Penang property market likely to sustain 5pc-10pc growth
GEORGE TOWN: The property market in Penang is likely to see sustainable growth of between five and 10 per cent next year, says Real Estate and Housing Developers’ Association Malaysia (Rehda) Penang.
Chairman Datuk Jerry Chan Fook Sing, said the market here will be driven by continuous business activities and the flow of foreign investments into the state.
He said property market in Penang will remain bullish amid rising demand for houses due to the increase in jobs as an impact from foreign investments as well as growing population.
“The population projection for Penang is two million by 2020, therefore more houses are needed. Some 12,000 houses are expected to be built yearly until 2020,” Chan told a media briefing here yesterday.
Chan said property transactions in Penang for next year are likely to slow down amid cautious buying ahead of the 13th general elections.
“However, prices are unlikely to adjust downwards due to rising land and construction material costs,” he said.
He said the house prices are unlikely to decline amid high land prices and high construction material costs, adding that land prices are likely to rise in the future.
Chan said demand for property will remain bullish as interest rates are likely to stay low despite Bank Negara Malaysia’s tightening of housing loan rules. Bernama
Source: Business Times
This is good news for all property owners, especially those with lots of landed houses on the island and bad news for those who only rent…… the latest trend is that those who are on the sidelines and waiting for the property prices to drop have entered the market…. a sign that prices will still rise further….
@Penang Homes
Yes, yes, yes, please buy more..if you believe the prediction from someone who has vested interest in it…..hee hee hee….
Next year around this time, who is wrong who is right then will know, no point to argue. One year is 365 days only, very fast one.
I don’t know about the future, but recently can see a lot of goreng kaki canceled booking or trying to sell off their booking just for some snall bucks, instead of waiting for hundreds thousand of return after OC.. It is like the phenomenon when disaster going to hit, the animals in the hutan will smell it and run first…
Property hunters hoping for prices to drop next year after the high levels achieved over the last three years are advised: prices will not drop in 2013.
http://www.starproperty.my/index.php/articles/investment/estate-agents-property-prices-to-remain-steady-in-2013/
@ heehee
Thank you for support… We will definitely buy more… Wait till next year and see who’s laughing… Dont be jealous ok..
@Ben
another 2 more weeks will be 2013 liao, fast fast go and grab.. there are still a lots of units unsold at Sg Ara, Jelutong, Tambun, Simpang Empat, BM, Butterworth.. don’t wait.. fast fast grab… hee hee hee..
@heehee
You missed out a few hot spots. hee hee..
oh, population projection of 2million by year 2020 from 1.61million now.. Expected 25% (400K people) growth in 8 years… It is interesting to see Penang population only grow from 1.49million to 1.61million from 2006 to 2011, about +120K people in 5 years (http://penanginstitute.org/v3/resources/data-centre/122-population), Seems a bit hard to hit 400K people growth in next 8 years.
But the interesting part is the highest growth ethnic group is “Non-Malaysian Citizen” =40K people, topped others. Well, I thought it may be foreigners from MM2H program, but MM2H program only attracted total 17,389 people in 10 years (2002 to 2011) for whole Malaysia, and the top countries from where the participants came from are China & Bangladesh. (http://www.nst.com.my/red/mm2h-sees-higher-participation-1.85124).. So who are those non-Malaysian citizens out there, and where come the 400K people growth by 2020? hee hee hee….
@Ben ; @Roy
oh no, Penang housing is already oversupply by 21%! You need to work harder to absorb those oversupply units…some more Pr1ma is coming with 20,000 units, and Datuk Jerry Chan said going to build 12,000 houses yearly….
http://penanginstitute.org/v3/files/research_papers/Housing_market_trends_and_affordability.pdf
@heehee
For your information,never in the History of Penang has ever built enough
of affordable homes, especially on the island.
It’s just the same as the NS Highway,hardly can accommodate the volume
of traffic when it was completed.Now it will be embarrassing to call it
highway because it had become old trunk road.
Frankly if you are a long term property investor, you need not worry about short term fluctuations in the market because over the long term, it is definitely the safest and best. No one can consistently sell at the highest or buy at the lowest. The Loser is the one who tries to wait for the bottom and misses the boat.
10 years from now, those who invested in Penang properties now will look back and give themselves a pat on the back for being so savvy. Mark my words, you won’t go wrong. I’m a pty investor from KL and I will be coming to Penang!
@Believer
“never in the History of Penang has ever built enough of affordable homes”.. Are those many cheap sale & lelong units at BJ court, N-Park, etc during year 2000 (which priced <RM150k) are high end homes? Or your "affordable homes" means LMC < RM75K?
oh NS highway, very profitable and now it is 51% privately owned by a company. I will said it is embarrassing that our public transport system never be good enough and the number of cars on the road are keep increasing..now you can own a Perodua Viva just with RM300 installment which take you 9 years to serve the debt.
Believer, I am just pointing out the other side of the facts, other than some may be "half-cook" data by some others. It is up to individual judgement to make the choice. It is also absolutely OK if you want to just bet with your gut feeling….Just like some die-hard believer think that today 21-12-2012 will be end of the world… hee hee hee…
@heehee
At that point of time in 2000, 150k still considered a little expensive for a
normal working class. A Proton Saga was priced below 30k and a Honda
Accord below 70k. If 150k was considered cheap, proton saga would not be
able to sell at that time because ” too cheap “!!! .Most people would preferred
to Japanese made that priced at < 70k, still cheap!!! considering 150k was
cheap as what you had mentioned.
@Believer
at year 2000, Proton Saga already obsolete, Proton Iswara cost ~RM30K, Proton Wira RM40k+, and Honda Accord definitely > RM100K. The time where Honda Accord is < RM70k is only before 1985, before Proton was "born" and low import tax, and the currency exchange is ~RM2.3 to USD1 at that time. Anyway, this is off-topic.
So your point is BJ Court & N-Park is already high end houses, oversupplied in the market, and not affordable homes for general. Penang should build more "affordable homes" lower grade than BJ court & N-Park?
@zonefinder
Agreed with you that long term investors that hold property > 10 years should not worry… even now it is oversupply by 21%, but the market should be recover when 10 years later the next generation kids grown up and seek for own house. The losers will be those flippers without holding power, they will be forced to cheap sell or lelong during the economy downturn.. Welcome to Penang, do you plan to stay here for 10 years?
By the time they completed 20,000 units, the demand will be more than supply.
There won’t be any over supply in this category.
@Believer
so what is your prediction on the completion date/time of the 20,000 units? how many years from now?
Long term yes, but not those high density condos. Betting that they will be properly maintained is not a wise.
@heehee
I guess within 5 years, there will be a lot of vacant units for rent/sale, pr1ma will definitely make those vacant units harder to sell out.