Penang exco says will blacklist developers demanding premium for price-controlled homes

Jagdeep Singh Deo answers questions during a press conference in George Town August 1, 2019. — Picture by Sayuti Zainudin
Jagdeep Singh Deo answers questions during a press conference in George Town August 1, 2019. — Picture by Sayuti Zainudin

GEORGE TOWN, Aug 1 — Penang will ban developers who make buyers pay beyond fixed prices for low-cost, low-medium cost and affordable housing units, state exco Jagdeep Singh Deo warned today.

He said developers may offer extra renovations and facilities as options to buyers but they must make it clear that these are not compulsory.

“As with previous cases reported to us, we will ask the developer to comply with the prices set by the government for low cost, low-medium cost and affordable housing units,” he said during a press conference this morning.

Buyers must be able to purchase base units at the fixed price of RM42,000 for low-cost or RM72,500 for low-medium cost units, he said, adding that failure to comply would result in blacklisting.

The local government, housing development and town and country planning committee chairman was responding to buyers at the E-Garden low-medium cost housing project alleging they were forced to pay up to RM182,000 for additional renovations and carparks.

The E-Garden, a low-cost housing property which is said to be charging more than the original price, is located in Tanjung Bungah. — Picture by Sayuti Zainudin
The E-Garden, a low-cost housing property which is said to be charging more than the original price, is located in Tanjung Bungah. — Picture by Sayuti Zainudin

The state exco said the developer in question will be made to show cause for the alleged additional charges and urged others affected to also come forward.

“Those having such issues must report this to the state housing department immediately so that we will take action against the developer,” he said, reminding developers in the state to abide by regulations covering price-controlled homes.

In Penang, affordable housing units are capped at RM150,000 (750 sq ft), RM250,000 (800 sq ft), and RM300,000 (900 sq ft) for projects on the island.

For projects in Seberang Perai, prices are restricted to RM150,000 (750 sq ft); RM 200,000 (800 sq ft); and RM250,000 (900 sq ft).

Low-cost and low-medium cost housing units in the state are set at RM42,000 (650 sq ft) and RM72,500 (700 sq ft), respectively.

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