Malaysian property market 'to remain stable in 2012'
By James Roberts

Malaysian property market 'to remain stable in 2012'

The outlook for the Malaysian property market is relatively flat for the rest of this year, with the potential for sales and price falls in 2013.

According to Knight Frank, measures introduced earlier this year by the Malaysian government to reduce speculation in the country's real estate sector have had an effect and may drive values lower.

One of the steps being taken is to increase the rate of real property gains tax from ten to 15 per cent for assets that are disposed of within two years of being purchased, while those sold within three to five years will be subject to a ten per cent charge, rather than the previous five per cent levy.

"We expect the market that has recently plateaued to remain steady through 2012, although the exit of some speculators from the market could put some downward pressure on prices and sales rates moving forward," the real estate specialists asserted.

The country's housing and local government minister Datuk Chor Chee Heung recently urged lenders in the nation to help first-time buyers get a foot on the property ladder, but added that they should provide home loans in a responsible way, The Malaysian Insider reported.
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