Surge in Penang projects expected with the election fever finally over
GEORGE TOWN: The value and volume of construction projects that will be given out this year in Penang should increase by 10%, compared with 2012.
Penang Master Builders & Building Material Dealers’ Association president Lim Kai Seng said the first quarter of 2012 was slow for the industry, due to the uncertainty of the general election.
“According to the latest Construction Industry Development Board Malaysia (CIDB) report, in the first quarter 2012, the volume of construction jobs from both the private and government sector awarded in Penang was only about 10% of the total volume awarded in 2011, which was 514 with a value of RM6bil.
“Normally, the figure for the first quarter of the year should be around 25% of the previous year’s figure.
“The value of construction jobs awarded in the first quarter 2013 was approximately RM651mil,” he said.
About 15% of the construction jobs awarded in the first quarter 2013 for Penang came from the government sector.
“Now that the general election is over, we can expect more property launches to take off in Penang soon. This is why we are confident of more construction contracts to be awarded in Penang this year,” he said.
On construction costs, Lim said prices for building material such as cement and sand had remained stable since late last year.
“A bag of 50kg cement is still RM16.50, while the price of sand is RM40 to RM45 per cu metre, more or less the same as late last year.
“The costs of construction should remain like this till the third quarter,” he added.
To build a 1,000sq ft condominium in the south-west district of Penang today would cost around RM250,000, inclusive of land cost, Lim said.
Meanwhile, the Malaysian Institute of Estate Agents (MIEA) expects the prices of all types of strategically-located properties in the country to rise by 10% to 15% this year.
MIEA president Siva Shanker said the volume of property transactions should rise by 5% to 10 % this year.
“As the general election is now over, Malaysians with disposable income to buy properties are now in the buying mode.
“The real estate market has been getting more enquiries on properties in strategic locations the last few days after May 5, despite the complaints on the irregularities of the general election which have affected the feel-good factor,” he said.
Siva said last year, especially in the first half, there was a slowdown in the property market due to the tighter loan conditions imposed by banks.
“But now most of the people have got used to the banking guidelines for housing loan. They now have a better idea of the chances to get the kind of loan that they want, which will reduce rejection rate,” he said.
Siva said strategically-located high-end condominiums in the country, especially in Kuala Lumpur, would perform well.
“These projects used to command the interest of foreigners, but nowadays even Malay-sians are interested in buying high-end condominiums that come with lifestyle living,” he said.
According to the National Property Information Centre 2012 report, the volume of all property transactions recorded 427,520 in 2012, about a 0.7% drop from the 430,403 transactions registered in 2011.
The value of all property transactions had, however, increased by 3.6% to RM142.84bil in 2012, compared with RM137.83bil in 2011.
The volume of residential property transacted in 2012 was 272,669 with a value of RM67.76bil, compared with 269,789 with a value of RM61.8bil in 2011.
Raine & Horne Malaysia director Michael Geh said he expected property prices in Penang to rise by about 10% this year.
“There will be more property launches in the next six months, compared with a year ago. Developers in Penang are now getting ready to execute their project plans for this year.
“We expect to see large-scale launches in Batu Ferringhi in the north-east district and in Teluk Kumbar and Bayan Lepas in the south-west,” he said.
Geh said the tighter conditions on housing loans would weed out speculators, as many of them would find it more difficult to borrow, since they were already owning more than one properties.
“We expect less speculators this year and more genuine home buyers,” he added.
Geh said that although the demand for high-end condominiums had weakened slightly in Penang, their prices had not dropped.
“We can expect to see more high-end condominiums being rented out this year, plunging further the rental yield in Penang,” he said.
Source: StarProperty.my
Fantastic! May property prices in Penang Island shoot up even higher…..Looks like the south west area will boom further with the completion of the 2nd bridge……All augurs well for the Island
My Sense-Sarcasm-O-Meter seems to have blown up because I have been spending too much time in the company of property investors and agents :). Can we all agree to implement a Universal Sarcasm Alert Emoticon as follows when being ironic? :-s
“To build a 1,000sq ft condominium in the south-west district of Penang today would cost around RM250,000, inclusive of land cost”
If this is true, let’s say 1000sqft is selling at 500k, developer will get 100% profit???
