News: Government Introduces Measures Against Johor Property Glut

Nov 26, 2019

Johor housing, communication and multimedia committee chairman Dzulkefly Ahmad believes that the government’s initiative to lower the threshold price for foreigners to purchase a property in Malaysia to RM600,000 from RM1 million, would not create competition among local buyers. 

During the state assembly sitting at Bangunan Sultan Ismail, Dzulkefly explained that only strata-type properties possessing a Certificate of Completion and Compliance (CCC) for more than nine months were available for purchase by foreigners, reported The Star.

There is a possibility that the CCC might be longer than the said period if the sale was made by the developer during construction. This means such properties have been offered for a long period of time but there was no interest from local buyers. As such the issue of competition should not arise,” he said.

Read more: What Is Iskandar Malaysia All About? 

He emphasised that the government policy, effective from 1 January 2020 to 30 September 2020, was subject to strict requirements.

“This means that when the campaign period ends on Sept 30 next year, the minimum price for foreign ownership will revert to its original RM1 million,” he noted.

Dzulkefly added that other measures included raising the levy for foreign ownership to 5% or RM30,000 or whichever is higher from 2% or RM20,000 or whichever is higher.

He warned that the initiative should not be seen by developers as a sign to continue constructing high-end properties in Johor.

“We do not want developers to think that every time there is a property glut, the government will intervene and conduct a bail out. The incentive is only offered for multi-storey properties such as apartments, condominiums, serviced apartments and small office home office (SOHO) and does not include landed property,” he said.

 

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Leena .
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