It's official. There's now a RM1 Million limit for foreign buyers of Malaysia properties effective today (1 March). Well, what's the implications for the malaysian properties?
Property developer may price the new development higher to above RM 1 Million so that it allows foreigners to buy. Most of the properties are targeted at foreigners anyway. This will make the gap between landed and condominium even wider (already big gap now). This will make the condominium prices in Malaysia even more inflated. This is not a good sign especially if you consider that majority of Malaysians buy landed and not condominium.
It may also drive the prices suddenly lower for those condo nearer to RM1 Million mark as the demand will drop. If buyers dry up once this new law comes about, it may result in a lack of demand. Then developers will get desperate and drop the prices to get rid of the stocks. It will trigger a fall in prices.
Well, let's see which direction it will go.
Property developer may price the new development higher to above RM 1 Million so that it allows foreigners to buy. Most of the properties are targeted at foreigners anyway. This will make the gap between landed and condominium even wider (already big gap now). This will make the condominium prices in Malaysia even more inflated. This is not a good sign especially if you consider that majority of Malaysians buy landed and not condominium.
It may also drive the prices suddenly lower for those condo nearer to RM1 Million mark as the demand will drop. If buyers dry up once this new law comes about, it may result in a lack of demand. Then developers will get desperate and drop the prices to get rid of the stocks. It will trigger a fall in prices.
Well, let's see which direction it will go.
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