Consultants doubt pros of floor price hike for foreigners
The move to increase floor prices for residential properties bought by foreigners may
not be a good idea, according to some property consultants.
They said the proposed policy will not affect the surging prices of ordinary homes, rather, it could discourage foreigners who are interested in investing or working in Malaysia.
Datuk Abdul Rahim Rahman, Executive Chairman at property consultancy firm Rahim & Co, noted that the country needs foreigners in its work force in order to become a high-income nation by 2020.
"Such a move would reduce the number of residential property purchases by foreigners. Personally, I do not think that foreign purchases have contributed very much to the rise in prices of ordinary homes although it did affect the prices of luxury homes or apartments in the KLCC area, initially," he said at the 22nd National Real Estate Convention.
According to Choy Yue Kwong, President of the PEPS, many foreigners find it hard to acquire homes, even with just RM500,000 floor price.
"The focus seemed to be on the upper-income bracket (foreign residents). But people forget that many foreigners are just ordinary professionals and workers."
In a report released by the Finance Ministry's Valuation and Property Services Department, units beyond RM500,000 saw increased demand nationwide, with 21,905 transactions last year from 16,782 in 2010.
HwangDBS Vickers Research believed that the potential move will likely create a minimal impact to the property sector because "foreigners usually buy high-end properties (Johor is more vulnerable, given its lower property prices and higher dependence on Singaporeans)."
For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit http://www.homeguru.com.my today.
They said the proposed policy will not affect the surging prices of ordinary homes, rather, it could discourage foreigners who are interested in investing or working in Malaysia.
Datuk Abdul Rahim Rahman, Executive Chairman at property consultancy firm Rahim & Co, noted that the country needs foreigners in its work force in order to become a high-income nation by 2020.
"Such a move would reduce the number of residential property purchases by foreigners. Personally, I do not think that foreign purchases have contributed very much to the rise in prices of ordinary homes although it did affect the prices of luxury homes or apartments in the KLCC area, initially," he said at the 22nd National Real Estate Convention.
According to Choy Yue Kwong, President of the PEPS, many foreigners find it hard to acquire homes, even with just RM500,000 floor price.
"The focus seemed to be on the upper-income bracket (foreign residents). But people forget that many foreigners are just ordinary professionals and workers."
In a report released by the Finance Ministry's Valuation and Property Services Department, units beyond RM500,000 saw increased demand nationwide, with 21,905 transactions last year from 16,782 in 2010.
HwangDBS Vickers Research believed that the potential move will likely create a minimal impact to the property sector because "foreigners usually buy high-end properties (Johor is more vulnerable, given its lower property prices and higher dependence on Singaporeans)."
For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit http://www.homeguru.com.my today.
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