The Penang government has given a developer a week to resolve the complaints of 56 buyers of low- and medium-cost (LMC) units in the Centrio Avenue project in Bukit Gambier.

Those who bought the 650 sq ft units at RM72,500 were up in arms when told to pay an additional RM28,500 for a car park and RM60,000 or more for a renovation package.

Jagdeep Singh Deo, the state executive councillor for housing, said the developer, the Boon Siew Group, has not responded quickly enough to the complaints.

"It is not a new issue. It is a work in progress but the progress is too slow," Jagdeep told a press conference today.

"I have called the developer to explain the situation to the housing committee members. I have accepted the explanation and give them one week to resolve the problem.”

Asked what action would be taken if this is not done, Jagdeep said: "When we come to that, I will let you know.”

Jagdeep also read out the show-cause letter sent to the developer.

"We will not tolerate any developer who forces LMC unit buyers to pay additional costs ...,” the letter reads.

"It is the developer's obligation to provide LMC units which are priced at RM72,500. If the buyers agree to the additional costs, then it is up to them.”

State excos Phee Boon Poh and Abdul Malik Kassim, MPs Jeff Ooi (Jelutong) and Sim Tze Tzin (Bayan Baru) and Bukit Tengah assemblyperson Ong Chin Wen - all members of the Selection Process Enhancement committee on housing - were present today alongside the developer's representatives.

Disgruntled buyers had initially taken their complaints to state assembly representatives last December, while a group of 20 submitted a memorandum to Chief Minister Lim Guan Eng last Thursday.

Following a meeting with the developer and buyers on Dec 3, 25 of the 81 complaints had been resolved.

Of the rest, 29 are pending discussion, 24 are yet to be called, and three have rejected the offer to purchase the units.

In Penang, the lack of affordable housing is a sore point with the public, given high property prices.