THE Penang government will decide whether to follow the new foreign home ownership guidelines set by the Federal Government or maintain its own.
State Housing, Town, Country Planning and Local Government Committee chairman Jagdeep Singh Deo said he would bring the newly announced policy to the upcoming state executive meeting for consideration.
“In Penang, we have our own criteria – our own limit of pricing that is allowable for those purchases by foreigners.
“Penang’s guidelines for foreign property ownership is a minimum RM3 million for landed property and RM1 million for condominiums on the island, while on the mainland, it has been set at a minimum of RM1 million minimum for landed properties and RM500,000 for condominiums.
“We have separate pricing limits, so we will study what has been said by the Finance Ministry at the Budget 2020 tabling on Friday.
“We want to see whether it is suitable in Penang and if so, for how long? And I hope the minister will understand that every state differs in its own way,” he told a press conference after the opening of the Local Government Empowerment Convention held in conjunction with 7th Asia Pacific Urban Forum (APUF-7) at Setia SPICE Convention Centre in Bayan Lepas today.
The convention was officiated by the Housing and Local Government Minister Zuraida Kamaruddin.
During the Budget 2020 tabled on Oct 11, Finance Minister Lim Guan Eng announced that the Federal Government would lower the threshold for foreigners to buy condominiums or apartments in urban areas from RM1 million to RM600,000 effective from Jan 1 to Dec 31 next year. This, however, does not cover new projects that are yet to be launched.
The move is to reduce the supply overhang of condominiums and apartments, which in the second quarter of 2019 stood at RM8.3 billion.
Commenting on the same issue, Zuraida said her ministry understands and respects Penang’s stand on the matter.
“Each state can have its own guidelines on the minimum price for condominiums and apartments to be purchased by foreigners.
“The property overhang and its related figures were different in every state, and therefore each state could have its own guidelines.
“I believe if we look at the statistics, Penang will have their own statistic. It is different from other states mainly because Penang is a more developed state with different needs, different achievements and so on.
“So, I don’t have any problem should they decide to have their own foreign home ownership guidelines because they do have a strong reason to do so,” she added.
Also present at the press conference were Seberang Prai City Council mayor Datuk Rozali Mohamud and Penang Island City Council mayor Datuk Yew Tung Seang.
Story by Riadz Akmal
Pix by Chan Kok Kuan