Surcharges imposed by the Pakatan Rakyat led government in Malaysia are responsible for a significant increase in the price of property in Penang. Thatââ¬â¢s the view of former Penang Municipal Council Town Planning Department acting director Khoo Boo Soon who says that the additional costs imposed on developers are being passed on to buyers, resulting in rising property prices.
Keep reading to learn more about the prices of property in Malaysia.
Penang property prices already above 2014 predictions
Khoo says that costs imposed on developers include increases in infrastructure contribution and re-zoning fees, and contributions of RM120,000 (ã24,620) per unit in lieu of building low-cost homes. In addition, the infrastructure contribution charge has been increased from RM5 (ã1.03) per sq ft to RM15 (ã3.09) each for housing projects exceeding 15 units per acre.
"The fee is imposed by the council. But the state government also charges the developer 50 per cent on conversion of state-owned land. All these additional costs incurred by the developers are passed on to the house buyers," he told The Star.
Khoo also said that the lack of affordable homes had also adversely affected the low and middle-income groups which made up more than 80 per cent of the population. He added: ââ¬ÅIt is also difficult for the younger generation to own homes as the price range in Penang is beyond their means.
"What is the point of building more high-end homes when the majority of Penangites could not afford them?
ââ¬ÅThe current government under (DAP's) Lim Guan Eng seems to be more interested in filling up the state coffers rather than meeting the needs of the people," said Khoo.
The Property Stock Report for the first quarter of 2012 showed that the house prices in Penang had already far exceeded the 2014 price projected by Penang Institute's City, Urbanisation and Environment head Stuart MacDonald.
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