Why Smart Malaysians Invest in the Australia

WHY SMART MALAYSIANS INVEST IN AUSTRALIA

What do the super-rich have in common?

Two things. A preference for property investment and Australia. Research has shown that property remains a preferred investment for the super-rich. Research has also shown that more millionaires are shifting their focus to Australia to migrate and invest. Australian property appeals to investors due to familiarity, sentiment, and most importantly, the market’s resilience and strong capital growth.

AUSTRALIAN PROPERTY HAS GROWN AT A RAPID PACE

Australian property values have grown rapidly over the past 20 years, surpassing countries like Hong Kong, Malaysia, Singapore and the US. According to the Bank of International Settlements (BIS), house prices surged 6556% since the ‘60s at an average of 8.1% annually. Even in spite of current housing market headwinds, data shows that 9 out of 10 properties have been sold on the market at a profit.

Source: Abelson & Chung, ABS, REIA, NAPIC, Data.gov.hk, URA, HM Land Registry, Economic Research Division, Federal Reserve Bank of St. Louis, & RBNZ. IMAGE: CSI PROP

Source: fxtop.com. Image CSI PROP

AFFORDABILITY IN BETTER EXCHANGE RATES

The value of the Australian currency hit a downturn in the past couple of years. From a previous high of RM3.43:A$1, the dollar dropped to its most recent low of RM2.94:A$1. Hence, while an investment of RM100,000 in a Malaysian property would have grown in capital to approximately RM350,000 in 2018, an investment in an Australian property within the same period would have appreciated to RM380,000 or more. If you factored the gains made from currency appreciation, the value would be an estimated RM540,000 or more! With the exchange rate back at affordable levels, smart investors will do well to hedge the currency.

STAGGERING POPULATION GROWTH AT 1 PERSON PER 86 SECONDS

Australia’s population growth is the strongest in the developed world, surpassing even Malaysia! Australia’s rapid growth in house prices is driven by demand — a direct effect of the country’s burgeoning population growth rate of 1 person every 86 seconds. Latest statistics show the population grew by 395,100, in 2018 y-o-y, with nett overseas migration as the highest contributor. Migration and a skilled workforce will boost productivity and the overall GDP, which will continue to drive the need for housing, education and transportation.

Source: World Bank

AUSTRALIAN PROPERTY PROVIDES UP TO 18% RETURNS

With the current favourable exchange rate and growth in house values, investing in Australia provides rewarding returns. Beyond just returns, the vacancy rate is crucial. In KL, 1 out of 3 properties are vacant, hence the challenge in finding tenants. Below is a current comparison of the returns from a Malaysian property vs Australian property.

EXAMPLE

illustration of return on investment per year

WHERE SHOULD YOU INVEST IN AUSTRALIA?

Of all the cities in the Asia Pacific region, one Australian city has been named the #1 city to invest in property: Melbourne. Recent data has shown that Melbourne outdone Singapore, Sydney and Tokyo as the best prospect for investment and development. Here’s why:

Fastest-growing population in Australia
Home to some of the best universities in the world
Annual price growth driven by undersupply in dwellings vs population growth
Good prospects for rental growth due to tight vacancy rates of 1.7%

Prefer Perth, Sydney or other Australian cities? Click below to register your interest!

Address

Singapore

391B Orchard Road,
Ngee Ann City Tower B Level 22,
Singapore 23887

Hong Kong

23/F, One Taikoo Place
979 King’s Road, Quarry Bay,
Hong Kong

MALAYSIA

Level 3, North Block, Wisma GER,
142D, Jalan Ampang,
50450 Kuala Lumpur, MY

Project Manager

CSI PROP

Marketing Agent (SINGAPORE)

CS PROP PTE LTD

E.A. License No. L3010808F

Marketing Agent (Hong Kong)

CSI PROP INTERNATIONAL LIMITED

Marketing Agent (Malaysia)

NESS PROPERTIES

E(3)1905

info@csiprop.com

Overseas investments carry financial, regulatory and legal risks. Investors are advised to do their research as well as seek independent and qualified financial, tax and legal advice. Our associated companies, for ourselves and for our vendors or lessors or agents, give notice that the particulars do not constitute, nor constitute any part of an offer or a contract. All statements or descriptions or particulars are made without responsibility on the part of our associated companies or vendors or lessors or agents. All statements or descriptions or particulars are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact and must satisfy themselves by inspection or otherwise as to the correctness of each of them.

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