Penang has added 1,133 homes across five projects to its rent-to-own (RTO) programme, with the state government allocating RM49.26 million this year to acquire the units. State housing and environment committee chairman Datuk Seri S Sundarajoo said the purchase was made through the state’s trust fund for RTO schemes, aimed at helping lower-income households overcome financing hurdles. The units were added through the Penang Housing Board (LPNPP) for households able to make monthly payments but facing difficulty obtaining conventional bank financing, as reported by EdgeProp on 15 September.
The 1,133 units are spread across five housing projects: 187 units at Mak Mandin Indah and 144 at Vista Perdana, both in Butterworth; 107 at Pekatra Indah in Simpang Ampat; and 55 at Harmoni Vista in Teluk Kumbar. The remaining 640 units, more than half the total, are at Pangsapuri Pinang Setia in S P Setia Bhd’s Setia Fontaines township in Bertam, Kepala Batas, targeted for completion in 2029, according to Penang Property Talk. The Bertam project represents the single largest allocation in this tranche.
Under the RTO structure, eligible applicants rent the homes first before gaining a pathway to ownership, with monthly payments starting from RM250 over 15 years, subject to project terms and conditions. The scheme targets households that can manage regular monthly payments but struggle to secure conventional bank financing, eliminating the need for large upfront deposits and loan interest. Units are priced between RM42,000 and RM72,500, with the state absorbing the gap between market construction cost and sale price.
The latest tranche brings the total number of RTO homes under the state programme to 13,277, or about 60% of its target of 22,000 units by 2030. The state set that target under Penang2030’s Strategic Initiative A1, which focuses on housing affordability and diversity, EdgeProp reported, citing Bernama.
“Providing housing is not merely about how many homes we build. More importantly, it is about how many people ultimately get the opportunity to own a home they can call their own,” Sundarajoo said in a Facebook post, as quoted by EdgeProp.
Meanwhile, Penang’s broader Rumah MutiaraKu (RMKu) programme has reached 176,457 units, or 80.2% of the state’s target of 220,000 units by 2030. The RMKu scheme covers multiple housing tiers, from low-cost units at RM42,000 to mid-range options priced up to RM300,000. Sundarajoo said the state would continue to pursue more flexible and inclusive housing approaches that take into account the financial capabilities of Penang residents, as reported by EdgeProp.
