Malaysian property market will withstand new restrictions

Investment in the Malaysian property market will withstand new restrictions imposed by the government, says the country's Institute of Estate of Agents.

The government is planning a range of cooling measures to curb overseas speculation in Malaysia's real estate, with a minimum price threshold of MYE 1 million set to be introduced in May this year. The market, though, is expected to withstand the restrictions, says the group's president Siva Shanker, alongside current over-supply issues.

"In the short term, this oversupply will continue to run its course. Many units that will be placed in the market won’t sell. But in the second half following this period of consolidation, people will come to terms with the market, so 2015 will see an upturn in the property sector, which will continue into 2016. Even in the medium term, much of the oversupply will sort itself out," he told The Star.