Perak folk who are working or doing business outside the state are investing in properties back home.
The emerging trend can be traced to various factors; from property being a relatively safe investment, to a rather unstable global economy and share market.
Besides, property prices in Ipoh are relatively cheaper compared to Penang and Kuala Lumpur - the hottest markets in the country.
“Ipoh is a good place to invest in property. While locals still form the majority of buyers, those working or doing business outstation are returning to buy houses back home,” property developer Kaizen Holdings Sdn Bhd chief executive officer Dr Tan Chin Yong told The Star.
He said people with extra money tend to invest in properties.
“With the global economy and share markets being unstable, people are worried about inflation and they feel it is better to invest in properties,” he said.
Meanwhile, Para Development Sdn Bhd representative Gwen Ng said she would not be surprised that more developers were coming in from Kuala Lumpur or Penang to develop projects in Ipoh.
“Ipoh is progressing steadily, and many investors are also anticipating that the city will continue to develop,” she said.
Besides, developed cities like Kuala Lumpur and Penang were saturated, she added.
Ng said the quality of life in Ipoh was another reason for property demand in the city.
She said the younger generation however still prefered buying properties in Kuala Lumpur and Penang where they worked and lived.
She said there were still many youngsters from new villages who would move to Ipoh to seek employment after completing their studies, hence a demand for properties in the city.
Bank officer Michael Chang said the demand for properties from outstation buyers was also on the rise because of the relatively cheaper prices compared to major cities.
“They are ready to invest and resell it at a higher value,” he said.
He also cautioned buyers that properties in Ipoh would appreciate, but not in a rapid manner.
On the currrent property trend, real estate agent Emily Kong said that gated and guarded communities were in demand.
“A safe living environment is the housebuyers’ priority.
“For instance, the elderly will feel safe at home when their children are away at work.
“It is also good to know that our house is being guarded when we are out of town,” she said.
However, she said clients would always have different needs and demands, adding that some were also not willing to pay maintenance fees for gated and guarded schemes.
Retiree Peter Loh, 52 felt investing in property in Ipoh would not yield instant wealth due to its slow appreciation value.
Houses in Ipoh offered lower returns compared to those in Kuala Lumpur, Penang and even Johor, he added.
Loh said location and security were very important features for properties in Ipoh, and some projects might have problems selling the units, if they failed to meet the mark.