Budget 2014 sees the increase in the minimum threshold for foreigners to purchase Malaysian properties raised from RM500,000 to RM1,000,000 effective January 2014.
To date, HCK Property Division has sold around 8% of its total 354 units in the Jazz Residences and G Residences to foreign buyers. Jazz Residences is fully sold-out whereas a few units are still available from G Residences to buyers.
These foreign buyers came from Singapore, Hong Kong, Indonesia, Taiwan, Saudi Arabia, China and United Kingdom respectively, with Singaporeans making the bulk of the foreign buyers. All these buyers will not be affected by the new threshold. We are also getting a good indication that more buyers from China will be interested in higher value units, which serve to negate any effect of the new guideline.
Future projects from HCK Property Division will contain a good number of units that will be above the RM1 million threshold.
We are of the opinion that with interests in properties located in and around Iskandar showing signs of weakening, especially among foreign buyers, there will be a steady but growing return of foreign buyers to properties in the Klang Valley. This will be to our advantage as most of our projects in the pipeline is located around the Klang Valley.
Many foreign buyers have been attracted by our unique investment packages.
Our projects in the pipelines will have significant number of units satisfying the minimum purchase threshold of RM1.0 million for foreign buyers.