GEORGE TOWN, Oct 18 — The Penang government will not follow Putrajaya’s price threshold of RM600,000 but will set its own benchmark for foreigners looking to buy property in the state.
State housing, local government and town and country planning committee chairman Jagdeep Singh Deo said the move was not new as the state had not previously adhered to the previous RM1 million federal threshold, but priced landed properties on the island at RM3 million at the minimum.
“The Housing and Local Government Minister Zuraida Kamaruddin has confirmed that all states are open to set their own threshold for property purchases by foreigners so Penang does not need to follow the RM600,000 threshold announced under the Budget 2020,” he said in a press conference today.
In Penang, foreigners can only purchase stratified properties priced above RM1 million on the island while on the mainland, they can purchase stratified properties above RM500,000 and landed properties above RM1 million.
“The RM500,000 threshold for stratified properties on the mainland is even lower than the RM600,000 threshold fixed by the federal government,” he said.
He said the federal government fixed the RM600,000 threshold for existing high rise properties was meant to clear the billions-worth of overhang properties in the country.
He said the state exco will discuss and decide on the threshold in Penang soon before making a formal announcement.
“We will still need to discuss this, let us discuss before announcing this,” he said.