I think this will excite many foreigners who love sea view properties. Yea, Hong Kongers would be one of those nationalities. Properties with a sea view is a premium which is enjoyed by very few Hong Kongers and thus it’s going to be a property with lots of pride if they could secure a unit with such characteristics; unobstructed sea view. If it’s a high-rise unit without sea view, then actually, it’s better that they buy into Ipoh instead since Cantonese would be the typical dialect spoken in Ipoh instead of Hokkien in Penang which they will need time to learn. Is the best time to buy such properties coming in 2020? It looks like it…
Article in malaymail.com Penang state exco Jagdeep Singh Deo is proposing that the foreign property purchase threshold be lowered to RM800,000 for high rise properties on the island. He said, “We don’t agree with the RM600,000 threshold, I suggest that we lower the threshold to RM800,000 for high rise properties on the island.”
He also disagreed with the period for the reduction saying that one year is too long. He said, “I suggest that we only allow this for six months which will help developers to clear up their overhang even more as people will rush to buy when it is a limited time.” He then shared that the proposal for a lowering down of the property price accessibility to RM800,000 will be discussed in the state exco meeting.
Currently, the threshold for foreign purchase of high rise units on the island is RM1 million while landed properties would be RM3 million. Jagdeep said, “The existing overhang units are mostly RM800,000 and above so, in reality, there is a gap in which the developers did not build RM600,000 high rise units.” In fact property overhang in Penang is falling. From 3,916 units in 2017, the number reduced to just 3,502 units in 2018. Article in malaymail.com
Okay, this is just a proposal at the moment. Then again, I always see YB Jagdeep’s words as pretty reliable. So, we will see if Penang will soon be attracting more foreigners and especially Hong Kongers who will love Penang for it’s sun, sea and property opportunity. Remember yeah, even the overhang numbers for Penang is on the lower side when compared to many other states in Malaysia, including the lesser developed ones too. Happy evaluating.
<Featured Image is courtesy of Stock Photos from Kuen Hoong>
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