Malaysians Can’t Afford Homes So Government Invites Foreign Buyers
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Deputy Finance Minister Datuk Lee Chee Leong has urged foreign investors to invest in Malaysia real estate given the current lower property value within the country.
He noted that while the real estate sector is presently a bit slow, it had remained resilient based on indications in 1H 2017 of a rebound next year.
"In line with the strong economic growth, activities in the housing market have shown some signs of improvement, with the total housing transaction value recording a positive annual growth of 0.9 percent, for the first time since 2015" he said at the Asean Real Estate Network Alliance (ARENA) Convention & Exhibition (ACE) 2017 on 21 August.
"The housing transaction volume has also improved, recording a smaller contraction of 5.4 percent in the first quarter this year, as compared to -12.7 percent in the fourth quarter 2016.â€
Financing by banks for the acquisition of affordable homes also remained available as shown by the 72 percent loan approval rate for homes costing below RM500,000, added Lee.
"Moving forward, the real estate sector is expected to benefit from higher demand due to stronger growth prospects and stable employment outlook.â€
With the theme "making friends and connecting businessâ€, the conference aimed to support Malaysian real estate practitioners cross sell properties in other markets.
The two-and-a-half-day event also provided access to alternative markets in a bid to address the present economic uncertainties within the local property market.
ACE 2017 organising chairman and secretary general Soma Sundrum expects ARENA to become a powerful regional body that offers members a strong networking platform to promote cross border property transactions.
"Asean is growing tremendously and there are huge economic opportunities for ARENA members. Each Asean country, however, has its own individual characteristics and legal framework for property transactions.â€