Selangor has unveiled a new set of guidelines for property purchases by permanent residents, foreigners and foreign companies within the state, reported the media.
Notably, the new guidelines generally restrict foreigners from acquiring all types of properties costing less than RM2 million in most of the state’s districts. This is an increase from the previous cap of RM1 million announced in last October’s budget.
Outlined in a circular dated 28 August, the measures were effective from 1 September 2014, with the circular signed by Department of Lands and Mines Selangor director Datuk Kamarulzaman Jamil.
Under the new guidelines, commercial, industrial and residential properties are divided into three zones.
Zone one includes the districts of Gombak, Petaling, Sepang, Klang and Hulu Langat, while zone two encompasses Kuala Selangor and Kuala Langat. Zone three covers the districts of Sabak Bernam and Ulu Selangor.
Foreigners, PR holders and foreign companies are permitted to acquire residential properties with a minimum price of RM2 million in Zone 1 and 2, and a minimum price of RM1 million for those located in Zone 3.
Aside from raising the minimum threshold, the land office has also set up new barrier on the type of properties that foreigners, PR holders and foreign companies can buy, noted a developer.
Specifically, foreigners, PRs and foreign companies are permitted to acquire strata and landed strata properties only.
Over at the commercial and industrial sub-segments, foreigners, PRs and foreign companies are only allowed to acquire properties priced from RM3 million in all the three zones.
They are prohibited from acquiring properties set aside for bumiputras. For non-bumiputra units, they can acquire not more than 10 percent of said units.
They are also barred from buying Malay reserve land, agricultural land, non-strata landed residentials and auction properties.
“This means the state of Selangor is going the way of Johor. Land is a state matter. While the Federal Government may propose its policies – unveiled during each budget – the individual states can go along with the measures proposed, or they can propose their own measures,” said a source.
“We saw the state authorities in Johor proposing their own rules with regard to land issues a few months after Budget 2014. We now see Selangor doing the same,” added the source.
Farah Wahida, Editor of PropertyGuru, wrote this story. To contact her about this or other stories email farahwahida@propertyguru.com.my
