Property ownership laws in Malaysia are the most lax in the world and this attracted the foreign investors at the expense of opportunities for people in this country.
Competition has caused the value of the sector soared too high to reach beyond their abilities, said Executive Committee Member of the Association of Valuers, Property Managers, Estate Agents and Property Consultants Private Malaysia (PEPS), Y. H. Ooi.
He is also Managing Director of Knight Frank, said the demand ratio of property between local and foreign investors this year is 70:30, and based on current estimates, the total domination of foreigners will increase next year.
According to him, despite the increase in property values to help improve the economy but they also have a negative impact on the people had no control.
Ooi claimed, there were no limits imposed on foreign investors in terms of ownership of assets and locations if you wish to own property in Malaysia.
He explained that some countries such as Australia and Singapore has strict laws on property ownership among foreign investors.
"Some limit the number of assets, can only buy assets that are being or have not been built and many more to protect the interests of local people," he said at a press conference here today in conjunction with Malaysia Property Summit 2011 to be held on 18 January.
Also present were the Director General of Valuation, Valuation and Property Services Department, Datuk Mani Usilappan the Executive Committee Member and President of the PEPS PEPS, Choy Yue Kwong.
Ooi said, the competition factor is causing property values soaring in urban areas and could not directly owned by middle income and below.
"We are not able to rival the purchasing power of foreign investors and ultimately only able to see the strategic assets owned by foreigners. Something must be taken to re-evaluate this issue, "he said.
Ooi added that many foreign investors who have assets in Malaysia are from Singapore, Hong Kong, Indonesia, Europe and Central Asia.
Locations that attract them are Kuala Lumpur and the Klang Valley on the factors of infrastructure and facilities fully equipped.
Mani says that, if the situation continues, the question may arise whether the local real estate industry is built to a national or foreign investors.
Meanwhile, Yue Kwong said property values in Asia, including Malaysia, are expected to increase next year due to positive economic growth despite the downturn in the United States (U.S.) and Europe.
He said the external economic situation is not encouraging to see investment funds, particularly the property sector will shift to Asia and Malaysia also received benefits based on existing facilities.
He said the high demand in the local property sector will increase the liquidity of the market and property values, especially in Kuala Lumpur.
"The increase in property values next year may not be as high this year, which recorded an increase of 30 percent because of economic growth expected to slow," he said.
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