Malaysia's property market has become a bit of a 'no-go territory' for foreign investors until the country is able to resolve its 'dilemma', says a veteran real estate agent, Siva Shanker.

The real estate market is currently driven by domestic consumption, said Siva, an immediate past president of the Malaysian Institute of Estate Agents (MIEA).

"I don't think there are many foreign property investors rushing to come to Malaysia now. I think Malaysia has become a little bit of no-go territory.

"Until we solve this dilemma that we are in and come to a closure, I think everybody is going to treat us at arm's length, be a bit careful," he said when making a slide presentation on the property market outlook in Kuala Lumpur.