Johor to review property ownership policy for foreigners

August 29, 2013 Leave a comment

Johor to review property ownership policy for foreigners
Price hike not due to rise in number of buyers from Singapore, it says
PUBLISHED AUGUST 29, 2013
[NUSAJAYA] The Johor government is looking to review the policy on foreign ownership of real estate to keep the escalating property prices in the state under control, said Johor Housing and Local Government Committee chairman Abdul Latiff Bandi. Mr Latiff was responding to a question by Mohd Ismail Roslan (Barisan Nasional MP from Semerah) on the state government’s efforts to control the escalating property prices in Johor during the state assembly meeting recently.According to Malaysia’s New Straits Times, Mr Latiff said a working committee chaired by Johor Land and Mineral Office director Jama Johan and a state committee chaired by Menteri Besar Mohamed Khaled Nordin had been formed to review the policy. “The Johor Land and Mineral Office has organised a workshop and meetings with the Real Estate and Housing Developers’ Association Malaysia to get feedback on the matter,” he said.
Mr Latiff said the review was conducted on the principle of maintaining the growth of the real estate industry and foreign investment in the state and to increase income for the state.
“I hope that all developers will cooperate should the policy be amended,” he said.
He said it was inaccurate to claim that the property price hike was due to the increase in the number of buyers from Singapore. Residential property prices were determined by other factors including the price of land, cement, bricks, steel and manpower, he added.
Foreign real estate ownership in Johor is controlled under the Land National Code 1965. Under Section 433B of the Code, foreigners could buy real estate only after their application was approved by the state government.
“The policy for foreign real estate ownership states that a foreigner can purchase property worth only RM500,000 (S$192,200) and above,” Mr Latiff said.
He also highlighted a quota system that is used to control the percentage of foreign investment in local real estate. “For double-storey terrace and double-storey cluster houses, the quota is 20 per cent,” he added.
He said for bungalows and vacant lots for bungalows, the quota was 30 per cent. “For condominiums, apartments and serviced apartments, the quota is 50 per cent from the total saleable units.”
Mr Latiff said at present, there were 9,826 Singaporean owners of residential and commercial property in the state.

 

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