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 »