M'sian minister sees better prospects

M'sian minister sees better prospects

(KUALA LUMPUR) The Malaysian property market is expected to remain vigorous in the coming years amid a string of measures and initiatives undertaken by the government to further boost the sector, Deputy Finance Minister Ng Yen Yen said yesterday.

'We expect a very positive upward trend in the property sector,' the minister said when asked on the outlook for the property market for 2007.

Demand is expected to be from both local and foreign investors, she told reporters after launching the National Property Information Centre's 2006 Property Market Report here.

Asked if housing prices will jump due to possible speculation, she said: 'I don't think it will double or triple but there will be a steady increase in property prices. There will still be affordable properties.'

Ms Ng also refuted a suggestion that the strengthening ringgit could be a stumbling block for the property sector to prosper.

Yesterday morning, the ringgit was quoted at 3.4325/4345 against the greenback, firmer than Tuesday's closing of 3.4355/4375.

'Investors are very clever. They study a whole lot of things before they invest. It does not depend on the ringgit alone. There are many other factors.'

The government, she said, will continue to have policies that benefit the country as well as foreign investors.

Among the measures introduced to further liberalise foreign ownership of properties is the waiver of official approval for them to buy property costing more than RM250,000 (S$110,172).

Other measures include scrapping the real property gain tax, a one-stop centre to speed up the paperwork for housing projects, a single legislation on construction matters in place of six laws, and incentives to housing developers to promote the build-then-sell concept. - Bernama