EDITORIAL: Property speculators are attracted by lowering the threshold for foreigners to purchase property in Malaysia
PETALING JAYA, Malaysia (Sin Chew Daily / ANN) - By lowering the threshold for foreigners to buy unsold high end properties in urban areas in Malaysia, this will only encourage more speculations.
Starting next year the threshold for foreigners to purchase urban high-rise properties in Malaysia has been reduced from RM1million (US$238,663) to RM600,000 (US$143,540). This is only applicable to unsold condominiums and apartments and the measure has generated heated discussion in the country.
Malaysians can’t afford to buy a property. Instead, the government care about high end condominiums where only the rich can afford to buy but do not increase the pace of building affordable homes.
It is evident that the prices of condominiums have been speculated. But they are caught in the cycle of economy slowdown and ended up as overhang of condominiums and apartments. These properties should lower the prices instead of lowering the threshold for foreigners to buy properties in Malaysia.
When foreign buyers are sought to buy properties and the offer doesn’t come with the Malaysia My Second Home package, this is offering foreign speculators to buy and sell them later at a higher price. Are they restricted to sell to foreigners only?
Would the prices of newly - built condominiums be pushed to even higher prices once those oversupply of high end properties worth millions of ringgit are sold off due to lowering of threshold and depreciation of ringgit?
Isn’t this a case of creating opportunities for foreign conglomerates to speculate property prices in Malaysia even further?
Few years later when the domestic economy have improved, the demand for property would increase. By then the property price is higher for sure. The properties will be even more expensive than RM600,000 (US$143,540). By then Malaysians’ income may still be unable to catch up. When the properties are facing oversupply again, can the properties still be sold to foreigners?
Would there be conglomerates waiting to buy unsold properties in Malaysia?
More speculators may be drawn when the threshold is lowered.