Malaysian property prices to rise in 2011

Residential values in parts of Malaysia are expected to rise in 2011, albeit at a slower pace than in previous years.
This is according to real estate services company CH Williams Tahir & Wong, which noted that prices in the Klang Valley, Penang and Johor will remain on their upward trend.
The company’s managing director Foo Gee Jen said this year’s growth in the prime areas is projected to be between ten and 15 per cent, an article by Property Report revealed.
With prices expected to rise in the coming years, property in Malaysia offers some excellent opportunities for foreign buyers and investors.
Investor speculation in the Malaysian market has been triggered by fears of property bubble forming as a result of the government’s decision to introduce a maximum lending limit of 70 per cent for third house financing.
"The government announcement to lower the cap on the loan-to-value ratio for third house financing gave a bit of psychological effect on people," Mr Jen said.