Penang to raise price cap for foreigners

April 20th, 2012 Leave a comment

GEORGE TOWN: The Penang Government has proposed to raise the cap for foreign purchases on all properties in the state.

Chief Minister Lim Guan Eng said the current limit of RM500,000 would be raised to RM1mil, except for landed properties on the island that would be raised to RM2mil.

He added that the RM500,000 imposed on permanent residents would be retained.

Lim said this is to give locals priority to purchase cheaper properties, and to stop speculation.

“The state hopes to implement the new ruling by June or July. There will be exceptions and avenues for appeal which must be submitted to the state government on a case-by-case basis.

“We are willing to listen to the Federal Government’s objections, and at the same time, get feedback from and opinions from non-governmental organisations, property developers, foreigners and the public,” he told reporters yesterday.

Lim said the state was the first to come up with such a proposal.

Real Estate and Housing Developers’ Association (Penang) chairman Datuk Jerry Chan when contacted said the proposal was a drastic move but good as it would protect local interests.

On April 14, StarBiz reported that the Government was considering raising the minimum floor prices of houses foreigners are allowed to buy to RM1mil.

Source: The Star

Categories: Property News Tags:
  1. Common Sense
    April 20th, 2012 at 21:05 | #1

    Mr. Lim it is already too late

  2. wbk
    April 20th, 2012 at 21:34 | #2

    Not too late lo. Imagine if not limit them to buy 1M and above condo, the developer will reserve the whole block of condo cost between 500k and 1M to these foreign investors. Then nothing left for us already. My friend told me there are many foreign buyers at Tanjung Sri Pinang, but never stay there. See how this push up the price?

  3. Mr Smith
    April 23rd, 2012 at 17:21 | #3

    I am not sure how this will help. foreigners make up very small sales to be honest and most foreigners are already buying at a higher price point to the locals anyway. How many units between 500k and 1m were sold to foreigners last year ?, I bet very low amounts

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