Delays in implementing the new RM1 million minimum price for foreign property buyers in Malaysia may act as a turn off foreign buyers, according to Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector, Malaysia president Lim Lian Hong.
Lim believed that the move may be seen by foreign buyers as an unfriendly sign towards them.
Moreover, it is also unfair and unhealthy for foreign buyers of Malaysia property since it may affect their confidence in their investments here.
“If they put their money here, they don’t want to have to worry about what will happen to their investments if there are more changes in the future,” said Lim.
Local media revealed that the guideline for the new minimum price for property acquisitions by foreigners may only be implemented in March or May, instead of 1 January as announced in the 2014 Budget speech by Prime Minister Datuk Seri Najib Abdul Razak. The announcement has yet to be gazetted.
“I thought the new ruling will be automatic on 1 January 2014, but it seems that there is now another ruling (which means that it’s not automatic). Normally these types of rulings must be gazetted and we would expect the Budget announcement to be the gazette itself,” said Lim.
“I did not hear about this (delay in implementation) until now and I’ve had lots of people asking me about it.”
Meanwhile, Malaysian Institute of Estate Agents president Siva Shanker does not expect foreign buyers to rush in and take advantage of the delay.
“For foreign property purchases, the interest has been focused on Iskandar Malaysia in the last year or so but already, there are talks of over-buying in Iskandar Malaysia. If at all there is a rush, it would be the Singaporeans rushing to buy in Iskandar Malaysia but with all the negative talk in the market, I don’t think there will be a rush to buy properties,” he explained.
Farah Wahida, Editor of PropertyGuru, wrote this story. To contact her about this or other stories email farahwahida@propertyguru.com.my
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