The government plans to raise the minimum property prices for foreign buyers, in a bid to provide locals more opportunity to get up the property ladder and to compel developers to build affordable homes.
In fact, the government has been exploring a range of ideal prices to be set.
“Property developers now seem comfortable at providing RM1 million and above developments to attract foreign buyers,” said Housing and Local Government Ministry (KPKT) secretary general Datuk Mohammad Mentek at the 2018 National Waste Management Conference in Kuala Lumpur.
“The favouritism is contradicting to the government’s intention in building more affordable houses. We want them to focus on building houses for Malaysians.”
More: Thinking Of Relocating To Malaysia? Find Out How
He revealed that the new threshold will be based on the local currency’s condition, reported The Malaysian Reserve.
Given the country’s foreign currency exchange rate, Mohammad noted that the “threshold is actually quite low if we consider the current economic condition”.
“To make a comparison, RM1 million is currently at around US$250,000.”
The previous government’s Economic Planning Unit replaced the Foreign Investment Committee Guidelines with the Guidelines on the Acquisition of Properties in June 2009 to control property ownership by foreign interests in the country.
With this, the government raised the minimum threshold for properties in various states from RM500,000 to RM1 million.
Image sourced from The Malaysian Reserve
This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email email@example.com
As a property buyer, it is important to be well informed on the buying process and laws governing the housing industry. Read more here!