State Housing, Communications and Multimedia Committee chairman Dzulkefly Ahmad believes the Johor state government’s decision to lower the threshold for foreigners to buy properties to RM600,000 from RM1 million will not affect local home buyers.
Dzulkefly said foreigners may buy only completed properties having strata titles and which have been issued a Certificate of Completion and Compliance (CCC) for more than nine months, reported Bernama.
“It’s possible that the CCC is for more than the period if the sale was made by the developer during the construction stage i.e. the property had been offered for a long period of time but there was no demand from local buyers, so the question of competition does not arise,” he said in response to a query from Tan Hong Pin (PH-Skudai) during the 14th Johor State Assembly.
He also revealed that the reduction measure was one of two initiatives that would address the state’s property overhang.
Dzulkefly did clarify that the lower threshold will only be effective from 1 January 2020 to 30 September 2020. After that period, the threshold will return to RM1 million.
The other initiative, he said, would raise the levy on foreign buyers to 5% or RM30,000 (whichever is higher) from 2% of the transacted price or RM20,000 (whichever is higher).