The growth rate of Malaysia's property sector is expected to return to pre-crisis levels this year, on a growing economy and improved commodities market and exports.
"The property market this year will improve substantially against 2009. Last year, most industry players had anticipated that the market would be severely affected by the crisis, but it was 'a year that never was'," said Deputy Finance Minister Datuk Dr Awang Adek Hussin in Kuala Lumpur yesterday.
He was speaking to reporters after delivering a keynote address at the International Real Estate Research Symposium 2010.
According to the "Malaysian Property Market 2009" report released by the Valuation and Property Services Department at the Finance Ministry last week, sales in the first quarter of this year rose 52 per cent to RM25.3 billion compared with a year ago.
The recovery was supported by a positive turn in the economy and new launches during the period.
Earlier, in his speech, Awang Adek said at this recovery stage, it is important to ask what the lessons learnt from the recent crisis were.
He praised the Malaysian banking system which had a strong foundation in the run-up to the crisis, following fixes made during the 1997 Asian financial crisis which helped to mitigate the effects of the current crisis.
"The banking sector was in a stronger position due to consolidation and dealing with direct borrowers while being resilient to assets and derivatives," he said.
On the RM67 billion stimulus package, he said 33 per cent or RM22 billion has so far been spent and the remaining RM45 billion will be spent this year.
By Business Times
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