Rent-to-own scheme to help Penangites owning their first home
The State Government intends to expand homeownership in Penang through ‘rent-to-own’ (RTO) which currently only involves Type A and Type B Affordable Housing (RMM).
State Housing, Local Government, Town and Country Planning Committee chairman Jagdeep Singh Deo said, the proposed plan that will be introduced in the near future is to help Penangites to own their first home.
“Previously, the RTO method was only for RMM Type A (low cost house at RM42,000) and RMM Type B (low medium cost house, RM72,500).
“Soon we (State Government) will expand to RMM Type C (starting from RM150,000 to RM300,000) which are two projects that have been identified to offer 44 units by RTO.
“And the priority for this latest category is for civil servants (and more details will be announced later),” he said at a press conference held via Facebook Live on 28 June 2022.
In the meantime, Jagdeep who is also a Board Member of LPNPP informed that the State Government will ensure an adequate supply of affordable housing for the people of Penang.
“This target is in line with the Penang Vision 2030 and I am confident we can achieve the target with the cooperation of all parties, including from LPNPP and stakeholders through public-private partnership (PPP),” he said.
It is understood that as of June 27, 2022, a total of 138,041 units or 62.8 percent of the target has been achieved which is currently in various stages of development. This amount also includes a target of 10 percent of the 220,000 units offered through the RTO financing method.
In a related development, Jagdeep also said that the State Government is currently waiting for feedback from the Ministry of Housing and Local Government regarding the development of the People’s Housing Project (PPR) in the state.
“The State Government has previously identified five sites (in five districts with a total size of 72.3 acres) for development of PPR.
“(And) we really hope that the Federal Government can help provide housing for the people in this state,” he exclaimed.
For the record, Penang only has 999 PPR units compared to a total of 114,652 units nationwide.
Source: Buletin Mutiara
Don’t just talk only la. Start approving APDL. No need to talk so much, and do so less. All the new projects need to wait because of your incompetence for allowing so many luxurious project launch that contribute to the huge backlog of property inventories.
@Alan
Not true Alan, there are still many many unsold completed luxury properties in PG, more than 1000 units.
@fulok
Exactly. So why approve those luxurious project in the first place if it’s in plain sight supply is over demand? Making all those affordable condos wait for APDL approval forever.
@Alan
Because there is also an over supply of affordable homes. Why are you getting all worked up? What do you want to buy? You can find plenty of choices from resale market too in case you really need a house urgently.
@fulok
Wow.. May i know which luxurious project in Penang still available for 1000 units left? Straits residence? City in a dream? Quaywest? Or Emerald?
I did not say “a luxurious project in Penang still available for 1000 units left”, I said “there are still many many unsold completed luxury properties in PG, MORE than 1000 units.”
Just Straits Residence and City of Dreams combined, there are still almost 300 units unsold, excluding those already sold, but buyers waiting to flip. Sales for these 2 projects were disappointing in the last 6 months, with developers managing to sell ~10% of the unsold units only combined.
Ask from developers, always say almost sold out. But afterwards always have many listing in property search websites. Sold to real estate agencies for them to do subsales? 😀
@fulok
So your logic is, there is many unsold completed luxury properties. But it doesn’t equate Supply more than Demand. Hmm. Okay. As long you’re happy.
Over supply of affordable homes? Where? Haha…. most of them is either top floor with risk of water leakage, or directly next to hydro pump room. Tell me few projects that still have a livable unit that’s under affordable project.
@fulok
Hopeless for straits quay now. Nothing happening in that place where add on affordable house of I santorini even worst. Andaman island also got affordable house later & The meg only 1 cp for most unit. I don’t think is well plan overall & it toom 35 years to fully complete this island idea case.
Prefer to move other more happening place than this white elephant. Even Tanjung Pinang Marina Mall also not doing very well.
Hahaha….not sure what your definition of “happening” is. Different people have different requirements for a home and neighborhood. Tanjung Bunga/Tokong are still areas preferred by foreigners, but that doesn’t mean you have zero foreigners buying homes in some other areas. For locals, if you’re buying for own stay, choose whatever suits you in terms of environment and budget. If you’re buying for investment, I’d say no matter where you buy, you will loose money, as rentals are very low (if you’re looking at rental income), and there is only limited opportunity to flip (if you’re a flipper). End of story, don’t get conned by any housing agents into buying homes you don’t need. They are there to earn your commission, not to give you good advice.!! Hahahaha.
@fulok
Wah. Yes, it’s different requirement. It will be most congested traffic area in Penang which is Tanjung Tokong. And most oversupply housing development in Penang. Look at Straits residence/City in a dream wow amazing development but full of flipping frog & hanging units. It’s not really a good retirement & peaceful environment as fully occupied by super high rise with high density. Looking forward Andaman Island to add more complicated in this area with heavy traffic flow & low/medium/high cost condo here. Just my2cent input as personally for me it’s not a well plan development in Tanjung Tokong.