Demand for homes: Melaka's residential market, however has limited upside for investors as the homebuyers are usually owner-occupiers, according to the property consultants. Another factor could be the 60% bumiputera quota imposed on residential projects,which has resulted in limited units avail-able for non-bumiputeras and slow sales for developers. Nevertheless, says c H Williams Talhar & wong Sdn Bhd's Melaka brach manager Teh Hong chua,there is demand for new homes. Housing areas are moving outwards as there are limited tracts of land in Melaka city suitable for development. "The residential secondary market is not very active," he says, obseruing that the asking prices for homes around the city are going up, albeit slowly. For instance, the price of a z-storey link home five years ago ranged from RM18o,ooo to RM200,000. NoW (in 2011) prices average RM250,000. The prices of newly launched equivalents are about RM26O,O0O to RM280,000,Teh says. Foreign investors usuauytake up condotels - tie combina-tion ofa condo and a hotel room - which ue sold on a leaseback basis.These properties are usually ocrupied by tourists.