‘High property prices due to Pakatan policies’
Penang developers now have to pay the state government three times more dues than under BN.
Athi Shankar, FMT
GEORGE TOWN: Nibong Tebal MP Tan Tee Beng has blamed the inflated property prices in Penang on the Pakatan Rakyat state government’s policies.
He said the exorbitant increase in developer contribution for not building low-medium cost (LMC) units and in development charges for increase in build-up plot ratio were the main causes for the unscrupulous property price hike in the island state.
Under the urban housing policy, he said the developer must pay contributions to the local government for not building the pre-conditioned 30 per cent unit of LMCs in a housing development scheme.
“The government will then bear the responsibility to build the affordable housing,” Tan told newsmen here yesterday.
Since Pakatan took over Penang five years ago, he said the LMC contribution charge has leapt to RM120,000 per unit, three times up from previous RM40,000 per unit under Barisan Nasional pre-2008 rule.
For instance, he said a developer has to fork RM3.6 million per 100-residential unit if they chose not to constructing 30 LMCs now.
Previously they would have paid RM120,000.
For an increase in build-up plot ratio rate, a developer has to pay RM15psf for the extra units. Previously it was RM5psf.
Increase in costs
Citing an example, Tan said if a developer increased the build-up per plot ratio from 15-units per acre to 87 – units per acre, the developer would have to pay some RM930,000 for the extra 62 units. This was based on RM15 x 1000sf per unit x 62-unit.
