- POSTED: 08 Oct 2013 07:44
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The Johor state government will levy a processing fee on foreigners who buy properties in the Malaysian state from next year.
PASIR GUDANG: The Johor state government will levy a processing fee on foreigners who buy properties in the Malaysian state from next year.
Bernama news agency quoted State Executive Councillor for Housing and Local Government Abdul Latiff Bandi as saying that the fee will be based on the property value.
Currently, foreign buyers pay only RM10,000 as processing fee.
Mr Abdul Latiff said the new processing fee of between four and five per cent of the property value enables the state government to control the sale of properties to foreigners.
"For instance, foreigners buying a property worth RM5 million, they have to pay only RM10,000 as processing fee currently. From next year, they have to pay based on the property value," he told a media conference after opening a seminar on Green Industry 2013 on Monday.
Mr Abdul Latiff said proceeds from the processing fee will be used for projects and programmes towards the people's development.
Despite the new measure, some analysts said Johor properties will still be attractive to Singaporeans.
Anne Tong, CEO of HSR Property Group, said: "I don't think it will really affect the sale of the different developments there. Currently there are a lot of foreign developers who are also very active in Iskandar.
"With all this hype, with the government putting in a lot of effort to bring up Iskandar, and with a lot of facilities... that will be in place very soon... (such as) the high speed rail -- I think more people will want to be there."