The 20% quota for non-Penangites is under the “open market” category of affordable homes, which was increased from 30% to 40% today.

The 30% open market category was introduced last year to encourage the sale of units under the affordable homes category. However, it met with limited success due to the high loan rejection rate.

The open category is not bound by affordable homes pricing and is subject to prevailing market rates.

Currently, government-set prices are between RM150,000 and RM300,000 on the island, and between RM150,000 and RM250,000 in Seberang Perai.

While announcing the policy today, state housing committee chairman Jagdeep Singh Deo also announced higher income eligibility for all affordable homes for Penangites.

He said in each category, the income limit had been raised by RM2,000. For the RM150,000 homes, the eligible household income is now RM8,000; RM200,000 homes, RM10,000; and RM300,000, RM12,000. This applies to the affordable home units in the entire state.

Jagdeep also announced a waiver of the one-off 3% approval fee for foreigners purchasing properties in the state for the entire month of February to boost Chinese New Year sales.

Currently, foreigners can only purchase landed properties on the island priced from RM2 million to RM3 million.

As for the mainland, foreigners can only purchase apartments priced above RM500,000, and RM1 million for landed properties.

Jagdeep said with the 3% fee waived, foreigners need not pay RM90,000 for property worth RM3 million.

“Penang is a place where your investment in property cannot fail because it is a sought-after address. The earlier you come, you stand to get a lot, your property prices will increase,” he said in Komtar today.

Jagdeep said the current overhang or unsold properties in Penang was “manageable” at slightly over 3,000 units. He was confident the cooling measures would see these properties quickly snapped up.

Last year, it was reported that more than half of the properties available in the market were priced above RM500,000, which led to the state urging developers to put a hold on luxury homes.

According to National Property Information Centre data, there were 4,092 unsold or overhang units in the first quarter of 2018, with 2,383 units priced at RM500,000 and above.

Of the 2,383 units, 901 were priced at RM1 million and above, and 1,482 at above RM1.5 million.

Currently, the capped prices of properties under the state-sanctioned “affordable homes” category on the island are RM150,000 for a unit measuring 750 sq ft, RM250,000 (800 sq ft) and RM300,000 (900 sq ft).

On mainland Seberang Perai, the prices are capped at RM150,000 (750 sq ft), RM200,000 (800 sq ft) and RM250,000 (900 sq ft).

As for the low-cost and low-medium-cost categories, the prices of homes are set at RM42,000 (650 sq ft) and RM72,500 (700 sq ft).