Penang announces cheaper affordable homes, drops minimum price for foreign buyers

The Penang government says the reduction of ceiling and floor prices would help boost the state’s real estate sector. (Bernama pic)

GEORGE TOWN: The Penang government is bringing down prices of affordable homes between RM15,000 and RM35,000, while easing the pricing rules on foreigners wishing to own properties in the state, as it seeks to revive the real estate sector affected by the Covid-19 pandemic.

“We are targeting to sell 180,000 units by 2030 while ensuring there is enough supply of affordable homes in Penang,” said Penang’s housing exco Jagdeep Singh Deo.

The move would not affect low-cost and low-medium cost apartments which are now priced at RM42,000 and RM72,500 respectively.

But he said a 10% reduction for other affordable homes priced beyond RM72,500 will now apply.

This would see affordable homes priced between RM150,000 and RM300,000 on the Penang island costing anything from RM135,000 to RM270,000.

In the mainland of Seberang Prai, ceiling prices would come down to between RM135,000 and RM225,000.

Meanwhile, the state expects to help clear more than 3,000 unsold units worth about RM2.6 billion as it lowers the minimum sales price for foreign buyers.

Penang currently does not allow foreigners to buy apartments lower than RM1 million in the island and RM500,000 in Seberang Perai.

Foreigners are also barred from buying landed properties priced less than RM3 million on the island and RM1 million on the mainland.

The revised prices however will allow foreigners to buy apartments priced at RM800,000 and RM400,000 in the island and mainland respectively.

For landed properties, the minimum price is now RM1.8 million (island) and RM750,000 (mainland).

Jagdeep said the reduction was “reasonable”, saying there must be a balance in trying to solve the property overhang while protecting the interests of local buyers.

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