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Penang Housing Dilemma

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Average house prices in Penang have increased 50% in thelast five years, with even bigger rises seen on the island,particularly in the islands north-east region where theaverage condominium is now RM450,000, 82% higher

than five years ago-Stuart MacDonald, Penang Institute

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Yet the big increase in housing price

happened in the backdrop of oversupply ofhousing in Penang:

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Graphic: Stuart MacDonald, PenangInstitute

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Graphic: Stuart MacDonald, Penang

Institute

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Causes of housing price increase

Increasing population

Land scarcity

Property speculation

Increase of construction costs

MM2H

Malaysians working overseas are buying property at home

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Housing issues faced by low income group:

Low cost housing units are far from their workplace.

Indecent living condition of low cost units.

Higher cost of living by monthly rental and transportation

expenses due to unstrategic location to access workplaceand services.

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Many low cost houses tend to be built in undesirable areas,and connectivity to schools, public transport and gardensis not considered important. Its as if we are telling people,

You are poor, these things dont matter to you,

- Datuk Dr Toh Kin Woon, chair of the Centre of Economics, SERI

http://penangmonthly.com/addressing-the-housing-issue-seri-roundtable-discusses-one-of-penangs-major-problems/

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Implications:

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Distorted housing supply and demand

Housing affordability issue

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Bukit Gambir

Hill slope developement

Tanjung Bunga

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Tanjung Tokong

Batu Uban

Eviction of urban villages (informal settlement)

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The director of a local developer noted that, Ultimatelydevelopers are allowed to build their projects only aftercouncil approval so we cannot lay the blame wholly on the

developers.-Penang Monthly

http://penangmonthly.com/addressing-the-housing-issue-seri-roundtable-discusses-one-of-penangs-major-problems/

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Plight of urban villagers:

Village and sold to developers withour their knowledge.

The transfer of ownership has turned them into illegalsquatters on their own ancestral land.

Eviction of urban villagers with low compensation. Living in low cost housing units which does not fit to their

cultural lifestyle.

Eventually they become the victims of free market

economy on housing.

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