Why is Melaka maintaining its RM500,000 foreign property purchase threshold?

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Melaka Maintains RM500,000 Foreign Property Purchase Threshold to Avoid Competition with Local Buyers

The Melaka state government has decided to maintain the existing selling price threshold of RM500,000 per unit for foreign purchases of condominiums and apartments. This decision was made after considering various factors, primarily to prevent direct competition with local residents regarding housing prices. The state government also confirmed there are no plans to reduce the 15 percent levy on Bumiputera quota properties.
Rationale for Maintaining the Threshold

Melaka Chief Minister Adly Zahari stated that the RM500,000 threshold for foreign property acquisition is already among the lowest in the country. The state government has carefully evaluated multiple aspects before concluding that no reduction is necessary. The core reason for upholding this price point is to ensure that foreign investment does not negatively impact the affordability of housing for the local Melaka community.
Bumiputera Property Levy Remains at 15 Percent

In addition to maintaining the foreign purchase threshold, the state government has no intention of lowering the 15 percent levy applied to the purchase of properties designated under the Bumiputera quota. This levy is not intended to generate income for the state government. Instead, the collected funds are specifically allocated to a Bumiputera property fund.
Fund Allocation for Bumiputera Housing Development

The Bumiputera property fund, bolstered by the 15 percent levy, will be dedicated to developing housing projects for the Bumiputera community within Melaka. This initiative aims to increase the availability of affordable homes for Bumiputera residents in the future. The increase in the levy percentage is directly linked to the ongoing release of Bumiputera quota properties, ensuring that the proceeds are reinvested into community housing development.

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Why is Melaka maintaining its RM500,000 foreign property purchase threshold?

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