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Malaysian Property Market Recovering Every Which Way But Lose
October 20, 2009Article by Ray Withers
The Malaysian property market is expected to see continued growth to finish the year, following a revival in the third quarter. The beginnings of a sustained recovery driven by rising interest in residential properties fuelled by anticipation of an imminent economic recovery, Housing and Local Government Minister Datuk Seri Kong Cho Ha said last week.
Despite easing demand bringing down rental and occupancy rates in the commercial sector, house prices are expected to see further upside, driven by huge liquidity in the economy as well as further rebounds in residential rent, Kong said in his keynote address at the National Property and Housing Summit 2009.
He said analysts were expecting a more robust revival in the region’s property market towards the end of the year, in tandem with further pick up in the global economy.
Kang also talked of a revival in the luxury sector — that which foreigners are allowed to buy, and are in fact the primary purchasers of –: “In the past few months more upmarket projects have been planned and the sales are also encouraging. These are good signs for the economy,” he added.
This news from the government comes after international investment consultancy Property Frontiers revealed that demand for residential Malaysian property was increasing among British buyers. Not investors as were once the primary buyer, but young families moving to Malaysia for better job opportunities and way of live, in a country where English is widely spoken.
“We have noticed a great deal more demand coming through for Malaysia property, so we are far from surprised that the Malaysian government is also noticing increased demand in the luxury sector. I mean you can’t blame people for choosing to go and live in Malaysia, it has a lot to offer with very few downsides,” said Ben Jeffries a sourcing manager with the firm.
Jeffries went on to explain that people are moving to Asia because it is the growth centre of the world in the future, and that they are choosing Malaysia because it has all the upsides and none of the downsides of moving to a foreign country or even Asia.
“Malaysia is forecast to see strong economic growth over the next 10-20 years, but people don’t have to worry about learning a foreign language as they normally do when going abroad to work, because English is so widely spoken. Malaysia also has a very favourable tax regime including no capital gains or inheritance tax, and all contracts are in English. Malaysia also has a first rate health service,” he said.