Are Malaysia’s Most Expensive Homes a Good Investment Opportunity?
The truth is that while these homes offer a truly aspirational look at luxury property, they may not offer an inspiring look at a good property investment. So are these properties a good investment opportunity?
Any property at the top end of a price range is bound to cause challenges when it comes to improving value. While properties in up-and-coming areas provide the potential for substantial capital returns as popularity grows, most of Malaysia’s most expensive properties are already in mature and well-discovered suburbs.
Wait! That’s not to say they won’t still grow in value, but you won’t see the same rapid investment potential that you might have enjoyed by getting in at the start of an emerging area.
Likewise, the opportunity to ‘upgrade’ a property is hard to find at the top end of the market. The luxury bungalow in Bukit Tunku isn’t exactly prime opportunity for house flipping. It’s already delivered in an immaculate condition, although maybe a couple of new helipads could really add to the value?
Luxury properties can still offer a good investment opportunity, but you need to understand the key elements of exclusivity, location, and luxury that truly appeal to the target market.
High-end property reflects many of the same value factors seen in more affordable areas of the market, but the standards you must maintain are infinitely higher. So when it comes to investment in luxury property, an eye for detail is more important than ever.