Everyone knows that foreigners could soon be able to buy Kuala Lumpur overhang properties from RM600,000 or higher. Many just did not know that the total unit which is currently under this overhang category is just 4,000 units (earlier article here). Total value is meanwhile around RM8 billion This is NOT for all units and it’s not even for landed units. Secondly, for Selangor even for urban centre such as Shah Alam, the total units available under this RM600,000 special price as announced in Budget 2020 is ZERO. (article here) So, what about Melaka then? Will it try to appeal to foreigners to come into the local property market?
Article in edgeprop.my Melaka Chief Minister Adly Zahari said that there is NO NEED for the state government to reduce the selling price threshold for foreign purchases of condominiums and apartments in Melaka from RM500k to RM400k. He said, “We are maintaining the threshold price at RM500,000 per unit for condominiums and apartments that can be purchased by foreigners in Melaka. No need to compete with the local community on this issue (house price).” Full article in edgeprop.my here.
I personally do not understand why foreigners must be encouraged to buy properties in Malaysia yeah. To me, if they are here for MM2H, they could choose to buy a property and that’s fine. If there’s a overhang currently and it’s really true that the locals just do not like those properties but foreigners may like it, then sure, sell to them. However, if this is an excuse to start lowering all threshold and to start the sudden interest of all foreigners to buy into Malaysia, then please stop.
I really do not hope that we become like some advanced property markets where 20% or more of new launches were snapped up by foreign purchasers. This is crazy lah. Local property market is for the locals. Let’s not create a property bubble by ourselves yeah. I just had dinner with many distinguished property experts and the understanding is that the world will now be focusing on affordability. There are already many countries where the prices have moved beyond the fundamental; median household incomes. Always watch this and always be vigilant. Happy understanding.
Next suggested article: Banks will always love you. Be good okay.