Thursday, October 13, 2011

Real estate sector to grow 6.8% this yr, says Husni

KUALA LUMPUR: Malaysia's real estate sector is expected to expand by 6.8 per cent this year and 5.7 per cent next year, despite a challenging external economic environment.

Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said on Thursday, Oct 13 the domestic property sector is expected to maintain its growth momentum as the 2012 Budget is sufficiently accommodative to mitigate any systematic disruption to the economy.

"Our property sector has also seen an impressive turnaround from a decline of 8.3 per cent from 2008 to 2009 to a year-on-year growth of 32.6 per cent in 2010," he said at the FIABCI Asia Pacific Real Estate Congress 2011 here.

Ahmad Husni also said that the business services sector will experience similar growth of 6.8 per cent this year and 5.7 per cent next year.

"Since Malaysia's economic recovery from external shocks brought about by the 2009 global economic crisis, confidence in the future growth of the domestic economy has returned," he said.

He said the future of real estate development in the country is bright as the government plans to build a public transportation system and establish feeder services in the next 10 years.

Other projects include revitalising the Klang River to serve as the focal point for new riverside commercial and recreational areas, he said, adding that the government will encourage the building of iconic urban developments.

Ahmad Husni also said Asia Pacific will contribute the highest percentage of property developments worldwide.

"As per capita income grows, Asia's real estate industry will see a growing demand for increasingly sophisticated products," he said. - Bernama

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