Penang announced some measures to curb potential property speculation not too long ago and this was supposed to start on 1st February 2014. This is effective for any property bought on or after 1st February. They include the following:
Levy of 2% will be levied on any property sold within 3 years from the sale and purchase (SPA). While I do not personally think there’s a huge impact from this but I think I agree with this move. The levy collected can always be used on measures to provide more affordable housing to the needy in Penang.
Levy of 3% on foreigners buying properties in Penang. Again, compared to what was implemented in Singapore, this is very mild and is unlikely to be a deal-breaker. These few measures were introduced to slow rising home prices and discourage speculation.
There is also a moratorium on the re-sale of ‘affordable’ housing within five years from their acquisition and 10 years for low cost homes. Under the new rules, owners of low- and low-medium cost homes must apply for approval from the state if they have any intention to sell their properties within a 10-year period from their SPA. Second requirement is that the units can only be sold to ‘listed buyers’ who are registered with the state’s housing department and is certified under low income group. There has been some objections to this but please always remember that ‘low cost homes’ were never meant for people who can upgrade easily or buy a bigger property easily. For these people, it is only fair that the next qualified buyer is given the chance to buy the unit.
Classification for affordable housing is RM400,000 and below for those on the island and a maximum of RM250,000 for properties in the mainland. As for affordable housing, classified as houses worth no more than RM400,000 on the island and a maximum of RM250,000 on the mainland, owners who signed the SPA after March 1 will not be allowed to sell their property within a five-year period. Besides that, state approval is needed and these units can only be sold to the listed middle-income group.
For those interested to purchase an affordable property in Penang, a tiny small news. The implementation of Penang’s new housing rules to curb speculation has been deferred to March 1 2014. This was due to the need for professional bodies, NGOs and the public to get used to these new rules. This deferment is for new housing rules with regards to affordable housing and a two per cent levy on the sale of properties within a three-year period.
Next suggested article: Affordable Penang properties, where are they?
Alternatively do read about: Penang property – why I like Sungai Ara