State housing committee chairman Jagdeep Singh Deo said the state government had considered an application from the Real Estate Housing Developers’ Association (Rehda) for the exemption, as a means to stimulate the housing industry.

“This will be from July 22 to August 22. But it is also on condition that Rehda will pay the fees instead of the buyers. These will go into Tabung Harapan,” he said at a press conference today.

“Due to the soft housing market and slow economy, the state government has agreed to waive the 1.5% approval fees for foreign buyers, and 2% approval fees for those who decide to sell their property purchased in under three years.

“Such a measure will stimulate the state’s economy and housing sector, which has been seeing a slowdown in the last few years,” he added.

Approval fees were imposed on house buyers in 2004 as part of cooling measures to prevent speculation in the property sector.

According to Jagdeep, such measures had proven effective in stabilising the market, with recent figures showing 75% of property transactions were for properties priced below RM500,000.

Meanwhile, Rehda Penang immediate past president Jerry Chan said the exemption would be able to stimulate the housing industry in the state.

“Such a move will also spur the economy. Not only is it good for developers, other related sectors also stand to benefit,” he said.

Mapex, which showcases affordable housing products, will be held at Udini Square from July 20 to 22.