GELANG PATAH: The new ceiling price of RM1mil for foreigners buying properties in Johor will only be effective from May 1.
Mentri Besar Datuk Mohamed Khaled Nordin said that the new ruling would also not affect developers who had received planning approval for their projects before the date.
This, he said, would give developers more time to sell their residential properties, which had been offered to foreign buyers at the previous minimum ceiling price of RM500,000 per unit.
“If we don’t give them more time, they (developers) will have problems selling the properties at the old price.
“Hence, there will be a property glut,” Mohamed Khaled told reporters at the pre-launch of 351 units of affordable houses that were priced between RM80,000 and RM150,000 by UEM Sunrise Bhd here yesterday.
Effective yesterday, the ceiling price of foreigners buying properties in Kuala Lumpur, Labuan and Putrajaya was RM1mil per unit, up from RM500,000 previously.
The Economic Planning Unit had on Friday said that for other states, the actual enforcement date was subject to the respective state authorities.
Asked if the presence of international property developers in Iskandar Malaysia, especially those from China, would create a glut in Johor, Mohamed Khaled said this was unlikely to happen.
Admitting that there were concerns about large-scale projects by international property developers that offered thousands of units of residential properties, he said that they had a strong financial background.
“You must understand that they are big players with a strong financial background.
“We believe they are able to sustain their projects and sell off their products,” he added.
On another matter, Mohamed Khaled said that action would be taken against developers who failed to build affordable houses despite having received approval from the authorities.
The state government, he said, had identified a total of 100 developers, who had built other residential properties instead of constructing some 160,000 units of affordable homes.
The project by UEM Sunrise would also see the company pledging to build 10,000 units of affordable homes in Gerbang Nusajaya, which will be launched in phases starting this year.