News: Johor’s RM1mil Floor Cap Cheap For Foreigners

Dec 5, 2017

After mulling ways to reduce excess unsold properties, the state government of Johor has decided to keep the RM1 million minimum purchase price for foreign property ownership within the state.

“We will maintain the current RM1 million policy, as it is a federal government policy,” said Housing and Local Government Committee Chairman Md Jais Sarday.

He revealed that a committee – to be headed by Johor Mentri Besar Datuk Seri Mohamed Khaled Nordin along with other related agencies – has been created to discuss luxury property issues in Johor.

This comes as Johor has been identified by Bank Negara Malaysia as the state with the highest number of unsold houses in Malaysia at 27 percent of the 130,690 units priced above RM250,000.

Jais noted that the Bank Negara report has dampened sentiments on the Johor property market.

“We found the 27 percent calculation is inclusive of service apartments and SoHo units, but the state classifies these units as commercial units, not residential,” he said.

“As such, Johor only has 3,803 unsold residential units and the majority are located in the international zone. Kedah has 4,363 of unsold residential units and this is higher than Johor.”

He explained that the state is not worried of the unsold homes in the international zones since the developers of such units have been aggressively marketing them.

“They do weekly promotions especially targeted at buyers from China.”

Image sourced from Assets.Regus

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