SHAH ALAM, Jan 21 — Selangor’s policy on property purchases by foreigners needs to be revised, including raising the ownership price threshold to above RM1 million, to help local residents own their own homes.
Putra Business School's Master of Business Administration Programme director Prof Ahmed Razman Abdul Latiff said the move would also help curb the sale of assets classified as affordable housing or properties priced at RM300,000 and above to the group.
The state government could also impose mandatory requirements on developers to provide a specific number of affordable housing units in every project undertaken.
“By doing this, many residents, especially Selangor-born locals, will be able to afford their own homes. Even if developers undertake large projects, they must be required to provide several units or lots at affordable prices.
“At the same time, higher taxes can also be imposed on developers who leave their land undeveloped and do not proceed with housing construction. We do not want the land hoarded or left vacant.
"If they do not wish to develop it, they can sell it or be subject to high taxes,” he told Media Selangor.
Based on a written reply by state executive councillor for housing and culture Datuk Borhan Aman during the State Legislative Assembly sitting in 2016, the sales quota for property ownership by foreigners must not exceed 10 per cent of non-Bumiputera units. Meanwhile, Bumiputera quotas cannot be sold to foreigners.
The minimum price threshold is RM2 million for properties in Zone 1 (Petaling, Gombak, Hulu Langat, Sepang, and Klang) and Zone 2 (Kuala Selangor and Kuala Langat), and RM1 million in Zone 3 (Hulu Selangor and Sabak Bernam). Property types are limited to strata properties, including landed strata only.
Ahmed Razman added that the state government could also collaborate with the private sector or Federal agencies, such as Syarikat Perumahan Negara Berhad, to build more affordable homes.
In addition, wakaf land could also be developed as residential areas, as practised by the Penang Islamic Religious Council through 99-year leases.
“This means the land remains wakaf in status, yet housing in the form of apartment units can still be developed and sold to the public,” he said.
The issue of high housing prices that burden urban residents seeking to buy homes has been raised for over a decade, with several parties, particularly non-governmental organisations, also staging protests to demand solutions from the government.
In Selangor, almost all developers in urban areas like Shah Alam, Subang, Klang, Petaling Jaya, and Gombak generally sell homes at high prices, placing a heavy burden on city dwellers, especially low- and middle-income groups.
