By Sharen Kaur
NEW initiatives imposed by both the state and federal governments to cool the housing sector are unlikely to dent the Johor market, say analysts.
MIDF research head Zulkifli Hamzah said sentiment may be affected in the short term but foreign buyers are still purchasing properties in Johor due to the huge disparity between property prices in their home countries and Malaysia.
"We believe the additional two per cent levy will not affect foreign buyers' investment decisions," Zulkifli told Business Times.
Johor plans to impose a two per cent levy on foreign buyers across all segments of the market in the state, including the secondary market, starting May next year. The rate is lower than the four per cent to five per cent mooted earlier but will still amount to more than twice the current RM10,000 fee foreigners pay to buy properties in the state.
The levy comes on top of the recent cooling measures announced in the 2014 Budget, which will require foreigners to pay a 30 per cent tax for properties sold within five years of purchase.
"We should not over-react to the precautionary measures announced by the government.
"These measures will safeguard the long-term sustainability of the property market," Zulkifli said.
Mah Sing Group Bhd group managing director Tan Sri Leong Hoy Kum said initiatives in the national budget may remove speculative element, but not fundamentals.
The developer has seven projects in Johor, including Meridin@Medini.
Leong told Business Times that as Meridin@Medini is more upper end as it is located next to Legoland and near Educity, the new measures will not dampen property sales.
He said pricing for the products is attractive for both local and foreign investors with the Meridin Suites and Meridin Linx iSovo indicatively starting from RM309,000 and RM298,000, respectively.
Mercury Securities head of research Edmund Tham said the new measures may deter speculators but foreigners will continue to buy properties in Johor as their second home.
MIDF research head Zulkifli Hamzah said sentiment may be affected in the short term but foreign buyers are still purchasing properties in Johor due to the huge disparity between property prices in their home countries and Malaysia.
"We believe the additional two per cent levy will not affect foreign buyers' investment decisions," Zulkifli told Business Times.
Johor plans to impose a two per cent levy on foreign buyers across all segments of the market in the state, including the secondary market, starting May next year. The rate is lower than the four per cent to five per cent mooted earlier but will still amount to more than twice the current RM10,000 fee foreigners pay to buy properties in the state.
The levy comes on top of the recent cooling measures announced in the 2014 Budget, which will require foreigners to pay a 30 per cent tax for properties sold within five years of purchase.
"We should not over-react to the precautionary measures announced by the government.
"These measures will safeguard the long-term sustainability of the property market," Zulkifli said.
Mah Sing Group Bhd group managing director Tan Sri Leong Hoy Kum said initiatives in the national budget may remove speculative element, but not fundamentals.
The developer has seven projects in Johor, including Meridin@Medini.
Leong told Business Times that as Meridin@Medini is more upper end as it is located next to Legoland and near Educity, the new measures will not dampen property sales.
He said pricing for the products is attractive for both local and foreign investors with the Meridin Suites and Meridin Linx iSovo indicatively starting from RM309,000 and RM298,000, respectively.
Mercury Securities head of research Edmund Tham said the new measures may deter speculators but foreigners will continue to buy properties in Johor as their second home.
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