I like such data charting if it is true, providing real picture of foreign investor contribution in penang property.

I believe what really drives property prices are low interest rates and easy financing by banks from 2009-2011. At the end of the day it’s all about the pool of cheap money that flows into assets. Gone were the good old days. Now you have an average of 50-70% reject rates on mortgage loans.

pl help poor investors to find some relief in terms of matching availability of condos with factories/corporate tenants

Foreign buyers have almost no impact on the market all. The price point at which a foreigner must purchase is well above the local mass market

the reason prices are increasing is because the developers are asking for higher prices, its a case of set the price and see if people pay, if they do, you keep going until they don’t. Many of the new condo’s are sold out to local Penang people, they are the one’s buying multiple units not the foreigners. Prices in Penang are pretty high but land cost is cheap and construction cost is pretty cheap, its all profit driven

steve :
Foreign buyers have almost no impact on the market all. The price point at which a foreigner must purchase is well above the local mass market
the reason prices are increasing is because the developers are asking for higher prices, its a case of set the price and see if people pay, if they do, you keep going until they don’t. Many of the new condo’s are sold out to local Penang people, they are the one’s buying multiple units not the foreigners. Prices in Penang are pretty high but land cost is cheap and construction cost is pretty cheap, its all profit driven

Really? Can you build? I buy from you since you seem like an honest guy who will build reasonably price properties

Ken Lim, your statement above is half true. Why? Because foreigner doesnt need to be those under MM2H program. Do you know there are thousands of “ex-malaysian” with other country passport, but still retain their Malaysia IC and passport? Yes i know Malaysia do not accept dual citizenship, but the fact is that a lot of people are still practicing that. And they can even get housing loan with their Malaysian identity. If you don’t believe, go ask around any relative who have migrated to other countries. These people are the real “foreigner” that push up the price.

@JT
Those are categoried as Malaysian too Who work abroad earning USD, AUS, SGP dollars… they are not considered as foreigner in Malaysia.

I think when you enter property development, honesty and integrity goes out the window. Capitalism and greed comes into play

with low land price and very cheap imported labour to do all the work, prices should be lower than they are. I am talking about the condos in the 500k to 2m+ range. Construction standards are very low in Penang, take a look at Gurney Paragon mall, it looked terrible the day it opened, cheap materials used and shoddy workmanship, if that is what a large developer builds for themselves, what hope does the residental market have when there is no vested interest once sold

@steve

Thanks for sharing your thoughts.

The things that I agree with you :-

(1) “the reason prices are increasing is because the developers are asking for higher prices, its a case of set the price and see if people pay, if they do, you keep going until they don’t.” – this is called price discovery, nothing wrong with it, it happens everywhere in a free market, stock market, gold price, oil price etc.

(2) “Many of the new condo’s are sold out to local Penang people, they are the one’s buying multiple units not the foreigners.” – true, but this happens when there’s a believe that the multiple units can be resold at a higher price, both to locals and foreigners, and even if it’s not sold, it remains an appreciating asset to keep.

(3) “I think when you enter property development, honesty and integrity goes out the window. Capitalism and greed comes into play” – true, the aim of a business is to maximize profits, the authority should regulate the honesty and integrity part.

(4) “Construction standards are very low in Penang, ……..no vested interest once sold” – true, it’s up to the authority to regulate this, self regulation does not work in Msia.

Now the thing that I disagree with you:-

“Foreign buyers have almost no impact on the market all.” – this is totally not true.

Ang, dont you understand English? I said they have migrated to foreign country with foreign citizenship, but they did not follow the process by denouncing the Malaysian citizenship!

@JT,

So what you’re trying to say is malaysian diasporas are the ones snapping up penang properties and causing price escalation, while on statistics, they show up as “local buyer”. Right? Hope I got my english right.

It is interesting to know the so called ” local people”, how many from them are peningites?
I believe they are significant number of local purchasers are not residing in Penang. Many of them are investing in Penang property for short term gain.
If we can restrict the number of Malaysians who are non Penangites from speculating in our property market, we will see the market cooling down remarkably.

@Jason,

There is no way to restrict other states people from buying Penang properties, everyone has the money to invest whatever they like. I never see a property price drop since 2008.

@guan
Nope, they are not disperse people, but rather those who have migrated to other countries but choose not to denounce their Malaysian citizenship. There are thousands ex malaysian , now Australian while still holding on to Malaysian IC and passport.

@JT
Please correct me if i am wrong or advise, pertaining to those staying abroad can hold dual citizenship, could you please be specific and eleborate how many country allow malaysian to retain their malaysian IC at the same time with oversea citizenship? is Australia allow to do that? if it can be done, would you think soley those from australia could contribute significantly in high impact of price speculative for Penang property? i really doubt it.

Hope i get your english right.

Cool down everyone. Remember we must fast tomorrow. Selamat Berpuasa to everyone

@Ang
Examples given, but you choose not to read. Please go out and ask those who migrated to other countries, whether they formally denounce their Malaysian citizenship.

@JT
to be direct, your explanation doesn’t seem to be substance, it is totally not convincing.. how could people agree with your statement? if you wanted people to be convinced, please have your support statement instead of just talking for the sake of talking.

@JT

Hey man, I have to agree with @Ang . We know and understand what message you are trying to convey, but unless they are proven with solid facts and figures, it is just a statement from one person (you) that may or may not be correct.

Let say I wanted to argue the property price will be stagnant or going down, I do:
1. “Price going down! Trust me, if you don’t believe me you go ask other people. Or just wait and see and you’ll know.”

or…

2. I pull out charts and proof that shows upcoming project/over supply/trend that speculators is asking for less and less every month because they want to let go fast etc, and make an educated guess that price will be stabilized/corrected.

Which one is more convincing, and which one sounds like I’m pulling random stuff out of thin air?

Ang, you think they will go inform the authority that they maintain dual citizenship?

The country i mention that these “ex-malaysian” migrated to does recognize dual citizenship, thus the reason they do not need to renounce their ex country.

Anyway, go talk to any people u know that have officially migrated. I rest my case