KUALA LUMPUR: Malaysia's real estate sector is expected to expand by 6.8% this year and 5.7% next year, despite a challenging external economic environment.
Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said 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% from 2008 to 2009 to a year-on-year growth of 32.6% in 2010," he said at the FIABCI Asia Pacific Real Estate Congress 2011 here on Thursday, Oct 13.
Ahmad Husni also said that the business services sector will experience similar growth of 6.8% this year and 5.7% 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