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Penang property prices soar

Asia One
Penang property prices soar - property prices - Malaysia - Penang


PETALING JAYA, Malaysia - Property prices have shot up by about three-fold in Penang because of an increase in surcharges imposed by the Pakatan Rakyat-led government, claimed a former council official.



According to former Penang Municipal Council's Town Planning Department acting director Khoo Boo Soon, the additional cost imposed on developers were eventually passed on to buyers, hence the drastic increase in property prices.

They include the increases in infrastructure contribution and re-zoning fees, and contribution of RM120,000 (S$47,664) per unit in lieu of building low-cost homes.

The infrastructure contribution charge has been increased from RM5 per sq ft to RM15 each for housing projects exceeding 15 units per acre.

For commercial projects, the infrastructure contribution is increased from RM7 to RM21 per sq ft for every unit.

The re-zoning fee had been increased from 25 per cent to 50 per cent on the difference based on the current value, he said.

"The fee is imposed by the council. But the state government also charges the developer 50% on conversion of state-owned land.


Source



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