Penang Government increases household income ceiling for affordable housing

Penang Government increases household income ceiling for affordable housing

GEORGETOWN, October 12 — The Penang state government has decided to increase the household income ceiling for applicants of affordable housing in the state to enable more people to apply for a bank loan to buy a house.

State Town and Country Planning and Housing Committee chairman Jagdeep Singh Deo said currently, the household income ceiling for affordable housing of RM200,000; RM300,000 and RM400,000 is RM6,000; RM8,000 and RM10,000 respectively.

“Having considered the fact that the banking sector may view this category of applicants as risky and thus, the high loan rejection rate, the state government decided to increase the said household income ceiling to RM8,000; RM10,000 and RM12,000 respectively,” he told reporters here Monday.

He said for those who previously earned RM6,000, who were eligible for such affordable houses, the Penang state government introduced a new category of affordable housing, namely units price at RM150,000.

These units are also sized at a minimum of 750 square feet but without finishing, he added.

Jagdeep Singh said in order to stimulate the sale of such affordable housing units, the state government also decided to enlarge the pool of eligible buyers to those who already own property.

However, the purchaser under this category has to be a registered voter in Penang and may only purchase one such affordable housing unit, the moratorium on the said unit is five years from hand-over of keys unlike the current five years from the date of the sale and purchase agreement.

“It is hoped that more applicants will be able to obtain bank loans with this revision of the nett household income cap and therefore more Penangites will be able to access such affordable housing,” he said.

The new category of affordable housing had been introduced by the Penang State Government in January 2014 and had seen some 12 projects announced which will see the provision of some 22,512 units of such affordable housing plus the private sector also had submitted plans to build some 12,600 units of affordable housing in Penang.

— BERNAMA

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