State Housing Committee chairman Jagdeep Singh Deo said Rehda’s request was due to “economic uncertainties” hampering the property market.

The Penang government currently imposes a minimum-buy rule for foreigners in the state. On the island, foreigners can only buy condominiums costing above RM1 million or landed properties valued at more than RM2 million.

To curb speculation, a 3% levy is also charged on foreigners buying property, except for those setting up factories through the state government.

“Rehda had asked us to bring down the minimum price for the island, suggesting that we reduce it to RM800,000 for condos and to reduce the levy.

“I would like to state that we have not decided on this. It is a request we will study,” Jagdeep told reporters at the chief minister’s office here.

Jagdeep denied a report in Utusan Malaysia that foreigners would “get a discount” on property purchases, saying it was “not true and was a malicious lie”.

Utusan quoted Gerakan vice-chairman Oh Tong Keong as saying the Penang government “has already decided” to reduce the minimum price for foreigners buying property on the island.

Oh was reported to have told the daily that he was made to understand the matter through several Chinese dailies.