Prices of homes in Malaysia have continued to rise in 2012, although at a slower pace than in recent years. New figures show that a slowdown in MalaysiaÃ¢â¬â¢s GDP and restrictions on foreign property purchases have resulted in house prices rising by just over 6 per cent in the last twelve months.
Keep reading to learn more about MalaysiaÃ¢â¬â¢s steady and buoyant property market.
Property prices in Malaysia rise 6.1 per cent in the last year
A slowdown in MalaysiaÃ¢â¬â¢s GDP growth from 7.2 per cent in 2010 to 5.1 per cent in 2011 has seen a slower growth in house prices. The national house price index rose by 6.1 per cent between quarter 1 2011 and quarter 1 2012, down from 8.9 per cent growth last year.
The countryÃ¢â¬â¢s Valuation and Property Services Department (JPPH) also found that the average house price in Malaysia at the end of 2011 was MYR 219,219 (ÃÂ£44,400).
And, according to C.H. Williams Talhar & Wong's 2012 Property Market Report, price increases should continue to moderate in the remainder of 2012.
The house price index in MalaysiaÃ¢â¬â¢s capital Kuala Lumpur rose 6 per cent year on year to Q1 2012. House prices also rose in Selangor (8.9 per cent), Pulau Pinang (5.2 per cent), and Perak (4.2 per cent).
Overseas buyers of property in Malaysia must spend over ÃÂ£100,000
While house prices in Malaysia continue to rise, foreign buyers are now faced with a higher minimum purchase price. This follows a government decision to retreat from previous legislation making it easy for foreign nationals to buy homes.
The price floor below which foreign buyers can buy in Malaysia is now MYR 500,000 (ÃÂ£101,280), twice the previous level.
The REHDA opposed the new restrictions, arguing that "the restriction might impact residential property acquisition by foreigners in the country, as the number of properties priced above MYR 500,000, especially outside the Klang Valley areas, are limited.Ã¢â¬Â