An impending increase for foreigners should spur a flurry of activity.
Foreign investors snapping up properties anywhere in the world causes a stir. Cited as being the reason for rising values, many countries are putting obstacles in place to restrict their purchasing power. Malaysia is no different with investors snapping up property in Penang being a particularly hot topic.
It has been announced this week that the government are considering raising the minimum price set for international investors who purchase property in Malaysia. The depreciating ringgit is the catalyst for this according to a cabinet minister. Malaysian’s weakening currency has enticed more overseas investors keen to profit from the strength of the their own tender.
Housing minister, Noh Omar, has cause for concern that locals are getting pushed out of the market with the influx of foreign investors. By raising the bar, this will ensure that Malaysian’s residents will not be competing against overseas purchasers.
Over the last twenty years the Malaysian government have raised this minimum price on several occasions. However it is down to the individual 13 states to set the figure. Generally non-residents can purchase properties priced over MYR 1 million. As part of the initiative the government want to either increase the floor price to MYR 1 million or the alternative option is to introduce a minimum price in US dollars. This would apply to all overseas buyers.
With an impending hike on the cards and low values that Malaysia is currently experiencing, more foreign investors are likely to buy property. Plus with a weakening ringgit there really is no better time than now to invest in property.
Have a browse at Dot Property’s full list of suitable properties to buy in Malaysia online here.
