Ceiling price reduced for foreign home buyers in Penang

Reality estate: Ceiling prices for stratified properties will be reduced from RM1 million to RM800,000, says Jagdeep.
PHOTO: The Star/Asia News Network

GEORGE TOWN - Penang has reduced its minimum price threshold for foreign property ownership by up to 40 per cent to clear RM2.6 billion (S$848 million) worth of overhang units in the state.

Penang local government, housing, town and country planning committee chairman Jagdeep Singh Deo said the revised pricing was valid for one year starting yesterday.

"For stratified properties, ceiling prices will be reduced from RM1 million to RM800,000 on the island and from RM500,000 to RM400,000 on the mainland through a 20 per cent reduction.

"Ceiling prices for landed properties on the island will be reduced from RM3 million to RM1.8 million, a reduction of 40 per cent and from RM1 million to RM750,000 on the mainland, a reduction of 25 per cent.

"The decision to reduce the ceiling price of unsold properties in Penang was to clear the remaining 3,043 overhang units worth RM2.6 billion and to assist the property market affected by the Covid-19 pandemic," he said at Komtar yesterday.

An overhang unit is defined as a residential unit that is unsold for more than nine months after receiving the Certificate of Completion and Compliance (CCC).

On a related matter, Jagdeep said the state was introducing its Housing Ownership Campaign Package (Penang edition) 2020 discount package to reduce the price of affordable homes.

"Under this package, the new ceiling price for affordable homes on the island ranges from RM135,000 to RM270,000.

"Previously, it ranged from RM150,000 to RM300,000.

"In Seberang Perai, the new ceiling price is from RM135,000 to RM225,000. Previously, it was from RM150,000 to RM250,000.

"The size of affordable housing would remain at 850sq ft per unit.

"If property developers decide not to follow the new price ceiling and choose to remain with the old price ceiling, they are allowed to do so but by providing a bigger size of the unit to at least 900sq ft," he said.

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