Mostly sapu habis habis? Who told you that? Dont tell me the property agent or the take up rate board that they display!

The Star Online > Business
Thursday April 21, 2011

Inflation and demand to lift property prices 10%-20% this year

By EUGENE MAHALINGAM
eugenicz@thestar.com.my

KUALA LUMPUR: Malaysian property prices are expected to increase at an average of between 10% and 20% this year, in light of rising inflation and increase in demand for local properties from foreigners, said Deputy Finance Minister Datuk Donald Lim Siang Chai.

“Inflation in 2010 stood at 2.2% and was at 2.4% in the first two months of this year. We expect it to be higher this year due to escalating food and oil prices,” he said after the launch of the National Property Information Centre's (Napic) property market report 2010 yesterday.

Lim also said many foreigners were looking to purchase property here because the prices of properties were cheaper than in neighbouring countries such as Singapore.

“And Malaysia, because of the ETP (Economic Transformation Programme) has attracted a number of investments from overseas. Investments last year were four times higher than 2009.



“We also expect more foreign companies to set up base here. Our Islamic banking is No. 1 in the world (so) all this will attract foreigners to come into Malaysia,” Lim said, adding that this would also contribute towards pushing up prices of properties in Malaysia.

He said rising oil prices would also cause prices to escalate.

“There's a lot of uncertainty in the Middle East. It's beyond our control and that (rising oil prices) will affect the other things,” he said adding that property prices in Malaysia were currently at a “manageable position.”

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Added on April 21, 2011, 11:57 am
these figures refer to the WHOLE MALAYSIA? Can check out what figures for SElangor and Kuala Lumpur?

Aiyoh guys... Don't argue la.

We wait and see what will be happened next. Hehehe

no arguing la.

just Beh Tahan all these politicians talking without own research. i bet he just followed what many people said, malaysian properties are cheap cheap cheap and wanna shiok sendiri linking this to economy growth 

BN politician veli geng one    they are the best..

one of the factors affect the local property market = Politic ma..

i concur ! 
most of it relies on politician..
they say  " ok.. lets implement this "
then will affect properties either up or down 

The property rise 10-20%. The Inflation is 2.4%.

These 2 sentence do not make sense together. If the property inflate by 10-20% how can the inflation be 2.4%?

The property rise 10-20%. The Inflation is 2.4%.

These 2 sentence do not make sense together. If the property inflate by 10-20% how can the inflation be 2.4%?

first of all, that is the official number, the actual inflation is usually higher. (by the way, last i read the inflation rate is 2.9% instead of 2.4%)

secondly, the number above is an average number - which means there are some goods (such as electronic devices) deflated while some goods (such as property) inflated. the average number is still positive, which means the goods that price has increased is way more than the goods that price has decreased.

Yes, quite correct.

CPI is a basket of price of goods.
Properties price is increasing but rental is not.
While rental is included in CPI number computation.
Rental is hardly increasing actually, despite property price soaring like no tomorrow.

Same with those basic subsidised item, like petrol, sugar, electricity tariff etc, which is included in CPI number.

So you have 20 items price is stagnant, while 10 items price soaring 10%. End result the number is normalised by the stagnant price, which after being sum up and average, as 3.3%.

A 3% CPI number is already quite serious considered that we have so many subsidised items that intend to surpress the pricing throughout.

A 5% CPI could mean inflation running wild already.