The ruler of the Malaysian state of Johor has backed plans for a new
RM2 million (THB20.23 million) ceiling for foreign buyers of landed property in the state.
The
Sultan of Johor, Sultan Ibrahim Sultan Iskandar, said earlier this week
that the current RM1 million limit is unsuitable for Johor. He also
expressed his support for proposals to have what is described as an
international housing zone to curb rising prices.
Johor’s Housing
and Chairman of the Local Government Executive Committee, Datuk Abd
Latif Bandi, added that the proposed new limit would allow the state
government to control sales of landed properties to foreign buyers.
He
told reporters: “This, in turn, will protect the interests of local
buyers as they will not have to compete with foreigners. I also agree
that the ceiling price should be higher in Johor because of its
proximity with Singapore.
“In Johor, we have to take into account
that the price of land is higher and our proximity to Singapore means
the demand for landed properties is also high. Local buyers also prefer
to buy landed properties, so we must give priority to them.”
Sultan Ibrahim said Johor was different from other states because of its proximity to Singapore, which is a developed country.
Sultan
Ibrahim also said that it was vital for every property development to
undergo an environmental impact assessment (EIA), but cautioned that
such measures should not be used to halt projects unnecessarily.
According
to recent data from the Monetary Authority of Singapore, Malaysia was
the number one overseas buying destination for Singapore-based property
investors during 2013 with just over 50 percent of all overseas
transactions happening for Malaysian properties.
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Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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If you have a news story or comment for publication about Thailand property or real estate email: andrew@propertyguru.com.sg
