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Penang property market slowed down

Posted in Property Penang

Everyone I know has been saying that the property market is slowing down. Well, everyone except one agent who told me that his business is still very good. In actual fact, market is slowing down. This is the effect from the many cooling measures implemented and will be implemented in the near future. Buyers are now also more cautious and thus may want to wait and see before they commit to a huge mortgage. What about the developer’s side? For those whose projects are yet to be launched, we can see they are now being delayed. I think this is a good move, rather than having bad sales if the location is not the best or the pricing seems to be too high compared to the perceived value.

How slow is slow? Let’s refer below:

residential

Penang’s total transaction has gone down close to 30% year on year. KL’s transactions has done down close to 50%. Selangor’s total transaction went down slightly over 21%. The only one still showing huge growth is Iskandar. However, I think this may also slow down in the near future because of the requirement that foreigners can only buy properties worth RM1 million above in Malaysia. Majority of the properties launched which attracted a lot of Singaporean buyers were below RM1,000,000. Therefore, in order for these people to accept the new requirement, it may take some time. To put into perspective, RM1,000,000 is not low but definitely is not considered very high because just right across the causeway, HDB flats of 700sf in good districts are already more expensive than RM1,000,000.

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