Are you a foreigner interested in acquiring property in Sarawak, Malaysia? Understanding the regulations and market values associated with foreign property ownership is important. This guide provides an overview of the rules and requirements for foreign property acquisition in Sarawak, including the revised market values for residential properties. Please note that this information is for general guidance and should not be considered legal advice.
Property Acquisition Restrictions for Foreigners
In Sarawak, non-Malaysian citizens and foreign companies are subject to certain limitations when purchasing property. Foreigners are generally not allowed to acquire residential properties categorized as low-cost or low-cost plus land designated as Native Area Land, properties reserved exclusively for Bumiputera (indigenous Malaysians), vacant lands without buildings, and landed commercial properties.
Permissible Property Types for Foreign Acquisition
However, foreigners are permitted to acquire properties within certain parameters. This includes land within Special Development Areas exempted from the prohibition of foreign interests, individual parcels within buildings sub-divided under the Strata Titles Ordinance 1995, and residential properties with a market value meeting the specified minimum amount set by the Minister.
Revised Market Values for Residential Properties
To determine the eligibility of a residential property for foreign acquisition, the property’s market value is a crucial factor. The Land (Market Value of Property for Foreign Acquisition) (Amendment) Direction, 2019, has increased the minimum market value requirements for landed residential properties. In the Kuching division, the minimum market value is not less than RM600,000, while in other divisions of Sarawak, it is not less than RM500,000. The market values are determined through a valuation process conducted by the Land & Survey Department Sarawak.
Acquisition of Landed Residential Properties Under Construction
consider purchasing landed residential properties that are still under construction. However, certain criteria must be met, such as obtaining approval from the State Planning Authority, being the sole purchaser of the property, and ensuring that the market value meets the minimum requirements mentioned earlier.
Important Considerations
It is highly recommended that foreigners interested in purchasing landed residential properties under construction obtain prior approval from the Land and Survey Department, Sarawak, even if the sale and purchase price exceeds the threshold. This proactive step helps prevent potential issues during the registration process for the Memorandum of Transfer and the issuance of individual titles.
Commercial and Residential Strata Title Properties:
Foreigners are not subject to minimum market value requirements or specific restrictions when acquiring commercial and residential strata title properties in Sarawak. As highlighted in the earlier sections, these properties can be purchased without limitations.
Conclusion
Acquiring property in Sarawak as a foreigner requires adherence to specific regulations and market values. Familiarizing yourself with the guidelines outlined by the Economic Planning Unit, the Sarawak Land Code (Cap. 81), and other relevant authorities is crucial. Consulting with a qualified real estate professional or legal advisor is advisable to successfully navigate the intricacies of foreign property acquisition in Sarawak. Remember, this guide is meant to provide general information and should not be considered legal advice.
Article by:
Clement Sim PM
With over a decade of experience in the real estate industry, Clement Sim is an experienced and dedicated professional working as an IQI Global real estate consultant. Known for his expertise in the market, he has successfully assisted numerous clients in making informed decisions when it comes to buying, selling, and investing in properties. His extensive knowledge of market trends, negotiation skills, and attention to detail ensure that his clients receive the best possible guidance and achieve their real estate goals. Clement is committed to delivering exceptional service, providing personalized solutions, and building long-lasting relationships with his clients. His approach involves identifying and understanding the unique needs and long-term goals of each client and structuring and advising on the most appropriate mode of sale, whether it be through the tender, expression of interest or private treaty, that aligns with the client’s corporate strategy and direction.
