The Penang government is looking at introducing a new affordable housing category where the units will remain government properties under a leasehold plan that will allow low-income earners to own homes and upgrade to larger units in the future.

State executive councillor Jagdeep Singh Deo (DAP-Dato Keramat) said under the scheme, the housing options on offer are not just limited to low or low-medium cost units, but also larger homes under the “affordable homes” category.

He said the scheme would allow owners to upgrade from the smallest unit to bigger units in a staggered fashion.

Jagdeep said by doing this, it would ensure that low and low-medium cost homes would always be available to meet rising demands.

“This will benefit applicants wanting to own an affordable home, especially on the island side.

“We will form a special committee to further deliberate on the mechanism to be used in implementing this policy, including the financing options.

“After that, we will bring it up to the relevant authorities for approval,” Jagdeep said in his winding-up speech at the state assembly.

Currently, the capped prices of properties under the “affordable homes” category on the island are (depending on sizes): RM150,000 (750 sq ft); RM250,000 (800 sq ft); and RM300,000 (900 sq ft).

On mainland Seberang Perai, the prices are capped at: RM150,000 (750 sq ft); RM 200,000 (800 sq ft); and RM250,000 (900 sq ft).

As for the low-cost and low-medium-cost categories, the prices of homes are set at RM42,000 (650 sq ft) and RM72,500 (700 sq ft).

Here is the full list of affordable housing in Penang

Outside the assembly, Jagdeep revealed that as of October, there are currently 30,726 people on the waiting list to buy low and low-medium cost units and 12,326 for other categories, with a majority of them on the island.

Jagdeep stressed that the new scheme was merely a proposal and would only be implemented if agreed by the state executive council.

H’ng Mooi Lye (DAP-Jawi) had earlier asked Jagdeep if he would do the same for unsold or abandoned units, which could also be potential homes for the needy.

Jagdeep said the idea could be considered and the state could also look into taking over the units belonging to those who failed to pay assessment fees.

He said the current issue on low-cost and low-medium cost homes was unscrupulous owners who sold their properties at higher prices or rent them out to foreigners.

“We want to stop this abuse of affordable homes and through our lease and buy back plan, we might help the poor get a home,” he said.

Source: FMT Online