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New rules for buying Malaysian property: Concern over foreign invasion, real estate bubble

New rules for buying Malaysian property: Concern over foreign invasion, real estate bubble.

Malaysia's plan to lower the minimum price at which foreigners are eligible to buy homes is meant to tackle the property glut, but analysts warn it could create a property bubble instead.

Last week, the government announced that it will lower the threshold price from RM1 million (S$330,000) to RM600,000 per condominium unit, in a bid to reduce the number of unsold apartments, which are worth RM8.3 billion, in Malaysia's major cities.

Mr Azrul Azwar, chief economist at conglomerate Johor Corporation, said the move could encourage developers to build more high-rise units priced above RM600,000 each, as well as spur property owners to jack up their prices in the secondary market, leading to a bubble.

To read more: https://www.straitstimes.com/asia/se-asia/concern-over-foreign-invasion-real-estate-bubble

Adapted from The Straits Times 17 October 2019