Lowering threshold for foreigners only applicable to existing unsold condos
The move to lower the threshold for foreigners to buy condominiums and apartments in urban areas from RM1mil to RM600,000 is only applicable to existing unsold units, says Finance Minister Lim Guan Eng.
He said the measure announced in the 2020 Budget, effective from Jan 1 to Dec 31 next year, does not cover new projects that are yet to be launched.
“Existing units that have not been sold are the residential units that do not interest local buyers. Hence the relaxation in the form of lower foreign buying threshold for condominiums and apartments will not deny the rights of local buyers, ” he said in a statement Sunday (Oct 13).
Lim said the move is expected to benefit the property sector without being detrimental to Malaysians’ interest.
Lim explained that the proposal was made to reduce the supply overhang in condominiums and apartments amounting to RM8.3bil as of the second quarter of 2019.
“If the units are able to be sold, it will produce a direct spillover effect on the country’s economy, ” he said.
Lim added that the Finance Ministry will monitor continuously the implementation of the measure to ensure that it achieves its objective.
Source: Bernama
Looks good.. too many vacant units remain unsold, yet locals are not afford to buy it.. clear stocks lol.
@YH
This is not good at all. Even if it is for existing unsold units and a temporary measure, the moral hazard of “the gov will do something to help us clear stock” will not force developers to learn their lessons, therefore history will repeat itself. A bad policy indeed.
they clear 600k stock, and the developer next build will be 800k. then another round of clear stock min 800k. after done, then developer will build 1 mil stock, then another round of clear stock min 1min.
this is how the property price will move in malaysia. foreinger currency exchange can buy malaysia house like buy tofu.
Don’t really understand why gov pay so much focus & attention to help the greedy developer to clear the unsold stock. Gov should understand Supply & Demand concept, whichever greedy should taste their own medicine.
@zorro
@David Wong
Thanks for sharing, is always great to hear some input from other point of views. this is how a forum should works, idea sharing ~ *peace*
Hpw do they define unsold units? how long after the launching? 6 months? One year? Or until oc obtained?
You asked a very valid question. Even if the gov wants to go ahead with this stoopid sayang-developer policy in “urban areas”, they should list out precisely which projects are qualified for this program. Otherwise, there will surely be abused by “unintended projects”.
It is okay for me to stay with foreigners as long as they pay maintenance fees etc. If locals cannot afford to buy 600k condominium, they can always go for affordable houses (200k to 400k) in Penang island. I still prefer low-density condo as lesser people = lesser problem.
State government must rely on the local developers to support and build infrastructure together, if the developers fail to sell, there were no funds sufficient to build anything good. Even if the developers able to sell, they still have to pay for corporate tax. So what’s the problem over here?
When the demand for the house is low and the supply of the house is low too. But the unsold units eventually will be bought over by people over a period of time due to increase of population, just look at I-Santorini and One Foresta built by Ideal Group. In order not to waste any time further, government policy had been implemented to “help” the economy.
Not agree with this plan.
so what is the purpose? How is this driving our economy except making the fat pocketed few fatter. Developers can have 10,000 unsold units and still building 10 pricy housing projects with low cost materials every month, their fault with their bad investment and greed, so government is bailing them out, curiously, same old boys club isit?