My condo in Penang is still unsold. The price I wanted is somehow not the price buyers are willing to pay, yet. Actually, many owners are facing the same situation and I think as soon as I find a good target to buy, I may have to sell my condo and jump into the market too. The market’s just slow and I think Penang may need some catalysts from other local property markets such as Kuala Lumpur and Selangor too. Alternatively, a firm plan for an expansion or a new international airport can be a supporting catalyst too. Let’s look at what an international real estate consulting firm is saying about the Penang property market for 2019.
Article in malaymail.com Henry Butcher Malaysia (Seberang Perai) Sdn Bhd associate director Fook Tone Huat said that due to these few reasons, Penang’s property market will be flat for 2019. They are: the United States (US)-China trade war, the property overhang issue and difficulty in getting bank loans were some of the possible factors affecting the property market’s performance. Not all are negative. He said, “On a positive note, the Home Ownership Campaign (HOC), which is a collaborative effort between the Housing and Local Government Ministry and the Real Estate and Housing Developers’ Association, might boost the residential property market’s performance to a certain extent.” Earlier article about HOC 2019 here.
He also said that if the economy could perform well without much negative global issues, then the property market will recover in 2020. According to Henry Butcher Malaysia’s Seberang Perai 2018/2019 property market report, the market performance in Penang was mixed in the first half of 2018, with total volume and total value of transactions increased on a year-on-year (y-o-y) basis, despite the overall soft market sentiment. A total of 8,292 transactions worth RM4.29 billion of property developments was recorded in the state in that period — a 5.19 per cent y-o-y increase in volume and 5.45 per cent y-o-y rise in value. Article in malaymail.com
Hunter can be hunted and vice-versa. In a slow market, it’s going to be advantageous for buyers. Thus, sellers with targets in mind could still sell what they have now and go for that new target instead. Penang is a major hub for medical tourism and this will definitely be helping tremendously too. Just need to get even more private hospitals up and increase the connectivity from overseas into Penang. Earlier article about medical tourism here. The electronics multinationals in Penang continue making Penang their home even if we occasionally see some retrenchment news because of company’s reorganisation. This is also the reason why many owners like me do not drop prices sharply just to sell. We continue to believe in Penang’s future property potential. Happy following.
<Featured Image is courtesy of Stock Photos from Mohd Nasri Bin Mohd Zain>
written on 1 April 2019
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