Recent announcements from the Malaysian government look set to establish the country as a new hotspot for overseas property investment.
According to the Malaysian Prime Minister’s Office, foreigners will be able to buy property valued at more than 250,000 ringgit (£35,124) without seeking the approval of the Foreign Investment Committee or incorporating a company with local equity participation.
Following a downturn in the market in 2005, the government were anxious to rescue the property industry and introduced this new legislation to encourage investors to purchase more luxurious residences.
The recent reduction in bureaucracy for more expensive purchases could encourage more foreign investors to take advantage of the Malaysian housing market.
CH Williams Talhar & Wong, the chartered surveyors and international property consultants, predicted that in 2007, condominiums will continue as the most popular property investment for foreign purchasers.
Their survey suggested that a third of property professionals believe that condominium prices will decrease in 2007, making an attractive prospect for overseas investors.
It is also believed that foreign investors are becoming more interested in industrial property purchase.