Property prices in Malaysia set to rise by 10-20 per cent in 2011

Property prices in Malaysia are set to rise by an average of between 10 and 20 per cent in 2011, partly due to an increase in demand for foreign buyers.  That’s the view of Deputy Finance Minister Datuk Donald Lim Siang Chai who was speaking after the launch of the 2010 National Property Information Centre’s (NAPIC) property market report.

Foreign investments in Malaysia property set to increase

Launching the market report, Lim said: “Inflation in 2010 stood at 2.2% and was at 2.4% in the first two months of this year.  We expect it to be higher this year due to escalating food and oil prices.

“And Malaysia, because of the ETP (Economic Transformation Programme) has attracted a number of investments from overseas. Investments last year were four times higher than 2009.

“We also expect more foreign companies to set up base here. Our Islamic banking is No. 1 in the world (so) all this will attract foreigners to come into Malaysia.”

Malaysia property ‘more attractive to foreigners’ in 2011

The Malaysia Star reports that ‘according to NAPIC’s statistics, the Malaysian property market recorded 376,583 transactions in 2010 worth RM107.44billion’ (around £21.8 billion).

There was an 11.4 per cent increase in the number of property transactions in Malaysia in 2010 (compared with 2009) and a 32.6 per cent increase in value.

In a statement, NAPIC said: ‘With the cessation of the Foreign Investment Committee’s approval for the acquisition of properties by foreigners which took effect in June 2009, property investment in Malaysia will be more attractive to foreigners.

‘Given that foreigners are only allowed to purchase commercial and residential properties priced above RM500,000 [around £101,400] it is anticipated that more activities will be recorded in the high-end housing units in sought-after neighbourhoods.’