Malaysia looks at reducing foreigners’ property purchase threshold
Government announces plan to reduce the minimum property purchase amount for foreigners so they can buy homes for less
Real Estate and Housing Developers’ Association (REHDA), the biggest property developer group in Malaysia, supported the government’s decision to reduce the minimum property purchasing amount for foreigners, from MYR1 million (USD238,581) to MYR600,000 (USD143,149), reported FMT news.
REHDA president Soam Heng Choon said the mandate will help them release vacant homes and reinvest in more economical housing markets.
However, opposing individuals claim that the developers will be compelled to increase property prices from a lower amount to MYR600,000 for foreigners.
Soam explained that the property rates cannot be altered since the housing and local government ministry requires developers to state each property’s selling price before the project launch.
More: Reduced property threshold for foreigners worries Malaysian analysts
To attract foreigners, the National Buyers Association said the developers will most likely switch to easier-selling residences at higher rates, eventually causing inflation and shortage of budget-friendly housing.
Soam countered the statement by sharing a report from the National Property Information Centre (NAPIC) noting that most of the unsold units cost below MYR300,000, stating that there are still plenty of affordable vacant properties.
He said that the lower threshold will only affect high rise, strata properties priced above MYR600,000 in Kuala Lumpur, as well as major cities in Penang Island, Johor Bahru, and Selangor.
Recommended
Meet the Bitkub CEO turning real estate on its head with cryptocurrency and tokenised ownership
Jirayut “Topp” Srupsrisopa, CEO of Thai crypto exchange Bitkub, is a true believer in the potential of digitised finance
6 sights to spot in Jardine’s Lookout, Hong Kong
With its sumptuous harbour vistas, this low-density area is one of the most sought-after in Hong Kong
Meet the architect rethinking disability in urban spaces and how cities can be reimagined
Author David Gissen outlines his vision for urban development that takes the needs of disabled citizens into consideration
Why Asia’s mixed-use developments are the future of real estate
Dynamic integrated communities are fusing real estate with commercial, leisure, and other amenities