Penang Forum supports measures to cool house price increases

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The Steering Committee of the Penang Forum welcomes and supports the recent announcement by the Penang State Government to introduce new measures to cool the escalation of house prices in recent years.

The unsustainable rise in house prices in Malaysia, and many parts of the world, is due to many factors, some beyond the control of the local, state and even federal government. A large part of it is due to the quantitative easing and loose monetary policies of advanced countries that have kept interest rates low.

In an environment of low or even negative real interest rates, many turn to property investment to beat inflation. Unfortunately then, housing is seen less as a means of consumption (a place for people to live) and more an asset class for investing and speculating. Just note the high percentage of unoccupied units in high-end residences. This is the basic reason for the huge increase in house prices.

Government at different levels – federal, state and local – have different powers and instruments at their disposal to control house price increase and each must play its respective part. The Federal government and Bank Negara have rightly introduced, though belatedly, measures to curb house price increases through lower loan to value ratio and incremental real estate property gain tax.

It is good that the Penang State Government is introducing fiscal measures, in this case a levy on property transactions to curb speculative buying. The policy to impose a moratorium on sale of affordable, medium and low housing for limited period (five years for the former and 10 years for the latter) is also a right step. As stated earlier, we encourage housing as a means of consumption, not a means for speculation. The latter hurts the ordinary people and benefits only a minority.

We call on the local council to also play its part to introduce measures such as incremental development property tax (higher development charges for high end housing and lower charges for affordable and low end housing), and stricter planning and approval conditions to discourage the over-supply of high end housing and encourage the supply of affordable and low end housing.

Penang Forum steering committee
14 December 2013

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goh

Hi,does anybody knows who is the developer for City of Dreams?Thanks

Tigerz67

I am coming into this topic rather late.
The rule has no impact on me as I have no Penang property.
But the way I interpret the new rules is, the restriction of sale only applies to public housing (ie. built by the state government). Recently the government is launching 20000 residential units consisting of (low cost, low medium cost and affordable housing ie 72.5K to 400K). I believe he is referring to that.

Rich Daddy

“20000 residential units”

impressive isn’t it ???

Simon says

in the past many affordable homes are hijacked by connection & under table dealings !
we shall evaluate the CAT Meow Meow Meow administration if they do better this time in transparent manner. Only the truly deserved ones get that 20000 residential units.

Simon says

Tigerz67
You like tigers ?
Penang needs a tiger park so that the green hills can be preserved for the nature and they can roam freely no poaching.
May be between Penang Hill & Teul Bahang we can reserve some hill lands for tigers to breed.
Locals can get to see the tigers in natural habitat looking down from cable car from above.
tunglang and his belum buddies can be rangers to secure the area ?

tunglang

I love your tiger park idea. No idea of how many wild boars roaming the Penang island forest, but if insufficient to feed tigers, I propose to LGE gomen: feed the tigers with corrupt minions & wayward developers. This way CAT will be seen as ‘full of real teeth & claws’ that truly fights corruption & recalcitrant environmental crimes! Fyi, a single tiger (usually male) will need more than 500 acres of forest to roam freely & that’s his territory. No competitors. Once I went off-roading in Mahang rainforest (Kedah) with my 4WD kakis one fine morning. We came upon… Read more »

Yang

Gerakan K, Yes you were right in many ways and the blindness in us due to propagandization of UBAH that emotionalize many of us through the years. Though I may not really like UMNO nationally, the many guys in the state UMNO and Gerakan are really better than those arrogant DAP leaders and people. Compared to Gerakan KTK, DAP & LGE just like his father are even more arrogant… Its not about the property of mine but how the people have been misled to further their aim of staying in power, how they (allegedly) collude with the developers and big… Read more »

sunnyooi

Why is every policy debate turned into political name calling?

Do I like these control policies? A big NO. I truely believe in a free market. That way those truely deserving will reap maximum reward and be an inspiration to others.

Do I agree with you that these policies cause harm to the poor? A big NO too. In fact these are meant to help the poor by keeping speculative activities in check.

