“In response to the recent announcement by the Second Deputy Finance Minister that the country is facing an overhang in the property sector, where Penang is concerned, as compared to other states we have actually proven to be one of the states with the highest sales performance in terms of newly launched residential properties.
In this regard, the recent statistics we have from NAPIC as announced at the Majlis Taklimat Pasaran Awalan Harta Tanah 2017 held on 13 November 2017 showed that out of the four major urban states in the country, in terms of newly launched residential sales (for all price ranges), Penang topped the sales performance at 40.6% as compared to Johor at 36.1%, Selangor at 26% and WP Kuala Lumpur at 22.5%. Out of this 40.6% sales performance for all residential price ranges sales, 50 7% is for sales of unit less than RM300,000; 62 9% is for sales of unit less than RM400,000 and 729% is for sales of units less than RM500.000 as at Q3, 2017.
In relation to the fear that there is an overhang in relation to properties which are priced at RM1 million and above, which culminated in the decision by the Cabinet to freeze development of such properties until the stock is cleared, it should be noted that the three states in the country with a major overhang is Kedah at 4,363 units followed by Johor at 3,803 units and Selangor, namely at 3,664 units respectively.
It should be noted that Penang will continue with its efforts to ensure the provision of affordable housing ranging from RM300,000 and below, which is what Bank Negara Malaysia had suggested should be given priority in light of the major overhang of high-end properties throughout the country.
In this regard, it should be noted that we have already built 24,227 units of Affordable Housing Type ‘A’ and ‘B’ (Low and Low Medium Cost); we are in the process of building 17,686 units of Affordable Housing Type ‘A’, ‘B’ and ‘C’ (Maximum RM300,000) and we have approved the building of 32,248 units of Affordable Housing Type ‘A’, ‘B’ and ‘C’, which includes 17 projects by the State Government consisting of 27,230 units of Affordable Housing Type ‘A’, ‘B’, and ‘C’ throughout the five districts.
In fact in this regard, we agree with Bank Negara Malaysia that other government agencies, in particular, the Federal Government’s affordable housing programme under PR1MA, be reviewed so as their properties are priced specifically under RM300,000, as at this point in time, there are PR1MA properties that are priced more than that in the market, which does not bode well for such Federal Government’s affordable housing programmes.
It should also be noted that in order to address purchases of residential properties by global investors and relocators, the Penang State Government has already put into place several measures, namely price caps on properties that can be purchased by them, namely of landed properties on the island at RM3 million (increased from RM2 million in 2016) and stratified properties on the island at not less than RM1 million; whereas for landed properties on the mainland, the price cap is not less than RM1 million and for stratified properties on the mainland, not less than RM500,000.
Further, purchases of properties by foreigners are subject to an approval fee of 3%.
In the report by Bank Negara Malaysia, is was also mooted that there is a substantial amount of office spaces that are unoccupied throughout the country, which needs to be addressed, hence the decision to freeze development of properties of office space.
However, it should be noted that the latest statistics show that the supply and occupancy of purpose-built offices showed Penang leading in terms of percentage, namely 82.9% of purpose-built offices being supplied and occupied, as compared to other urban states namely, WP Kuala Lumpur at 81.4%; Johor at 77.7% and Selangor at 74.7%.
This is in tandem and clearly reflects the Penang State Government’s vision again, of becoming an international and intelligent city whereby numerous multinational corporations have set their base here in Penang and we clearly will continue to require more such office space for their use in the future.
In relation to the overhang especially for first time home buyers of affordable housing, in particular priced at RM300,000 and below as noted by Bank Negara Malaysia, we call upon Bank Negara Malaysia to review their stringent policy on giving out loans and be more flexible so as to address the issue of this overhang, in particular affordable housing priced at RM300,000 and below.
It should be noted in any event, the Penang State Government will continue its effort to ensure that there is an adequate stock of affordable housing for Penangites. In this regards, I am very happy to announce today the continuation of the Penang State Government Affordable Housing EXPO with its latest edition being on 30th December 2017 at Gurney Paragon.
This EXPO will see the Penang State Government’s projects by PDC as the anchor participant and will also showcase affordable housing units by the private sector. The public is urged to come to this EXPO where they can check and update their registration status for affordable housing if they already so registered, and if they have not register they may do so, and more importantly they will be able to also see the affordable housing products that are available throughout the state of Penang.”
This press statement is made by Penang State EXCO for Housing and Town & Country Planning YB Jagdeep Singh Deo on 18 December 2017 (Monday) in George Town.
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