Malaysia property prices on the up

Malaysia house prices are still predicted to increase, even as demand for property weakens.

Last year, the country's house price index rose by 10 per cent, reports Property Guru, following another rise of 7 per cent in 2010 – and that trend is expected to continue.

Demand is some areas is expected to stay steady, with Penang and Klang Valley highlighted as key hotspots by investment bank ECM Libra, but stricter lending guidelines across the country are slowly sapping demand.

"Property prices are expected to continue to escalate due to the scarcity of prime land and as land prices, building materials and labour costs increase," commented ECM.

Source: Property Guru