Malaysian slump a 'blessing in disguise'?

The global economic downturn may have provided an unlikely boost for Malaysian foreign property investment...

Speaking to the Malaysia Star, executive director of Malaysia Property Inc, Yu Kee Su, suggested that falls in house prices were likely to attract foreign buyers to cities such as Kuala Lumpur, which was now cheaper than other Asian hubs such as Hong Kong and Singapore.

The only possible shortfall, he added, was that capital appreciation had been poor since the onset of the financial crisis - but even this had its benefits.

Mr Yu told the paper: "The shortcoming has indeed become a blessing in disguise for Malaysian properties. Friendly policies such as the exemption of Foreign Investment Committee guidelines and real property gains tax have also helped to promote foreign investment in real estate by 50 to 60 per cent a year between 2005 and 2007".

Source: www.thestar.com