Datuk FD Iskandar told the Borneo Post that Malaysia is not at risk of a housing price bubble in 2013, nor any time soon.
Domestic demand is already strong in the country, potentially outstripping supply, which is helping to keep the market competitive and a prime spot for those looking to invest in real estate in Malaysia.
"With the implementation of the Economic Transformation Programme and the Greater Kuala Lumpur, the real estate sector is set to experience skyrocketing demand in the coming years," Mr Iskandar explained to the newspaper.
While only 1.8 per cent of total real estate in Malaysia was sold to foreign investors in 2011, there is considerable potential for growth.
However, Mr Iskandar estimates that to satisfy domestic demand alone, at least 1.2 million homes will be needed for the next eight years.