Malaysia invites property buyers
With the Malaysian government relaxing the ownership regulations, Indians are making a beeline for buying high-end property in the country.
By Rajesh Unnikrishnan, TNN |
MUMBAI: With the Malaysian government relaxing the ownership regulations, Indians are making a beeline for buying high-end property in the country. On December 20, the Malaysian Prime Minister’s department said in a statement that there would no longer be a limit to the number of residential properties that foreigners can own, or any conditions upon their usage.
“We have launched a marketing initiative called ‘Malaysia: My Second Home Programme’. The programme allows people from all over the world, who fulfil certain criteria, to stay in the country as long as possible, on a social visit pass with a multiple entry visa,” Malaysian tourism minister Datuk Seri Tengku Adnan Tengku Mansor told ET.
According to government data, the total number of residential units on sale during the first half of 2006 went up to 22,185 from 15,083 units in the same period a year earlier. The move has encouraged foreign investors to purchase high-end residential properties in the country.
Owing to this, the foreign currency inflow into Malaysia shot up, and the property and construction sectors got a boost. “We have sold over 10,000 houses already, bringing around $1.5 billion to the government’s kitty,” said Malaysian government officials.
Each buyer is allowed to purchase up to two residential houses at a minimum price of RM150,000 each, except for certain states like Johor, Malacca and Penang, where the minimum price remains RM 250,000.
ADVERTISEMENT
The rules relating to foreign ownership of property have been changed drastically to make the sector more attractive. Earlier, foreigners needed an approval from the Foreign Investment Committee (FIC) for any purchase above RM 250,000.Moreover, though they were allowed to buy properties for own use, they could not use these assets for investment purposes. The large number of expatriates working in Kuala Lumpur is also driving the demand for high-end serviced apartments and well-located houses. Real estate agents said that new properties in Kuala Lumpur are being sold to international property developers with guaranteed rental yields of between 6% and 10%.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
