PENANG Local Government, Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo has proposed to lower the foreign property purchase threshold from RM1,000,000 to RM800,000 for high-rise properties on the island.
He also suggested that it should only be done for a period of six months instead of a year, to address the issue of property overhang.
“I disagree with the RM600,000 threshold fixed by the Federal Government under the Budget 2020.
“I suggest that Penang should only lower the threshold to RM800,000 for high-rise properties on the island, and only for a period of six months. This will help developers to sell their overhang properties.
“More people will rush to buy when there is a limited time,” he told a press conference after officiating the World Town Planning 2019 celebration today.
Jagdeep said that he would propose in the next state executive council meeting.
He also said that the property overhang issue in Penang was still manageable.
“We have managed to reduce the numbers from 3,916 in 2017 to 3,502 last year (2018); while Johor, Selangor and Kuala Lumpur saw an increase in the numbers of overhang properties.
“The number of unsold units are still relatively low in Penang,” he said.
Jagdeep explained that the state had a different foreign property purchase threshold on the mainland.
“The foreign property purchase threshold is RM500,000 for high-rise properties on the mainland. The state will not increase it to be in accordance with the RM600,000 threshold fixed by the Federal Government under the Budget 2020,” he said.
Jagdeep said he had reminded property developers to focus on building more affordable housing units, rather than building just luxury homes.
He also urged the Federal Government to review its Rent-to-Own scheme for housing projects of up of RM500,000.
“The priority should be for low-cost and low medium-cost projects. It should be for properties below RM150,000,” he said, hoping that the Federal Government could reconsider the price limit.
On a separate matter, Jagdeep said that land reclamation could protect the island from the rising sea waters, voicing his support for the Penang South Reclamation project.
Also present were several state assemblymen and Penang Island City Council (MBPP) mayor Datuk Yew Tung Seang.
Story by Edmund Lee
Pix by Alvie Cheng