Penang has denied reducing the ceiling price for foreign property purchasers in the state or giving them a discount to buy houses.

State executive councillor in charge of housing, Jagdeep Singh Deo, said there was only a proposal from the Penang Real Estate and Housing Developers Association (Rehda) to review the ceiling price for properties that can be purchased by foreigners.

Jagdeep expressed his grave disappointment with Malay language daily Utusan Malaysia, which reported yesterday that foreigners were given discounts to purchase properties.

Describing the report as “totally inaccurate and slanderous” towards the Penang government, he said the issue of giving discounts to foreigners never arose.

“We do not favour foreigners. I have said this is a decision that we have yet to make,” Jagdeep insisted.

The ceiling limit for foreigners to purchase landed properties in Penang remains at RM2 million and RM1 million for apartments on the island.

As for the mainland, the minimum price for landed properties is RM1 million and RM500,000 for a condominium.

Due to the current economic situation, Rehda proposed that the state government reduces the minimum price to RM800,000 for condominiums on the island, Jagdeep said.

Jagdeep was previously reported as saying that the numbers of foreigners buying properties in Penang have reduced by 50 percent since 2013.

He said there was also a proposal from Rehda to reduce the three percent levy imposed on the sale of properties.

“At the Penang International Properties conference last Friday, I informed the participants, comprising developers and property agents, that I have received the proposal but there is yet to be any decision on the matter,” Jagdeep told a press conference.

“We still need to review the reasons and justifications for the proposal before making any decision,” he added.