Gov't Mulls in Revising Policy on Foreign Property Purchases

March 14, 2017

 

In light of the poor currency exchange rate, the government eyes to safeguard the interests of Malaysians and curb abuse by revising its housing policy on foreign property acquisitions, reported New Straits Times.

In fact, a study is being conducted on the matter, in which the federal government is looking at two options – raising the RM1 million floor price per property, or switching the currency for the floor price to US dollar from the ringgit, for all foreign property buyers, said Urban Wellbeing, Housing and Local Government Minister Tan Sri Noh Omar.

“Right now, foreigners who buy houses costing more than RM1 million do so in ringgit, but because the exchange rate of our currency changes quiet frequently, we recommend that the price is quoted in US dollars,” said Noh as quoted by Free Malaysia Today.

He was commenting on reports that the Penang government intends to allow foreigners to acquire property priced at RM800,000 and above since such properties are beyond the means of local buyers due to difficulties in securing housing loans from banks.

“If the state government pursues its intent to lower the mandated floor price (for foreign purchases), then it would have breached the housing policy set by the federal government,” noted Noh.

“At the present foreign exchange rate (of RM4.45 to US$1), there shouldn’t be any problem maintaining the RM1 million floor price for foreigners,” he said, adding that local buyers should be given priority.

Image sourced from Utusan

 

Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email radin@propertyguru.com.my

 

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