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No need to lower price threshold for foreign property purchases: Adly

Last update: 04/11/2019

MELAKA, Nov 4 -- There is no need for the state government to reduce the selling price threshold for foreign purchases of condominiums and apartments in Melaka from RM500,000 per unit to RM400,000 per unit, said Melaka Chief Minister Adly Zahari.

He said the property threshold is among the lowest in the country and the state government has taken into consideration various aspects to maintain the selling price threshold.

"We are maintaining the threshold price at RM500,000 per unit for condominiums and apartments that can be purchased by foreigners in Melaka.

“No need to compete with the local community on this issue (house price),” he told reporters after the state awards, medals, and honours presentation ceremony in conjunction with the 81st Birthday Anniversary Celebration of Melaka Yang Dipertua Negeri, Tun Dr Mohd Khalil Yaakob, at Seri Negeri today.

Adly said this when asked to comment on the request made by the Real Estate and Housing Developers' Association (REHDA) Melaka to lower the price threshold as reported by the media recently.

He further said the state government also had no plans to reduce the percentage of levy imposed on the purchases of Bumiputera quota properties in the state, which now stands at 15 per cent.

He said the decision was in line with the impact from the release of the Bumiputera quota and the amount of levy paid would be channelled into the Bumiputera property fund.

He said the fund would not become part of the state government’s income but would be utilised for the development of Bumiputera housing projects in Melaka.

"Previously, the levy imposed was low as we did not release the Bumiputera quota, but when that happens, the percentage must be raised and proceeds will be used to build more affordable homes for the Bumiputera in the future,” he said.

-- BERNAMA