Sime Darby Bhd’s was launched a another campaign for “Parade of Homes” and generated RM161mil in property sales. It was exceeding the expectation of the company. Attributing the surge in property sales to the benefits given to home buyers. Sime Darby Property Bhd believe that the impressive property sales haul was also a sign of a resilient property market in Malaysia.

Sime Darby Property’s first Parade of Homes campaign was launched in June 2008 and generated sales of RM246mil in nine days. The second campaign in November 2008 generated over RM146mil in sales.
Sime Darby’s freehold properties range from affordable homes to high-end residences in townships in Subang Jaya, Bukit Jelutong, USJ Heights, Bandar Bukit Raja, Ara Damansara, Denai Alam, Melawati, Nilai Impian, Planters’ Haven and Putra Heights.

The main factors contributing to the strong property sales were the Parade of Homes’ exclusive benefits, which included an interest rate of base lending rate minus 2.3%, special down payment scheme, and no interest charged during the construction period. Sime Darby Property’s offered an attractive package for home buyers during Parade of Homes campaign.

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Estimated by property managing, property prices for Penang property market may dip ~10% this year. But there still an event of Penang International Property Expo will held on 27th~29th March. Penang property may dip in property prices but increase of the demand.

Some think the situation will recover in the third quarter, others say it will take a year. But many property developers are not dropping their prices. It is in the secondary property market that buyers may be forced to sell, preferring to convert their assets to cash. We will bound to have that as many units will be completing this year.

Those who bought earlier are also expected to convert their assets to cash. Property agents and valuers have mixed views how much prices have dropped but the range is between 5% and 20%, depending on the project.

Normal profit in property project generally is 5% to 30%. Property Developers are now not making super profits.  Even if property developers drop property prices, it will settle at a fair level. Most of the property prices are close to construction price and land cost.
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Property market in Kuala Lumpur showing sign effected by economy crisis. Malaysian Institute of Economic Research (MIER) projects Malaysia will have 50% chance of full-year recession this year and is quite certain that the country will dip into technical recession in the first half of this year.

MIER expects the domestic economy to return to normalcy only in two to five years. Malaysia is not spared from the global financial crisis as well as property market meltdown. Since late last year, the domestic property market has started to show signs of weakening.

Kuala Lumpur City Centre’s (KLCC) high-end condominium is heading towards a 15%-20% price depreciation in two to three months. Property buyers are looking for more realistic pricing, reflecting the current conditions. In a worst-case scenario, he is projecting up to 30% drop in prices over that period.
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Property Prices for Penang property market may dip ~10% this year. Property prices inactive since mid last year, is stirring. After months of lying low, the more aggressive property developers are back with new launches, this time armed with innovative financing packages they hope will woo prospective home buyers adopting a wait-and-see stance.

According to Penang-based Raine & Horne International Zaki + Partners’ Michael Geh, property prices on the secondary market are down. Rising unemployment due mainly to the closure or downsizing of manufacturing operations hit by the global credit meltdown are expected to drive property prices down by 10% or so this year.

Even thought Bank Malaysia to cut loan repayments and banks continue slash interest rate recently, the demand for property in Penang are still in decreasing trend. The property prices dip is likely to occur in addresses with speculative elements and he identifies these as Bayan Lepas, Bukit Gambier and Sungai Dua (southwest district),Gurney Drive and Batu Feringghi (north east district). Read more »