Malaysian real estate prices rising

Property price increases continue in Malaysia, albeit at a lower rate, amidst slower exports and economic growth in the first quarter of 2011.

The national house price index rose 6.5% y-o-y to Q1 2011, after annual increases of 7.9% y-o-y in 2010, according to the Valuation and Property Services Department (JPPH). When adjusted for inflation, house prices rose by 3.4% over the same period.

In Kuala Lumpur, the house price index surged by 11.4% y-o-y to Q1 2011, with a rise of 7.1% during the latest quarter. House prices also increased in Selangor (9.6%), Perak (8%), and Negeri Sembilan (5%) over the same period. On the other hand, in the year to end-Q1 2011, Pulau Pinang and Johor experienced price falls of 1.2% and 1%, respectively.

By property type, nationally:

• Terraced houses rose 7.7% y-o-y to Q1 2011

• Detached houses rose 5.8%

• Semi-detached houses rose 5.3%

• High rises rose by just 0.9% over the same period.

Source: NuWire Investor