Penang raises minimum property price for foreigners

Besides Kuala Lumpur and Malacca, Penang is one of the more vibrant real estate markets within Malaysia. And as the ringgit continues to weaken, Penang’s housing committee has taken the step to increase the minimum price for foreign parties purchasing landed properties in the state from RM2 million to RM3 million (approximately S$948,000).

PenangHouseBungalowThe Malaysian government has recently announced that they were in the process of discussion with regards to raising the minimum floor price for foreigners purchasing Malaysian properties, but Penang has already gone ahead and made the change. Although strata-titled properties such as condominiums will continue to be sold at the minimum of RM$1 million to foreigners, the amount will be thrice that for landed properties.

Properties in Penang have long been favoured by buyers from Singapore, Indonesia and even Japan. Though the Penang branch of the Real Estate and Housing Developers Association has recently recommended that the floor prices for foreigners could be reduced to RM800,000, the state’s Cabinet minister in charge of housing, Mr Jagdeep has made a rebuttal stating the depreciation of the ringgit as a deciding factor.

THeMarinPenangCondoWhile the Federal government sets the minimum purchase price for foreign property buyers, each of the 13 Malaysian states are allowed to adjust the amount to suit their local supply and demand levels. The lowest minimum purchase price set by the Federal government currently stands at RM1 million.