GEORGE TOWN – Penang has recorded the second-highest property overhang in the country to date, with 4,638 housing units worth RM3.66 billion remaining unsold.
Revealing the numbers at the Penang assembly sitting today, state and local government exco Jagdeep Singh Deo explained that there is a high number of unsold properties due to projects that are too expensive.
“I always tell developers that they must look beyond making profit, but we have to help everyone, especially during pandemic times, because the economy has been affected.
“We can build million-ringgit homes but they will not sell because the people don’t have money to buy them.
“We need to build more affordable homes,” the Datuk Keramat assemblyman said.
According to the state’s affordable housing scheme (RMM), the ceiling price for all units under the programme is RM300,000.
From all RMM units, only 347 units are unsold, contributing 7% to the total property overhang.
The remaining 93% is what the state deems non-affordable housing, and those units remain empty – something Jagdeep attributed to sky-high property prices in Penang.
Jagdeep also announced that Penang will launch a Development Master Plan under the newly formed state Housing Board (LPNPP), and 14 projects have been identified to be developed by LPNPP on behalf of the state government from 2021 to 2025, comprising nine RMM projects and five Urban Regeneration City projects.
“This master plan will be known as Penang Affordable Housing or RMMPg.
“RMMPg developments are expected to contribute a total of 28,751 units, which comprise 9,043 RMM-B units and 19,708 RMM-C units.
“This will help us achieve the target of building 220,000 RMMPg units by 2030.
“To get more developers to build more RMM units, the state is working on using policy enforcement methods and development planning directly through its agencies such as the Penang Development Corporation, the Chief Minister’s Corporation and LPNPP, either using state government allocations or through joint ventures with private developers and government-linked companies,” he said.
He said the state has also approved a housing policy accompanied by various incentives as an incentive for private developers. – The Vibes, November 29, 2021
