Prime Minister Tun Dr Mahathir Mohamad said the decision to lower the threshold on high rise property prices in urban areas for foreign ownership from RM1mil to RM600,000 was meant to reduce supply overhang of condominiums and apartments.
The decision does not mean that foreigners who bought the property would be given Malaysian citizenship, he said.
“If the locals want to buy the property, they can buy it at the same (reduced) price, but we still have supply overhang.
“We have built so many houses, but they were not sold. When a housing project is not sold, it causes the country to suffer losses.
“We want to get rid of this property overhang… so that we can raise the price back to RM800,000, RM1mil or RM2mil.
“This is another way to encourage the sale.
