Home boost for foreigners

Source: The Star Newspaper, Thursday October 19, 2006.

KUALA LUMPUR: From Nov 1, foreigners will be allowed to buy property like houses, condominiums and buildings costing RM250,000 and above without the approval of the Foreign Investment Committee (FIC) under the Prime Minister’s Department.

The ruling, however, is subject to the following conditions – that ownership is restricted to foreigners including permanent residents; only for own use and not rented out, leased or for investment purposes; and the property is in an area, premises or building meant for dwelling purposes only.

Minister in the Prime Minister’s Department Datuk Seri Mohd Effendi Norwawi announced the new ruling in a statement after the Cabinet meeting yesterday.

He said all further information could be obtained on the Economic Planning Unit (EPU) and Prime Minister’s Department websites and problems could be referred to the secretary of the FIC, EPU or PM’s Department.

Real Estate and Housing Developers Association (Rehda) president Ng Seing Liong welcomed the move, saying this was what they had been asking for.

“The market has been sluggish and this will definitely give it a boost,” he said

Ng said their survey showed that the market had not been too good in the past nine months compared with previous years.

He noted that interest rates have stabilised and oil prices which were sky-high had now come down, and this could help the market pick up.

The new ruling, he said, appeared to target those who wanted to make Malaysia their second home.

“It’s good to have foreigners come here to stay. This will help stimulate the economy,” he added.

As for concerns that Singaporeans would rush to snap up property in Johor, Ng pointed out that even the Johor market was currently sluggish and this might be a good boost.