Real Estate & Tax News in Malaysia from Propertyshowrooms.com

Malaysia's property price rises 'are healthy'

Wed, 11 Apr 2012 00:00:00 GMT

Double-digit price rises for real estate in Malaysia indicate a healthy market.

This is according to deputy finance minister Donald Lim, who said increases of ten to 15 per cent a year - and up to 20 per cent in the capital, Kuala Lumpur - are acceptable and are not yet indicators of a property bubble.

He claimed that measures such as real property gains tax will help manage the market if prices do get too high.

The comments came as Malaysia's valuation and property services department released the latest All House Price Index, which rose by 6.6 per cent to 156.9 points during the final three months of 2011.

Malaysia's average property values reached 217,297 ringgits (£44,625) in the final quarter, while Kuala Lumpur property prices hit an average of 487,219 ringgits during the same period.

There were 4.5 million residential properties in Malaysia as of the end of 2011, with two and three-storey terraced houses making up the largest proportion of these, according to further figures from the National Property Information Centre.

Take advantage of Malaysia, investors told

Wed, 28 Mar 2007 00:00:00 GMT

The Malaysian government has been trying to overturn its reputation for not welcoming foreign investors, which was highlighted by the move to abolish capital gains tax on property, one expert has said.

According to Marsha Lu, researcher for Property Frontiers, the move means that capital will start flowing into Malaysia, making it a good time for British property investors to enter the market.

She pointed out that foreign investors can get eighty per cent value on their mortgage, which is a "huge advantage" because in many other Far Eastern countries mortgage ratios remain around 50 or 60 per cent.

"Recently all the analysis and research shows that the Malaysian government has been trying to re-establish their reputation for welcoming foreign investment," she commented.

Ms Lu said she was confident that British investors can make a significant return on their investments for at least two years.

"If investors are keen on Asia, then don't miss Malaysia ? it's definitely a very good option."

Malaysia will scrap capital gains tax on property from April 1st, a move that will inject "excitement" and "dynamism" in the sector, according to prime minister Abdullah Ahmad Badawi.

Malaysia to scrap capital gains tax

Tue, 27 Mar 2007 00:00:00 GMT

Malaysia will scrap capital gains tax on property deals from April 1st, according to the country's prime minister.

Abdullah Ahmad Badawi said the move would "inject more excitement and dynamism in both the property and financial sectors".

Experts believe that abolishing the property gains tax will encourage investment from overseas buyers and bring more liquidity into Malaysia's market.

"Going forward to further improve the national property sector, the government has decided not to impose real property gains tax throughout the country commencing April 1st 2007," the prime minister said.

The announcement follows fears that the undervalued Malaysian property market is stagnating, especially if compared with Singapore.

According to news site Amberlamb, the stability of the property market in Malaysia is largely dependant upon the stability of the economy, which is expanding "at a sustainable rate" thanks to links with China, Japan and the US.

Malaysia set to enjoy foreign investment

Tue, 27 Mar 2007 00:00:00 GMT

The prime minister of Malaysia's decision to scrap capital gains tax on property has not come as much of a surprise to experts, although it is still a welcome move, a news website has said.

According to a report in New Straits Times, investors believe that a "dose of speculative activity" will boost Malaysia's flagging property market.

In recent months, a lack of interest from overseas buyers has seen the volume of transactions decline, with many properties remaining unsold for long periods.

However, now that overseas investors will no longer have to pay 30 per cent in taxes if they sell within five years, it is likely that more buyers will enter the property market, especially at the high-end, states the newspaper.

The majority of investment opportunities lie within Kuala Lumpur and the north-western island resorts of Langkawi and Penang, according to Property Frontiers.

Malaysia's policy amendment follows over changes that favour overseas investors.

For example, buyers from Britain and elsewhere no longer have to seek approval from the foreign investment committee and conditions regarding the number of properties under one portfolio have also been scrapped.