There is an increase in the value of property and real estate in Malaysia. An increase in economy is causing this problem. The location of the property contributes most to its increase in value. A property that is near public goods will fetch high amount. Another important area is a shopping mall, a busy road or a temple, properties near this area are in high demand. Salary increase is causing most people to be eager to do investment in real estate. Such people are ready to move to bigger homes and those who earns high income to invest more.
The ability of people to buy land even when scarcity is there is referred to as supply and demand. Increase in demand and supply are the conditions that affect value of the property in Malaysia. A the decrease in demand causes the value of the asset to drop.
Malaysia has an enormous population. A city like Penang is the second most densely populated with a population of 1,490 persons per square kilometer on average. This high population puts a lot of pressure on land use resulting to increase in property price. The cause of increase in land value is high number of tourists and retirees in Malaysia.
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The construction that is currently underway is causing the value of the land and other properties to increase. Any land that is near a water body is going at a very high price compared to one that is not near. Feng Shi is trusted by most people for it is believed that things related to it come along with good health and happiness. People is putting into consideration the location of the real estate.
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The inflation costs is another factor that is affecting the value of goods. Inflation entails rise and fall of the value of a property. Latest news in Penang is showing that the value of property is going to increase by 5%-10%. An increase in price of the cement means that even the prices of other construction materials and even land has increased. An the increase in all these things causes the value of land to rise. Labor costs and transportation charges has contributed to an increase in value of real estate and property.
The existences of property agents and auctions and real estate websites reduce the process of selling properties. Real estate has been brought closer to many people and more easy and convenient to reach. The demand for the advertised property or land increases leading to an increase in the value of the ownership. Another the thing that affects property value is the mortgage value. If the demand of the houses is low, the mortgage rate is reduced and the rent goes down.