If you think someone with RM7k monthly salary or lower should be qualified for affordable housing, then lets discuss it. What about those earning RM8K?

farizul

If your life is make miserable by government policy, then I feel sorry tor you. Too many people have too high expection in a house like freehold status, good name, good developer, good facilities and amenities etc thus taking huge loan beyond their capacity thus adding the unnecessary stress. Focus on a home, not a house, be content with what you have.

Kelty

Many parents have unnecessary stress trying to buy properties for their children who are still schooling, for fear that the prices would be beyond them in time to come. I think we have to discard such mentality. We should tell our kids that we will provide for their education as far as they could go. They should gain good education with marketable skills to survive in the cut-throat environment. Keep your house for yourself for the purpose of reverse mortgage to support your retirement No need to retreat to the forest), as it is nothing to be ashamed of once… Read more »

Orand Asli Buddy of tunglang

Cheers Kopi-O kau kau.
Your advise is something Penangite parents (with concerns in their hearts for children) caught in the sudden financial inflation boosted by locket with cat should heed. Let your children find their turfs once they leave school or college.

Kelty

Orang Asli can use internet and write in English. Malaysia Boleh! who needs PPSMI?

ps: internet coverage extended to Belum Forest? Lagi Malaysia Boleh!

santa klaus

tunglang
understand your plight and insecurities due to the fear resulted from changes happening around you in Penang.
Be BRAVE and spend more time thinking of how to work smartly hard to earn more re$ources like Yang & Grerakan K so that you can feel more secured and less moanings.
Recalling the PAST serve to teach us lessons in life BUT importantly get the momentum going to earn more re$ources to combat the fear and hopefully you can write good post 308 & 505 memoirs for future generations to savour and cherish. God ble$$ you.

tunglang

Santa Klaus, thanks for your ‘superficial understanding of me’ from a distance, much less of my real self. Your ‘smart rat-race’ money stuff advice is appreciable (to some), BUT it is not the desired work life solution to my preferred lifestyle right now. Why must I be a money-slave in order to enjoy a meaningful existence without insecurities? Much less when I am already a ‘free’ man more resilient to face changes/ubah than to fear like a rat. Anyway, money helps when you truly need it, but not be slaved by it as an ultimate end to all manner of… Read more »

Simon says

I saw many postings in this topic.
My 1 sen worth of opinion : Money is not a wonder in life BUT it can solve majority of your problems in life eg when you are sick you need to pay the doctors with money unless we know traditional herbs that can cure illness like the Orang Asli.
I think Santa Klaus is over critical. Nevertheless he mentioned what we normally dislike to hear.
Personally, i wish i strike 4D this weekend so that i can take my children to enjoy nice food in Penang.

santa klaus

Foremost, I don’t worship any politician and I am apolitical. The brewing hatred towards something is the result of insecurities. We sometimes become insecured when we face CHANGES (not to be associated with Ubah movements) and resulting FEAR affects our rational thinking. In short, sad but the truth is that we need to have good financial cushion. Then we have strong buffer to counter the fear of changes striking upon us. So DO WORK SMMARTLY HARD with whatsoever inherent or acquired skills you have to earn financial rewards in the world we are in (forget Uthopia as we are in… Read more »

Belum Rainforest Zen

Insecurity or fear is different from concerns, concern for the larger picture, not for the self only. There’s a difference when change affects the social, political + environment, which an individual has a right of concern or voice. Having the financial means for optionals is a personal choice and personal lifestyle. One may be financially loaded, but he can also be unhappy giving him all sorts of Santa gifts. Your advice is only that good for commercialized bling-bling and material comforts (giving a false impression of security or satisfaction?), not of good application beyond satisfying the selfish self physically. Seeking… Read more »

tunglang

Advice from a state-tokong worshipper whose idol (anything loved beyond any kind of behaviour) has disdains for grandmother? Calling others ‘grandmother’ is a typical school boy scout retort use in the absence of the scout master. Such bad-taste money-talk mouth opener is truly uncalled for as a state leader, showy accountant & example of Cosmopolitan class behaviour. More suitable for the ‘chho-lo’. Of course Money-Talks mah, advice or lectures, can say anything under the blue sky. Advising others to live with cosmopolitan reality is one subjective thing, accepting act of ‘chho-lo’ as a cosmopolitan class denizen, much less from a… Read more »

