GEORGE TOWN: Penang is exploring ways to rejuvenate its property market with some experts suggesting a reduction of the threshold for foreigners to purchase houses and also lowering affordable housing prices.
Officials with the state housing department have confirmed that a study on this matter was made following a call by Housing committee chairman Jagdeep Singh Deo to find ways to allay concerns that the market may slide into stagnation.
The state is looking to jumpstart an economy which was ravaged over the past two months by the Covid-19 pandemic, even though health authorities here managed to contain infections to a respectable 121 cases with one death, since the movement control order (MCO) was enforced on March 18.
A recovering property market can provide a positive spillover for the state, the officials said in an interview.
The present limit for foreigners for each property unit on the island is RM3 million for landed properties and RM1 million for stratified.
On the mainland, the price for landed is RM1 million and above while the stratified unit must exceed RM500,000.
In addition, they also have to pay an approval fee of 1.5% to the state.
Jagdeep said ceiling prices of affordable housing may be reduced soon because of a glut, especially in commercial units.
It was reported that Penang has prided itself as one of the better destinations in the region because its properties are relatively cheaper than Hong Kong or Singapore, while it has high livability standards and quality healthcare.
It has sparked an encouraging number of expatriates and retirees under the Malaysia My Second Home scheme to invest or reside here.
The state also has attractions from beaches to heritage, a bustling manufacturing base and a renowned services sector.
Penang-based International Real Estate Federation president Michael Geh Thuan Peng has called for a need to inject confidence into the market as fundamentally, the state remains an ideal destination to invest.
“There is optimism of recovery eventually and even during the MCO, Penang continued to attract queries from potential buyers,“ he said.
Jagdeep also announced that Penang would offer rental exemptions of up to RM1.3 million for 3,574 tenants staying in public housing until July in a bid to alleviate their financial burden.
As Penang gradually reopens its economy with 80% of the businesses and factories as well as services allowed to operate, Jagdeep said the state is compassionate towards those struggling to cope with the MCO.
“The pandemic has not only caused people to fall ill but it has drastically affected their livelihood,“ he said.
Jagdeep made this announcement when visiting the Taman Free School public housing scheme, here today.
It is one of the oldest community housing schemes in the country.
Those who are entitled to an additional two months exemption are those in Rumah Sewa Kerajaan Negeri (RSKN) and Program Perumahan Rakyat (PPR) and an additional three months for shoplots under the state government.
