social media.

Put what you’ve learned to good use! This is your chance to invest in a property with a trusted IQI agent. Leave your details below and we will help you as soon as possible!

Continue reading:

1. Considering a Joint Home Loan: Yes or No? What to Do if I Break Up After Purchasing a House?
2. Is it Illegal to Run an Airbnb Service in Malaysia? We Have The Answer, Plus A Game-Changing Airbnb Hack
3. How Can You Get FREE Furniture? Here’s 5 Ways to Negotiate with Homeowners and Get More From Your Purchase

The post How to Pay Your Home Loan Faster: One Simple Trick to Becoming Debt-Free Quicker appeared first on IQI Blog.