Malaysia’s real estate industry positive about lower threshold for foreign buyers

Malaysia’s Real Estate Industry Positive About Lower Threshold For Foreign Buyers

The real estate industry in Malaysia views positively the government’s recent announcement to temporarily reduce the minimum price threshold for foreign buyers.

This not entirely unexpected reaction has been concluded from a survey by Chinese-Malaysian proptech firm JuwaiIQI conducted among 386 Malaysian real estate agents in November 2019.

The survey shows that 71 per cent of Malaysian real estate agents see the lower foreign buyer price threshold as positive.

The agents were asked: “What’s your opinion: is the government’s move to temporarily reduce the foreign buyer price threshold from one million ringgit ($240,400) to 600,000 ringgit ($144,200) a good decision?”

More than one-third, or 35.1 per cent, believe the lower threshold is “very good.”

In every state with sufficient survey responses for analysis, at least 62.5 per cent of respondents consider the lower threshold to be “a little good” or “very good.”

Highest rate of approval in Kuantan

In the states of Kuantan, Penang, Melaka, and Sarawak, more than 40 per cent of respondents considered the lower threshold to be “very good.” Kuantan in eastern Peninsular Malaysia had the highest rate of approval, with 75 per cent of agents from that state calling the initiative “very good.”

The states with the highest number of negative responses, in which agents call the lower price thresholds either “a little bad” or “very bad,” are Melaka (15.8 per cent), Kuala Lumpur/Selangor (seven per cent) and Sabah (8.1 per cent). Nationwide, 8.6 per cent called the change “a little bad” or “very bad.”

The states of Kuala Lumpur, Penang, Selangor, and Johor together have an overhang of 9,315 unsold high-rise units valued at 6.775 billion ringgit ($1.36 billion), the study says.

Juwai IQI’s recent reports found that mainland Chinese buyers account for 8.4 billion ($2 billion) of total Malaysia residential property sales per year.

Chinese buyers made 16.5 per cent more inquiries on Malaysian property in the third quarter this year than in the same quarter of 2018. In the first half of 2019, Malaysia was the fifth most popular country for Chinese property buying inquiries in the world.

Malaysia’s Real Estate Industry Positive About Lower Threshold For Foreign Buyers

The real estate industry in Malaysia views positively the government's recent announcement to temporarily reduce the minimum price threshold for foreign buyers. This not entirely unexpected reaction has been concluded from a survey by Chinese-Malaysian proptech firm JuwaiIQI conducted among 386 Malaysian real estate agents in November 2019. The survey shows that 71 per cent of Malaysian real estate agents see the lower foreign buyer price threshold as positive. The agents were asked: “What's your opinion: is the government's move to temporarily reduce the foreign buyer price threshold from one million ringgit ($240,400) to 600,000 ringgit ($144,200) a good decision?”...

Malaysia’s Real Estate Industry Positive About Lower Threshold For Foreign Buyers

The real estate industry in Malaysia views positively the government’s recent announcement to temporarily reduce the minimum price threshold for foreign buyers.

This not entirely unexpected reaction has been concluded from a survey by Chinese-Malaysian proptech firm JuwaiIQI conducted among 386 Malaysian real estate agents in November 2019.

The survey shows that 71 per cent of Malaysian real estate agents see the lower foreign buyer price threshold as positive.

The agents were asked: “What’s your opinion: is the government’s move to temporarily reduce the foreign buyer price threshold from one million ringgit ($240,400) to 600,000 ringgit ($144,200) a good decision?”

More than one-third, or 35.1 per cent, believe the lower threshold is “very good.”

In every state with sufficient survey responses for analysis, at least 62.5 per cent of respondents consider the lower threshold to be “a little good” or “very good.”

Highest rate of approval in Kuantan

In the states of Kuantan, Penang, Melaka, and Sarawak, more than 40 per cent of respondents considered the lower threshold to be “very good.” Kuantan in eastern Peninsular Malaysia had the highest rate of approval, with 75 per cent of agents from that state calling the initiative “very good.”

The states with the highest number of negative responses, in which agents call the lower price thresholds either “a little bad” or “very bad,” are Melaka (15.8 per cent), Kuala Lumpur/Selangor (seven per cent) and Sabah (8.1 per cent). Nationwide, 8.6 per cent called the change “a little bad” or “very bad.”

The states of Kuala Lumpur, Penang, Selangor, and Johor together have an overhang of 9,315 unsold high-rise units valued at 6.775 billion ringgit ($1.36 billion), the study says.

Juwai IQI’s recent reports found that mainland Chinese buyers account for 8.4 billion ($2 billion) of total Malaysia residential property sales per year.

Chinese buyers made 16.5 per cent more inquiries on Malaysian property in the third quarter this year than in the same quarter of 2018. In the first half of 2019, Malaysia was the fifth most popular country for Chinese property buying inquiries in the world.

Malaysia’s Real Estate Industry Positive About Lower Threshold For Foreign Buyers

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