subject: Malaysia Property Sector Will Remain Strong In 2012 [print this page] Malaysia property market reports showed a great performance in 2011. This could be clearly seen through the rapid increase in the number of new units and approvals for many new buildings. Seeing the market report for last year, similar performance is anticipated for 2012.Malaysia is a country with enhanced human capital investment which insures the well being of all Malaysian people. This is due to this fact that a great focus is given to the competitiveness of the nation
The report further suggests that the residential sector performance will sustain for this year too. When compared to office and retail sectors, the space consumption by the Economic Transformation Programme may bring some alterations in this field. Malaysian government however seems to be worried with the real estate bubble that is anticipated to emerge in the near future.
Seeing the mortgage crisis that occurred in U.S., the government in Malaysia seems more concerned about the issue, especially after seeing the rising stats of buyers from China and Middle East investing in real estate Malaysia.
Measure like a 70% LTV on purchase of third property and changes in the lending guidelines by Bank Negara in Malaysia will protect any such unfavourable happening here. In the first two months of 2012, the number of loans applied for purchase of homes in Malaysia went up by 17% amounting up to a whooping RM26.7 billion.
The market activity in 2011 was driven greatly by the high expansion in the residential sub sector with an expansion of 18.9%. Also, the value of transactions amounted to RM137.8 billion marking a 28.3% increase. In terms of volume, it raised by 14.3% making a total of 430,403 transactions in 2011.
The increasing demand for high end properties also contributed significantly in the overall growth of real estate sector in Malaysia. The ease of borrowing money needed for purchase and the attractive loan plans are significant reasons that have contributed in this increase.
The report included differential description about the different sectors. This year too, the property sector in Malaysia is expected to remain healthy and the first quarter reports have already shown the same.International Property Investor forecasts a booming future for the property market of Malaysia.
