News: Affordable Homes in Penang Now Open to Outsiders

Jan 29, 2019

 

Twenty percent of affordable homes offered in Penang are now available for purchase to people from outside the state, reported Free Malaysia Today.

The 20 percent quota for non-Penangites are offered under the “open market” category of affordable houses. The allocation for this category was also raised from 30 percent to 40 percent, said State Housing Committee Chairman Jagdeep Singh Deo on Monday (28 Jan).

Notably, the open market category of affordable homes was launched in 2018 in a bid to boost the sale of such residential properties.

But the initiative faced limited success because of the high rate of rejection encountered by the housing loan applicants. In addition, units offered under the open category do not need to comply with the stipulated pricing for affordable homes and are sold at current market values.

Under the government’s mandated pricing, affordable homes on Penang Island must be priced at RM150,000 (750 sq ft), RM250,000 (800 sq ft) and RM300,000 (900 sq ft). Those in mainland Seberang Perai are priced from RM150,000 (750 sq ft), RM200,000 (800 sq ft) and RM250,000 (900 sq ft).

Moreover, Jagdeep announced that the monthly income limit to qualify for the affordable homes have been increased by RM2,000.

Consequently, those who want to buy affordable homes costing RM150,000, RM200,000 homes and RM300,000 must have a monthly household income of up to RM8,000, RM10,000 and RM12,000 respectively.

In addition, the state government is waiving the 3.0 percent approval fee for overseas nationals buying a home in the state of Penang. Currently, foreigners are only allowed to buy homes costing between RM2 million to RM3 million on Penang Island, as well as apartments costing above RM500,000 and landed homes priced above RM1 million in mainland Seberang Perai.

This exemption is only valid for the whole of month of February to commemorate the Chinese New Year, and those buying a RM3 million property will save RM90,000.

“Penang is a place where your investment in property cannot fail because it is a sought-after address. The earlier you come, you stand to get a lot, your property prices will increase,” said Jagdeep.

 

Image source: New Straights Times

 

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