Penang govt introduces new floor price for foreign buyers

The limit for each property on the island is set at RM3 million for landed property and RM1 million for stratified unit. — Picture by KE Ooi
The limit for each property on the island is set at RM3 million for landed property and RM1 million for stratified unit. — Picture by KE Ooi

GEORGE TOWN, July 5 — The Penang government has introduced the new floor price of properties for foreign buyers.

State Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo said the new policy was aimed at reviving the slowdown in the property market.

“Foreign buyers can no longer buy properties below the floor price. The limit for each property on the island is set at RM3 million for landed property and RM1 million for stratified unit.

“On the mainland, the price (limit) for landed properties is RM1 million and above while the stratified unit must exceed RM500,000. In addition, they also have to pay the approval fee of 1.5 per cent to the state government”, he told a press conference here today.

Also present was Real Estate and Housing Developers’ Association (Rehda) Penang branch chairman Datuk Toh Chin Leong.

Jagdeep said the state government had also imposed a new term and condition for all buyers who intended to sell their newly purchased homes.

“We have imposed a new requirement, namely a buyer cannot sell (their properties) within three years after the purchase. However, if they want to sell, we will impose another approval fee, namely at two per cent of the selling price,” he said.

However, Jagdeep said in conjunction with the Malaysia Property Expo (Mapex) 2018 in Penang, the state government had agreed to waive the fees for buyers who purchased the properties at the expo for a period of one month from July 22 until Aug 22, at the request of Rehda.

The three-day Mapex 2018, organised by Rehda, will be held at Udini Square, Lebuh Tunku Kudin 3 from July 20. — Bernama

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