Langkawi

Langkawi, is an archipelago of 99 islands in the Andaman Sea, some 30 km off mainland Malaysia’s northwestern coast adjacent to the Thai border. Just four of the islands are inhabited, the largest being Pulau Langkawi, which is also known in and of itself as Langkawi. It has a population of 45,000, most of whom live in-and-around Kuah; Langkawi’s largest town. As well as being the island’s population centre, Kuah is also the landing point for ferries from mainland Malaysia.

The islands came under the rule of the Sultanate of Kedah before being conquered by Siam. They then signed it over to the British in 1909 who, apart from a brief period when it again came under Thai and Japanese rule during World War II, held onto to it until Malaysian independence. Both British and Thai influences are still in evidence among the population, and the Thai language is still largely understood on the island.

Langkawi was a relative backwater until 1987 when the island was granted tax-free status with the intention of promoting tourism. Subsequently the island’s airport was upgraded and ferry links were increased. It has since become nearby Penang’s biggest competitor for the title of Malaysia’s largest tourist draw. Langkawi received another big boost more recently, when it was granted World Geopark status by Unesco. Langkawi’s geographical position is another big advantage in its bid to draw tourists; the mountainous backbone of Peninsular Malaysia means the island escapes the northeastern winter monsoon entirely and enjoys sunny skies when the eastern provinces are largely flooded. Its stunning beaches, diverse culture and exceptional climate have led to Langkawi securing its current place as one of Malaysia’s most popular beach holiday destinations, and it plays host to range of high-end resorts, from the Four Seasons to Sheraton. However, its tourism infrastructure still has some way to go with an increase in flight frequency Langkawi International Airport is among its most pressing issues.

Buying Property in Langkawi
Much of Langkawi’s overseas property market stems from the countries in its immediate vicinity with buyers from Singapore, which is only 32km away, being chief among them. Singapore proximity means that many buyers live in Langkawi and then commute into the Lion City. This option has become increasingly popular among Singaporeans over recent years who at present make up 14 per cent of overall buyers. Just 2 per cent come from other overseas markets with the remainder being made up of Malaysians. The price difference between Langkawi and Singapore is also startling; bungalow land in high-end Langkawi developments is about RM30psf compared to S$200psf in Singapore. More on buying property in Langkawi.

Condos in Langkawi
Langkawi’s condominium market is still very much in its infancy, but there are some units available for purchase by overseas investors. More on buying condos in Langkawi.

Houses and land in Langkawi
Much of the land in Langkawi has been designated as Malay Reserve Land by the Malay Reservations Enactments. Essentially, the authorities are seeking to maintain a situation whereby particular areas and land parcels remain in the hands of Malays. However, some experts believe that there are ways around this particular stipulation. More on buying houses and land in Langkawi.

Renovating in Langkawi property
Malaysian banks sometimes hold auctions of distressed property and this should be the first port of call for those considering taking on a renovation project in Langkawi. Many units however, are left to fall in disrepair and wind up on auction due to the fact that buyers were hasty in their purchase and ended up with a unit in a bad location, so this should be taken into account. Buyers should also bear in mind that although the low-price renovation projects may be appealing, overseas buyers must buy properties with a minimum cost of RM250,000 (about ?35,000) in most states of Malaysia.

There are hundreds of renovation firms in the region which can handle extensive renovation works such as masonry, tiling, carpentry and interior design. As with any restoration project, there is a significant threat that the buyer might bite of more than they can chew and suddenly see development costs for hidden problems spiral out of control. This danger is negated somewhat for those who need financing from banks. Financial institutions will require a report by a valuation firm so that they can ascertain whether the property provides sufficient security for the loan given. It also provides an indication that the property is worth what you are paying for.

Top tips for Langkawi property
Langkawi Property buyers guide
Guide to buying Condos in Langkawi
Guide to buying houses and land in Langkawi