PETALING JAYA: The requirement of property ownership for the Malaysia My Second Home (MM2H) programme is expected to renew international buyers' interest, says the Real Estate and Housing Developers' Association (Rehda). "The integration of a property purchase condition for MM2H is expected to stimulate foreign investment in the Malaysian real estate market. However, we are still determining the potential scale of this impact," said Rehda president Datuk Ho Hon Sang.
"We anticipate that future revenues could see positive changes as the government has received a total of 2,164 MM2H applications from November 2021 to September 2023, with 1,905 being approved. “Should this trend persist, the compulsory property purchase for each tier will likely drive interest in properties priced at RM600,000 and above." Ho said the current market availability of residential units above the RM600,000 threshold had negated developers' need to create additional homes specifically for MM2H participants.
He added that foreign purchases of higher-priced properties could, as a result, support affordable housing in Malaysia. "For over 40 years, developers have embraced the concept (of) cross-subsidising affordable housing through the sales of regularly priced homes," he said. Ho added that increased purchases by MM2H participants could bolster this subsidy model, especially given the requirements for a significant number of affordable homes in each development project.
Starcity Global managing direc.