This article takes the latest numbers from Savill’s latest publication for the capital value change by country. It is an index, so it meant that it takes a market view and definitely does not apply to some who wondered why Savills say the capital value change is positive when I had to sell my property at a lower price during 1H 2021. If you like, you can refer to the full article in Savills.com here.
Capital Value Change by Country
When we come to individual countries, we can see Kuala Lumpur is that low number when it comes to price per square foot and it is also in that low number when it comes to 6-month capital value change too. Some may see this as negative. I think with our current situation, anything above zero is definitely considered positive.
This, coupled with the fact that the price per square foot being low meant that there’s room to grow if Malaysia is a little more pro-active in getting foreign investors like some other countries or continue to keep interest rates near zero like some other countries. By the way, I do not favour both the suggestions. Haha.
Slower is better, definitely. Apply the slowly but surely.
I prefer that we grow very slowly. I prefer we grow because it’s the local buyers and certainly not because of foreign buyer interest in droves. The occasional one or two can lah. However, if you are coming in droves, please feel free to go to the countries below. The one showing UNBELIEVABLE capital value appreciation despite the fact that it’s impossible for salary to keep up with such an increase.
Savills also have some conclusions but I do think it generally applies to those world cities where the buyers know very well and kept buying over there, then their rich friends got to know and they also buy over there and this cycle repeats. This is why it is perfectly okay for these wealthy buyers to continue buying other cities which are already much more expensive today compared to Kuala Lumpur.
Conclusion by Savills in their report
Savills say that when international travel returns, it will provide an increased supply of buyers for prime properties in some locations. It says that in Europe and North America, there is a persistence of working from home and this will continue to sustain desire for additional floor-space in properties. All these are supported by the low-interest rate environment. Beyond that there is a sustained economy recovery globally too. If you like, you can refer to the full article in Savills.com here.
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