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Asia Property Report

Daily, Bangkok
Up-to-date news and coverage of industry trends and innovations from Asia with an in-depth special focus on real estate hot spots, as well as key interviews with important industry figures.
 

Minimum price of houses in Kuala Lumpur may double for foreigners

Apr 11, 2012
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Foreigners looking to invest in Kuala Lumpur's property market may be facing new price hikes.


The Star reported that Kuala Lumpur's government may rise the minimum floor prices of houses foreigners are allowed to buy to RM 1 million (US$ 158,469) from the current price of RM 500,000 (US$163,095), in an effort to control the rise in property prices.


Sources said the decision was "in the pipeline” and the implementation would be made by the economic planning unit (EPU) under the Prime Minister's Department currently headed by Minister Tan Sri Nor Mohamed Yakcop.


Foreigners looking to invest in Kuala Lumpur's property market may be facing new price hikes.


“From what I understand, these revised guidelines have been discussed at the ministerial level and should this be enforced, it will mean that foreigners will only be allowed to buy properties priced above RM1mil. For now, the base price is set at RM500,000 for foreigners. This base price is a bit low looking at present circumstances,” said an anonymous government source.


Another source said the revised guidelines would also consider a slightly lower base price threshold for residential properties in selected economic corridors such as Johor's Iskandar Malaysia to ensure the development and success of these corridor hotspots.


“The current trend in the property market indicates that prices are still continuing to climb despite measures by Bank Negara to curb property prices from spiralling out of control. We need to act before it goes further out of hand,” the Putrajaya source added.