'2010 prospects for property sector positive'

Prospects for the property sector this year are positive due to the healthier performance of the domestic economy and further stabilisation of external economies, Deputy Finance Minister Datuk Wira Chor Chee Heung said today.

For the first three months of the year, the total number of property transactions was 91,979 valued at RM25.294 billion, up from 79,024 transactions worth RM16.922 billion in the first quarter of 2009, he said.

The Malaysian property market recorded a modest performance last year, with a total of 337,859 transactions worth RM80.997 billion compared to 340,240 transactions valued at RM88.34 billion in 2008, he told reporters after launching the Valuation and Property Services Department's publications in Kuala Lumpur.

Among the publications were "Property Market Report 2009", "Laporan Status Pasaran Harta Tanah Suku Keempat Tahun 2009", "Laporan Stok Harta Tanah Suku Keempat Tahun 2009" and "Laporan Indeks Harga Rumah Malaysia Suku Ketiga-Keempat 2009".
"The government has introduced various measures under the recent budget to stimulate and promote the property market and there is also a need to attract foreign direct investments (FDIs)," Chor said.

He said with a high level of FDIs, the demand for housing, office and retail space in terms of sales and revenue would also increase.

Asked about Islamic Real Estate Investment Trusts (I-REITs), Chor said the government had been engaged with other government agencies to look into Islamic REITs.

"We have started to see many investors, especially from the Gulf Region, investing in REITs," he said.

By Bernama