Malaysian properties are the cheapest in the region — is this a good enough reason to invest?

"Pricing real estate can be rather complex. It has to do with economic activity and historical trends. I believe it's cheap in Kuala Lumpur because the market has always been relatively well-balanced with no extreme shortage of supply," says Boyd. "I would say yes, 'cheapest in the region' is a valid reason to invest if you are willing to take a view of 5 to 10 years."
But Koh says, "Real estate markets are very much affected by local economic conditions, so straight regional comparisons are not realistic. However, by opening up the market to international players, a more "efficient market" has been created, which leads to better pricing for property owners. I would say the Malaysian market is priced realistically. The reason for this is there are no dominant property players, unlike in emerging markets, like Vietnam, where land ownership is tightly controlled by the state."

-TheEdge(June08)