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Influx of foreign buyers driving up home prices: SPNB
Aug 22, 2012
The influx of foreigners who are investing in the country's property market is driving up home prices, making them less affordable to typical Malaysian buyers, said Datuk Dr Kamarul Rashdan Salleh, Managing Director at Syarikat Perumahan Negara Bhd (SPNB).
In a report by The Star, Kamarul said foreigners have more purchasing power and can fork out RM500,000 to acquire a property, leading developers to hike up prices.
"This creates a kind of false alarm and impression that there is demand for these houses. The middle-income group, especially young adults who need houses to start a family, is facing problems because of this."
He also noted that many foreigners had invested in the real estate market of Penang, Johor and the Klang Valley, adding that they are also starting to buy properties in Negri Sembilan and Malacca.
Due to the said situation, Kamarul suggested that "there should be a balance between offering such high-end property and houses that are affordable to the people."
However, he is opposed to the implementation of a higher minimum price for foreigners, claiming that this measure is unfair and could upset the property market. Moreover, this could discourage property investments in the country.
According to Kamarul, the local, state and federal authorities should work together to construct inexpensive and quality homes, while controlling property prices at the same time.
"They can also consider re-developing idle land or increasing the number of areas for building affordable homes."
"They can do it as a joint venture or with SPNB or under Projek Perumahan Rakyat 1Malaysia which are more social-oriented," he added.