The RM1 million (S$387,000) minimum price threshold for foreign property buyers in Johor will only take effect in May 2014 and applies to housing developments approved after that date, said Johor Chief Minister Datuk Seri Mohamed Khaled Nordin.
But units at projects with prior planning permission (before May 1), can be sold to foreigners at previous prices. This aims to soften the impact on Johor’s property market and prevent a situation where there are many unsold or abandoned houses due to the higher price threshold.
He said this after officiating the pre-launch and registration of affordable homes in Nusajaya, developed by UEM Sunrise.
There had been confusion over the latest ruling by the federal government which took effect on March 1.
PropertyGuru understands that the higher threshold was implemented in the federal administered territories of Kuala Lumpur, Putrajaya and Labuan, but is yet to be enforced in the other states.
Before March 1, Penang was the only Malaysian state whereby foreigners were subject to a minimum property price threshold of RM1 million for condos.
Since land matters are controlled by individual states, each one makes the final decision on when to implement such a policy.