In an article in Starbiz, Raine & Horne Malaysia senior partner Michael Geh shared his personal views about the state of the property market in Penang for 2016. He said that while the general property market is experiencing a slowdown, the secondary market remained strong. He shared, “In the first six months of this year, the secondary market recorded 5,658 transactions valued at RM2.17bil. In comparison, only 1,040 units valued at RM478mil were transacted in the primary market. This means the secondary market makes up 84% of the total transacted units for the first half of this year. When compared to the same period last year, the secondary market saw a drop of about 13% in transactions and 15% drop in value transacted.
Other things he shared was that secondary market transactions were four times more than the primary market. In other words, Besides that, 77 percent of all transactions done were for properties priced RM500,000 and below while 16 percent are for properties priced above RM500,000 while those of over RM1 million and above was 7 percent. According to Napic, new launches in Johor and Penang has declined by 42.8 percent to 9,428 units and 47.5 percent to 2,348 units respectively. Geh expects a flat 2017, something similar for 2016. Do not that when declines happen, the effects would only be felt a few years later, should growth of demand suddenly rushes back. The reason is simple, demand can increase due to better sentiments but new homes could not be completed overnight.
One good friend bought a new condo with some sea views just recently. He said he wanted to buy one earlier but the prices was just too ‘crazy.’ Then, he found one deal a few months ago which is to his liking. He will be moving into the condo with his wife and one daughter in the near future. As someone who worked in Penang till 2013 before moving to KL, I was quite certain that in 2012, the property market was getting way too speculative. Everyone and anyone was talking about new launches. Fortunately, these days, the talks about property is about the value instead of the sudden profits. I have just learnt that Sungai Ara already has a Mc.Donalds. So much for those who told me that Sungai Ara is too ‘secondary’ and that I better buy other hotspots. Haha. Cheers to the Penang property market.
written on 6 Oct 2016
Next suggested article: Penang international airport – What’s next
