New Measures to Ease Affordable Housing Application and Development
In an effort to improve the accessibility while stimulating the affordable housing development in Penang, the state government has introduced several new measures to ease the current market situation.
Increase in household income ceiling
With the hope that more applicants will be able to obtain bank loans, the household income ceiling for the application of affordable housing has been revised as below:
New category of affordable housing
Taking into consideration those who earned RM6,000.00, the state government has also introduced a new category of affordable housing, namely units priced at RM150,000.00. These units are also sized at a minimum of 750 sq.ft., but without finishing (unlike the RM200,000.00 units).
Widen the pool of eligible buyers
In order to stimulate the sale of affordable housing units so that it is viable to be executed with at least 60% take up rate, it has been decided to enlarge the pool of eligible buyers to include those who already own a property. But the applicants must met the following criteria:
- The property that he/she currently owned must not exceed the price of the affordable housing unit intended to be purchased.
- The property currently owned has to be purchased after 2008.
30% of the affordable housing may be sold to the open market
In order to stimulate the development of affordable housing, it has also been decided that 30% of the units in any particular 100% affordable housing project may be sold to the open market, with the following condition:
- The units are to be sold at 10% above the controlled price in South West, SPU, SPT and SPS districts.
- The units are to be sold at 20% above the controlled price in North East district.
- The purchaser has to be a registered voter in Penang
- The purchaser can only purchase one such affordable housing unit
- The said unit cannot be sold within 5 years from the date of vacant possession.
The developers for this new open market category will have to contribute to the Penang State Government the top up in price, not in cash but in kind, namely in actual affordable housing units in the said particular project, which will enable the State government to have its own affordable housing stock, which can be allocated to those who are on their list.
* Click here for a complete list of affordable housing in Penang *
So those open market unit purchaser have to hold the unit for 5 yrs after OC. And those affordable unit purchaser only need to hold for 5 yrs after SNP date. Meaning that affordable house unit purchaser can sell their house 2-3 years earlier than those open market unit owner, OMG!
What kind of logic is this, why not just compulsory make all purchaser hold the unit for 5 years after OC? That is the best way to curb speculation and encourage own-stay!
Public buyers shouldn’t complain so much because these projects are under the Penang Govt’s Affordable Home Scheme. So deserving and eligible applicants should be given the priority to secure their homes first under this scheme.
However sad to say some developers are prioritizing public buyers over eligible candidates. As in the case of Tri Pinnacle, Aspen Group is still delaying the balloting process while the public is happily taking up all these “opened” units. Mind you most of these eligible buyers have already secured their home loans, yet are still kept in the dark on when their turn will come. For rich investors they will probably see these projects as a good investment for mid-term property flip. Eg: this news hasn’t come out long enough yet all the public quota for BSG project Granito is already sold out!
Now talk about stimulating affordable housing development in Penang!
Affordable home is not affortable at all.
Make it only 1 type 1000sqft build and selling at rm200k,thats call affordable and high loan rejection issue solve. Also,can make it 10yrs cannot sell for genuine own stay purpose.
HI guys,
I am told that even after the restriction period, owners can only sell to eligible buyers and subject to consent from the state. Does this mean that the properties can be sold only at controlled prices to eligible buyers? If so then it might not be so attractive for investors. Please correct me if I am wrong
its not meant for investors (or i may called them property flipping buttheads). its meant for ppl who wants a decent living condition for their family at an OK price