Foreign Investors Favour Malaysian Property Market, Says Analyst
Property investors are positioning themselves to capitalise on renewed confidence in Malaysia's economy despite global volatility, an economist with a Dubai-based property and investment company said.
IQI Group Holdings chief economist/investment strategies Shan Saeed said the country's property market was growing in a very structured manner and would continue to attract investments from European countries, China, Japan and South Korea.
"We advise our clients on the global scale and they are looking at Malaysia's property market from a very favourable perspective.
"The investors consider the economic growth, investment pattern and domestic growth when deciding to invest in a country," he told reporters on the sidelines of the International Business Review Summit 2016 organised by AMG Holding International Sdn Bhd here Friday.
IQI provides advisory services to clients in Kuala Lumpur, Singapore, Hong Kong, London, Melbourne and Middle East.
Shan said for the past four to five years, Malaysia's economic confidence was rest assured, prompting capital inflows into the country.
"More and more people are looking at property because they are still undervalued and investors are looking at it from the global perspective," he said.
On Malaysia's property market outlook, Shan said Kuala Lumpur would become more like Hong Kong in terms of exorbitant property prices.
"However, there is no property bubble in Malaysia so far, but there is a bull run," he said, adding that the property prices are expected to stabilise by 2018-2019.
On Malaysia's gross domestic product (GDP) this year, Shan said it is expected to grow between 4.8 per cent and 5.2 per cent, underpinned by confidence in the economy despite the global challenges.
"Continuous domestic demand and rising consumer spending will support the GDP growth going forward," he said, adding that the current improvement in the ringgit position also reflected Malaysia's economic health.
He projected the local currency to trade between 3.80 and 3.90 against the US dollar this year following rising crude oil prices.
"Last year, people are saying that the ringgit is going to touch between 5.80 and 6.0, but it was not so as at Dec 31, 2015, instead it was traded at 4.20.
"And now we are seeing the local note is still going in the right direction and it is heading towards the target level," he said.
Source: Bernama.com