Malaysia Property Market Review

The Malaysian property market got off to a flying start in 2007 and all expectations were for a dramatically bumper year – however, as is often the case with markets that are so open and therefore vulnerable to international exposure, the negative economic situation in the US has had a somewhat broad effect on the Malaysian economy this year and this has translated into the real estate sector in the form of lower than expected sales volumes.

But investors need not concern themselves – the fundamentals remain the same and they remain exceptionally positive in our view and what’s more, the Malaysian property market has been boosted this week by reports of significant Middle Eastern investment commitment and going forward, the property sector is expected to be one of the main areas of the economy to benefit from the forthcoming 2008 budget according to Forbes.com.

A Middle Eastern consortium led by the Qatar based General Insurance and Reinsurance company Gulf Petroleum Ltd (Qatar) issued an announcement over the weekend that it will commit over 1.44 billion US dollars to the energy, Islamic banking and Malaysian property sectors with a number of currently open agreements expected to be executed as early as tomorrow in the Malaysian capital city.

At the meeting on Monday it is also expected that Sheikh Nasser, who is the Qatar General Insurance chairman, will meet the Malaysian Prime Minister Abdullah Ahmad Badawi to cement their nation’s close ties suggesting this investment commitment is merely the start of future developments and joint ventures.

Naturally this level of commitment is sufficiently substantial and it means that the Qatar consortium will require a physical presence in the region and it is expected they will establish operations in Kuala Lumpur.

In the other news out this week which bodes exceptionally well for the ongoing success of the Malaysian property market, Forbes.com has reported that the 2008 budget in Malaysia will likely see many positive changes including either a reduction in personal income taxes or an increase in tax relief measures such as an increase in the minimum level of taxable income for example and that this will serve as a booster to domestic activity in the property sector.

Additionally, specific measures are expected to be implemented to directly promote activity in the Malaysian real estate market such as introducing an exemption on stamp duties for residential property, tax relief for housing loans and larger withdrawals from provident fund savings to purchase property in Malaysia.

Based on Amberlamb, the lower than expected sales volumes so far in 2007 everything in the Malaysian property garden is still rosy.

p/s: Malaysia has different types of properties such as service apartment, condominium, link-storey house, low cost flat, semidetanched and bungalow.

(Source: http://www.amberlamb.com/index.php/a/n/00260-malaysian-property-market-boosted/)