Penang residential properties will not be subject to the unsold property tax as the Penang state government is not considering introducing it, in view of the property overhang issue in the state.
Jagdeep Singh Deo, the committee chairman of the State Housing, Local Government, and Town and Country Planning, said that the overhang issue in Penang was still under control and it was not necessary to establish such tax.
For property developers in Penang, this is good news. This means that the overhang in Penang has dropped. The latest statistics from the National Property Information Centre indicated that Penang had 3,916 unsold properties in 2017 but it had fallen to 3,502 in 2018.
An overhang is defined as completed units that continue to be unsold nine months after the launch and the issuance of the certificate of fitness.
"Of course, we will not go there, at this point in time, over maybe never...but this is how serious the (property) overhang is in Malaysia," he said in his speech at the groundbreaking of Grace Harmony’s development.
The situation of the overhang in Penang is likely due to unaffordable property prices and financing issues. It is understandable that if people cannot afford to buy a property, more properties will remain unsold.
Now when it comes to financing issues, while banks become more demanding in regard to loan approval, borrowers are no longer saving as much as their peers from yesterday.
Imagine someone with a salary of RM10,000 per month cannot afford an RM500,000 home while someone who saves a lot but earns just RM7,000 per month is still able to get his loan approved.
Anyhow, just like what Jagdeep said, the overhang in Penang is under control, and Property developers in Penang are optimistic that the overhang situation in Penang will get better in the second half of the year, or from next year onwards.
This is because the Penang state government will be reviewing all the charges currently imposed on Penang property developments to make property prices more affordable for consumers. Among the charges to be reviewed are those for development, infrastructure, and amenities.
Thus new housing developments in Penang, such as 79 Residence
and Artis 3
can benefit from this. In fact, these charges inflated the prices of properties, which would be borne by the consumer. However, once they are reviewed, property prices are expected to fall.
Moreover, now is a great time to invest in Penang residential properties as the Penang Transport Master Plan is expected to start in 2020. According to Penang Chief Minister, Mr Chow Kon Yeow, the state government expects the construction work on the light rail transit (LRT), Pan Island Link (PIL) and Penang South Reclamation (PSR) projects under the Penang Transport Master Plan (PTMP) to begin by Q4 2020.
One thing you can be sure of is that you cannot go wrong with investing in Penang residential properties. The claim is proven by statistics. In fact, now there are even more buyers from overseas who are interested in buying new residential properties in Penang.
As Jagdeep clearly said, “I am sure we will continue to see a reduction in the overhang next year.”
Last but not least, we can expect more new housing developments in Penang as the mainland and the island will continue to offer a high quality of life to everyone, including to those who reside in Penang, and those who plan to relocate or emigrate to Penang. With a rich cultural background, Penang, a UNESCO World Cultural Heritage Site will continue to attract foreigners who look forward to spending a quality life here.
To know more about the property in Penang island and mainland, get in touch with our friendly staff members