Foreign investors to push property sector

Foreign investors to push property sector

KUALA LUMPUR: The property market, which has seen flat growth over the past two years, is set to rebound this year on a projected robust demand from foreign investors, experts said.

Association of Valuers & Property Consultants in Private Practice Malaysia president James Wong expects an overall improvement in the sector.

This was following the abolishment of the real property gains tax from April and relaxation of Foreign Investment Committee rules on house purchases by foreign buyers, he said.

“Except for the mass housing development projects, there will be improvement across the board in the property market,” he said after the opening of the National Real Estate Convention 2007 yesterday.

Wong said growth activities would initially be underpinned by transactions in high-end residential units.

This would be followed by investments in other segments such as shop offices and industrial properties as well as properties in new growth areas in Johor, Penang and the Klang Valley, he added.

International Real Estate Federation president Datuk Richard Fong said he expected stronger demand from foreign investors for properties in the above RM250,000 segment.

This would help mop up excessive supply of high-end residential units, he said.

Fong, also Glomac Bhd executive vice-chairman, welcomed the move to enable foreigners to obtain local financing, saying this would encourage foreigners to purchase in bulk.