Above: Coral Bay, located in Sabah, East Malaysia, is home to properties ranging in price from $635K – $975K USD.
This month, two Leading Real Estate Companies of the World® (LeadingRE) members provide a glimpse into the luxury markets in Malaysia and Japan.
Carey Real Estate
Kuala Lumpur, Malaysia
Carl P.T. Butler
Head of International Sales & Business
Development
https://www.carey.com.my
Tell us about your company.
Established nearly 40 years ago, Carey’s head office is in Malaysia’s impressive modern capital city, Kuala Lumpur. Up until five years ago, we focused primarily on the local Malaysian residential real estate market but have since dedicated our efforts toward the commercial real estate sector. The sales team, which now comprises some 50 associates, or real estate negotiators as they are referred to locally, work from three central offices, two of which are in Peninsular, West Malaysia, with a third office in Kota Kinabalu, East Malaysia.
How would you describe your marketplace?
A petroleum-based economy has helped Malaysia evolve as an international destination for commerce, with a society that enjoys a mature legal system, international standard medical and education facilities and world-class tourism, with variety ranging from white sandy beaches to a tropical rainforest that predates the Amazon’s flora.
What are some of the most important trends in your market?
With real estate prices having doubled in some areas of the world recently and activity in the U.S. slowing down, transaction volume in Asia is generally on the rise. One of the most important benefits of purchasing real estate in Malaysia is that it is currently the only country in the region where, with few exceptions such as agricultural or historically significant property, foreign buyers can enjoy the same property ownership rights as locals by taking advantage of 100% ownership through registerable rights.
Most recently, the country displayed its ability to democratically elect a new government, placing at the head of the administration a premier who “has the ear” of the world’s leading economic powers through his years of experience in dealings with institutions such as the World Bank and the International Monetary Fund. This profile can only bode well for further economic development and stability.
What types of properties do you sell, and which are most popular?
Carey has a smorgasbord of commercial property to offer investors, ranging from City Centre business premises to family-oriented resort hotels, small traditional “shop-houses” to large industrial complexes and warehousing. One notable development being Coral Bay @ Sutera, a residential development in the tropical paradise of Sabah, East Malaysia. Situated between the sea and nearby mountains, it is a gated community with a plethora of facilities.
What tips do you have for foreign investors interested in purchasing in your market?
The Malaysian government encourages local residency through its bureaucracy-friendly visa programs, be it an employment permit, a retirement visa or the extremely popular “Malaysia My Second-Home” program. As a bonus, when you get here, you will enjoy what would be considered in the U.S. or Europe to be a cheap cost of living. Basic amenities such as food, utilities and transportation are still extremely reasonably priced, despite the adverse effects of inflation. As a multi-ethnic society, Malaysia draws interest from the Middle East, Korea, Japan and China, also enjoying strong traditional ties with India, Singapore and the United Kingdom.
How will being part of LeadingRE help advance your business?
Carey’s main objective in joining LeadingRE is to expand its horizons beyond the Malaysia borders. We should like to introduce our exciting country to an international audience who may be overlooking investment opportunities.
Real Estate Distribution System (REDS)
Tokyo, Japan
Hiroki Kano
Executive Manager
https://www.reds.co.jp
Tell us about your company.
Launched in 2008, REDS is a boutique real estate brokerage firm, whose main base of operation is the Tokyo Metro area. We offer top-class brokerage and home renovation services through our bespoke graduated fee system. We intend to disrupt Japan’s anachronistic real estate industry customs and practices. Employing creative business models, ideas and acumen, REDS has grown to command a 2% marketshare, making us the 26th largest brokerage firm in the Tokyo Metro area and No. 1 among totally independent brokerage firms.
How would you describe your current housing market?
The average price of used condos is up 14.7% (43,950,000 JPY; $333,497 USD), and the average price of a single-family home is up 4.4% (37,280,000 JPY; $282,855 USD). Inventory for used condos is up 14.4%, while inventory for single-family homes is up 6.2%, year-on-year, as of October 2022.
What are some of the most important trends in your market?
With remote work becoming popular, having a comfortable working environment in the house is important, rather than commutability. Other in-demand features include balcony views, whether city or ocean view, spaciousness and comfortability.
Are you seeing much foreign investment—and, if so, from which countries?
Now that COVID restrictions have eased in the conservative country of Japan, the limitation of tourist visits from foreign countries was abolished. Foreign investment is increasing, especially from the U.S., Hong Kong and Taiwan. Our customers are quite satisfied with our services to non-Japanese.
What advice do you have for foreign buyers interested in buying in your area?
Japan is open for foreign buyers. There is no restriction to purchase Japanese properties by foreign buyers, but there are barriers for different cultures and different languages. Therefore, we at REDS provide English services to foreign buyers, at a discounted brokerage fee—the same as the service we provide to Japanese local customers without extra or hidden fees. The Japanese Yen recently dropped 15% – 20% compared to a year ago, so foreign customers have begun to visit Japan and purchase properties.
What do you love most about living in your area?
Tokyo is one of the most convenient cities to live in the world. You can go everywhere by train or metro. Supermarkets are open 24 hours, and more than anything, it is safe everywhere.
How will being part of LeadingRE help advance your business?
We are proud to be a member of LeadingRE and will treat foreign customers carefully, explaining from A to Z how to purchase properties in Japan.
For more information, visit https://www.leadingre.com/.
