Government imposed surcharges affects prices of property in Malaysia

Surcharges imposed by the Pakatan
Rakyat led government in Malaysia are responsible for a significant increase in
the price of property in Penang. That’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 (£24,620) per unit in lieu of building low-cost
homes. In addition, the infrastructure contribution charge has been increased
from RM5 (£1.03) per sq ft to RM15 (£3.09) 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: “It 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?

“The 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.

Author Homesgofast.com Nick
Marr