Penang pushes ahead with property ruling despite criticisms
State Housing, Town and Country Planning committee chairman Jagdeep Singh Deo.
GEORGE TOWN: The Penang government is standing firm with its new ruling on property sale even as critics slam it, saying the ruling is illegal.
State Housing, Town and Country Planning committee chairman Jagdeep Singh Deo said the state controls the land office, so with land being a state matter, it has the mechanism to impose restrictions on property sale.
“In order for a person to own a property, he must get it registered at the land office.
“Under the ruling, we can impose a 2% levy, on top of the existing 0.1% stipulated for transfer of land title,” he said on the sidelines of the state assembly meeting here yesterday.
Several groups, including Gerakan and MCA, have taken the state government to task over the new ruling that it plans to enforce from Feb 1 next year, saying it would be illegal as the National Land Code needs to be revised first before the ruling can be enacted.
“Currently, the application fee for any transaction pertaining to a leasehold property is 0.1% of the selling price,” said Jagdeep.
“As for freehold property, the seller will have to produce a statutory declaration that they have indeed paid the 2% levy before the transfer of land title can take place,” he said, adding that the new ruling would only affect property bought with sales and purchase agreements signed from February.
Jagdeep said the restriction would be imposed on properties priced above RM250,000 in Seberang Prai and above RM400,000 on Penang Island sold within three years of being purchased.
Chief Minister Lim Guan Eng also brushed off criticisms.
“We have been subjected to criticisms from the Consumer Association of Penang and Gerakan. At first they criticised the state government for not doing anything to help. When we try to help, they attack us. So, what do you want us to do?” he asked at a press conference yesterday.
Several groups have come to the defence of the state government, saying the ruling would curb speculation.
Source: StarProperty.my
This is very interesting. That’s why I always say, making mistakes is one thing, but you’d have to be able to face it and acknowledge it, and then move forward and see how you can do it better moving forward…..:)
How come no new info on property below 400k? Need to hold 5 years or not for private project?
example The Clovers 700sf unit 350k only consider affordable unit, but need sign form and submit, declare u are first time buyer and hold 5 years, no DIBS no rebate no free any legal fee, but those buy bigger unit gt rebate, DIBS, free all legal fee and 2 carpark, means buy bigger unit more worth…
@K
Of course bigger unit more worth but it need more capital.
Just like you buy Milo 1kg pack for RM16++ but 2kg pack only for RM30++.
Buy more save more… at the same time, you need more money.
@islander_ori
That’s precisely the purpose lor, make the cheaper units not worth buying, unless you really cannot afford the bigger unit.
small unit u need to pay 10% downpayment + legal fee & stamp duty, u need 50k cash in hand, bigger unit gt rebate u only need to pay 10k+,, for youngster u think they gt 50k cash? gt few k they go travel d, if parent support, parent and investor not noob they know to count then buy bigger unit, then small unit sell to who ==
Does this cover every property in Penang that is below the indicated figures (including private projects) or only those built by Penang government? Very confusing law .. if applies to all private projects, why property price is still high .. only one more month to go .. after minusing all the holidays sessions.
If it is for government projects only .. it my view, it is a good on paper but wouldn’t bring property price lower in Penang.
I am confused of the new rulling for property in pg, i had bought a unit worth 420K in 2012 and intend to sell in 2014. it is less than 3 yrs but S&P signed in 2012 ( not after 1 FEB 2014 ). can i sell w/o 2% levy ?
@confused
Yes, u can sell without levy.
Private project like The Clovers also kena? Like that how to invest?
Subsub,
People who invest dont mind the 5 years window, its the speculators that is more affected… tthere’s a fine line between investor and speculator… understand?
@Jackie
Investor not speculator is it? Investor more genuine is it? If speculator hold for 5 years, can we categorize them as investor?
doesn’t matter whether is investor or speculator…both the same…bloody sucker.