Malaysia to charge foreigners more for buying houses in Johor: Report
KUALA LUMPUR (REUTERS) - Malaysia's southern state of Johor, which neighbours Singapore, will impose a higher processing fee on foreigners who buy houses, state news agency Bernama reported, as it looks to boost revenues and rein in speculative buying.
Bernama quoted the state executive councillor for housing and local government, Abdul Latiff Bandi, as saying the state government will charge a fee of 4-5 percent of the property value. Proceeds will go towards welfare projects in Johor.
This compares with the current flat fee of RM10,000 (S$3,900) per property.
Singaporeans have been buying houses in Johor, especially in Iskandar, which is a 2,200 square km zone three times the size of Singapore and is just across a narrow strip of water. The strong interest also stems from cheaper property prices and utility bills compared with Singapore.