Penang pushes ahead new ruling despite criticisms

The Penang government is standing firm with its new ruling on property sale even as critics slam it, saying the ruling is illegal.

State Housing, Town and Country Planning committee chairman Jagdeep Singh Deo said the state controls the land office, so with land being a state matter, it has the mechanism to impose restrictions on property sale.

“In order for a person to own a property, he must get it registered at the land office.

“Under the ruling, we can impose a 2% levy, on top of the existing 0.1% stipulated for transfer of land title,” he said on the sidelines of the state assembly meeting here yesterday.

Several groups, including Gerakan and MCA, have taken the state government to task over the new ruling that it plans to enforce from Feb 1 next year, saying it would be illegal as the National Land Code needs to be revised first before the ruling can be enacted.

“Currently, the application fee for any transaction pertaining to a leasehold property is 0.1% of the selling price,” said Jagdeep.

“As for freehold property, the seller will have to produce a statutory declaration that they have indeed paid the 2% levy before the transfer of land title can take place,” he said, adding that the new ruling would only affect property bought with sales and purchase agreements signed from February.

Jagdeep said the restriction would be imposed on properties priced above RM250,000 in Seberang Prai and above RM400,000 on Penang Island sold within three years of being purchased.

Chief Minister Lim Guan Eng also brushed off criticisms.

“We have been subjected to criticisms from the Consumer Association of Penang and Gerakan. At first they criticised the state government for not doing anything to help. When we try to help, they attack us. So, what do you want us to do?” he asked at a press conference yesterday.

Several groups have come to the defence of the state government, saying the ruling would curb speculation. - By The Star

10 comments

December 12, 2013 at 5:10 PMDennis Phoon

LGE and Co has started to show they are above the law (outlaw). My vote is for the party who upheld Malaysia Law, not to those who try to be smart and above the law. So, next election, I will vote BN.

When a party who act above law, sooner or later, corruption will start.

Somebody may think Robin Hood is a good guy. Robing the rich and giving to the poor. Whatever it is, Robin Hood is is still an outlaw. When there is an outlaw, there will not be peace.

 
December 12, 2013 at 5:17 PMDennis Phoon

To Gerakan. This is your golden chance. Make "Hu Ha" on this issue. Bring on a case to court to sue Penang Government (you can create one easily). Once you win in the court, you will change from "Bo Hood" to "Tua Tua Hood". Penang voters will welcome back you.

 
December 12, 2013 at 10:29 PMewelee

i believe the present government set this rule is to stop the working class ppl to speculate the related market. but if the sincere owner will hv to sell off their house in the category, i believe the government will approve. unless those civil servant or the politicians assistant will think of getting pocket money from new rule, i encourage the ppl affect will made police report to put those corrupted ppl into JAIL.

 
December 13, 2013 at 9:42 AMcondomana

@Dennis Phoon

Whether the control is above or below the law, we shall let the court to decide. But do you think this new rule is a good idea?

 
December 13, 2013 at 9:47 AMcondomana

@ewelee

I agree with you. This is just the start. They still have lots of work to do. Guidelines should be transparent and objective. When things are obscure and subjective, it tends to create "opportunities" for corruption and favouritism.

 
December 13, 2013 at 10:36 AMDennis Phoon

When your wife ask you for money, you don't go out and rob other people.

I can understand the new rules for the Low Cost and Low medium Cost.

But I don't agree with those house below 400K being categorize as "Affordable House" simply out of the sky. When the owners buy these houses, they don't got any subsidy from Penang Government. Its from their own effort. So, they should be entitle to enjoy the freedom of selling it at the price they wish to (not to those pity buyers who register themselves to government and offer below market price to sellers).

I also don't agree with the 2% (locals) and 3% (foreigner) levy. It looks more like penang government piggy back on the complaints by first time house buyer, and making it a revenue income for them. These cost will definitely be transfered to buyer which push the property price up to another level. If the government is sincere to tackle the high end properties, they should take the approach of limiting the number of properties that each person can own.

If we Penangites allow the current Penang Government to carry the affordable house rules, its like open a can of worm. They might come out more and more new rules (not necessary related to properties) which is above the Malaysia law.

 
December 13, 2013 at 11:28 AMcondomana

@Dennis Phoon

"....they should be entitle to enjoy the freedom of selling it at the price they wish to...". I think they still allow you the freedom of selling it at the price you wish to, unless you are going to sell it less than 5 years after you bought it. Even if you wish to sell it before the 5th year, they will allow you if you can convince the gov you're not flipping.....:)

3% levy for foreigners? They should feel lucky to still be able to buy our land and properties....:)

"....If we Penangites allow the current Penang Government to carry the affordable house rules.....They might come out more and more new rules...". I think our gov has finally got it. In order to control house price, you can't just introduce 1 control measure and then sit there doing nothing for years thinking everything is going to work as planned. You have to keep whacking the market until you see the desired results.

What do you think?

 
December 13, 2013 at 2:40 PMDennis Phoon

I am waiting a good show from Gerakan.

 
December 13, 2013 at 3:06 PMcondomana

Well, we'll see. But i don't have high hopes. They lack talents in the leadership. MCA/Gerakan members are mostly uncles/aunties who don't know that the world is no longer the one they lived in 30 years back....:)

 
December 13, 2013 at 11:49 PMMandy

to Dennis Phoon , i very support you and agree Penang Government to carry the affordable house rules, its like open a can of worm. They might come out more and more new rules (not necessary related to properties) which is above the Malaysia law. so next election i sure vote BN .