Gloom and doom for property market?

Is it all rosy with Penang properties? I think the long term outlook is positive but according to a lot of my property friends, there has been a slowdown in Penang property market in terms of transactions. Due to all the new measures being introduced, some of the buyers felt that they want to wait for a while before committing.

First we have the INCREASE in RPGT. (Real Properties Gain Tax). Now, you will be taxed 30% if you sell anytime within 3 years of the property purchase. Bank Negara Malaysia (BNM) new ruling that all loans MUST be based on the net property price also meant that the total loans you can borrow for the property is now reduced. Potentially, you will also be levied 3% by the state government of Penang if you were to sell your property within 3 years of buying them. This will help to reduce speculative activities. Fitch downgraded Malaysia’s sovereign credit rating outlook to Negative from Stable

Whoa, lots of bad news. Doom for Penang properties? Well let’s now look at some good news.

An upgrade from stable to positive!. Moody’s Investors Service has affirmed Malaysia’s government bond and issuer ratings at A3, but has changed the outlook to positive from stable.  Though we were downgraded but Fitch Ratings maintained Malaysia’s existing high investment-grade ratings of “A-” on long-term foreign debt and “A” on long-term local debt. Bottomline, Malaysia is still graded ‘A’. 🙂   In terms of overall economy, in Q3, Malaysia recorded a year-on-year growth of 5% in Q3. This was helped by strong exports and domestic demand. In short, the domestic demand is still positive.

Personally, I think it’s now time to watch out and not buy when we feel that particular property is over-priced. If the area is now priced at RM500 psf but the new launching is at RM600 psf, it pays to be more careful.  However, if a similar new launch is priced lower or equal to current transactions in the area and the property is comparable, I think answer is still clear. No speculations please, buy if you have surplus investment funds.

Suggested next article:  Rent or Buy Penang Property

Advertisements is everything about property related writings and news. Enjoy reading with a latte.

Related Posts

Middle class to stay in KL… per KL2040 Plan

Are you working in Kuala Lumpur (KL) and intends to buy a home within KL? Good news for you if you are under Middle Class. Federal Territories (FT) Minister Khalid Abdul Samad said that the middle class group who could not afford a home in Kuala Lumpur will be a priority under the Kuala Lumpur […]

Read More

Another exciting excitement entering Medini, Johor.

If life is all about work, work and work some more and no play, I think it’s better to stop working and start enjoying instead. Haha. Actually, it’s the same for property development. Townships where there are just houses, houses and more houses will not do, not anymore. Perhaps we used to have a mall […]

Read More

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Property investment news everyday? Subscribe for free!

An article a day, keeps you updated all the way.

Join 899 other subscribers

LIKE us for property news update, FREE.

%d bloggers like this: