GEORGE TOWN: Penang may extend the three per cent waiver on approval fee for high-end property transaction until year end.
This is in line with the Federal government's move to extend the stamp duty exemption on all property transactions up to RM1 million, until Dec 31.
State Local Government and Housing Committee chairman Jagdeep Singh Deo said in Penang, the state government had allowed an exemption on the approval fee for property transactions by foreigners here for six months beginning early this year, which ended three days ago.
"I had raised this at last week's state executive council meeting and (discussion) will now continue tomorrow.
"In line with the Federal government's initiative to stimulate the housing sector by extending the stamp duty exemption for another six months, I will support the request for extension (on the waiver of the approval fee) at tomorrow's state exco meeting.
"I was made to understand that the move proved to be quite effective in Penang," he told the press here today.
Jagdeep said that in the past two to three years, the property market in the state had been rather soft, prompting the Penang government to put in place various measures to stimulate the housing sector.
He said statistics from the Land Office showed the state had received 55 applications for the waiver on the approval fee between Jan 1 and June 28, involving total transactions of about RM105 million.
"As a result of the waiver, the state actually lost RM3.15 million, but this is an initiative by the state to assist the housing sector," he said.
Asked if the Penang government had no qualms about losing the RM3.15 million, Jagdeep said it was the state's duty to assist in reducing the property overhang.
"In our case, we managed the overhang very well. On a year-on-year basis, we reduced the overhang from more than 3,000 units (involving all properties) to around 3,000 units compared to states such as Johor where the overhang figure has shot up to 10,000 units from 2,000 units.
"And if we look closely, the least overhang figure involves affordable housing, which is only double digit. So, the demand is still there," he said.