KUALA LUMPUR: Melaka is capturing attention as it emerges as a prime destination for both local and international real estate investors, alongside its flourishing tourism sector.
The state's allure as a tourist hotspot can significantly influence its real estate dynamics, especially in regions near historical landmarks, beaches, and other attractions, noted KK Lau, a seasoned real estate consultant.
Acknowledged for its profound historical background, cultural richness, and vibrant tourism offerings, Melaka is witnessing a surge in its real estate sector, he said.
Melaka's real estate market boasts a diverse array of properties, encompassing residential units, commercial venues, and holiday rentals.
According to Lau, condominiums, landed properties, and commercial lots are prevalent options, with prices gradually ascending due to ongoing developments, including residential and commercial projects.
Lau underscores the transformative impact of these endeavors on the real estate landscape, ushering in novel housing alternatives and amenities.
Nonetheless, he cautioned that, akin to many real estate markets, property values in Melaka are susceptible to fluctuations driven by factors like supply-demand dynamics, economic variables, and governmental regulations.
"Typically, prime locations or areas undergoing rapid development command higher property prices," Lau told NST Property.
Highlighting the investment potential inherent in Melaka's real estate scene, Lau suggests that individuals eyeing growth prospects could find promising opportunities, particularly amid the region's burgeoning tourism industry and advantageous geographic positioning within Malaysia.
Nonetheless, he stressed the importance of being well-informed about pertinent regulations and restrictions governing property ownership and investment in Melaka, which may vary for locals and foreigners alike.
According to the National Property Information Centre (NAPIC), Melaka continues to maintain its reputation as the state with the most affordable housing prices in Malaysia, with an average price of RM207,600, compared to the national average of RM458,751 up until the third quarter of the previous year.
Consequently, there has been a rise in the rate of home ownership in Melaka, which currently stands at 84.5 percent, surpassing the national average of 76.5 percent.
Lau said that this increase can be attributed to the state government's housing policy, which mandates that every housing project spanning over four hectares must allocate at least 50 percent for affordable housing (RMM).
The RMM segment encompasses low-cost homes priced at RM70,000, low medium-cost units at RM120,000, RMM Impian A units not exceeding RM180,000, and RMM B units not exceeding RM250,000.
As of December 31 last year, a total of 48,966 RMM units have been completed, are under construction, or have been approved and are in the planning phase. These RRM developments are the result of collaboration between state and federal agencies, as well as private developers.
Recent reports indicate that the percentage of home ownership in Melaka is expected to continue its upward trend, reaching 88 per cent by 2030. This projection implies a need for the construction of at least 4,191 new houses annually.