Minister of housing and local government, Datuk Abdul Rahman Dahlan pointed out that the index provided by National Industry Information Center (NAPIC) has shown that the housing prices are still not stabilized, although the Government has implemented Real Property Gain Tax (RPGT) to reduce the property market speculation.
He revealed that domestic house prices, especially in the big cities and states are being advanced in Kuala Lumpur, Selangor, Penang, Pahang, Sabah, Perak and Terengganu, house prices rose double-digit growth last year.
“Moving forward, the Government would not hesitate to further tighten the fiscal policies in order to curb property speculation and ensure reasonable and affordable property prices in the country.”
“Property Market activity remained buoyant are due to low RPGT.”
On the other hand, Abdul Rahman also mentioned that the proportion of foreigners own Malaysia are only 5.5% of the housing market, therefore the government has no intention to increase the RM500,000 minimum limit for foreigners.
“In Kuala Lumpur, Penang and Iskandar regions the proportion of (foreign home buyers) may be higher, but on the whole is still very little, local government is not worried about foreigners buying opportunity, because generally foreigners more interested in high-priced property. “