Market in Brief
The property market performance is stable across all sub-sectors in 2012. 2011 recorded a stabilised total of transactions at 49,290 compared with 47,698 transactions in 2010. To date, the sales of new launches at the end of 2012 have recorded 47.7%, better than the performance of sales recorded in 2011 which is 46.3%. The industrial sub-sector softened slightly in 2012 as foreign investments into manufacturing declined to RM20.8 billion in 2012 compared with RM34.2 billion in 2011.
Summary of New Launches from 2009 to 2012
|Sales Performance (%)
Source: Valuation and Property Services Department
To date, the performance of the property market is positively bolstered by several measures introduced in Malaysia’s Budget 2013:
- Housing sub-sector
Real property gains tax (RPGT) from disposal of properties made within two years of date of purchase to be taxed at between 15% and 10% of disposal of property within a period of two to five years. For property disposed of after from the date of acquisition, RPGT is not applicable.
- Commercial sub-sector
Concerted effort to make REITs more appealing to foreign investors i.e. tax cut from 20% to 10% on dividends received by foreign institutional investors from REITS and 15% to 10% for individuals.
Source: The Edge Financial Daily (June 2010), MPI
Another measure introduced in April 2009 allows 100% ownership for qualified and leading fund management companies to set up operations in Malaysia. A Special Taskforce to Facilitate Business, PEMUDAH, has also contributed to Malaysia’s ranking in various business indexes:
- World Bank’s Ease of Doing Business Index
- World Competitiveness Yearbook (IMD)
Other salient improvements from 2009 onwards is the reduction in time taken for property registration, from 144 days to 41 days for Sistem Taksiran Pindahmilik Harta that requires valuation and 34 days, without valuation. On the construction front, 103 One Stop Centres (OSC) has been established as at end 2009 to help expedite application processes for development.
As for updates of Malaysia's five economic corridors, publicly-released data in Q2 2010 signified substantial improvement in transparency of the corridors' progress. Projects currently under implementation are as follows:
||All 18 projects completed
|North Corridor Economic Region (NCER)
||27/30 projects (90% complete)
|East Coast Economic Region (ECER)
||80/86 projects (93% complete)
|Sabah Development Corridor (SDC)
||All 54 projects completed
|Sarawak Corridor of Renewable Energy (SCORE)
||9 projects carried out
Source: NAPIC Property Market Report 2009, Property Market Status Update Q1 2010, MPI Market Intelligence Reports, The Edge, Bernama