Malaysia Curbs Speculative Investment

Malaysia’s property market is booming, but experts say the skyrocketing growth may taper off in 2014 as the government moves to curb speculative investment. A new law will make it so both foreign and resident investors will face steeper real property gains taxes if they choose to sell property recently acquired, with the tax percentage climbing based on how fast the property is flipped. The law also doubles the minimum price for properties available for purchase by foreigners, putting it at $314,564. Other restrictions also apply, but experts believe they will act to secure foreign and local long-term investors. For more on this continue reading the following article from Global Property Guide

Malaysia’s booming property market is expected to slow, once new taxes in the 2014 budget take effect next year.

RM 578 million (US$181.82 million) is allocated for 16,473 new residential units to be built by the National Housing Department (NHD) under the People’s Housing Programme (PHP). Another RM 146 million (US$45.93 million) is earmarked for construction of 600 new units for rent by NHD. Houses under the PHP are priced at between RM 30,000 (UD$9,436) and RM 35,000 (US$11,009) per unit in the peninsula, and RM 40,500 (US$12,739) per unit in Sabah and Sarawak.  And RM 1 billion (US$314.56 million) will be earmarked for 80,000 more housing units under the 1 Malaysia’s People Housing Programme (PR1MA), priced 20% below market price.

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