I would suggest buying now rather than waiting as prices seem to be spiraling out of control…. south west area seems to be a good place to stay now….
@islander_ori
The cost is inclusive raw material + land + labour? If yes, RM250k should at least sell at RM500k, else how to sustain? The administrative cost of the company, tax, advertising, and many other cost (UT) still not yet factor in….
Good news … bubble going to burst … price drop coming !!
In 2007/2008 economic down turn, expected price to drop. No drop.
In2009, I learned my mistake already, no more dreaming, and bought a condo from developer, that time , everyone said expensive . 3 years later, the condo cost RM200K more in secondary market.
My lesson, I don’t care and bother how much developer sell, so long as location and budget is ok, I will buy. Last year, I commit 1 double storey landed house.
2nd phase by similar developer recently launched already increase the price, not even OC yet.
Price will drop in Penang Island?, I don’t know. In fact, no body knows.
I yet to see. I don’t bother as I bought within my budget
No wonder you do not have a roof under your head…… pity your children, Father
@Sam
Dream on dude, watever goes up will come down. The price of the houses did not drop on 2007/2008 bcos not much new projects is launching and financial loan is tighten. But now scenerio is different,everyone can buy houses with just few k downpayment, if economy crisis coming this round sure it will wipe off those without strong holding power n just depend on montly salary to pay off. This will b another USA history in making.
@Crime
I wish more will think like you and miss the boat and then scramble when the prices are higher….thanks for buying secondary market houses, dude
@Crime
Will your prediction happen in 2013?
Hello Crime.
Don’t talk to suit your own interest/hope.
Substantiate with facts and data.
2007/2008, many projects launched also, remember Summer Place by IJM, One World 1 & 2, etc
Loans wise, it is tighter now- 70% loan for 3rd property , nett income instead gross income for loan elegibility.
Influential developers, banks , real estates agents, existing property owners, and hell, even government will do everything to ensure no property crash, as it is a main component of economic.
So, just because 1 or 2 unrealistic guys hoping to buy a condo at RM250K during lelong, the property price will crash?
@Crime
Please let me know 6 months before that happen because I don’t have strong holding power. So that I can sell before the market crash……
Thanks in advance!
For Penang Island property price to crash, it requires a severe economic down turn with many factories closing down.
People who hope for this to happen , be careful with what you wish for , you might be the first to be hit/ lose your job. You may even lose your living hood.
You may be able to see cheap house in bank auction, you may not able to secure loan .
Even Penang will be nothing at that time, might as well move back to home town.
Who cares if Even Bayswater at RM150K
Not just lose living hood….. even the hood will be gone by then…. so wish our dear Island all the best and may it always prosper like it has always been since Francis Light landed 1786….. hip hip huray…. hip hip hurray……hip hip huray for Penang Island
But also spare a thought for someone on this Island who already does not have hoot already… so sorry for the person….
many speculators here making the loudest noise .. they are worried if the price start to drop … they’re up to their neck in debts but now oversupply & thousands of empty units coming soon …!
@Spirit
Please be informed if speculators are in debt, they won’t be call speculators.
Price drop doesn’t matter, many have the $$$ to withstand, no problem.
My only advice is to buy landed properties and only on Penang Island….. watch out for the south west side which is coming up very fast…..prices are still reasonable but give it another 2-3 years and it will be at par Tandjong Bungha
@Ryan Ong
Which means the market will not crash for the next 2-3 years?
The region is booming but if the job in factories are not increasing, or worst some factories move out, it will directly hit this region. Hopefully other economy activities can be establish well in this region.
Any reason why only the speculators will be hard hit if market crash? Will owner occupiers spared?
@Bryan
Crash will not come if we expect it……if we keep on talking about it like some of you here then it will not materialize…..go ahead and buy……the future is bright……you snooze, you lose…..
@Ryan Ong
I have the same thinking too. Crash normally come unexpected. If everybody are alert about it, the most is soft landing.
the properties are all way overpriced … the true valuation price should be rm300 psf
let us all pray for price drop ..
@islander_ori
Normal ler.. i think developer always build 1 and earn 1. Else, how can they get like 12 month bonus etc for those employee?
@My lover
you better pray on how to earning more capitals countering the uprising prices..