Ex-Gerakan K

Hello Yang, now you understand my frustration when I was trying to explain issues to readers in this blog ??? You too in the past just blind bodek bodek. However, the past is past and now I’m no longer active in politics. So less and less commenting in this and other blogs. The way I see things is you are now fighting a lonely battle. The only positive thing for me since LGE in charge of Penang is, he made my inherited house worth more than 2.5 million ringgit. The house and land price just soaring high like LGE rocket… Read more »

tunglang

Will miss you Ex-Gerakan K. Less one Penangite, less one critic of over-worshipped, bloating, boastful tokong, worshipped 24/7/365/for-many-more-terms-to-come for money, unsustainable development & SingLand style gomen ala LKY. Joss sticks selling must be a very sustainable business at Sia Boey or Carnarvon Street! Though not as well-endowed as GK or Yang financially or assets, I too am on the way to emigrate to Belum rainforest when most things are settled at home. Have to fulfil the last episode of my life as I see it clearly, & not fulfil others’ political dream stupidly, or worst risking self on the Han… Read more »

Fred

tunglang
I hope you stay cool. I advise Yang to stay calm otherwise his blood pressure shoots up like the rocket to the moon (no pun intended).
Look at bright side and may be in a few years time your children can benefit from present policies that appear unfavourable to you.
Merry Xmas.

Yang

Frankly speaking the only one who speak some sense is Tunglang. The rest are just blind bodek bodek. Issue finished and the poor will even suffer more.

KK

Tungland speaks some sense?
Then why is he still in Penang island and not Belum Forest?

Orand Asli Buddy of tunglang

KK, mind your own cosmopolitan business.
tunglang has better 6 senses to choose pristine Belum rainforest. And that’s his own choice for personal reasons private from our kay poh chiao. You better chiao-chiao (Twit-twit) your Tokong with this latest information from Belum rainforest Orang Asli without cats but dogs.

Yang

Don & Kee: Don, You misunderstood. I was talking about selling not buying What I am against is the govt wanted to control houses below 400k which all along are being built by the private sector and is not consider as MC It has deprived genuine buyer of a house who are not qulaified for LMC or LC. Alamak I am now not able to buy a houses anymore. Please help me. You see I am now in my 40s with 3 kids 2 in colleges. I am now earning 7k and my wife is a housewife. I have to… Read more »

georgina t

25 thousand forms to apply for Penang affordable houses were given out in 5 days !

Yang

Georgina, Kee , Don & others, In fact 50,000 forms were sent out and I also received one. Actually do you understand what I am illustrating.

The PERSON WHO SAID ALAMAK CANNOT BUY A HOUSE or APARTMENT COSTING 400K AND BELOW BECAUSE lge AND jardip SET THE RULE.. He is being forced to buy an apartment costing above 400k which HE cannot afford…… LGE & Jardip is preventing him from owning a house which I humbly wish to sell it to him at an affordable price.

sunnyooi

Dont understand.

By right, you want to sell your LMC house for profit to another rich speculator. State say No. So you are forced to sell to lower income group limiting your asking price. So you not happy?

Kelty

Yang

Sorry to hear about your predicament.
Many Malaysians are caught in this ‘middle income trap’.
It is not just happening in Penang. All is not lost.
Think positive and curb the unnecessary desires like speculation.
RM7K/month plus your RM1.2 million (presumably in fixed deposit) should be sufficient to support your family if your maintain a frugal discipline in expenditure e.g. avoid the temptations of Gurney Paragon.
You have many options once you are retired and your kids are independent, like moving to a lower cost town/city to stretch your money.

kee

Yang, can you please ask the guy to try Azuria apt in tg bungah. Few months ago the asking price was ard 300k, 700 sqft. Tq.

Yang

Sunny Ooi, Read properly. I am talking about apartment or houses that were built by the private sector since long ago and which did not come under LMC or MC. Why now bring these units under the state govt. Tomorrow LGE and Jardip may even bring those in the 600k range under state control. Do you think it is fair. Please read properly all my illustration. And let me tell you one thing, poor or working people will not be able to buy any LC or LMC units in Penang because the state govt is unable to built any LMC… Read more »

KK

“LMC marked up to 200k and not 72k?”

Maybe in tandem with 2-Sister’s char kuey teow marked up 3x in price compared to regular ones?

