Foreigners can only buy properties costing RM1m and above from March 1

KUALA LUMPUR: The Guideline on the Acquisition of Properties by foreigners at the minimum threshold of RM1mil, as proposed in the Budget 2014, will take effect from March 1.

The Economic Planning Unit of the Prime Minister's Department said on Friday in states other than the Federal Territory of Kuala Lumpur, Putrajaya and Labuan, the actual enforcement date is subject to the respective state authority.

"This measure is undertaken by the government to stabilise domestic property prices from excessive speculation activities as well as to enable local interests to acquire quality properties valued at less than RM1mil per unit, especially residential units," it said.

To recap, the EPU said the Guideline was first enforced on June 30, 2009 to replace the Foreign Investment Committee Guidelines (FIC Guidelines) which was abolished.

The Guideline, among others, aims at controlling ownership of properties by foreign interests in Malaysia.  

One of the conditions set forth in the Guideline is the minimum threshold for the acquisition of residential unit, commercial unit, industrial land and agricultural land by the foreigners.

On June 30, 2009, the minimum threshold imposed was RM250,000 per unit and it was then raised to RM500,000 per unit effective  on Jan 1,  2010.

In line with the announcement made in the Budget 2014, the Guideline was revised by increasing the minimum threshold for the acquisition of property by the foreign interests to RM1,000,000 per unit.