State housing committee denies request from developers to reduce minimum purchase price for residential property sold to foreigners but reduces levy for condos.
GEORGE TOWN: Foreigners will have to fork out more to buy landed properties in Penang, with the Penang government raising the minimum purchase price from RM2 million to RM3 million.
The minimum price for a condominium remains at RM1 million for foreigners.
State Housing Committee chairman Jagdeep Singh Deo said the prices of landed property were increased due to the stronger US dollar against the ringgit.
In a press conference at Komtar today, he also said the request by developers to reduce the minimum purchase price of homes for foreigners had been rejected.
Recently, the Real Estate and Housing Developers’ Association (Rehda) had asked the Penang government to cut the minimum price for foreigners from RM1 million to RM800,000.
Rehda also asked for a reduction in the current 3% levy on property approval for foreigners.
Jagdeep said the state executive council agreed to the request and had decided to reduce the levy from 3% to 1.5%, but only for selected properties.
He said the 1.5% was applicable only to stratified properties, that is, condos priced between RM1 million and RM 1.5 million. Properties purchased by foreigners above RM3 million will be charged a 3% levy.
The levy has been imposed to prevent speculative buying by foreigners except for those intending to set up factories through the state government’s help.