Stronger growth prospects in Asia have seen global real estate investment gravitate towards the region, with the market recovering to 2007 levels, according to Real Capital Analytics.
Amid a more positive climate, the Malaysian government's moves to encourage real estate investment have put its capital, Kuala Lumpur, in the spotlight. Terry Hobbs, agent and media manager of Propertyshowrooms.com, says a number of recent initiatives favour foreign investors.
'The Malaysian government's decision to limit the reintroduction of capital gains tax [Real Property Gains Tax] on real estate is indicative of the favourable view it holds towards property investment,' Hobbs says. 'This means the only properties that will now be taxed are ones sold within five years of their purchase date.'
In an interview with the Overseas Property Professional website, a spokesman for Malaysia Property Inc, a government initiative set up to promote international property investment, says industry feedback has been factored in.
'This policy reflects the government's pro-investment [position] and yet would safeguard the Malaysian property industry against speculation. As serious property investors usually take a longer view of their investment horizon, the amendment to the Real Property Gains Tax would appeal to this target group of investors for the industry,' the spokesman says.
In addition, says Hobbs, the Foreign Investment Committee is making plans to deregulate investment guidelines to make it easier for overseas purchasers. There is also the Malaysia My Second Home (MM2H) visa programme, allowing foreign citizens to stay in Malaysia for up to 10 years at a time if they wish.