If only properties drop till 300k, then a normal char koay teow will also drop till Rm2.00. How i wish our bmw, benz will drop till below 100k. Yea dream on, my lover.
Those who already own property pray crash wont happen, while those still dont have any property pray crash to happen ASAP (must ASAP, if happens only 5 years later, no benefit for them).
Hahaha
Then,
Wantan Mee – RM0.30 like my primary school time
My mother last time budgetted RM50 to buy 1 month groceries-Milo, Sugar, Nestlé Milk, Colgate, Jacobs, etc etc
Some time, it is Good to walk down memory lane and dreaming.
Enough, late already, Good Night.
Tomorrow morning, wake up , the reality is RM700K for a decent , reasonable big, acceptable good location, 2 car parks condo.
@ezalor
What’s there to pray for those who already own property.Crash,
burst or EXPLODE it does not matter.
we need to pray hard for big price drop … something to happen that is beyond control of the government, the greedy developers & evil speculators .. that is due to an act of God.
a.k.a. Good vs Evil, Poor vs Rich ….
Do you know a big price drop means severe economic downturn and a massive lost of jobs in Penang Island? How many families will be affected if that happen? Do you want to see many innocent people suffer?
So, just because you alone yet to buy house and now wish to see, for example – Bayswater for RM150K, wish for collapse of Penang Economic.
Who is evil now?
Well Said, Janet
Sigh, When i bought D Piazza Condo that time, just few years after graduation, my colleugues said no need so early la, very expensive la-not worth it la, Bayan Baru la, and this developer la…
Why Blame this and Blame that? No body blame himself like
(1) Why change to brand new Honda Civic, not buy house first? i still drive old Wira now
(2) Why dont study hard, so that becoming a Heart Surgeon – earn more to buy The Light
(3) Why……..
People always conveniently blame others.
The fact is developer or earlier purchaser did not put a gun on your head to force you buy.
You can choose not to participate.
@My Darling
@My lover
“My darling and my lover” seems to hope for price to drop, drop and crash!! One prayed, another said act of god.. Seems that we have two or maybe the same person which i believe is poor,disappointed and thinks he/she is good but fact is simply selfish.. C’mon, work hard to earn yourself a decent house. If cannot afford no need pray here n there.. Hope here and there at the expense of others out there who might suffer if economy crash.
Even with more cooling measures, prices maybe stagnant, stabilize.. For how long?? Then the surge will come and prices will go up! Just live according to your capability.. If you want a really decent house then do something for yourself! Go get a landed in tambun.. It’s more affordable there..but further.
Don’t hope for miracle, coz I have not seen any of this miracle happening in SGP nor HK. Act fast or continue hope and pray hard. You choose!! To all buyers, speculator/investors.. Good luck!
Pray & Hope forever la for those still dreaming….
Better act fast for yourself. If the price is not right for you, then look somewhere else. Butterworth, Raja Uda, Tambun, BM and all the mainland so many choices.
If still have the “self-proud” mentality then pay for the price to buy expensive in Penang Island lo.
WHETHER you have just committed (or going to commit more) expecting the price of property continue to climb up OR you wanted to a house at cheaper price (or you just cleared out) looking for the property price to go down.
Do you have a good understanding of the underlying factors both fundamental and pricing catalyst to property market, in other words, you should ask yourself that DO YOU HAVE THE CONVICTION ON WHAT ARE YOU DOING?
For those “buying for investment” stop regard your act as “investment” you are just speculating the price, you know nothing about what are you doing, maybe you should review and evaluate your investment portfolio.
For those wannabe smart buyer hoping for bottom fishing, I hope you won’t occur to drown to death before catch any fish unless you know exactly what are you doing and able to remain objective.
I am old school, raised in less-affluent age of 80s and educated under old-school system, but it taught me one important lesson “be independent and deal with your own problems” – that’s you should be able to analyse independently, follow you own light and remains objectivity – know what are doing for you own benefit, own your problem (if any) and deal with it.
In addition, another common problem with people is, instead of doing own homework, we like to “gut feels”, we always only want to listen to tips / “free professional advice” in same channel with our hunch. “Free advice”, you think the professional only live with “eat shit”? Another lesson we must learn is “there is no such thing as free lunch”.
