Reduced price cap for Foreigners buying property

Dear friends,
Earlier in 2020 there was an article that foreigners can purchase property in KL for 600,000 RM instead of previous price cap of 1 million. Every builder I approached , every agent I spoke to fails to acknowledge this and simply wants to push properties for 800 k and 900 k. Did any one else have this experience or know any expat friendly property agent ?
Thank you in advance.

Not all agents would know about this kind of thing. However, I am sure that some Developers must know if the limit has changed, especially the top 10 or so Developers. If I were you I would speak to either a property lawyer or to the loans department at your bank. Loans departments will have a list of property law firms that they regularly cooperate with and they freely give them out.

Anyway, I've just messaged my lawyer and agent to see if they know about it.

So, according to my lawyer, there was indeed an announcement on this earlier in the year, but up until now it has not yet been officially gazetted, in other words, there has been no action on this so it isn't in effect.

The treshold remains at 1Mil. Even the MM2H also on hold due to covid. But still u can get condo around 800k++ (after rebate from developer) in Mont Kiara which is still reasonable.

Hi Zacky,

Are you saying that the buying price is over a million ringgit and that the developers are giving 20% for early bird and other discounts so that you only pay around RM800k? Which developer is that? Mah Sing? Sunrise? I don't really know the other developers there.

Shill,

Yes. My friend, one of the agent currently selling the hilltop condo unit just opposite TWY at Bukit Prima Pelangi. He said the price around 800k++ for foreigner.

Zacky_Vence wrote:

The treshold remains at 1Mil. Even the MM2H also on hold due to covid. But still u can get condo around 800k++ (after rebate from developer) in Mont Kiara which is still reasonable.

Are you sure about that?  I seem to recall that for SOME areas/states it was lowered for 2020 to 600K. Aricles like this confirm that, but maybe things were changed again due to Covid.....

https://www.iproperty.com.my/guides/for … -malaysia/

My lawyer in KL sent me a text on 3rd September saying that the reduction had not yet been implemented. It had been announced earlier this year but never gazetted. Maybe due to Covid as you say.

In some states the minimum for MM2H holders went up. In Sarawak the minimum increased from RM300,000 to RM500,000 with the base set at RM600,000 in Kuching.

what the benefit of buying a property if you can not live in

They are trying to push foreigners to buy their property stock but you can not live in this property (only for investement) and everyone knows that the return is about 2-3% with a lot of hassle, so why not directly puting your money in a saving and you will get this 2% without any hassle (MYR is stable always ranging 4-5/ euro)

The day the gov understand that in europe for example Spain if you buy a house (500k) you will get a residency with no work permit to be able to live. as most of foreigners who want to buy are entrepreneurs or CEOs or high income they will spend their money in the country and are not going to bother malaysian in the job market

Anyway for me is a NO, the day things change we will discuss

I should point out that these limitations are based upon the Sarawak Land Law Section III. 13 C.

(2) Notwithstanding anything to the contrary in this Code or other written law relating to land, a foreign person, foreign company, foreign corporation or other foreign body may acquire an estate, interest or right in
(a) any land within a Special Development (Exemption from Prohibition of Foreign Interests) Area;
(b) any of the individual parcels within a building which has been subdivided pursuant to the Strata Titles Ordinance, 1995 [Cap. 18], or the former Strata Titles Ordinance, 1974 [Ord. No. 3/74]; and
(c) any land with a building thereon for residential purpose and the market value of such land and building is not less than such amount as may be determined by the Minister by a direction *published in the Gazette.
[Sub. Cap. A29; Am. Cap. A61.] * Not less than RM300,000 (Ringgit Malaysia three hundred thousand) see Swk. L.N. 114/98. ** Revised 2018.


So the "floor" restriction on purchasing residential property applies to LANDED PROPERTY. Strata Property appears to have no minimum floor requirement.

https://www.sklingtan.com/post/foreign-acquisition-lpy

https://vwlegalfirm.com/foreigners-buyi … n-sarawak/

https://www.linkedin.com/pulse/navigati … nelson-kiu

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