MARKETING FOREIGN RESIDENTIAL PROPERTY

Abstract

After experiencing a severe recession in 1985, the Malaysian economy is now recovering. Its property sector is also picking up rapidly. This revival is mainly due to an influx of investors from Japan, Taiwan, Hong Kong and Singapore who are buying up a substantial number of prime properties in Kuala Lumpur, Johor and Petaling. The strength of foreign currencies against the Ringgit, the relaxation of the law allowing foreigners to own properties and to finance 50% of their purchases with low-interest loan and the capital appreciation potential are some of the main factors which have attracted foreigners to invest in the Malaysian real estate. In view of the heightened interest of Singaporeans in Malaysian properties, many developers are promoting their residential developments here. Through an examination of the marketing strategies of two case-studies -- Selesa Hillhomes and Genting View Resort, it is found that place and promotion are two of the most crucial elements in marketing foreign residential properties. The pricing of a development is greatly influenced by its location. In general, a development with a good location will be able to command a higher price without affecting its take-up rate. Promotion is another indispensable marketing tool. Due to the absence of physical evidence, promotion, especially local paper advertising, is particularly useful in bringing the existence of a development to the attention of prospective buyers. Besides the marketing mix, timing is also of crucial importance as the right timing of promotional effort will reduce holding costs and enhance take-up rate.