Awang Tengah: Land premiums in Selangor and Penang exorbitant
Land premiums in Sarawak are still among the lowest when compared to states such as Selangor and Penang which are governed by the opposition.
Second Minister of Planning and Resources Management Datuk Amar Awang Tengah Ali Hassan said a study carried out by the state Land and Survey Department revealed that rates in Penang and Selangor had always been substantially higher than those in Sarawak.
As such, Awang Tengah said, the land premium issue raised by the opposition was merely aimed at confusing the people.
“For the sake of clarity, let me reiterate that in Shah Alam, Selangor, residential property with the term of 20 years, to be extended to 99 years, the estimated premium payable would be RM25,000 per unit for terrace house, RM55,000 per unit for semi-detached house and RM71,000 for detached house. These are respectively 19 times, 14 times and nine times more in terms of land premium for extending the term of such titles in the state,” said Awang Tengah in his winding p speech yesterday.
He pointed out that in Gelugor, Penang, the premium for extension of titles for residential premises was RM12,000 per unit for terrace house, RM36,000 per unit for semi-detached house and RM61,000 per unit for detached house. These are at least eight times higher than the premium payable for similar properties in Sarawak.
“As what I had mentioned in DUN sitting last May, the state government only imposed a premium of RM1,000 per unit for a terrace house, RM3,000 per unit for a semi-detached house and RM6,000 for a detached house,” he said.
For renewal of land titles to 99 years, Awang Tengah said the premium were RM1,300 per unit for terrace house, RM3,900 for a semi-detached house and RM 7,800 for detached house.
“From the study and analysis, it is clear that residents in Selangor and Penang are paying more than eight times that of residents in Sarawak.”
Awang Tengah added that a study on the premium charged for the renewal of lease periods for shophouses were also conducted in both Selangor and Penang. The study revealed that shoplots with around 20 years of lease left in Georgetown and Sungai Nibong in Penang need to pay premiums of RM204,000 and RM150,000 each to renew their lease to 99 years.
For the renewal of 60 years, the Sarawak government only imposed a premium fee of RM40,000 per unit of shophouse in primary town, RM20,000 per unit at secondary town and RM10,000 per unit for shop houses in the rural areas.
Awang Tengah added: “On the other hand, for renewal of 99 years, the state government imposed a renewal premium of RM52,000 per unit for primary town shophouse, RM26,000 per unit for secondary town and RM13,000 per unit for those located in the rural areas.”
The study also found that both states did not practice automatic land ownership renewal, unlike what was claimed by the opposition.
“It is clear that our state government does not burden the people with high land lease renewal charges. We are even ready to take into consideration lower charges based on merit for some cases,” he said.
Posted on November 9, 2010, Tuesday
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