Penang to raise price cap for foreigners

The Penang Government has proposed to raise the cap for foreign purchases on all properties in the state.

Chief Minister Lim Guan Eng said the current limit of RM500,000 would be raised to RM1mil, except for landed properties on the island that would be raised to RM2mil.

He added that the RM500,000 imposed on permanent residents would be retained.

Lim said this is to give locals priority to purchase cheaper properties, and to stop speculation.

“The state hopes to implement the new ruling by June or July. There will be exceptions and avenues for appeal which must be submitted to the state government on a case-by-case basis.

“We are willing to listen to the Federal Government’s objections, and at the same time, get feedback from and opinions from non-governmental organisations, property developers, foreigners and the public,” he told reporters yesterday.

Lim said the state was the first to come up with such a proposal.

Real Estate and Housing Developers’ Association (Penang) chairman Datuk Jerry Chan when contacted said the proposal was a drastic move but good as it would protect local interests.

On April 14, StarBiz reported that the Government was considering raising the minimum floor prices of houses foreigners are allowed to buy to RM1mil. - By Han Kar Kay (The Star)

4 comments

April 20, 2012 at 9:55 PMtwyeow88

for 30+ yrs, i have not seen any "ang mo" in island glades, island park, lip sin, sg nibong landed home. jesselton, tg bungah, yes but that's over 2m.

so, what is this 2m limit for?

 
April 20, 2012 at 11:10 PMjeremy tan

We do have a lot of foreigners here in Tg. Bungah, remnants from the Australian Royal Air Force and expatriates as well. We did register a rise in expatriates throughout the past few years from MM2H as well, whether it is significant enough or not i am not sure.

Hence, we do have international schools along this vicinity such as dalat, tenby and uplands.

The ultimate puppet master would still be the developers and the banks.

 
April 21, 2012 at 12:06 AMcondomana

Hi twyeow88,

Try not to read too much into this RM2 mil number as it probably doesn't have any significant meaning by itself. This is just a way the gov (or rather the state gov..haha) is sending out a message to speculators & developers. I think you pretty much get what the gov is trying to say....right?...:D

Hi jerery,

You are surely right to point out the puppet masters. But also that is why we need BNM and the state land authority to do the right thing at the right time. It's been highlighted many times by various parties that foreign purchases only account for 2-3% of transaction. But I think they have missed the point. The point is, the gov is getting serious about property speculation. Make no mistake that this is the only restriction they can impose. They can do much more, if the situation justifies it....:)...cheers!

 
April 21, 2012 at 10:20 AMbeehui

Malaysians are super rich. With such high car prices (relative to income per capita) and high house price, the car ownership rate is high and people buying properties like hot cakes, and better still, analysts don't see any bubbles at all and market still on the rise....

or are we overlooking anything?