New rules to contain potential property bubble in Penang

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The new housing rules caught a lot by surprise. Perhaps even politically motivated. You can also say it stops genuine buyers from selling their home but if you are genuine buyers, why would you buy a medium cost house and try to sell it within 5 years? You suddenly become too rich and needed to upgrade to a bigger property? Let’s assume that some of the buyers really did suddenly become super rich. Should policies be set based on the minority interests then? A responsible state government cares for the long term and not the short term speculation.

In short, if you buy any low cost housing, you need to wait 10 years while medium low cost up to RM400,000 in island and RM250,000 meant that you need to wait 5 years. In terms of actual clamping down on overall price increase though, I think the effect is going to be little. This is because the price increase is a combination of many factors and not just because sellers want to sell high, thus buyers want to buy. It continues to be a demand and supply issue. If the state really does want a more orderly increase of the price over long term, then the affordable housing policy must be done right.

To look at Singapore, ‘just launch more and more of those HDB flats until prices stay the same or go down’. Fortunately for Penang, the state is small and thus would be much easier to control. I hate speculators and I hope more of these measures are implemented to stop as much speculation as possible. Especially for buyers who buy one whole floor or more than one unit. There are NO REASONS to do that beyond speculating. Yes, minority would say they are buying for their whole family. Yeah sure, I repeat, since when policies are done to help you, ‘lying speculators’?

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