MM2H: Solution To Property Overhang?

Malaysian Institute Of Professional Estate Agents And Consultants (MIPEAC) is encouraging more foreigners to take up the Malaysia My Second Home (MM2H) programme in order to invest in Malaysian properties, which could help ease the glut in the property sector.

MIPEAC claims that it would be a waste not to strengthen the promotion of MM2H and encourage more foreign investments in the country’s property sector.

“With RM20 billion worth of residential overhang, we should be more open to foreign buyers with higher spending power to enter the market. In general, efforts to drive in foreign investments in other segments like commercial and industrial properties should be taken more seriously as well,” said Francis Loh Soong Park, president of MIPEAC.

Francis Loh Soong Park, president of MIPEAC

MIPEAC suggested that high-end developments can be marketed more intensively globally, together with the on-going efforts done on the tourism sector, despite regulatory changes for stricter background checks for MM2H applications implemented recently.

“Property developers have taken several initiatives, including organizing tour groups with visits to the sales gallery, as it will put Malaysia in the limelight as an ideal property investment location with direct help from experienced sales agents,” Francis said.

“It has been reported that Chinese nationals make up most of the foreign buyers in Malaysia, and a lot of them purchase these properties in cash. To date, foreigners own less than 3% of Malaysian real estate which indicates that it is still safe to promote our unsold homes to them and that it is not the main factor of the skyrocketing property prices we’ve seen in the past few years,” he further added.

MIPEAC is also urging the government and related parties to work hand-in-hand to resolve the overhang situation, and stimulate the high-end property market that has been experiencing a slowdown in recent years.