Such pricing is common in Penang, when the demand is there?

santa klaus

wah lau eh ! no more RM1.2 million but RM1.2million+RM330K = RM1.53 million man.

stop moaning. enjoy life by contributing wealth to less priviledged people in penang in this festive season.

bless you.

yang

I really don`t understand how you people can support such action by the LGE DAP govt of controlling medium cost houses when it is not built or undertaken by them in the first place. If the govt control the LC and LMC, that`s no problems but many LMC under LGE DAP time have been sold to those not in the housing dept list but direct to people who own houses. This is the core of the unfairness that I am agitated and the fact that LMC 72k have been marked up to 180-200k. Please don`t be just a blind supporter.… Read more »

kee

Yang, your 2nd para does not make sense at all. Now, the pg government is trying to help the lower income group so that the greedy investors will not buy up those low and medium cost properties as i know there are some people who specialise in buying those low and medium cost units to let out and at the right time to make a fortune out of their investments at the expense of the poor. Are you one of them? The restrictions imposed are good measures to ward off the greedy to have a hand on these already limited… Read more »

Don Anamalai

The moment Yang mentioned he once sold his house for RM1.2 million, I felt that he should have left the LMC to the poor. I am happy with my humble home, and I shall never be tempted to be a speculator and blame others when things do not work in my favour. I shall not worry if the price of properties will go down. I am thankful for what I have, and shall not invite unnecessary stress of modern day due to greed.

georgina t

Kee Kelawei,
You hit jackpot here. Now i am awaiting for Yang to release his on hold units at discounted price before new rulings take effect.
RM330K got discount when desperate ?

kee

Yang, maybe you should prove yourself to be different from the Cat, so, sell it to him, the first time property buyer. Do a good deed !

Ivan

Kee,
Good suggestion, as Yang does not want the price of houses to increase, he should not even sell at RM330K, sell at the price he bought. I’m sure the guy who is proposing to buy from him will love him till kingdom come. Anyway, Yang doesn’t bother about economics or inflation at all so should sell at dirt cheap price and not at market price.

Don Anamalai

What is the intention of Yang buying that RM330K house in the first place?

Precisely depriving genuine buyers, and cause property price to go up (demand v supply).

So the ‘Tales from Yang’ has lots of contradiction.

Ying

Yang, you are genius that the world has been waiting to come and solve all the dwelling problems that not only in Asia has problems but the rest of the world ( may be pockets of Africa). Icing on the cake, you are good at tales, an arm chair critic and just lament without proposing any viable solutions. With all the key characteristics, its clear, in fact its a miracle, I thoroughly and solemnly believe you should be leader of the world. Where have you been my son, the world needs you…..move aside Einstein, Yang is here….he has emerged from… Read more »

kee

Ying, well said. A neighbour of mine commented that if he has got nothing to contribute, he should not complain.

I dont understand why people could criticise the move when it is laudable. Ya, one thing i lament is maybe it should be imposed much earlier.

Not helping the poor, kau peh; helping the poor, kau boh !!!

Could it be the restrictions affect us because we cant speculate anymore ???

Yang

bigjoe, Investor are no more buying houses. They are buying cheap land here and on the mainland. Some land in the mainland can go to as low as RM3 per sq ft with the average at RM5-RM6 and in choice locality about RM13 per sq ft. Finally it come to the same thing, houses prices will still be high.

Yang

And one of the real beneficiary will be V Tan who brought part of the Turf Club land from the govt at RM198 per sq ft after GE08. And he (might) soon benefit from the development of Penang Hill soon.

You see LGE DAP are all sama sama almost as abang adek as BN UMNO benefiting their cronies

Kelty

Are you unhappy with the Penang government’s proposed ruling to bar those who own low to medium-cost homes from selling their properties within five or 10 years of purchase?

I know many property speculators are affected by this, frustrated because they cannot sell now and run the risk of ‘property bubble burst’ in 5 to 10 years’ time when they have to sell low?

