State Housing, Town and Country Planning committee chairman Jagdeep Singh Deo.

GEORGE TOWN: The Penang government is standing firm with its new ruling on property sale even as critics slam it, saying the ruling is illegal.

State Housing, Town and Country Planning committee chairman Jagdeep Singh Deo said the state controls the land office, so with land being a state matter, it has the mechanism to impose restrictions on property sale.

“In order for a person to own a property, he must get it registered at the land office.

“Under the ruling, we can impose a 2% levy, on top of the existing 0.1% stipulated for transfer of land title,” he said on the sidelines of the state assembly meeting here yesterday.

Several groups, including Gerakan and MCA, have taken the state government to task over the new ruling that it plans to enforce from Feb 1 next year, saying it would be illegal as the National Land Code needs to be revised first before the ruling can be enacted.

“Currently, the application fee for any transaction pertaining to a leasehold property is 0.1% of the selling price,” said Jagdeep.

“As for freehold property, the seller will have to produce a statutory declaration that they have indeed paid the 2% levy before the transfer of land title can take place,” he said, adding that the new ruling would only affect property bought with sales and purchase agreements signed from February.

Jagdeep said the restriction would be imposed on properties priced above RM250,000 in Seberang Prai and above RM400,000 on Penang Island sold within three years of being purchased.

Chief Minister Lim Guan Eng also brushed off criticisms.

“We have been subjected to criticisms from the Consumer Association of Penang and Gerakan. At first they criticised the state government for not doing anything to help. When we try to help, they attack us. So, what do you want us to do?” he asked at a press conference yesterday.

Several groups have come to the defence of the state government, saying the ruling would curb speculation.

Source: StarProperty.my

PG88 @ Teluk Kumbar, a residential development by TPPT Sdn. Bhd. within the vicinity of Teluk Kumbar Heights in Penang. It is only mere minutes drive to Penang International Airport and approximately 10km aways from Penang Second Bridge.

This development comprises 24 units of 3-storey terraces, with an indicative price of RM880,000 onwards.

Property Project : PG88 @ Teluk Kumbar
Location : Teluk Kumbar, Penang
Property Type : 3-storey Terrace
Built-up Area : 2,600 sq.ft. onwards
Total Units: 24
Tenure : Freehold
Indicative Price : RM 880,000 onwards
Developer: TPPT Sdn. Bhd.

Location Map:

A LAND valuation of RM1,200 per sq ft for 44.5ha of reclaimed land in Penang by the state government is being used as a point of reference for land transactions, claims the Real Estate and Housing Developers Association (Rehda).

The association’s Penang chairman Datuk Jerry Chan said yesterday land prices in the state are expected to rise next year.

This is partly due to the government’s move of pegging land value so high in relation to the swap deal with Consortium Zenith BUCG, the developer of the proposed RM6.3 billion undersea tunnel and three highways.

The deal involves land starting from Tanjung Tokong to the sea-fronting Persiaran Gurney, which has been tagged at RM1,200 per sq ft, since the state does not intend to pay the developer for the multi-billion ringgit projects.

Stating that the said deal will now be the yardstick for land owners and developers when fixing prices on their properties, Chan said: “If the state takes that kind of valuation, what do you think other land owners and developers will do?

“And remember that the project construction cost (RM6.3 billion) was from six months ago, which has not taken into account additional costs due to the higher electricity tariff and the goods and services tax (GST). If costs goes up, so will property prices,” he said at IJM Land Bhd’s office.

Present was IJM Land northern region general manager Toh Chin Leong.

Chan said while Penang can expect to see fewer property projects launched in 2014, prices will not come down.

This, he said, is because banks and investors are already cautious about the property market.

Penang is unlikely to see any property bubble as the property market remains healthy, he said.

“We, however, need time to determine how some of the measures imposed by the Federal Government via 2014 Budget and the state government will affect the market.”

Toh said property prices in Penang are on the rise due to various factors, including increased higher compliances cost, which has been increasing in the past four years.

