‘High property prices due to Pakatan policies’

Penang developers now have to pay the state government three times more dues than under BN.

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.

Under current state commercial development regulation, the rate now is RM21psf. This too is another three times increase from the previous RM7psf under BN.

Based on a RM21 x 43,560sf x 2.2 calculation, developers now have to pay some RM2,012,472 per acre for the 2.2 times extra commercial unit build up.

Tan said that the DAP-helmed state government had only told half-the- truth by claiming to allow more build-up plot ratio than BN when “the truth is it costs more.”

“All these increased rates surely hike up development cost by three folds.

“To absorb this extra cost, the developer will add on to his sale price together with other charges as well

“The burden falls on the consumers,” said Tan, formerly from PKR and Gerakan.

Hence, he said property price had increased from RM150,000 per unit previously during BN to RM400,000 now under Pakatan.

“After we see all these circumstances, now, let us ask ourselves, who is the cause of inflating the housing price in Penang?

“Blame it solely on Pakatan state government,” insisted Tan.