One last thing, work hard won’t make you affordable of what desirous, besides work hard you need to have a plan, follow your plan, review the progress and evaluate your plan regularly and make adjustment if necessary. Just a piece of advice for those decent people who want to buy their house, don’t time the market, you need a plan that with the time you have, review all options available, budget your expense and find a way to increase your income.
@CY Fong
“For those “buying for investment” stop regard your act as “investment” you
are just speculating the price, you know nothing about what are you doing,
maybe you should review and evaluate your investment portfolio.”
Who are you, why should people listen to you ? Are you “GOD” ? Talking
NONSENSE. Keep it to yourself.
@CY Fong
I guess you are some expert in this shit since you are OLD school here n there with vast experience.. Of course you know what shit you are doing too. This is a forum where people share views, opinions and of course advice. Nothing is right or wrong. Only time will tell what will happen.
Instead of just “speculating” on your thoughts about “you know nothing about what are you doing”, why not share a little bit of your old school wisdom to this forum where people may understand better on the factor and catalyst which drives the property market up/down? Thanks in advance if you are willing to share.. Else please have some respect to others!
CY Fong, why not u stay there in your 80’s or even hav a class of the 80’s. During that time a char koay teow is only Rm 0.30sen, why not u try to buy one at Lorong Selamat see what the aunty sd. Letz be realistic, people keep on improvin or upgrading themself no matter in what way you named it, etc. Wealth, knowledge, technology, lifestyle. Mana ada orang buy kancil today and 10 years later still buy a brand new kancil. Think harder brather.
@CY Fong
No way house prices going down especially on Penang Island…. looks like you are stuck in time warp… I pity you as day in day out you seem to be building castles in the air hoping to buy 10 houses with your entire lifetime RM25,000 savings
@CY Fong
well said, support, agree
Those with peanut size brain will have to support.
those big ass brain size but without deep pocket talk big and dream on also useless at the end, unless u are jho low then i will see the value of ur point else just another tom dick harry dream castle on the sky.
Notice how a peanut size brain works ? Low mentality, low esteem that
are the qualities this person possesses.
in penang , rental yield for terrace houses are very very low yet the prices of such houses are very high up to millions of ringgit . Not many malaysians can afford to buy for own stay at such prices , so the bulk buyers and speculators who have already bought those houses but never intend to stay there and never intend to rent them out due to low rental yields have managed to create ghost town after ghost town laaa . No wonder all around penang lots of million ringgit properties at night have very few lights on ! Who would want to stay in an area where there is a very low occupancy rate hence being an easy target for thieves and robbers ? Having guards also can’t stop renovation gangsters who can easily turn into robbers and thieves once the renovation works run out …. eeeewww a very frightening scenario !
Only the rich can afford landed property in penang, why would the rich want to stay in a little terrace house ? Because the price is so expensive hence the rich would want to stay there ? The rich just want to gamble with it, the rich just want to wait for its price to jump like crazy in the future , the rich has no intention to stay there . When so many houses are left vacant for whatever reason , that’s not good ! Who does the rich wanna sell it to ? Foreigners – Less than 3 % . Majority Malaysians – can’t afford . Wow, the market is so small already !
This world is fair, and u cant blame it. Life goes on everyday even when u are sleeping. Tambun, sometimes ignorance is blissful right. Haha, I pity u. So as long as I do concern I will never sell my 4 property in the island lower than the market value even if its economy downturn I will still hold on to u. You can call me one arrogant brat but what I can tell I hav the holding power and many of investor out there are in the same position as me. We as a investor will not be so stupid to let our property go into auction before we reap our profit. Do u think that make sense. Funny there is still people with your mentality…
@LoverBoyz
Penang island is small, yet so many buildings everywhere with very poor drainage system …. build . build , build until no more hills and trees and only concrete jungle left . Its not the auction that you need to worry about. Its the flash flood that will get worst each year and that is what you need to worry about the most . You see, rich people your potential buyers don’t like to get their very expensive cars get stuck on a flooded road, which is very damaging to their cars and pride . Even now so many roads in penang suffer from flash flood already, in future the whole penang island can become one big pool . The gov. can’t solve it, just look at jalan perak and jalan p ramlee, so many years still suffers from the same problem, no solution ! And teluk kumbar area with flash flood and all , still can sell houses millions of ringgit aaa ? What a joke !
