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SG Melaka to target foreign buyers

Property Here - Thursday, November 07, 2013

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Citing the growing number of Singaporeans purchasing property in the state, Melaka’s Chief Minister has said he’s looking at raising the minimum price that foreign buyers must pay to buy or invest there.

Speaking to reporters at yesterday’s State Exco meeting, Chief Minister Datuk Seri Idris Haron said that he wants to increase asset ownership among local citizens, adding that he will review a possible raise in the value of property that overseas buyers can own – up from the current RM250,000 to more than RM500,000.

He said: "If we look at the foreign exchange, RM250,000 is equivalent to about S$97,000 which is cheap for Singaporeans to own property at that price. A lot of Singapore nationals buy houses in Melaka to the extent that there is a boom and Melaka people find it difficult to buy houses.”

The Chief Minister added that Melaka does not prevent foreigners to own property.

“On the contrary, we encourage them to do so and this would result in foreign investment increasing,” he added.

State governments in Malaysia have the power to legislate individually and set minimum foreign property price buying levels.

Last month’s Malaysian Budget Statement revealed the government’s intention to raise the minimum purchase price for overseas property buyers and investors to RM1 million.