Johor Government Mulling Lowering RM1m Threshold For Foreign Buyers Of Property
The Johor government is contemplating on lowering the RM1 million threshold for foreigners to purchase property, as an incentive to move 51,000 unsold properties in the southern state.
Dzulkefly Ahmad, Johor Housing, Communication and Multimedia Committee chairman said properties valued at least RM600,000 make up between 70% and 60% of the unsold properties, reported The Straits Times.
“Among the incentives that we are looking at is to review the RM1 million threshold of property prices for foreigners to buy property in Johor. The matter will be reviewed by the state Land and Mines Office as the matter comes under their jurisdiction,” he said.
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The assemblyman explained that the lowering of the minimum threshold for foreign purchasers will not result in an increase of property prices for Johoreans.
The RM1 million threshold was introduced by the last administration to stabilise domestic prices.
It forces foreigners to buy the more expensive units of the retail market, while leaving the cheaper-priced units untouched for Malaysians.
Property units valued at least RM1 million each are commonly considered luxury properties in Malaysia.
Federal Housing and Local Government Minister Zuraida Kamaruddin said “luxury properties”, including commercial units, priced at about RM100 billion remain unsold in the country.
Zuraida recently drew criticisms when she floated the idea of selling these luxury units to Hong Kong and mainland Chinese buyers.
“We are trying to resolve the current (oversupply) situation to spur the economy. It will help in terms of economic prospects, job market, and to invigorate affordable housing projects,” she responded.
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