Malaysia property buying frenzy "is over"

Photo credit: PNP!

The Malaysian property buying frenzy is over, according to experts.

The Deputy of the Malaysian Institute of Estate Agents, Siva Shanker, told StarBiz that asking prices for the country's real estate are now too high and they are deterring investors from jumping into the market.

"The buying frenzy is over," Shanker said. "In 2010 and 2011, some residential sectors saw an increase of about 30 per cent, which is way too high and moving towards a bubble."

Indeed, these rises have led to a discrepancy between the property's asking price and its official value, causing Malaysia's booming market to slow down. And that slowdown of Malaysian property may continue into next year.

The market will not suffer a severe crash, adds Shanker, but house prices will "not move up so much" for the near future.