Ministry not to back proposal to lower Penang house prices for foreigners

The Urban Wellbeing, Housing and Local Government Ministry will not support a proposal by developers to lower the ceiling price of houses in Penang for foreign nationals.

Minister Tan Sri Noh Omar said, however, that so far the ministry had not received any request on the proposal from the state government.

"They have to seek the consent of the ministry if they want to reduce the prices of houses (for sale to foreigners) to RM800,000. The Housing Act requires seeking the approval of the ministry to alter house prices.

"However, I will give my support if they want to reduce the prices of houses for sale to Malaysians," he said to reporters today after handing over annual grants to help local authorities in Penang finance their operating expenditure.

Noh said the ministry hoped that the state government would respect the federal government policy of selling to foreigners only houses worth more than RM1 million.

Yesterday, the DAP-led Penang government said it had not made a final decision on the application by developers to reduce the ceiling price of houses in the state for sale to foreigners.

State Housing and Town and Country Planning Committee chairman Jagdeep Singh Deo was reported as saying that the ceiling price for stratified houses was RM1 million and landed property, RM2 million.

On the annual grants to the local councils, Noh said RM10 million was allocated to the Penang City Council and Seberang Perai Municipal council. - BERNAMA