GEORGE TOWN, Nov 22 — Penang’s residential property prices are getting higher in line with the increase in the average household income in the state, Datuk Seri S. Sundarajoo told the state legislative assembly today.

The housing and environment committee chairman said the increase in property prices also reflect the recovery of the housing and property industry in Penang after the Covid-19 pandemic.

"The average increase in household incomes in Penang will allow Penangites to own homes even though the property prices are higher than the median price,” he said in reply to Sungai Dua assemblyman Muhammad Fauzi Yusoff from PAS.

Sundarajoo said this can be seen in the number of unsold units for properties priced below RM300,000.

"According to the National Property Information Center report for the second quarter of 2023, only 502 out of 2,901 units, or 17.3 per cent, of properties priced below RM300,000 were unsold,” he said.

He said a majority of the unsold units were due to buyers unable to obtain loans.

Muhammad Fauzi had asked the state government about its plans to help Penangites buy their own homes.

He claimed Penang property prices are ranked second most expensive in South-east Asia with an average residential property price of RM330,000 – which is higher than the median price of RM234,072.

Sundarajoo said the residential prices in Penang increased by 5.78 per cent in the first half of this year, adding that the state is the second best performing city in South-east Asia.

Citing Knight Frank Asia Pacific’s residential review index for the first half of 2023, the Penang state executive councillor said Singapore recorded an increase of 7.97 per cent, followed by Bangkok with an increase by 4.36 per cent.

He said Penang’s home ownership campaign introduced in June 2021 has effectively spurred the industry.

"In this policy, the maximum prices for affordable housing was capped at RM270,000 on the island and RM225,000 on the mainland,” he said.

He said the ratio of housing price at RM270,000 to the average income of Penangites at RM6,502 is at 3.4 which is a positive trend for home ownership as compared to RM300,000 (which is a ratio of 3.9).

He said the ceiling price of affordable housing in Penang is still controlled at RM300,000 under the state’s housing policy to boost and enhance the sale of affordable housing.

He said the affordable housing prices in the state are still between RM42,000 and RM300,000.