In my recent talk in Singapore (November 2019), a number of them were asking about the new RM600,000 threshold for foreigners to buy a property in Malaysia. I reminded them that it is NOT for any unsold property. It is only for overhang properties.
That’s unsold properties after key handover for 9 months or more. It’s also limited to just Kuala Lumpur and that’s why the number if going to be way smaller than what the current overhang numbers are which are over 30,000 units. Thus, if they love Kuala Lumpur and thinks of it as a growing capital city, then they should take actions soonest possible because even among the overhang units, not all will appeal to them. Yes, this was my small part in selling Kuala Lumpur properties the right way. Not about price but about our beloved Kuala Lumpur.
Article in themalaysianreserve.com With regards to the new RM600,000 threshold for foreigners, CCO & Associates (KL) Sdn Bhd ED Chan Wai Seen said, “There is a big possibility that it is going to be challenging for developers to sell the overhang homes unless they reposition the products. Most of the overhang properties were planned and launched prior to the market slowdown. In other words, the products and pricing may no longer be in line with the prevailing market trend.”
Chan added that clearer guidelines are needed on the lower threshold, including on the foreign buyers threshold in states such as Johor and Penang. TMR previously reported VPC Realtors (JB) Sdn Bhd Asia-Pacific property consultant Bruce Lee as saying it might take time for state governments to enact the new ruling and any impact on the overhang would not be as immediate. He said, “The initiative by the federal government might not be too impactful as the regulation needs to come from the state governments since land falls under state matters.” Do refer to the full Article in themalaysianreserve.com
Many years ago, a close friend asked me what would I buy if money is no longer an issue. She gave me three choices of high-rise developments in Penang. All three were between RM700,000 – RM1.2 million. I replied none of the three. The reason is because if money is not an issue, I would not buy something which many more people could afford to buy. I will buy something more exclusive instead.
This is why the target for these RM600,000 or higher properties should NOT be due to the fact that it’s cheap. It should be targeted at those who thinks Kuala Lumpur is a good place to stay. Thus, the property presentation for these trips to Hong Kong needs to emphasise Kuala Lumpur and then mentioned that there is now the opportunity to have a place in Kuala Lumpur and it’s limited in quantity. If Kuala Lumpur as a second home or third home fails to register any interest, then the RM600,000 new threshold is unlikely to do anything at all. Happy understanding.
Next suggested article: Lower threshold for foreigners? Not a single unit in Selangor yet.