Lower Minimum House Prices for Foreigners to Clear Unsold Units in Penang
As governments around the world are starting to implement their own initiatives to recover from the effects of the Covid-19 pandemic, the Penang government has announced their plan to lower the prices of affordable houses as well as ease the pricing rules on foreigners looking to own property in the state.
Affordable houses in Penang will now range between RM15,000 and RM35,000. This will not affect low-cost and low-medium cost apartments which are now priced at RM42,000 and RM72,500 respectively.
Penang’s housing exco Jagdeep Singh Deo said that a 10% reduction for other affordable homes priced beyond RM72,500 will now apply and that Penang targets to sell 180,000 units by 2030.
Currently, foreigners are not permitted to buy apartments lower than RM1 million in the island of Penang and RM500,000 in Seberang Perai but by lowering the minimum sale price, Penang hopes to clear more than 3000 unsold units, worth about RM2.6 billion.
Now with the revised minimum prices, foreigners can buy apartments priced at RM800,000 on the island and RM400,000 on the mainland. The minimum price for landed properties will be lowered from RM3 million to RM1 million on the island and from RM1 million to RM750,000 on the mainland.
“Despite the reduction in property prices, the quality of development will be maintained, in line with the Construction Industry Development Board’s Quality Assessment System in Construction, or QLASSIC rating score, of not less than 70%.” Jagdeep assured.
- Nambiar, Predeep. "Penang Announces Cheaper Affordable Homes, Drops Minimum Price For Foreign Buyers". Free Malaysia Today, 2020, https://www.freemalaysiatoday.com/category/nation/2020/06/11/penang-announces-cheaper-affordable-homes-drops-minimum-price-for-foreign-buyers/.
- Daily, The. "Penang Reduces Price Ceiling For Overhang Units By 20%-40%: Jagdeep". Www.Thesundaily.My, 2020, https://www.thesundaily.my/local/penang-reduces-price-ceiling-for-overhang-units-by-20-40-jagdeep-XC2554527.