STATE Executive Councillor Sundarajoo Somu (PH – Perai) today firmly countered claims raised by the Seberang Jaya assemblyman regarding the sale of residential property units to foreign buyers, stating that the figures cited do not reflect the actual transaction landscape and were based on a misleading interpretation of data.
Responding to remarks made by Izhar Shah (PN – Seberang Jaya), Sundarajoo clarified that the state’s foreign property sales framework is tightly regulated under the Home Ownership Campaign (HOC) and related state incentives introduced after the COVID-19 pandemic to reduce unsold housing stock and support the property sector.
He said the HOC was first implemented from 9 June 2020 to 9 June 2021, and subsequently extended multiple times, HOC 2.0, HOC 2.0 Plus, HOC 3.0 and HOC 3.0 Plus, before concluding on 31 December 2024.
“The Home Ownership Campaign and the State Property Sector Stimulus Policy were introduced to address overhang units following the COVID-19 pandemic and to stabilise the property market,” he explained.
According to him, data from the National Property Information Centre (NAPIC) showed that post-pandemic Malaysia recorded 29,534 overhang residential units, with 5,222 units in Penang alone, prompting the continuation of the policy framework.
Under the HOC, the state also allowed targeted incentives, including reduced price thresholds for foreign buyers, lower State Consent Fees by 50 per cent, and reductions in foreign purchaser levies.
He further clarified that the claims cited by the Seberang Jaya representative, suggesting an average property price of RM411,506 for 365 units sold to Chinese buyers amounting to RM150.2 million in 2025, do not present an accurate picture.
“For the record, the calculation of the average selling price of RM411,506 does not reflect the actual situation,” Sundarajoo said.
He explained that based on records from the Penang Land and Mines Office (PTG), only 15 of the 365 units were transacted within the RM400,000 to RM1.5 million range under the approved HOC framework.
The remainder of the units, he said, were governed under prevailing foreign ownership guidelines after the expiry of the HOC at the end of 2024.
“As is well known, the HOC policy ended in December 2024, and property sales to foreign buyers have since reverted to the original thresholds under the state’s Guidelines on Acquisition of Properties by Non-Citizens and Foreign Companies,” he added.
Sundarajoo stressed that the state remains committed to balancing housing accessibility for locals while ensuring the property sector continues to recover in a structured and transparent manner.
The clarification effectively rebuts the figures highlighted by the Seberang Jaya assemblyman, reinforcing the state’s position that the data must be interpreted within the correct policy context.