Penang agrees to waive approval fees for Mapex property buyers

PETALING JAYA (July 5): Those buying homes at the Malaysia Property Expo (Mapex) in Penang will be exempted from approval fees, said state executive council member Jagdeep Singh Deo.

The approval fees, which are set at 1.5% for foreign buyers and 2% for those selling their property less than three years after acquiring it, will be temporarily waived from July 22 to Aug 22, reported the Malay Mail.

However, the Real Estate Housing Developers Association (Rehda) will bear the fees and channel them towards Tabung Harapan Malaysia, he added.

The association had requested for the waiver of the fee to stimulate the sluggish housing market.

In response, Rehda Penang immediate past president Datuk Jerry Chan said the waiver will boost the state’s housing sector, and consequently the economy at large.

He added that there is an increasing demand for properties among returning Malaysians.

The approval fees were implemented in 2014 on Penang property buyers to deter property flippers and cool the market.

Jagdeep said the measure had tamed runaway prices as recent statistics show that 75% of the properties transacted are priced below RM500,000, but conversely, there is an overhang of properties priced above that amount.

Mapex will be held from July 20 to 22 at Udini Square, Gelugor, featuring properties by 12 developers that include affordable homes.