Penang State Government mulls opening up new range of affordable housing

Penang State Government mulls opening up new range of affordable housing

GEORGE TOWN, Aug 11  — Penang state government is considering to open up a new range of affordable housing amid high loan rejection by banks, says state housing exco Jagdeep Singh Deo.


He said the new segment would offer affordable houses, priced RM120,000 to RM150,000, for applicants earning net income between RM3,500 and RM6,000.


“In one year from August last year, my housing department released nearly 5,000 names to these pioneer developers. Out of the 5,000 names, 30 per cent were rejected at the RM6,000 to RM10,000 income cap,” he said.


He was speaking to reporters after a media briefing on the Malaysian Secondary Property Market (Maspex).


Jagdeep said that banks should relax conditions on loan applicants for house buyers especially in the low cost, low medium cost and affordable segments.


He also said the state government was also considering to allow developers to sell affordable units to non-listed buyers, adding that the percentage should be not more than 30 per cent.


The Maspex 2015 will showcase over 3,500 secondary properties for sale, priced between RM350,000 and RM2 million.


Maspex chairman Mark Saw said Penang’s property sector saw a slight drop in the last quarter and the market had moved downwards.


He said secondary market was likely to improve in the second half of this year with buyers expected to relook for properties in secondary segment.