Penang Property-Brisk Sales for IJM’s Condo

March 17, 2009 | By admin In Property Investment Market |

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.

We will see a slow down in the property market in terms of sales volume. That is a result of people’s confidence. But the present scenario will not be as bad as the last 1997/98 Asian financial crisis.

“As the economic crisis deepens, questions about the state of some locations have risen. Eager buyers snapped up about 40% of IJM Land Bhd’s newly launched Summer Place condominium units on the island over the weekend”.

The sales translated to about RM70mil of the RM174mil project off the Jelutong Expressway. The 22-storey Summer Place comprises 531 units with built-up areas measuring between 1,012 and 1,464 sq ft, priced from RM273,000 to RM460,000. The project was about 40% completed.

Construction work started in the third quarter last year and is scheduled for completion in 2011.The economies crisis cause the sales volume in property market was slow now. IJM Land Bhd are providing free legal fees on the sale and purchase agreement, free legal fees on loan and zero interest till completion of construction.

The selling point is that it is near the harbour, the Penang Bridge, located along the new promenade off Jelutong Expressway, and is near to town area. Furthermore, the pricing from RM273,000 is very affordable.

No matter what the economic cycle is, there are always buyers out there. Property investors will buying investment property while the property market is dip in property prices. Property prices and rental yield increase when the property market is recover.