The Real Estate and Housing Developers’ Association (REHDA) believes that raising the minimum prices for landed houses purchasable by foreigners in Penang will only have a marginal effect on the state’s property market, reported Free Malaysia Today.
This is because overseas buyers primarily invest in Penang condominiums, according to REHDA Council Member Jerry Chan.
The sellers may also include a property’s furniture and fixtures to qualify for the new threshold price for landed homes on the island, which was raised to RM3 million yesterday (16 March) from RM2 million previously.
On the other hand, the minimum price for properties that can be bought by foreign nationals in the mainland remains the same at RM500,000 for stratified houses and RM1 million for landed residences. For condos on the island, the threshold price for overseas buyers is unchanged at RM1 million.
Penang officials also slashed the levy for foreigner to 1.5 percent from 3 percent before whey they purchase condominiums valued between RM1 million and RM1.5 million. This is estimated to generate savings of RM15,000 to RM22,500.
According to Chan, landed properties costing at more than RM3 million in Penang are typically as large as 5,000 sq ft and above. These are usually situated in mature neighbourhoods on the island, like the high-end estate of Jesselton Heights and Pulau Tikus. Newer properties at this price range can also be found in Tanjung Tokong, Batu Ferringhi and some areas of Balik Pulau.
Meanwhile, Michael Geh Thuan Peng, a senior partner at Raine & Horne International Penang, said the state government’s recent move will discourage speculation by overseas buyers.
He also feels that foreigners will continue to buy properties in Penang despite the higher minimum price for landed homes due to the state’s liveability and reputation for being a good place to raise a family.
However, “Kuala Lumpur and Penang are secondary markets for foreigners,” he explained. This means the latter’s real estate market is not as attractive as those in global cities like Singapore, Shanghai, Hong Kong, and London.
Penang is a hot commodity in terms of property investment. It is extremely inevitable for foreigners to show their interest in the state and of course, putting money into a market that can be deemed as profitable. Among the hot projects to look out for are:
Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email radin@propertyguru.com.my
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