GEORGE TOWN: Penang is mulling to compel low-cost (LC) and low medium-cost (LMC) unit owners to sell their properties back to the state if they were moving to higher-end properties.
State Housing, Town, Country Planning and Local Government Committee chairman Jagdeep Singh Deo said the move would help to reduce the burden of building more LC and LMC units, and prevent the unit holders from making excessive profit by selling their houses in the open market.Jagdeep said it was only appropriate that the unit holders return their properties at the purchase price.
“We are against unit holders making high profits by selling their units in the open market and not to those who are eligible,” he said in Batu Ferringhi yesterday.However, he said there were some legal implications that need to be ironed out before these rules were implemented, adding that the state was serious in finding a solution to the issue.
“Some federal laws too need to be amended to enforce these rules and both the state and the Federal Government are on the same page on this issue,” he added.Jagdeep said while the new laws, when implemented, would affect new projects, the state is keeping its options open to include certain old projects under the new category.
“I first brought up the issue in the last state assembly and since then, we have been working with the government to implement the new rules and hopefully they will be implemented soon,” he said.
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