JOHOR BARU: Foreigners are advised to scrutinise property terms in Johor before signing the Sale and Purchase Agreement (SPA) to prevent misunderstandings or legal disputes.
State Housing and Local Government Committee Chairman Datuk Mohd Jafni Md Shukor said various types of property schemes are offered in Johor.
"Some are leasehold with durations of 30, 60, or 99 years, while others are freehold. For example, industrial areas in Johor are typically not permanent and must be returned to the government after the lease period expires," he told the New Straits Times.
Jafni made these remarks when asked about the plight of Singaporean homebuyers embroiled in a legal dispute over Johor properties sold under a Private Lease Scheme (PLS), which offers 99-year leaseholds instead of full ownership.
"Clearly, the issue is between the developer and the buyers, thus the importance of buyers clearly reviewing the terms in their SPA before signing," he said.
The scheme has faced criticism for its restrictive terms and alleged lack of transparency, with buyers claiming they were not properly informed that they would be treated as long-term tenants rather than owners.
Johor, Malaysia's southernmost state, is linked to Singapore by two bridges: the Causeway and the Second Link. Thousands of Singaporeans visit Johor on weekends for recreation and holidays.
Jafni, however, remained optimistic that the dispute involving the Singaporeans could be resolved.
"Based on the 170 Singaporeans who disputed the purchase terms, claiming the SPA was unclear, it is now a legal matter," he said.
"I am sure the property buyers and developers can reach a win-win situation that can be amicably resolved. However, it does not involve the state government."
Jafni said there were 56,247 service apartment units offered under the scheme (PLS), with 44,437 units sold during the third quarter of this year (July 1 to Sept 30). The units were sold from RM500,000 and above.
Property buyers from Singapore, China, Hong Kong, Australia, and other countries are urged to carefully review the land tenure terms of their purchases before signing the Sale and Purchase Agreement (SPA).
Jafni stressed that property purchasers should be fully aware whether the property they are acquiring is leasehold or freehold.
"The land tenures are determined during the development phase, and it is the responsibility of buyers to ensure they understand the terms outlined in the SPA before committing to a purchase," he said.
Following the dispute over unclear purchase terms by 170 Singaporeans, Jafni expressed confidence that the matter, now in court, will be resolved impartially.
"As the dispute is now in the courts, I am confident the decisions will be made impartially," he said.
Meanwhile, Jafni said the Johor state government is committed to transparency and professionalism in all property transactions.
He assured foreign buyers, including Singaporeans, that they need not worry about purchasing properties in Johor, as all terms and conditions are clearly outlined in the SPA.
"Both the government and developers maintain professionalism, ensuring buyers' rights are protected," he added.
Jafni also said Johor's housing policy requires large and medium-scale developers to allocate 40 per cent of their projects for affordable housing priced at RM300,000 or below, benefiting Johoreans and Malaysians.
The remaining 60 per cent can be sold at market rates.
"This approach balances affordability with market-driven development, catering to all buyer segments," he added, emphasising that international investors are always welcome in Johor's property market.