The Edge Options - The expert's advice
The expert's advice Previndran Singhe, managing director and CEO of Zerin Properties, weighs in on the possibility of investing in an island home
Options: Is invest tag in a holiday home a good idea?
Previndran Singhe: Holiday homes are no longer limited to own stay for those planning their retirement. With Malaysia's booming short-stay rental industry, many are turning to property investments for supplementary income or to settle mortgage payments through the high rental yields. Holiday homes at tourism and desirable hotspots that are well-designed, well-managed and have creative marketing on social media garner good response, mainly from the younger generations seeking work-life balance.
How do you foresee Langkawi's future growth?
As a popular beach destination, Langkawi's growth has been stupendous and the island continues to be a tourist magnet. It boasts a strong presence of luxury and upmarket resorts strategically positioned along the coastline, giving it worldwide recognition as a luxury destination. With numerous international accolades, the introduction of new airline routes and increased flight frequency and various tourism developments in the pipeline, Langkawi's tourism demand remains unrivalled.
As a result, it was unsurprising that the island was chosen for a pilot travel bubble programme for fully vaccinated domestic travellers as part of the National Recovery Plan, that saw strong demand with robust airline sales and five-star hotels reporting 80% occupancy,and some even l00%.Moving forward, Langkawi's growth will be driven by pent-up demand from both domestic and international tourism with catalysts that include increased passenger capacity at Langkawi International Airport (from 1.5 million to 4 million passengers per annum), numerous new airlines and routes and key accolades, initiatives and projects, all of which are anticipated to provide a boost for the island destination.
What are some of the more interesting developmental news of late?
One of Europe's oldest tour operators, TUI Group, has opened an office in Langkawi, its first in Southeast Asia, while Malaysia Airports Holdings Bhd has launched a RM5 million Langkawi International Tourism Promotional Fund (LITPF) to facilitate the marketing and promotion of the island as an attractive destination. The building of Kulim International Airport will also increase the number of visitors as the island becomes even more accessible. Budget 2019 expanded Langkawi's status as a tax-free haven while there is talk of the possibility of the implementation of the 'Visa on Arrival' system there. Langkawi is also looking to reposition itself as a cosmetic-tourism destination which will then lure tourists with a higher-income base.
Several key accolades have also helped boost Langkawi, such as it being ranked #15 out of CEOWorld magazine's Top 25 Best Island Destinations in 2019, while the development of premium tourism products and the entry of even more international hotel brands will help it grow even further. 99East Langkawi, a joint venture between Menteri Besar Kedah Incorporated (MBI Kedah) and a group of international investors, looks set to be a multi-billion ringgit development over the next three years and will put world-class services and infrastructure in place to catapult the legendary island to global standards.
MBI Kedah, property developer Mega Excellent Properties Sdn Bhd and a group of South Korean investors are also facilitating US$150 million to kick off the Langkawi Premium Outlet project while Widad Business Group Sdn Bhd (WBG) is planning to build a mixed development comprising tourism-related components such as five-star hotels and resorts as well as residences and healthcare facilities named Widad@ Langkasuka. Its estimated gross development value of RM40 billion will be set on 800ha near Padang Matsirat, with 90% of the land to be reclaimed from the sea.
What do you think are Langkawi's main draws?
Langkawi's main draws have always been its pristine beaches, Unesco Geopark status, its fascinating myths and legends and, evidently, its duty-free status. Stunning beaches, premium hotels and leisure attractions in the form of Underwater World, Langkawi SkyCab & SkyBridge, Crocodile Adventureland and Langkawi Wildlife Park & Bird Paradise all make it a popular choice for destination weddings and family vacations. The development of premium tourism products in the likes of The Datai Langkawi, Tropicana Cenang and 99East Langkawi, as well as the debut of new international brands such as The Ritz-Carlton, Parkroyal and Aloft, among other upcoming developments, are expected to further attract high-end travellers with discriminating tastes.
What are your thoughts on Pantai Cenang for investment purposes?
Pantai Cenang is without a doubt the main hub of Langkawi and the most developed western coastal area in Malaysia. Located 10 minutes from Langkawi's International Airport, it is a hotspot for locals, expats, backpackers and foreign tourists for its expansive beach, liveliest nightlife scene on the island and breathtaking views of the Andaman Sea from various types of accommodations. Existing and pipelined luxury and branded developments such as Tropicana Cenang provide attractive options for own stay, rental income or even as a long-term investment. With a total of 831 units ranging from 380 to 1,310 sq ft, Tropicana Cenang's selling price starts from as low as RM457,000.
"The development of premium tourism products like Tropicana Cenang and more are expected to further attract high-end travellers with discriminating tastes"
