Is Penang a popular state? Try going there during any major holiday and you will know it is. Is it the right place to buy a property wait for it to appreciate and then sell it for a profit and repeat? Well, all the properties I bought in Penang has appreciated in price except for the final one bought in 2013. So, maybe the answer is a Yes as well. Are there unsold properties in Penang from a year ago? Definitely a Yes as well. However this last question is a positive one. Are the numbers if unsold properties in Penang dropping? Yes and in fact based on numbers, Penang seems to be bucking the trend of other states where the unsold properties continue to rise.
Article in nst.com.my here. Penang state Housing Committee chairman Jagdeep Singh Deo said that based on statistics from the National Property Information Centre (NAPIC), Penang has recorded a reduction un property overhang. he said, “In 2017, there were 3,916 properties that were unsold, but in 2018, there were 3,502 properties that were unsold. This is a reduction. I am confident that the property overhang will continue to reduce over time.” Jagdeep also shared the situation in some other states too. “In Johor, there were 4,376 unsold properties in 2017 and 6,066 unsold properties in 2018, while in Perak there was an almost 100 per cent increase in unsold properties from 2,276 properties in 2017 to 5,067 unsold properties in 2018.” All these numbers basically showed that Penang is an attractive property investment spot. Article in nst.com.my here.
Just to put things into perspective, the number of total launches for Johor is by far higher than Penang, more than twice the numbers in Penang. As at Q3 2018, it’s nearly 55,000 units launched in Johor versus nearly 25,000 units launched in Penang. Thus, a total unsold rising by less than 2,000 units for Johor on an overall basis is really not that negative. For Perak, this is a state where people are mostly buying for own stay versus for investment (even if there are), thus, the decision to buy can still be delayed because of poor sentiment prevailing in the market currently. Yes, I know this well because I am an Ipohan. Here’s that earlier numbers from edgeprop.my not too long back on the number of launches versus number of unsold by all states in Malaysia. Conclusion is, do not think too much of all these numbers. Unsold unit can be wrong price, wrong location and wrong design for example or unsold unit could represent an opportunity to buy if it’s just due to bad sentiment yeah. The discount percentage should never be the main reason to buy yeah. Happy understanding.