Prices slashed between RM15,000 and RM35,000
GEORGE TOWN: This must be a piece of good news for those who have yet to own a property for themselves in Penang.
Amidst the COVID-19 pandemic and a move to revive the real estate sector, the Penang government will bring down prices of affordable homes between RM15,000 and RM35,000, while easing the pricing rules on foreigners wishing to own properties in the state.
“We are targeting to sell 180,000 units by 2030 while ensuring there is enough supply of affordable homes in Penang,” said Penang’s Housing Committee chairman Jagdeep Singh Deo recently.
The move, nonetheless, will not affect low-cost and low-medium cost apartments which are now priced at RM42,000 and RM72,500 respectively.
Jagdeep however said a 10 percent reduction for other affordable homes priced beyond RM72,500 would now apply.
This will see affordable homes priced between RM150,000 and RM300,000 on the Penang island costing anything from RM135,000 to RM270,000.
In the mainland of Seberang Prai, ceiling prices will come down to between RM135,000 and RM225,000.
Meanwhile, the state expects to help clear more than 3,000 unsold units worth about RM2.6 billion as it lowers the minimum sales price for foreign buyers.
Foreigners are currently not allowed to purchase apartments lower than RM1 million and RM500,000 on the island and mainland Seberang Prai respectively.
They are also barred from buying landed properties priced less than RM3 million on the island and RM1 million on the mainland.
Now, the revised prices mean foreigners can purchase apartments priced at RM800,000 and RM400,000 in the island and mainland respectively.
For landed properties, the minimum price is now RM1.8 million (island) and RM750,000 (mainland).
Jagdeep described the reduction in prices for these properties as “reasonable”. “We want to create a balance in trying to solve the property overhang while protecting the interests of local buyers,” he said.