Malaysia Boasts Highest Property Price Rises in a Decade

  • 13 years ago
  • Uncategorized

Malaysia’s property market is booming, with 2010 recording the strongest house price increases since 2000.  A strong economic recovery and increased political stability have helped the nation’s property market bounce back after a troubled 2009.

Malaysian house prices rise sharply in 2010

According to figures from the Bank Negara Malaysia, the national house price index rose 6.2 per cent between quarter 3 2009 and quarter 3 2010.  In the capital, Kuala Lumpur, the house price index rose by just under 10 per cent in the year to the end of September 2010.  Increases in the states ranged from more than 10 per cent during the year to Q3 in Sabah and Sarawak, to 1.3 per cent in Melaka.

The average price of a property in Malaysia was MYR196,022 (£40,037) whilst in Kuala Lumpur the average house price was MYR432,181(£88,271).

Property transactions also rise in Malaysia

From January to November 2010, transaction volumes increased by 12.2 per cent year on year while the value of transactions rose 35 per cent, according to Abdullah Thalith, director-general of the Valuation and Property Services Department (JPPH).  Outstanding housing loans reached MYR177.5 billion (£24 billion) in 2009, up 11 per cent from a year earlier.

Mr Thalith said: “The recovery of the Malaysian economy has reinvigorated the overall property market.”

With low mortgage rates in the country (as low as base rate minus 2.3 per cent) and financing available up to 100 per cent, buying in Malaysia is easier than in many other countries.  Average lending rates fell from 6.63 per cent in September 2006 to 4.83 per cent in December 2009.

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