Malaysia: High tourism and High Rental Yields
Overseas Property News - Malaysia
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According to the Ministry of Tourism a total of 1,899,148 tourists visited Malaysia in May 2008, a 3.1 percent increase compared to May 2007.
Cumulatively, tourist arrivals recorded from January to May 2008 were 9,001,765, representing a 1.3 percent increase on the same period in 2007.
Tourism figures have already grown significantly in the country - from 10.58million arrivals in 2003 to 20.97million in 2007 - and further growth in the sector is helping Malaysian property attract rental yields of 8-10 percent in Kuala Lumpur; possibly higher on resort property in Sabah where the very high occupancy figure of 72% is coupled with a severe holiday bed shortage.
Over two million tourists visited Sabah alone in 2006 and the area has one of the highest tourism growth rates in Malaysia; the cumulative number of global tourist arrivals rose to 842 million in 2006, which translates to average growth of about 7% per annum over five decades. Tourism arrivals continue to grow, and in January 2008, over 194,838 people visited Sabah compared to 165,810 in January.
It is in Sabah that overseas property specialists, DSR, have luxury villas and low rise condominiums on a private beach managed by an award winning 5 star resort. Designed by world class architects WATG, this private piece of paradise is set in beautiful landscaped grounds and stunning natural surroundings yet is only 30 minutes from Kota Kinabalu international airport.
The tourism sector also plays an important part in Kuala Lumpur's burgeoning economy. Medical tourists flood in to take advantage of the city's advanced health services, while conference tourism has also expanded in recent years and is fast becoming an important component of the industry. Others come to shop as the city develops into an international shopping destination home to mega malls and global brands. Then there's the architecture; the arts; the cultural sites and landmarks; the parks; the food; the nightlife. Thousands of tourists visit each year and these tourists need quality rental accommodation.
DSR currently has two properties in Kuala Lumpur. Their Vivaldi property is a new off-plan condominium in Mont Kiara. It offers high end resort living with ultra modern facilities and all the conveniences of being in an urban location. Every apartment has its own private lift access. Every block has its own private lobby. Every resident can enjoy the comprehensive clubhouse; the cantilevered gym and swimming pool; the cascading waterfall; the open-plan spaces.
DSR's second property is The Crest. Situated in Jalan Sultan Ismail The Crest it is a five minute walk from Kula Lumpur city centre and the world's tallest twin buildings, the Petronas Twin Towers. CIMB Bank can provide 70 percent of the finance secured over the Crest property itself, rather than the borrowers existing assets. And as the bank is shouldering the risk, due diligence is being exhausted on every aspect of this project - from its commercial viability to the construction and operational plans. Only 7 units are left at this time.
The Malaysian property market is one of the strongest in the world and property is expected to grow by no less than 20 percent per year, and possibly by as much as 25 percent over the next few years.
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