The ruler of the Malaysian state of Johor has backed plans for a new RM2 million ceiling for foreign buyers of landed property in the state.
The Sultan of Johor, Sultan Ibrahim Sultan Iskandar, said earlier this week that the current RM1 million limit is unsuitable for Johor. He also expressed his support for proposals to have what is described as an international housing zone to curb rising prices.
Johor’s Housing and Chairman of the Local Government Executive Committee, Datuk Abd Latif Bandi, added that the proposed new limit would allow the state government to control sales of landed properties to foreign buyers.
He told reporters: “This, in turn, will protect the interests of local buyers as they will not have to compete with foreigners. I also agree that the ceiling price should be higher in Johor because of its proximity with Singapore.
“In Johor, we have to take into account that the price of land is higher and our proximity to Singapore means the demand for landed properties is also high. Local buyers also prefer to buy landed properties, so we must give priority to them.”
Sultan Ibrahim said Johor was different from other states because of its proximity to Singapore, which is a developed country.
Sultan Ibrahim also said that it was vital for every property development to undergo an environmental impact assessment (EIA), but cautioned that such measures should not be used to halt projects unnecessarily.
According to recent data from the Monetary Authority of Singapore, Malaysia was the number one overseas buying destination for Singapore-based property investors during 2013 with just over 50 percent of all overseas transactions happening for Malaysian properties.
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Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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