Penang halves fee for some foreign buyers, but raises price floor to RM3m

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 16 — The Penang government has agreed to halve the approval fee for foreign purchasers of some stratified properties on the island from three per cent to 1.5 per cent.

The reduction will apply only to stratified properties on the island costing between RM1 million to RM1.5 million, said state executive councillor Jagdeep Singh Deo today.

The state housing development committee chairman said the state exco decided this today after considering proposals by Penang Real Estate and Housing Developers Association (Rehda) last week.

Rehda Penang had proposed to the state to reduce the approval fee to 1.5 per cent and for the state to reduce the minimum price for foreign purchase of stratified properties on the island to RM800,000.

“We will not reduce the cap price for foreign purchase of properties in Penang but instead, we will increase the minimum price for landed properties on the island from RM2 million to RM3 million,” he said.

The state government introduced the measures to curb property speculation by foreigners in 2015, limiting non-citizens to properties above RM2 million for landed properties and RM1 million for stratified properties on the island.

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

The Penang state government also introduced a three per cent approval fee for all foreign purchase of properties in the state at that time.

Jagdeep told a press conference in Komtar today that all landed property purchases by foreigners will continue to attract the full fee.

“We came to these decisions to protect the locals' interests,” he said.

He stressed that this decision does not include any reduction in minimum price for industrial properties.

He again reiterated that there are no discounts given to foreigners to purchase properties in Penang, regardless if its industrial, residential or commercial.