Penang Property Talk

To stimulate the property market and provide financial relief to home buyers, here are the incentives announced by Prime Minister today:

1. Home Ownership Campaign (HOC) to be reintroduced:

Stamp duty exemption on the instruments of transfer and loan agreement for the purchase of residential homes priced between RM300,000 to RM2.5 million subject to at least 10% discounts provided by the developer. The exemption on the instrument of transfer is limited to the first RM 1 million of the home price while full stamp duty exemption is given on loan agreement effective for sales and purchase agreements signed between 1st June 2020 to 31st May 2021.

2. RPGT exemption for disposal of residential homes from 1st June 2020 to 31st December 2021 (This exemption is limited to the disposal of three units of residential homes per individual)

3. In addition, the current 70% margin of financing limit applicable for the third housing loan onwards for property valued at RM600,000 and above, will be uplifted during the period of the HOC, subject to internal risk management practices of financial institutions.

The Penang government is set to announce a housing ownership package next week to ease home ownership in the state.

State Local Government, Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo said the package – dubbed Housing Ownership Campaign Package (Penang edition) 2020 – has two main objectives.

“Firstly, it is to assist home buyers, especially those who intend to buy affordable homes.

“Secondly, we want to work towards our goal of building 180,000 units of affordable homes by 2030,” he told a press conference at Duo Residensi in Teluk Kumbar today.

Jagdeep said that he had meetings with various agencies and stakeholders, such as Rehda and the chambers of commerce, for the past two to three weeks to look into ways to assist home buyers in Penang.

“We are relooking, reviewing and strategising our existing (housing) guidelines. I have spoken to Chief Minister Chow Kon Yeow and I hope to make an announcement next week,” he said.

Jagdeep added that package would include offering incentives to developers who are willing to work with the Penang government to provide affordable homes for the rakyat.

“Our priority is that,” he said.

Jagdeep stressed the importance of the construction industry.

“A total of 141 other sectors stand to benefit from a single construction project. That is how important the industry is.

“It is more important and relevant now that the Covid-19 crisis affects the economy. We want to spur the state’s economy and at the same time, help people to own affordable homes,” he said.

Jagdeep said the supply of affordable homes is crucial.

“We have managed to record 102,000 units of affordable homes that have been built, being built and approved to be built as of March this year.

“As of this morning (June 4), we registered 105,719 units of affordable homes that have been built, being built and approved to be built. This shows that we have not stopped providing affordable homes,” he said.

Jagdeep also said that the number of overhang units in Penang was manageable.

“Penang saw a decrease in property overhang, while several other states saw an increase in the number of unsold properties.

“Penang has 3,350 unsold properties, amounting to RM2.6 billion. An overhang unit is defined as a residential unit that is unsold for more than nine months after it has received the Certificate of Completion and Compliance (CCC).

“The number of overhang units in Penang is decreasing year after year. The Penang government is also planning to further address the matter,” he said.

On a separate matter, Jagdeep said the Dua Residensi project by Penang Development Corporation (PDC) was set to obtain the CCC next month (July).

“We hope to have the key handover by September this year,” he said.

PDC Housing Development Department senior manager Radzuan Ahmad said there were still available units for the Duo Residensi project.

Find out more about Duo Residensi

Source: Buletin Mutiara

A proposed strata development by Uniflex Synergy Sdn. Bhd. at Butterworth. It is strategically located along Jalan Kampung Gajah, just a stone’s throw away from Nautical Bay by OHM Group.

This development was previously proposed by Venn Group, which will see the construction of a 15-storey condominium offering 92 residential units with a panoramic view of Penang Island.

Project is still pending for approval. More details to be available upon official launch.

Project Name: (to be confirmed)
Location : Kampung Gajah, Butterworth, Penang
Property Type : Condominium
Total Unit: 92
Built-up Area: (to be confirmed)
Indicative Price: (to be confirmed)
Developer: Uniflex Synergy Sdn. Bhd.

Location Map:

About Residensi Permatang Pauh

Affordable housing undertaken by Excel Focus Properties Sdn. Bhd. It is strategically located within the established township of Permatang Pauh, only about 500 meters away from Butterworth-Kulim Expressway. Neighboring communities include Taman Naluri, Taman Naluri Ria and Taman Janggus Jaya.

Find out more about Residensi Permatang Pauh

The Federal Government has withdrawn its RM100 million allocation for the development of a cable car system on Penang Hill.

Chief Minister Chow Kon Yeow expressed his disappointment over the Federal Government’s decision.

“The withdrawal of allocation would not only affect the continuity of the hill’s development plan, but also the state’s economy.

“The Federal Government should have helped the people overcome the economic challenges caused by the Covid-19 crisis.

“It should have ensured that allocations for states are increased to assist the rakyat. Instead, the allocation is withdrawn without first having proper discussion with the state or obtaining feedback from the Penangites,” Chow told the people via Facebook Live today.

He said that the development of the public infrastructure project could have a ripple effect towards the state’s economy, stimulate the local market and provide job opportunities.

He said that the pre-feasibility study of the cable car system was still in progress and was scheduled to complete in the second half of the year.

“All information, data and proposals from the pre-feasibility study will be filed for future use,” Chow said.

The then Finance Minister Lim Guan Eng had announced the RM100 million allocation for the development of the cable car system on Penang Hill when he tabled the Budget 2020 in October last year. However, following the change of Federal Government, the allocation has now been withdrawn.

Chow said the Penang government would continue to discuss the matter with the Federal Government.

“I hope that the rakyat will continue to stay strong and united against the current health and economic challenges.

“The state government will stand with the people and ensure that we remain viable. I believe that we can overcome these challenges together,” he added.

Source: Buletin Mutiara