Rehda denies foreigners behind high property prices

Apparently, the highest property appreciation has not been in the Klang Valley and Penang. We've been targeting the wrong states guys!!

http://www.themalaysianinsider.com/malaysia/article/rehda-denies-foreigners-behind-high-property-prices/

By Roznah AJ

September 04, 2012

KUALA LUMPUR, Sept 4 — The Real Estate and Housing Developers’ Association (Rehda) Malaysia has dismissed speculation that foreign buyers are responsible for escalating property prices despite transactions of properties by non-Malaysians running at 25 per cent last year.

Rehda Malaysia president Datuk Seri Michael Yam said that the percentage of foreign ownership, which is at 11.5 per cent and 25 per cent in Kuala Lumpur and Johor respectively for properties worth above RM1 million, does not reflect the whole scenario.

Speaking at a Rehda media briefing today, he said that the overall figure for foreign ownership in Malaysia is just two per cent, and is very low and not alarming.

He said that Malaysia imposed restrictions, such as a limit of 50 per cent on the total units in a project that can be sold to foreigners and a 30 per cent quota for Bumiputera units.

“We don’t build for the foreign market, we build for locals,” said Yam.

He added that foreign buyers were very selective and there were only a few targeted hot spots.

According to the general manager of Malaysia Property Incorporated (MPI) Veena Loh, the highest property price appreciation is not in the states that have a high number of foreign purchases.

Loh said that a 10-year average shows the steepest price hike occurred in states, such as Sabah, Terengganu, Perlis and Pahang, and not the states with high foreign ownership.

She said that in Johor and Kuala Lumpur, prices only have appreciated by 0.6 per cent and 5.5 per cent respectively over the last 10 years.

Loh said that people might feel prices were high in the Klang Valley but they had ignored the fact that most of the launches were for high-end properties.