Penang Property Prices, still ‘too high’ (updated)

A friend asked me again, do you think Penang property prices would drop? Penang properties are still very expensive. Too expensive in fact. I asked her to define expensive. She said, RM1,000,000. I said, you are joking right, there are lots of properties way below that. She then showed me two projects on her smartphone. Seri Tanjung Pinang and The Light Collections. She said, these are two of the properties which a lot of super rich people are buying. I said, yes, it is true. Super rich people love these properties. However, to the super rich, are these considered ‘too high’?
Actually, Penang property prices would always be high, I am talking about the island. First of all, everyone wanted to stay inside the island and everyone wanted to stay in a proper area. Proper area means areas where people do not associate as low end or areas considered secluded. Thus, the price difference has been pretty wide, up to 50% difference despite the fact that both the properties are within the same island which in terms of land size is smaller than Singapore!
I told my friend, there are truths that Penang property prices are expensive. There are also truths that some luxury properties has risen way above its appropriate levels. However, a check with any online sites on the secondary market continue to show that choices are still aplenty and that secondary property prices still have room to grow before catching up with the prices of new properties or properties which are under construction. In other words, the prices of these secondary properties has already ‘dropped’ when compared to the new ones. How much more lower do you think it will drop? Answer is for you to think about.
written on 2nd March 2014
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