Residences make up bulk of Penang’s property sales
GEORGE TOWN: Despite a softer property market in the first quarter of this year, Penang’s residential sector has continued to claim the lion’s share, or 75 per cent, of the total 5,756 properties transacted.
A research report by Henry Butcher Malaysia Penang shows that the total number of properties transacted in the first quarter of this year fell 18 per cent compared with the 7,007 transactions recorded in the same period last year.
“However, despite a drop in the number of transactions, the total transacted value of residential properties increased by 3.5 per cent in the first quarter of 2013, due to the relatively strong demand from home purchasers as well as property investors, coupled with the limited supply of residential stock in the market,” the report stated.
The Penang government last year imposed a guideline on the minimum purchase price of property for foreign investors.
On Penang island, the minimum prices for strata-titled and landed properties have been capped at RM1 million and RM2 million, respectively. For permanent residents, however, the existing limit of RM500,000 is retained.
Applicants under the Malaysia My Second Home programme are not affected by the new ruling as the minimum price remains at RM500,000, but with a limit of two units only.
Transactions involving foreigners numbered 774 in 2010, or 2.98 per cent of the total, while in 2011, there were 890 transactions, or 2.26 per cent of the total.
Stating that property investors are beginning to revive or resume their investment interests in Penang, which were placed on hold for about one-and-a-half years due to uncertainties over the date of the 13th General Election, the report further noted that astute investors are of the opinion that buying properties in choice locations in Penang appears to be the preferred mode of wealth creation.
“Consumer confidence of both local and international investors on Penang’s properties remain buoyant and, therefore, Penang’s property market is foreseen to be filled with more excitement soon.”
The report, however, cautioned that downside risks such as the global economic uncertainty, natural disasters and local political developments as factors that must be watched closely.
Source: Business Times
Number of transaction drop but value transacted up!
Means people willing to pay extra for what they prefer even though pricier.
Talk about bubble.. Talk about price crash.
News on the past couple of days seems to reassure people about property still not crashing yet..
Those who wants to invest n flip need to ensure the unit they choose must have advantage over other units even it is more expensive. Still people will buy if suka!
Is there true Penang having limited supply of stock in market.
Penang property after 2014 budget anounce at Oct…the price will up another 10%..confirm!!
Land in penang is limited…just like hong kong and singapore. Have you ever see penang property drop last 50yrs? Even recession also the house price will mainain
@Funny
You mean number of properties on the market going from 12,000 at the end of 2012 to over 30,000 now???
Then I guess the answer is no… no limited supply, but huge oversupply
@Lim
Have you ever seen Penang property increase in value by 150-200% in just 5 year in the last 50 years???? Except for the period between 2007-2012…
And if you want to compare Penang to Singapore then have a look what happened when a property market gets speculated on like it is now in Penang… During the Asia Financial Crisis Singapore property prices fell 50% in 1996/97 and took until 2011 to fully recover the losses…
The reason this didn’t happen in Penang because people were not speculating here in the 1990’s… But they are now so If you want to compare then Penang property is in the same place Singapore property was in 1996 before it went down 50%…
“Number of transaction drop but value transacted up!”
I would say it simply means the 5,756 (or less) buyers were buying at a high price which could have peaked, well, for once.
More people will be beware of this and the number of buyers could be further declining.
@Lim,
Yes, I have seen Penang property drop in the last 50 years, and quite significantly…..:)
Stay tuned to the post QE era which is coming in the next 3-6 mths.
Every analysts predicted the property market is going to under tremendous pressure. Pls read the Sin Chew newspaper, under Biz/Economy section in the last few days.
If you still have not purchased any property, and plan to purchase, why not wait for another 6 mths.
This is the worst juncture since the last 5 yrs in the market that may lead to price crash.
Do not compare to Hong Kong and Singapore. They are international biz hub.
Look at the sales of the Industrial segment of the pie chart, Volume Property Transaction above, only 2%.
This is the indication of no new biz/investment came into Penang.
JUst came back from a public conference in regards to EIA of STP 2 at Tg Tokong.
E&O will be reclaiming up to 740 acres and the gurney drive promenade will be expanded as well with a bridge linking to the future new island aka STP2
I don’t think property prices will be coming down anytime soon.
Managing Director of E&O Terry Tham said that they are fully invested in Penang and they are serious about bringing up the infrastructure and preserving its heritage.
They will be back by Temasek Holdings, Mitsui (japanese developer), Sime Darby and E&O shareholders.
Economy up or down, they have enough cash to develop the entire island.
When so many ppl are alert on the property crash and stop buying property, when BNM and banks already tightened the property loan lending, when so much and so much talk and awareness created in the market. How the property market going to crash as most ppl are prepared for it? Only when majority ppl still feel good, then the risk is higher.
The lower transaction number is just indicated that:
1. The property price hit a level that most middle and low income ppl already can’t afford it. But 5756 still a big number for 1 quarter. The number is still higher than 2011 Q3, which is at ~3400. Pg is having total ~500K property unit and the transaction number is more than 1% of it.
2. The government (state & fed) just build not enough low cost flat. This type of flat can increase the transaction number greatly and reduce the total transaction price.
3. 18% drop in transaction number but 3.5% increased in transaction value also means ~26% price increase for a single property averagely compared to 2012 Q1. This numbers are better than 2012 Q4 where the total transaction dropped 24% and the transaction value dropped 8%, which means property price increased ~21% averagely.
4. The number above could be only caused by new property projects where the price is continue surging due to DIBS. The Secondary market could be weakening. But to me, it is better to buy from secondary market now because the price is always 10~20% lower than new property, and those buy new property now would have difficulty to sell or rent after OC 3 years later.
@Hemsley
No where in the history of this world have property prices been able to increase at 20-25% every year with out having at least a 50% property crash…
Name me one country where property has never crashed when prices have increase by 150-200% in just 5 years???
These kind of increases are not sustainable… Our economy is only growing a 5% how can property prices be growing a 25%… You can’t have infinite growth in a finite world…
Shame on you Rachael Choong … acting like a selfish spoiled bitch who think only of yourself
remember we share this world with others including those less privileged than u
dont despise n look down on them even if they less ‘educated’ as u
without the cha koay teow seller you will have no koay teow to eat …. understand
@Hemsley,
“The property price hit a level that most middle and low income ppl already can’t afford it. But 5756 still a big number for 1 quarter. The number is still higher than 2011 Q3, which is at ~3400”
I’m afraid you have got the number wrong for 2011 Q3. It’s not 3400, it is 9281.
Just to give everyone a bird’s eye view of the quarterly trend in terms of number of transactions :-
2009 Q1 : 5135
2009 Q2 : 5663
2009 Q3 : 5478
2009 Q4 : 6448
2010 Q1 : 5873
2010 Q2 : 5987
2010 Q3 : 6738
2010 Q4 : 7391
2011 Q1 : 8328
2011 Q2 : 9707
2011 Q3 : 9281
2011 Q4 : 12099
2012 Q1 : 7007
2012 Q2 : 8877
2012 Q3 : 8312
2012 Q4 : 6802
2013 Q1 : 5756
Records earlier than 2009 was averaging 4500 per quarter +/- 1000.
@condomana
Agreed