SINGAPORE'S property market is not the only one enjoying a bull run. Prices across the Causeway are also hotting up, especially in areas such as Kuala Lumpur and Penang.

Residential properties in the Kuala Lumpur City Centre (KLCC) have reached previously unimaginable record prices, shooting up to RM2,000 (S$867) per sq ft (psf) over the past six months.

Luxurious projects such as The Troika - designed by famed British architect Norman Foster - have climbed to that level though they were available at half that price at the start of the year.

KLCC is enjoying its own boom, fuelled by various factors, including the relaxation of foreign ownership rules and the elimination of a property gains tax in April.

Prices in areas around KLCC - Bangsar and  Mont Kiara, for example - recently hit RM1,000 psf, up from RM400 to RM600 psf in the first half of this year.

Investors who buy to rent out can achieve high yields of 5 per cent to 7 per cent, although at current prices, yields are starting to fall for high-end homes.

Mr K.K. Yap, the manager of the prestige homes division of Rahim & Co, a sales associate of property consultancy Savills in Malaysia, said that although foreign investors form the main driver behind the boom in high-profile properties, local residents are supporting good-quality suburban projects.

Such suburban projects, priced at RM600 to  RM900 psf, have more potential to grow, Mr Yap added.

Upcoming launches in  KLCC - including Hampshire Place, Icon Kuala Lumpur and Seni Mont'Kiara - are likely to keep up the buzz, Knight Frank Malaysia noted in a report recently.

Penang is another hot spot that has benefited significantly from the recent legislative reforms in Malaysia.

With the state set to become the hub of the new northern development region, extensive infrastructure projects will only boost its real estate sector.

Recently launched projects, such as Infinity in Tanjong Bungah and the Gurney Paragon on Gurney Drive, range in cost from RM383 to RM460 psf, said Knight Frank.

Property analysts and investors are also eyeing homes in Johor Baru, the site of the Iskandar Development Region, set to become southern Malaysia's business hub.

Langkawi is also touted as an investor's choice by some analysts, with developers already constructing high-end villas there.

Rahim & Co's Mr Yap said there is demand for high-quality, well-managed developments on the tourist island.

It offers good road infrastructure and an international  airport, making it an ideal location for both tourists and investors.

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