A Penang state assemblyman has proposed introducing a 3% property transfer premium on non-Penang buyers or sellers in an effort to curb speculative property activities and improve housing affordability for locals.

During the debate on the governor’s address at the state assembly, Ong Ah Teong said some outstation buyers viewed Penang properties primarily as investment assets rather than homes, contributing to artificial demand and rising property prices.

He proposed amendments to state land laws and regulations to impose a 3% transfer premium on buyers or sellers who are not Penang-born, permanent residents, or registered Penang voters for at least three terms.

According to Ong, the measure could help ensure the local housing market better serves Penangites instead of speculative investors.

“Property is a human right, not a speculative commodity for profit and wealth,” he said during the assembly sitting.

Ong also highlighted concerns over the growing number of unsold residential units in the state. He noted that Penang recorded 14,344 unsold homes as of the second quarter of 2024, with most units concentrated in the higher-priced segment.

He warned that the situation could worsen if developers continue prioritising high-end developments that offer better profit margins, potentially resulting in more unsold properties and a market mismatch for ordinary homebuyers.

The Batu Lanchang assemblyman further cautioned that excessive speculation could eventually contribute to a property bubble, leaving local residents to bear the economic consequences if the market weakens.

He suggested that revenue collected from the proposed levy could be channelled into a housing trust fund to support Rumah Mutiaraku projects as well as rent-to-own initiatives for the B40 group and young Penangites.

Ong also cited similar ownership controls implemented in places such as Kelantan, Sabah, Sarawak, Singapore, and Spain.

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