“Cost contributions have increased three-fold as they now have to pay the government a default compensation of RM120,00 for each low-cost housing unit they did not incorporate into their project.

Developers also have to obtain a housing development licence by paying a deposit of three per cent of their project’s estimated cost to show they have sufficient financial ability to begin building properties.

Source: Business Times

SIXTH PROJECT IN STATE: Southbay East development on the mainland set to be completed within 4 years

MAH Sing Group Bhd is buying about 30.9ha of freehold land in mainland Penang for RM42.59 million for its new township, Southbay East, which has a potential gross development value (GDV) of RM400 million.

The developer said the land is acquired at RM12.80 per sq ft and that it will settle the payment within 18 months.

Southbay East is located 6.6km from the Jawi toll plaza on the North-South Expressway and about 7km from Taman Perindustrian Nibong Tebal.

Mah Sing group managing director and chief executive Tan Sri Leong Hoy Kum said this is the company’s sixth project in Penang and the first on the mainland.

Among its projects in the state are Icon Residence, Southbay City, Southbay Plaza and The Loft.

The new development will offer link houses, linked semi-detached houses, semi-detached houses, townhouses and shops. It is expected to be completed in three to four years.

“We have been building our brand in the state since 2007 and we want to heed the government’s call to build properties for the middle-income segment as these products are in short supply in Penang,” he said in a statement yesterday.

“We have found a piece of land that is rightly priced with good payment terms, and we aim to build houses that are rightly priced as well.”

Mah Sing’s projects in Penang will yield remaining unbilled sales of about RM3.8 billion, representing 13 per cent of the company’s RM28.78 billion GDV and unbilled sales.

Source: Business Times

The new housing rules from Feb 1, 2014 is to protect Penang from being adversely affected by a property bubble as well as to ensure that public housing and affordable housing are bought by genuine purchasers who are qualified first time buyers from lower and middle-income groups

The Penang state EXCO during its last meeting refined the new housing rules as follows:

1. Public Housing – Low Cost and Low Medium Cost Housing

All low cost homes (up to RM42,000) and low-medium cost homes (up to RM72,500) purchased can not be sold for 10 years. Those who wish to sell during the first 10 years must appeal to the state government and can only be sold to “listed buyers”. Listed buyers are those who have registered with the Housing Department of the state government and are certified as low income groups that are qualified to purchase low-cost or low-medium cost housing. This 10 year rule will cover all past and future purchases. The balloting of houses will be subject to oversight by an auditing firm.

2. Affordable Housing

Affordable housing is classified as houses which were initially purchased below RM400,000 on the island and RM250,000 on the mainland. Affordable housing purchased can not be sold for 5 years. Those who wish to sell during the first 5 years must appeal to the state government and can only be sold to “listed buyers”. Listed buyers are those who have registered with the Housing Department of the state government and are certified as middle-income groups that are qualified to purchase affordable housing. This 5 year rule will cover all past and future purchases. The balloting of houses will be subject to oversight by an auditing firm.

3. Purchases by Non-Citizens

Non-residents can only purchase properties in Penang in excess of RM1 million and for landed property on the island must exceed RM2 million. All purchases of properties by non-residents will be subject to a 3% levy on the transacted price from Feb 1, 2014. Exemptions are provided for purchases for industry purposes or for a purpose that promotes employment, education, human talent or promoting Penang as an international intelligent city.

4. 2% Levy on Property Purchased after Feb 1, 2014 Sold within 3 years

A 2% levy will be imposed on the seller for all property sold within 3 years from the date of the Sales & Purchase Agreement (SPA) signed from Feb 1,2014. In other words, this is not retrospective. Properties bought with the SPA signed before Feb 1,2014 will not be subject to this levy. Only properties bought with the SPA from Feb 1, 2014 will be subject to the 2% levy if sold within 3 years. This 2% levy is not applicable to affordable housing.

Preliminary discussions were held between some property players and house buyers but the state government is prepared for further discussions with all stakeholders.

Source: Bulletin Mutiara