Don't deny housebuyers their rights, Penang gov't told

The Penang Malay Congress has criticised the state government’s decision to bar owners of low- to medium-cost houses from selling their property for a period of five or 10 years.

Utusan Malaysia quoted its president Rahmad Isahak as saying that the move - announced in the 2014 state budget and to take effect from Feb 1 - runs counter to the Penang government's aim to raise the standard of living of the people.

"Why doesn't the state want to see buyers of affordable houses upgrade (their property) over the (stipulated) period? Why must their right to profit from their own property be blocked?” he reportedly said.

“Affordable homes cannot be equated to low-cost homes ..."

Chief Minister Lim Guan Eng had said that the move is to curb the likelihood of a property bubble and to ensure that genuine purchasers from the lower- to middle-income groups can afford their own homes.

Under the new rule, those who purchase affordable homes (RM400,000 and below on Penang island, or RM250,000 and below on the mainland) cannot sell their property within the first five years.

Low-cost homes (up to RM42,000) and low-medium cost homes (up to RM72,500) cannot be sold within the first 10 years.

Rahmad, a former DAP member, said the rule will impose a burden on poorer  Penangites.

He also claimed that the state government had skewed its housing policy to encourage developers to build homes for the elite only, as this is more profitable.