In an online article recently, it quoted Penang Branch Chairman for Malaysia Institute of Eatate Agents (MIEA), Mark Saw as saying that GST would have minimal impact on the secondary property market. the reason being high demand is still continuing for residential properties. I think he is referring to Penang though I think his comment is true for majority of all the growing cities including Penang and Greater KL and even Kota Kinabalu. Perhaps Iskandar has slowed somewhat but everything will continue to grow.
He then mentioned something which is very true; population growth. Perhaps he may want to add, ‘the right population age range today and beyond.’ If the country is full of very young population, say those below 30, well, the demand for property is not going to be like today where demand is for all range of properties instead of just the very low end ones. Malaysian population segment is LARGEST within the 27 – 54 years old. At least 40% of the total population. Happy with this segment? If you are thinking of property or you are a property developer, of course. Let’s be realistic. You really do not want the largest segment to be 15 – 24 years old. It is not useful at all.
He also mentioned that secondary will be popular because the newer launches are all too highly priced. I think for Penang, due to everyone’s focus being still within island, there are really not much affordable choices anymore when it comes to new launches. Oh yeah, if one would like to take a look at some of the secondary properties in offer as well as speak to real estate agents on some potential, do visit the Malaysian Secondary Property Exhibition (MASPEX) Penang 2015 from Aug 13-16 at Penang Queensbay Mall. It will be offering lots of choices, not just within Penang but also in JB and KL. Properties on offer ranges from RM400,000 to RM1.2 million.
I like Penang. It’s an island and thus as long as growth is continuing on a stable rate, the property prices will rise continuously too. Furthermore, with the rise of mainland Penang, it meant that the property prices would no longer be ‘crazy’ like the periods of 2009 to 2012. The expectations should now be much more realistic and thus perhaps the predicted bubble may never come. I have stayed in Penang for 15 years and if you ask me even today, I still prefer to pay premium and stay in island. Well, for now anyway until IKEA and the rest of the promised developments complete. Of course, if one wants bigger, cheaper and willing to travel a bit, mainland is already quite ready. Happy property investing in Penang!
written on 11 Apr 2015
Next suggested article: Mainland Penang becoming more popular? Maybe.