Penang exco denies claim 365 foreign-owned units sold below ceiling price, says figures misinterpreted

“GEORGE TOWN, May 14 — The Penang state government has denied allegations that 365 units of properties in the state were sold under the set ceiling price for foreigners, as alleged by an opposition lawmaker. State Housing and Environment Committee chairman Datuk Seri S. Sundarajoo (PH–Perai) said there was some confusion regarding the sale price of properties in Penang over the last few years due to the Home Ownership Campaign (HOC) held between 2020 and 2024. He said the ceiling price for purchases by foreigners was lowered to RM400,000 for stratified properties in Seberang Perai during the HOC period to clear the high number of overhang units in the state. “Some of the properties sold during the HOC were registered in 2025, so this does not mean that those properties were sold at a lower price in 2025,” he said in response to allegations made by Izhar Shah Arif Shah (Bersatu–Seberang Jaya). Yesterday, Izhar claimed that statistics in 2025 showed that nationals from mainland China owned 365 residential units in Penang with a combined declared value of RM150.2 million, which meant the average transaction price was RM411,506 per unit. Sundarajoo explained that the 365 units mentioned included several different types of ownership, with the majority sold as normal transactions without any reduction in price. “The sales included court probate, transfer between family members and MM2H units that were sold without rebates,” he said. He said only 15 units were sold between RM400,000 and RM1.5 million under the HOC. “In summary, the opposition used the total sales value and divided it by the total number of transactions to get the RM411,000 figure, but this is not accurate at all because the transaction for each unit is different,” he said. Earlier, he said the HOC was implemented to stimulate the property market after the Covid-19 pandemic, as there were 5,222 units of overhang in Penang at that time. Under the HOC, the ceiling price for stratified properties for foreign purchasers was reduced from RM1 million to RM700,000 on the island and from RM500,000 to RM400,000 in Seberang Perai. For landed properties, the ceiling price was lowered from RM3 million to RM1.5 million on the island and from RM1 million to RM750,000 in Seberang Perai. Sundarajoo said there were no rebates for foreign purchasers from 2025 onwards.

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