Foreign buyers may pay more for Penang homes by July 2012

Penang Chief Minister Lim Guan Eng

The Malaysian Insider April 19, 2012 KUALA LUMPUR, April 19 — Foreign home buyers in Penang may soon have to fork out at least RM2 million for landed property if the state government has its way. Penang Chief Minister Lim Guan Eng (picture) said today his administration is mulling raising the existing RM500,000 floor price to RM1 million for foreigners to buy a home in the island state to protect the housing interest of locals. Foreigners looking to own landed property on the island side of Penang may be looking at a minimum RM2 million. “This restriction will help to provide a level playing field since foreigners have the advantage of a higher currency,” he said in George Town today. A copy of his speech was made available to The Malaysian Insider. Lim, who is also Bagan MP, said the idea was part of the Pakatan Rakyat (PR) government’s goal to provide affordable housing for locals. He noted that in 2010 and 2011 there were 774 and 890 property transactions involving foreigners respectively, or less than three per cent of total homes sold in Penang. He said the state hoped to get public feedback on its proposal soon to enforce the new condition latest by July 1. “The state government feels that foreign participation can be profitable to both Penangites and foreigners in the higher-end market where they can add value by helping Penang to transform itself into an international and intelligent city,” he added.