Property Prices for Penang Property Market in y2009
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).
Presenting The Edge/Raine & Horne International Zaki + Partners Penang Housing Property Monitor for 4Q2008, Geh notes that buying interest rate practically dried up during the period under review while construction of existing projects slowed down. The number of completed apartments has also dipped.
As expected, Penang commercial real estate is also feeling the pinch. Example property prices in Penang, Queensbay Mall’s ground floor units sized from 350 sq ft to 600 sq ft were sold for between RM2,450 psf and RM2,700 psf in 2007. Last year, however, a unit changed hands for just RM2,200 psf.
Sampling for the Penang Housing Property Monitor reveals that property prices in most areas surveyed stayed unchanged from the previous quarter, due to very few or no transactions.
On a more positive note is points to a 4.2% rise to 3.46 million in tourist arrivals last year from 2007. Greater tourism activity, will spur the demand for tourism-related property projects. If the tourist enjoy their trip, environment, local food and others attractive points, their might think about MM2H (Malaysia My Second Home) or look for buying investment property in Malaysia. Property prices in Malaysia consider reasonable for foreign property investors.
Property market to rebound in 2 years, but the property prices in Penang was dip ~10%. If you are property investor, it’s right time for you to look for property with lowered property prices and strategies location, plus better mortgage loans rate offer right now. Buying investment property with low prices and selling property in high property prices when market rebound.
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I’m like your blog and penang property is good location to invest.