Sunday, September 21, 2014

New Selangor Guidelines on Property Purchase by Foreigners

Source from The Star newspaper. PETALING JAYA: Developers and property agents were thrown into a flux last week over a new set of guidelines on property purchases in Selangor by foreigners, permanent residents (PR) and foreign companies.
Generally, the new guidelines restrict foreigners from buying all types of properties costing less than RM2mil in most of the districts inthestate. Previously,the cap was set at RM1mil,as announced during last October’s budget. Some property developers are still in the dark over the matter while others are coming to grips with the significance of the move’s effectin an already slowing market. 
The measures, outlined in a circular dated Aug 28, were effective from Sept 1 this year. The circular was signed by Department of Lands and Mines Selangor director Datuk Kamarulzaman Jamil.
According to the new guideines, residential, commercial and industrial properties are divided into three zones. The minimum price for purchases by foreigners is based on the zones. Foreigners, PR holders and foreign companies are only permitted to buy residential properties that are priced at a minimum RM2mil for Zone 1 and 2, and a minimum threshold of RM1mil for those located in zone 3, according to the circular. Zone one encompasses the districts of Petaling, Gombak, Hulu Langat, Sepang and Klang. 
Zone two are Kuala Selangor and Kuala Langat while the districts under zone three are Hulu Selangor and Sabak Bernam. Besides increasing the minimum threshold, the land office permits foreigners, PR holders and foreign companies to buy strata and landed strata properties only.

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