No formal sales target set for luxury homes

Such purchases by foreigners a state affair

THE government has not set an official target for the recently-announced sale of luxury homes to foreigners policy, the Dewan Rakyat heard.

Housing and Local Government Minister Zuraida Kamaruddin said there were no formal or structured plans with regard to the sales target for the sale of such homes to foreigners.

“The price of luxury homes for foreigners is still a state matter with the respective states having differing thresholds,” she said when answering a question raised by Tan Sri Annuar Musa (BN-Ketereh).

Zuraida cited examples where Selangor and Penang had a threshold of RM2mil while other states pegged it at RM1mil.

She also said efforts were underway by the ministry to develop a big data system to resolve the property overhang issue in the country.

Pressed further by Annuar if it was her ministry that had proposed lowering the threshold for foreigners to own luxury homes, Zuraida said it wasn’t.

“This policy was introduced by the Economic Planning Unit under the previous administration which is currently under the Economic Affairs Ministry.

“However, the proposal was from the Finance Ministry in view of sales of such homes to foreigners was only 0.4% or only 386 individuals who had bought homes above RM1mil,” she said.

Zuraida said the proposal was introduced by the Finance Ministry following concerns over the overhang of luxury properties.

“The move to lower the threshold to allow foreign ownership of luxury homes would ensure cash flow in the country,” she added.

Finance Minister Lim Guan Eng in his Budget 2020 speech announced that the threshold on the prices of high rise property in urban areas for foreign ownership would be lowered from RM1mil to RM600,000.