RM800,000 proposed as Penang property price threshold for foreign buyers
The Penang government has proposed that the price threshold for foreigners to purchase urban high-end properties in the state to be set at RM800,000, compared to RM600,000 announced by Finance Minister Lim Guan Eng during the 2020 Budget.
Penang’s Housing, Local Government, Town and Country Planning Committee chairman Jagdeep Singh Deo (pix) said the reduction in price threshold for foreign property buyers should only apply for a period of six months instead of one year as tabled during the budget.
“Finance Minister Lim Guan Eng’s purpose in reducing the threshold for foreigners (purchasing built condominiums) from RM1 million to RM600,000 was to tackle the property overhang issue in the country, but in Penang, the (property overhang) issue is manageable,” he told a media conference here today.
He said the unsold property in Penang had been decreasing from 3,916 units in 2017 to 3,502 units in 2018, whereas it was increasing in other states such as Johor (4,376 to 6,066 units between the year 2017-2018) and Selangor (3,713 to 4,623 units).
“The suggestion was discussed with the state Chief Minister (Chow Kon Yeow) and will be further discussed and confirmed later during the next state exco meeting,” he said.
Meanwhile, Jagdeep also commented on the Rent to Own (RTO) financing scheme that was also tabled by Lim during the 2020 Budget.
The RTO scheme according to him, should prioritise first-time homebuyers to buy low cost and low-medium cost units valued at RM42,000 and RM72,500 respectively, as well as the affordable housing at RM150,000.
“However, according to the Budget 2020 announcement, the RTO scheme applied to properties valued of up to RM500,000, (which) to me, those who can afford that much do not really need to be helped,” he added.
Source: Bernama
Malaysian policy is only good at U-turn with all sorts of Flip-flop. Beware that will not “induce” investors (foreign or otherwise) but only scare them away for fearing of the unpredictable everchanging standssss!
@Sammy
This actually cannot be considered a U-turn. All land/real-estate matters need state approval while all foreign purchase need federal consent (so both state and federal approvals are needed for property purchase by a foreigner). What f-face LGE announced regarding the 600k floor price is just the federal part, while respective states are free to set their floor limit that can be 600k or anything higher. That’s why it’s not a U-turn.
Go stu hexx..
Property overhang is hurting my property investment. Price has been dropping in the last few years.
@investor
Yes, if it’s hurting you, that means you’re a short term speculator. Gov should come up with more policies to discourage short term speculators, but more policies to encourage long term investors as they don’t cause wild swings in property markets.
is well know for carry bussinemen ping pong, best in malaysia.
All the 600k unsold house price deleveloer will hike the price adjusted to 800k now. so penang local ppl pls accept the influx of bad and rude hong kong ppl.
Hong kong average wage family earner stay on shoe box size flat 700sqt is HKD 9mil equal to RM4.5mil, they can sapu 6 units 1200 sqf RM800k with no sweat. Not to mention the rich Hong Kong yet, they can buy the whole block.
clear glut and plan properly
It’s the property cycle nothing surprising
@Ckneo
I am a long term investor. I am sure all investors won’t want to see their asset continue to lose value, regardless long them or short term. If Malaysia economy contracted and many people lost their jobs, things will get worse.
Looks like properties will get worse as 10% of total Eco World shares changed hands at 30% discount from the last traded price yesterday. That’s a reflection of a very gloomy outlook. Notwithstanding, properties are a good investment for investors with a horizon of 15-20 years.
Gov should stay away from cheap tricks like lowering entry price for foreign buyers, or turning a blind eye to unscrupulous sales tactics like off-S&P discounts, 0% downpayment and pre-sale selling to “bulk investors”, just to name a few. All these tricks to “psychologically boost sales” should be outlawed.
Penang will become Hong Kong ppl playground.
Their 700sqf shoe box flat can buy 3 Super condo of Penang.
We need Malas Dignity Congress…… oppppss… should be Malaysian Dignity Congress for this Hong Kong invasion
@David Wong
Don’t flatter yourself, Penang is not such a big hit with HK ppl actually. No doubt, you have some buyers from there, but we are not the 1st or even the 2nd choice. Just because The Star newspaper featured a short write-up of a HK auntie having bought a few properties here, in which a “specific project in Tanjung Tokong was mentioned” ( I have reliable sources saying that it’s a “transactional favor” done for a “developer” who will be spending on newspaper advertisements), that doesn’t reflect the actual buying sentiment amongst HKies towards PG.
Remember ya, don’t get conned by unscrupulous sales tactics again ok!
Hong Kong invasion is nonsense. The price is cheap, but cheap in many third world places. Penang is zombie economy, people cannot stop at red light or pedestrian crossing. Is cheap for a reason…..rasua…
I don’t mind seeing HK ppl buying our property. Much better than seeing units lelong here and there still can’t find local buyer…
Hong Kong ppl like to say – DLLM DLLM HKC HKC. They are rude, our maruah will gone…. time to unite to fight the invasion. ini tanah malaysia
you are supporting greedy developer to build expensive houses ? if they sell RM400k do you think it will be still vacant ? DLLM TOM
It’s not like they are getting a discount
Basically our speed of building infrastructure & transportation are quite slow, therefore unable to attract significantly local & international buyer, lesser the value lesser the deal.
if just talking about cheaper house, food & expenses others Asean country stand a better chances.
The main reason for property price decline is over supply + situation exacerbated by unaffordability by the mass population as a result of gov failure to turn our economy into a higher income economy. You think by building more infra, the locals can suddenly get richer and afford those overpriced properties? Dream on…….
@jojo
Agree