GEORGE TOWN, July 5 ― Home buyers at the Malaysia Property Expo (Mapex) in Penang won't have to pay approval fees, the state government said today.
State executive council member Jagdeep Singh Deo said the Penang government agreed to exempt application by the Real Estate Housing Developers Association (Rehda) to stimulate the housing industry.
“Due to the soft housing market and slow economy, the state government has agreed to waive the 1.5 per cent approval fees for foreign buyers and 2 per cent approval fees for those who decide to sell the property bought in under three years,” he said in a press conference here.
He said this will stimulate the state’s economy and housing sector as the sector has been seeing a slowdown in the past few years.
The approval fees are part of the cooling measures imposed on house buyers to prevent speculation in the property industry back in 2014.
In the cooling measures, foreign buyers must pay a 1.5 per cent approval fees for any property purchased in Penang.
House buyers who sell their properties within three years of purchasing it was imposed a two per cent approval fee.
Jagdeep said these measures had worked in stabilising the market as recent figures showed that 75 per cent of the properties transaction are for properties below RM500,000.
However, this also meant that there are overhang of properties priced above RM500,000 , he said.
“The market is not bad for the affordable housing sector but the ones priced above have been affected,” he said.
Jagdeep said the state will only relax the cooling measures for a month for buyers who purchase properties at Mapex.
“This is only for one month from July 22 to August 22 but it is also on one condition, that instead of buyers paying the approval fees, Rehda will pay the fees and it will go to Tabung Harapan,” he said.
Rehda Penang immediate past president Datuk Jerry Chan said the exemption will be able to spur the housing industry in the state.
“It will also stimulate the economy, it is not only good for developers but also all related sectors,” he said.
He added that there is a growing demand for properties by returning Malaysians.
Mapex will be held from July 20 to 22 at Udini Square.
On the housing expo, Jagdeep said affordable housing projects will also be showcased there.
He said Penang Development Corporation (PDC), Asia Green and PLB will be taking up booths to showcase affordable housing projects at the expo.
A total of 12 other developers will be showcasing properties in Penang at the three-day expo.
Rehda is still accepting developers that are interested to take up a booth at the expo.
