I was having a coffee break with a bunch of good friends when one of them mentioned that the Malaysian property market seems to be very slow. That was why the government announced that the threshold for foreigners to buy a property in Malaysia is lowered. I reminded them that the threshold is only for Kuala Lumpur at the moment and this is also only applicable for overhang properties and not just any unsold ones.
Another friend then casually mentioned that Selangor has just announced that the threshold property price for the foreigners have been lowered to RM500,000. I asked where did he see it. He said somewhere online. I quickly texted two VIPs; one from MIEA and another from FIABCI Malaysia and both of them replied in the negative. They did not know of such an announcement yet. After an hour, that friend sent the online news he read over to me. Please look at the image as below. “Selangor Turunkan Harga Rumah Untuk Warga Asing RM500,000.” No wonder my friend was ‘tricked.’
The article however started with the right line. It says the Selangor state government has reduced the threshold of property price for strata units for foreigners from RM2 million down to RM1.5 million. This is a reduction of RM500,000. Haha.
Article in malaysiagazette.com (translated) Selangor MB Amirudin Shari said that this reduction will help to reduce the unsold luxury units and to help to encourage the construction industry as well. This decision is ONLY for overhang properties which were unsold as at 2018. Thus far, Selangor is among states which has put in the highest threshold for foreign ownership of homes in Malaysia. Article in malaysiagazette.com
By the way, overhang is defined as unsold properties which has been completed and keys to units sold handed over to buyers. The remaining unsold units will continue to be marketed and will only go into the overhang list once it reaches 9 months or higher. This is why the number of unsold units will be far higher than the number of overhang properties. Anyway, just note that Selangor property price threshold for foreign buyers is not RM500,000 but it is still at RM1.5 million. Happy understanding.
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