Local officials in Johor have mooted a 30 percent quota for Malaysian home buyers in Forest City, a massive project with a gross development value of US$100 billion (RM391 billion) in the state, reported the Malay Mail.
Last week, Forest City’s developer Country Garden Pacificview revealed that the Chinese account for 66 percent of the buyers in the project, while Malaysians only make up 20 percent.
The massive development is also forecasted to house over 700,000 foreign nationals by 2050.
However, Johor housing and rural development committee chairman Dzulkefly Ahmad said the proposed 30 percent quota for Malaysians is still not final and still needs to be thoroughly studied.
“The Malaysian quota for property ownership in Forest City is seen as a fair restriction as almost all other development projects in Johor are bound by the state government’s various quotas to safeguard land.”
“We hope the proposal will be positively received by the special committee consisting of the Johor state government, the Housing and Local Government Ministry, the Finance Ministry and Country Garden Pacificview.”
Dzulkefly also revealed that the committee that will investigate the issue of foreign ownership in Forest City has not been convened yet.
“I was told that a federal government representative from the Housing and Local Government Ministry will contact us on (3 Sep), but we have yet to receive any confirmation.”
In addition, Country Garden informed Johor officials that merely five percent of the foreign property buyers in Forest City have officially applied for the Malaysia My Second Home (MM2H) scheme.
“The figure was communicated by Forest City’s developer following a fact-finding visit in June,” said Dzulkefly.
The assemblyman for Kota Iskandar also reiterated that things concerning Johor’s land are solely under the jurisdiction of the state government.
“For normal development in the state, all developers will have to adhere to the quota ratio for properties located on international lots such as the Bumi quota and also the minimum RM1 million ceiling price quota for foreigners.”
“However, projects such as Forest City were given special considerations by the previous BN-led administration,” he noted. Notably, residential units there cost between RM600,000 to RM7 million at an average price of RM1,200 psf.
Meanwhile, one of Forest City’s four reclaimed islands is nearly completed, with the high-end Phoenix Hotel, a lakeside park, a commercial strip with duty-free shops, and Forest City sales gallery now open, alongside some apartments.
Top US boarding school Shattuck-St Mary’s School also opened last month, while the project’s RM1.8 billion golf course opened on Saturday (1 Sep).
Source From: https://www.propertyguru.com.my/property-news/