I still believe the root cause of ballooning property prices in Penang are due to the speculators, not the government.

tunglang

Kelty: I still believe the root cause of ballooning property prices in Penang are due to the speculators, not the government. You are partly wrong. Speculators, those with excess money lying around, come in when there are price increases in the short run in a market of initially PERCEIVED short supply of affordable homes or fewer / no affordable homes being built by the private sector, no thanks to the mass media reporting developers’ preferences & property gurus spewing half truths. Once speculators join in the fray, the price hikes are magnified manifold. The preference for building beyond affordable homes… Read more »

bigjoe99

The curb is coming late, very late. What you have, if things goes right, that monetary easing will end before 2015. You won’t have rising interest rate but asset inflation should end. If economic stays robust, you won’t have a crash in asset and property price. BUT if economics starts to slow and you see falling asset prices, then the real danger is the easing continues – that means the addiction to cheap money worst than anticipated. Irregardless, the future problem is firstly falling property price AND rising property price. You have in place only part of the half the… Read more »

Yang

Yeoh, Do you think such a move will help ease the speculation and bring down the price of houses when the govt itself has already speculated with the future trading of land prices at RM1,200/= per sq ft when land prices are currently at about RM500-RM600 per sq ft.

Yeoh kim soo

the Penang government should be congratulated for their bold move to curb speculation of the property and housing sector. owning a decent housing unit is the basic necessity for everyone and therefore the action to be taken by the Penang government should provide opportunity for the first timer to acquire their dream home. Speculation in property only benefits those with deep pocket and will deprive the average income earners from owning a decent home. there are always other mean of investments for those with deep pockets and why must they cause hardship to the average income earners. Perception of society… Read more »

Kelty

You are right. So long as there are people buying up properties as an investment product, those with genuine housing needs are deprived.

tunglang

Property market is not as straight forward as Penang Road. It is a complicate demand, supply, loan money supply & regulations with loopholes into which even a rat can escape a cat. If developers (in cohort?) prefer to build designer homes at (definitely) more profitable prices, we as buyers can do nothing in this free market economy, much less given our weakness as buyers i.e. a kia su attitude in a manipulated short supply starting from the producer side i.e. the developers. The excuses of inflation, increased fuel price & higher wages of foreign workers are just distractions to mask… Read more »

Myx

does this guy above ever get tired of his antics? lol

Kena Racun CAT

Yang, your story is very funny. Keep up the good works. By the way, I still going to vote Dap 😛

SunnyOoi

Yang,

“The new housing rules announced in the 2014 Penang state Budget at the Penang State Assembly and proposed to be effective from 1 February 2014 …..”

2 key words: proposed and 2014

Good story though.

Penang Lang Boh Chu

It’s already effective, you must be sleeping at Komtar Tower.

Yang

Finally I told this buyer, DON`T BLAME US, blame your idol for the good CAT that he has given you. Remember your idol always said, whether it is a black or white CAT as long as it catches the mouse it is a good CAT and you are the mouse !!!

Yang

Continue :: Then I told this prospective FIRST buyer, come back in another 3-4 years time. He said what to do now, I will just have to rent but I will come back to see you. Before he move off, he quietly ask me again will it still be 330k. Then I ask him, will the Chinese company building the tunnel that was contra the 110 acres be willing to sell it at RM1,200/= per sq ft, the price that was signed between the State Govt this year. He replied, definitely not, it would have been double or triple. Then… Read more »

Yang

And then he come back and told me that the date of implementation is only on 1-2-2014 and that I can still sell the houses if I wanted to. I told him I and many now no shiok to sell because LGe and Jardip said we are ruthless and so let it be, so that there will be less affordable houses in the market, so that there will be a shortage and when the people find it so hard to find affordable house, we will tell them its DAP PR LGE and Jardip faults that create the rules to make… Read more »

Kelty

Yang as a strong advocate of affordable home, should excercise empathy with the difficult situation of his prospective buyer. By buying up property as an investment with no plan to stay, the property prices in Penang will continue to spiral upwards.

Yang

Good, the other day one prospective FIRST time buyer was interested in my unit which I earlier wanted to sell at an affordable price, 330k. Then I told him sorry now I am not interested to sell anymore. He said why ?. Then I said you better ask LGE and Jardip, they said we are ruthless and now DOES NOT allowed us to sell. Then he said what to do now, I got no house, I need an affordable house. Then I said go apply from the State govt. He said it will take years but I need the house… Read more »