RM1 million limit for foreign buyers in Malaysia effective today

With effect from today (March 1), foreigners can only purchase property in federal administered territories in Malaysia at or above RM1 million (S$387,000).

But individual states have the right to decide when to implement the policy change, according to Malaysia's Economic Planning Unit (EPU).

The EPU said the new ruling is in line with the 2014 Budget announced in October last year by Prime Minister Datuk Seri Najib Tun Razak.

Previously, the minimum threshold for foreign property buyers in Malaysia was set at RM500,000 (S$193,500), but was revised to help curb speculation and keep housing prices affordable for Malaysians.

The measure was expected to take effect on 1 January 2014 but had not been gazetted until now. This latest news comes as a surprise given recent speculation that its implementation was to be pushed to May due to tweaks which needed to be made.

Before this, Penang was the only Malaysian state whereby foreigners were subject to a minimum property price threshold of RM1 million for condos.

For more information on the new ruling, go to: http://tinyurl.com/oppjtms

Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg

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