These days, when we are looking for a place to stay and wants it fast as well as the potential to negotiate for a good price, secondary property comes to mind. Let’s get to know some latest happenings in the Penang secondary property market, shall we? My friend, Raine & Horne International Zaki + Partners senior partner Michael Geh was speaking at the Malaysia Secondary Property Exhibition (Maspex) in Penang. Following would be some important points that he shared which I think everyone thinking about the Penang property market should also take note of.
In 2015, a total of 15,291 residential property transactions valued at RM6.17 billion was recorded in Penang last year. 77 percent of all the transactions were for properties priced below RM500,000. 16 percent are for properties priced above RM500,000 and 7 percent for properties priced above RM1 million. This shows that Penang still do have properties transacted at below RM500,000. Michael also pointed out that the secondary market has remained bullish despite the dip in overall property transactions.
In Penang, the residential property market for the first half of this year has dipped by about 14 percent from 7,743 transactions valued at RM3.14 billion in the first half of 2015 to 6,698 transactions valued at RM2.65 billion in the same period this year. The secondary market remains strong this year despite the dip in the overall transactions. In the first six months of this year, the secondary market recorded 5,658 transactions valued at RM2.17 billion.
In comparison, only 1,040 units valued at RM478 million were transacted in the primary market. This means the secondary market makes up 84 per cent of the total transacted units for the first half of this year. When compared to the same period last year, the secondary market saw a drop of about 13 percent in transactions and 15% drop in value transacted.
Last year, in the same period, the secondary market recorded 6,325 transactions valued at RM2.55 billion. The primary market recorded 1,418 transactions valued at RM590 million in the first half of 2015, meaning it also saw a 20% drop in transactions and value transacted. The strong secondary market, which is also known as the sub-sale market, in Penang is the reason why we continue to organise the annual Maspex Penang.
Let us look at the national statistics in comparison. Nationally, the total number of residential property transactions had dipped by about 15% from 119,446 transactions valued a total RM36.47 billion in the first half of 2015 as compared to 102,096 transactions valued a total RM32.7 billion in the first half of this year.
Out of the 102,096 transactions in the first half of this year, almost 82% were from the secondary market which stands at 83,647 transactions as compared to 18,449 transactions in the primary market. The secondary market only saw a 15% dip in transactions while the primary market saw a 14% dip when compared to the first half of last year.
In the first half of last year, the secondary market saw 98,067 transactions valued at RM28.26 billion, when compared to the primary market’s 21,379 transactions valued at RM8.2 billion. This shows that nationally, the secondary market is still thriving despite the overall outlook of a weakening property market.
In fact, the number of transactions in the secondary market is almost five times that of the primary market. It also goes to show that a major portion of the property transactions in Malaysia are in the secondary market, taking up almost 80 per cent of the total market share. This leads us to Maspex Penang, where sub-sale properties are showcased.
This year, over 5,000 units of properties will be featured by real estate agents throughout this four-day event that started on September 22 and will end on September 25. We have also lined up a series of talks over the next few days to cover topics such as opportunities in the penang sub-sale market, the legal aspects of purchasing properties, the direction of the property market in 2017 and also a look at feng shui.
This is the best opportunity for home buyers to visit the exhibition and find out more about secondary property dealings such as sales, rent and purchases.
I think it’s good to drop by and look at all the options available. It’s no longer just about the Penang island but these days, mainland is also getting popular. As many would have noted, Batu Kawan is one such potential area too even if there are not a lot of happenings yet. Happy browsing and listening to all the talks in MASPEX Penang. It’s in Queensbay Mall.
edited on 23 Sept 2016
Next suggested article: Shopping for secondary units? Good time as per MIEA Penang
Leave a Reply