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Invest in Real Estate in Labuan

Invest in Real Estate in Labuan

Labuan is a well-known offshore financial center and one of the three federal territories of Malaysia. It is composed of the main Labuan Island, along with six smaller ones, located in the east of the country, off the coast of Sabah. The favorable location, as well as its development as a financial center, make Labuan a strategic location for transiting the region as well as for those willing to start a business.

Entrepreneurs who decide to invest in real estate in Labuan have the option of purchasing several types of properties, from apartments to houses or bungalows. The island’s features make it suitable both for developing the rented property for commercial or residential use, with a focus on short-term rentals for business people as well as tourists. 

Investors can open a company in Labuan for real estate investment purposes as well as holding purposes. These structures are advantageous in terms of taxation and ease of incorporation and they can be structured as needed, according to the chosen investment purposes.

Properties for sale in Labuan

There are many types of properties for sale in Labuan. When looking for investment opportunities, real estate entrepreneurs can browse by category or price range as well as according to the area in which they plan on making the investment. In certain cases, the area in which the property is located is important in order to ensure the success of the future project (for example, if the investment is made in an office building, the Victoria Financial Park may be a suitable location to purchase a property).

Some examples of properties for sale in Labuan include the following:

  1. Apartment: apartments and condominium complexes, the units can combine residential as well as commercial units.
  2. House: semi-detached houses or detached houses and terraced houses, located throughout Labuan, with a varying number of bedrooms.
  3. Villa: in most cases, a house with more luxurious furnishings and a larger floor size/number of bedrooms.
  4. Bungalow: typically a one-story house or a cabin; generally small, in terms of price they are more affordable compared to other types of properties; ideal for developing an accommodation business. 
  5. Residential land: foreigners may purchase residential land in Malaysia under certain conditions.

Foreign investors should be aware that in their case a minimum purchase price may apply. The Foreign Investment Committee, a division of the Economic Planning Unit, sets forth a set of guidelines for the acquisition of properties by foreigners. Those who wish to invest in real estate in Malaysia are required to follow the application guidelines and comply with the conditions for investment. One of our agents who specialize in Labuan company formation can provide more details on this minimum amount, that can be around 1,000,000 RM in Labuan, and how it applies to foreigners. We can also provide details on the current policies set forth by the Ministry of Economic Affairs as well as other Federal Government Administrative departments.

Investors who are interested in Labuan offshore company formation and then the purchase of real estate can reach out to our agents for more information on a property purchase in the area.

Property investment in Labuan

Malaysia is a country that is known for its growing economy and the favorable evolution of a number of business sectors. Moreover, many investors choose to open a company in Labuan if they are interested in reaching the ASEAN countries as the Federal Territory is a developed financial center, suitable for creating offshore entities. 

Investors may purchase property directly, open a company in Labuan as a holding company or setting up a Labuan real estate investment fund. Our agents who specialize in company formation, as well as the conditions for setting up investment funds, can provide complete details.

Below, we present a set of data for the historical evolution of the Malaysian real estate market:

  • – Demand: it remained stable throughout 2018, with a rise in the number of residential property transactions by 1.4%; the value of these transactions rose by 0.4% during the same year.
  • – Highest price: in 2018 this was in Kuala Lumpur, where housing prices were the most expensive, at approximately 786,800 MYR.
  • – Lowest price: at the opposite side of the spectrum, the most affordable housing options were found in Kelantan, Perlis, and Melaka; here the average price is a little below 200,000 MYR.

The market is expected to develop, as the country’s economy continues to grow.

Contact our Labuan company formation agents for more information on how to purchase real estate or how to structure a real estate investment fund. 

Our team can help you set up a Labuan offshore business in any type of industry, as our team has the necessary expertise, gathered over the years while representing various types of clients.

You can contact us for advice on the initial costs of your investment and the fees that you may pay on a yearly basis. You can also obtain tax advice and planning and we also invite you to request assistance on accounting services.