KUALA LUMPUR (Feb 20): Homestead land and property is a niche product in Malaysia and demand for such real estate is generally low here. Even so, homesteads are still an appealing form of alternative investment, especially for hobbyists, homesteaders as well as those looking to build their dream, weekend or future retirement home.

According to Landserve Sdn Bhd managing director Chen King Hoaw, there is always demand for such properties and most purchasers would choose homesteads for two main reasons — to get away from the city and for the natural environment. 

“Such properties can also become more popular because of the Covid-19 pandemic and other factors as more people prefer to live closer to nature and away from densely populated areas.”

Some homestead developments in the market include The Valley@Bentong and Tanarimba in Pahang, as well as Planters’ Haven in Negeri Sembilan. 

Due to the niche demand for such properties, CBRE | WTW group managing director Foo Gee Jen opined that the supply of homestead developments is likely to remain limited. “There are few developers with sufficient and suitable land bank for such large developments.”

Meanwhile, Zerin Properties managing director and chief executive officer Previndran Singhe said that homestead developments offer unique investment opportunities for those seeking alternative assets. “[Homestead developments also benefit] from the spike in durian export demand and the discerning preference for a resort lifestyle.”

Read more about it in The Edge Malaysia weekly’s Feb 21 edition.