PTG Selangor Circular 2/2020
The Land Office of Selangor previously set a minimum purchase price threshold for foreigners to acquire a residential property. The minimum threshold for Zone 1 (Petaling, Gombak, Hulu Langat, Sepang, Klang) and Zone 2 (Kuala Selangor, Kuala Langat) is RM2,000,000.00 whereas the minimum threshold for Zone 3 (Hulu Selangor, Sabak Bernam) is RM1,000,000.00. Additionally, foreigners are only allowed to purchase properties that are under Strata Titles only.
In the PTG Selangor Circular 2/2020 dated 27.4.2020, the State Government of Selangor has reduced the minimum purchase price threshold for strata properties, including strata landed homes to RM1,500,000.00 throughout all zones in the whole of the Selangor State. This circular is effective from 1.1.2020 to 31.12.2020. This new ruling has several requirements to fulfil before a foreigner can acquire property in the State of Selangor, which are as follows:
- In the case of leasehold properties, there must be a 60-year lease and obtaining State Consent approval;
- In the case of unsold units, there must be a certificate of completion and compliance as at 2018; and
- In the case of landed properties, the reduction of the threshold is limited to bungalows and semi-detached houses ("rumah teres berkembar").
A copy of the circular is available here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.