Penang extends approval fee waiver period for foreign property buyers

Penang will continue its initiative to spur the island's sluggish housing market by waiving the three percent approval fee for foreign buyers despite incurring a RM3 million loss for the state government.

State executive councillor on housing Jagdeep Singh Deo said Penang will continue with the initiative for another six months.

He said the initiative was started in January this year and was suppose to finish at the end of June.

"But I received a letter from FIABCI's (International Real Estate Federation) Penang branch requesting the state government to extend the waiver for another six months," he told reporters in a press conference today.

"I have raised the matter with the state executive council during our weekly meeting last week, and I will raise it again tomorrow when we meet.

"We (the council) have decided to help stimulate the housing market further by supporting the request for an extension to the waiver of approval fees for foreign purchases, " he added.

Jagdeep said based on a report from the state land office, there were 55 applications (from Jan to June 28) for a waiver of fees for such foreign purchases.

He provided no additional details concerning the foreigners applying for the waiver but said they were planning to purchase properties worth about RM2 million in Penang.

Meanwhile, Jagdeep said the federal government's initiative to waive stamp duty for first-time home buyers, as announced by Finance Minister Lim Guan Eng last year, will also be extended for another six months until Dec 31.

This initiative applies to all transactions up to RM1 million per unit and the extension period was announced by the Finance Ministry on June 19.

"These initiatives have been effective and successful, and has helped spur the housing market as we were all aware that the market had been soft," said Jagdeep. - Mkini