| Summary: | The emergence of foreign investments within the commercial property market, particularly in the office sector, hasgenerated a lot of interest within property circles. In Kuala Lumpur itself, a totol of 20 transactions involving prime commercial buildings such as office blocks, shopping complexes and hotels amounting to M$972.55 million weresnapped up by foreign interests. A high degree of foreigninvestment concentration took place in 1988 and 1989 whwnthe property market was recovering from the recessionary period between 1985 and 1987. The interest generated has been influenced by many reasons, most of which showedup the potential of the commercial property market to grow and apprecite in value. The reasons include national, regional and specific locational factors which are put together to determine the driving forces that have thrust foreign investors to invest in Malaysia generally and KualaLumpur's prime commercial centres specifically. The studyalsoforcuses on governmental control and safeguards to check the inflow of foreign investments and determines some of the implications arising specifically from these investments within the area of study, particularly emphasising oncommercial high rise office buildings. The main thrust ofthe study concentrates on the extent, factors and implications of foreign investments in the commercial property market in Kuala Lumpur. Data, analysis and findingsrelating to market forces and trends indicate that foreign investments have avital role to play in the revival andgrowth of the office sector in Kuala Lumpur.
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