Exco: Penang hasn’t lowered price floor for foreign home buyers

By Opalyn Mok
Jagdeep Singh Deo said the groups were welcome to meet him to convey their thoughts about possible solutions to floods and landslides in the state. — Picture by KE Ooi

GEORGE TOWN, March 14 — The Penang state government is still weighing an application from developers to reduce the minimum price for foreign house purchasers in the state, said state housing exco Jagdeep Singh Deo.

He said that the state needed to study the reasons and justifications behind the application.

Jagdeep then rejected a news article published in Utusan Malaysia yesterday stating that special discounts were given to foreigners purchasing homes in Penang.

“There is no such thing, no such discounts, this is inaccurate and lies by Utusan,” he said.

Jagdeep explained that Penang Real Estate and Housing Developers Association (Rehda) proposed for the state government to reduce the minimum price for foreign purchase of properties in Penang as well as the three per cent levy.

“We had a property conference last Friday to get feedback from developers and they had submitted this proposal and we accepted it but we have yet to make a decision on it,” he said.

On Penang island, foreigners may only buy landed property priced above RM2 million and above RM1 million for stratified units.

The minimum price for the mainland is RM1 million for landed property and RM500,000 for stratified properties.

Jagdeep said Rehda asked for this to be reduced to RM800,000 for statified units on the island.

Penang applies a three per cent levy on all property purchases by foreigners.

This was introduced in 2015 to curb foreign speculation of Penang properties and only industrial purchases through the Penang Development Corporation are exempted from this.