The Malaysian Insight

THE lower threshold of RM600,000 for foreigners to buy urban high-rise properties will not include units that have yet to be launched, Finance Minister Lim Guan Eng said.

The new threshold, down from RM1 million, was announced in Budget 2020 tabled on Friday.

Lim today said this only applied to existing units that have not been sold and will only last for a year – from January 1 to December 31, 2020.

“It will not cover projects that have not been launched. It is only for existing condominiums and apartments that have not been sold because they have not been able to attract local buyers.

“The move to lower the threshold for foreigners will not hurt the rights of local buyers, who can still buy these properties if they want,” Lim clarified in a statement today.

The proposal had drawn criticism and fears that it would spur developers to sell properties at a higher price to entice foreign buyers.

Lim said the move was aimed at easing the property overhang, which was worth RM8.3 billion in the second quarter of this year for units in the condominium and apartments category.

Meanwhile in Langkawi, Prime Minister Dr Mahathir Mohamad also confirmed that the lower threshold for foreigners is only for current unsold units.

“We have a property overhang problem. We have built a lot of apartments and condominiums, which are not being sold, and this is a loss to the country,” Dr Mahathir told a press conference. – October 13, 2019.