Foreign buyers will not displace local housebuyers - REHDA

The fall in the ringgit may attract foreigners to snap up properties in Malaysia, but may not affect local housebuyers as they are only allowed to buy high-rise units priced at least RM1 million.

Real Estate and Housing Developers' Association Malaysia (Rehda) President Datuk Seri F.D Iskandar said hence, foreign buyers would not displace local homebuyers, particularly in the affordable housing segment.

He said the property industry should take advantage of the situation by promoting their properties to foreigners.

As foreigners look for upmarket properties in specific areas, their value would not go down, he told a media briefing on the property industry survey in the first half 2015 here, today.

He said affordable homes catered only for locals.

Meanwhile, Iskandar expects property price hiccups for high-rise buildings, apartments and condominiums due to the weakening of the ringgit.

"The prices of certain construction materials have actually gone up, but that of residential buildings shouldn't as most of the components are locally sourced.

"However, for high-rise buildings, components like lifts, escalators and air-conditioning are still imported. Definitely, there would be hiccups in terms of prices for high-rise projects," he added.

He said most of the developers were trying to absorb rising prices of materials as much as they could for most of the exporting countries were trading in the US dollar.