The increase in international real estate capital flows could foster increasing
demand for stronger institutions across global real estate markets (Eichholtz et al.,
2009). The transparency index surveyed by JLL revealed that real estate transparency
around the world continues to improve. Previous evidence by Eichholtz et al. (2001)
revealed that internationally diversified property companies underperform local
property companies. Hence its reduction of the information disadvantages could imply
that international property companies have improved their performance relative to
property companies locally. Based on this situation, it is crucial for Malaysian property
companies to increase their level of transparency. Property companies are able to
achieve a satisfactory level in terms of transparency levels. Hence, it indicates the
potential of diversification for Malaysian property companies.