Malaysian property sales strong in 2013
By Danny Bance

Malaysian property remains strong prospect despite restrictions

Property in Malaysia remains a good investment option for those from overseas, according to the chief executive of Wealth Mastery Academy Sdn Bhd. This is in spite of changes to the law towards the end of 2013 that saw the minimum purchase for foreign investors doubled from RM500,000 (£93,000) to RM1 million.

Datuk Terry Ong said that an influx of new homes being built across the nation, along with other investor-friendly policies, meant that those coming from other countries were still feeling positive about the state of the market and their potential for return when buying there. Greater Kuala Lumpur, Iskandar Malaysia in Johor, Penang and Malacca are the most popular areas, he added, thanks to the high number of new developments that are in place.

“The country also has a friendly policy for property investment, especially for foreigners… the RM1 million property floor price set for foreign buyers is still among the lowest offered in Asia,” Mr On said. He also went on to add that Malaysia is an investment-friendly nation because it offers foreigners the chance to buy freehold properties - something that few other countries do.

In terms of where the majority of buyers are coming from, Mr Ong said most are still Malaysians and Singaporeans, but there are others coming to the nation from overseas, including Chinese, Indian and South African investors.

His comments come at a time when CIMB's latest research on the Malaysian real estate market predicts that this year will be a good one. Recent weakness is expected to provide a boost for those who are looking to invest in property, and this will see the market start to build strongly throughout the first six months of 2014 in particular.

The body also reported a strong end to last year, stating that the real estate index in Malaysia in 2013 was 23 per cent higher than it had been 12 months earlier, showing recovery even at a time when there had been moves to curb lending and irresponsible funding of property purchases throughout the nation.
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