Malaysia: Expect a Good Property Market in 2010

So says Peter Lim of property portal, iproperty.

A litle bit of macro economics.

The Malaysian economy was not spared from the global recession. In the first quarter of 2009, her export hit an all-time low of 6.2% (year over year). However, the market improved in the second half of 2009 yet remained relatively weak when compared to other regional markets such as Hong Kong and Singapore.

According to Peter, for 2010, many industrial players feel that Malaysia’s property market will be performing well because:

1. The interest rate is still very attractive despite its tendency to increase in the near future because of the economy’s improving conditions. Furthermore, finance institutions are moving toward risk-based pricing in determining more sustainable interest rates for the industry.
2. Due to the population growth in Malaysia, the demand for residential properties will remain strong for years to come.
3. The removal of the 30% Bumiputra equity quota for companies seeking to list on Bursa Malaysia will encourage more domestic and foreign direct investment, which will further stimulate the property industry.
4. Developers continue to roll out housing projects with innovative designs, higher quality, 10/90 property financing scheme etc.
5. As the economic condition improves and the household income gradually increases, Malaysians will be prepared to commit to more capital spending such as buying houses.
6. As global economy gradually recovers, foreigners are flocking back to Malaysia to buy properties as we have one of the highest quality and cheapest properties to offer in Asia.

If the the government continues to play its active role in creating employment opportunities and improving the purchasing power of its citizens, Peter is speculating 2010 will be one promising year for property investment.