Who’ s the donkey who say the world is fair ??? obviously the idiot is not aware of the reality … the greedy & unscrupulous rich (developers, bankers, agents … ) taking advantage & exploiting the poor & homeless while the authorities just turn a blind eye & deaf ears to all the pleads & calls to take action against those unprincipled daylight robbers & blood-sucking leeches …
we can’t let these greedy crooks continue manipulate the ridiculous & outrageous prices , we need price drop … pray for almighty devine intervention for Big price drop
@fellatio
Price will drop because the water got nowhere to go anymore in the future there will be flood , flood and flood in penang ! Flood is the most discouraging and damaging factor that can drive away property buyers !
@yeahright
That did not answer the question. Read what you had quoted to which
I had pointed out. Just simplified and to refresh your memory.
1) Only millionaires can buy.
2) The sea around Penang is a big septic pool.
3) Are you from mainland ?
@yeahright
So? What can you do about it? You gonna ask people to boycott new development which is not environmental friendly? Since when any residential dev is environmental friendly? You wanna build an attap house also need to clear the areas from trees or plants. Population are increasing, high rise is the answer for the island because that’s where the center of penang’s economy,offices and etc is located…
So how? To save nature or to reduce flash floods from happening more regularly, to clean up the pool of jelly fish n e.coli, we should do something? Yes.. I agree. But what? Instead of complaining and highlighting this issue here, why not do something? Do something big and effective. Go dedicate yourself in saving penang. We need ppl like you.
one of the most effective measures to reduce intense speculations and curb escalating house prices is to increase the RPGT to at least 50% for the first 5 years …
the current RPGT at 10% is simply too low … very insulting
@Bryant
When it comes to flash floods , even the gov. is powerless and thoughtless . They tried to dig up the rivers, but at the same time they allow the seabed to be filled with mud and sand . That’s like making a crater on the island for the flood water to linger around even longer ! Can the gov. stop the developers ? The gov. allow that to happen and the developers will not stop making profit even at the expense of the environment . I can’t save penang when it comes to flash flood, no one can . For years and years jalan p ramlee has been flooding yet no one can resolve it , then what makes you think flooding on other roads can be resolved ? I don’t have to ask people to boycott anything, because nature will take its course whether we like it or not , once flash flood becomes worst in penang then those who decide to stay will have to suffer through it laa .
Its frustrating people who complain a lot…. (well, as have been said before, be more flexible)
Buy elsewhere, nobody is forcing anyone to buy properties in Penang Island. If you feel the price is overvalue, then just ignore the project. Don’t buy…habis cerita.
Complain here whole day and night also no point. But I seriously think it is sinful to pray and wish bad things happen to other people just because that dude have a property in Penang Island.
it is really shocking & unprecedented that the authorities are doing nothing to curb the rampant speculations and manipulations by greedy unscrupulous cartels pushing up the escalating house prices … the authorities need to act responsibly and fast against these evil forces & approve more affordable housing for the people … the current situation is like a timebomb waiting to explode !
Hmm, endless to arguments, since elections over, i guess the focus is which type of property to buy? which is worth your hard earn (blood sweat) money.
Again we cannot rely on historical data alone. Typically Penang lang “cost-concious” and focus too much on cost instead of REAL underlying VALUES. Eg. typically G&G is not consider as valueadd by the “matured” generations.
sometimes we shud look at bigger picture and make comparison with other cities too…where we r now? how can we used other to predict the futures trend.
In case you missed some of this interesting articles.
https://www.penangpropertytalk.com/2013/04/the-perfect-property-is-gated-and-guarded-near-work-and-has-good-neighbours/
https://www.penangpropertytalk.com/2013/05/5-common-home-loan-mistakes-that-people-make/
let’s continue the arguments…..good luck!
@CommonSense Buyer
The main problem for G&G is the maintenance fee and the poor management. And the strata title instead of individual title.
Buyers may consider G&G for better security, but in reality, no solid effect. The security guard responsibility is just pushing the bottom to let visitors go in, or slightly better one may register the visitor.
Good…this article is a bullshit. The property price still the same.
@CommonSense Buyer
you won’t be able to find good neigh….as our neigh are all rental neigh. Have you ever have bangala as neigh?