Penang Property Digest – Nov 2013

What has happened in the Penang property market in November 2013? Here’s a digest of the news reports. 🙂
Shared Ownership Scheme –  Chief Minister Lim Guan Eng launched a scheme to help low-wage earners buy their own home through a Shared Ownership Scheme. For those who qualify, 30 per cent interest-free funding would come from the Penang state government. Thus, the applicants need to only apply for 70% loan.
Penang Second Bridge – It enters its final 1% construction stage and is slated to open before year end. It is ranked amongst the top 20 bridges in the world and is expected to reduce the current traffic at bridge one by 25%.
Major market for Penang properties – Medan continues to be a major buyer of Penang properties. This is especially so with the many Medanese who travels to Penang for medical treatment and thus may purchase properties here for staying during recuperation or follow up.
Budget 2014 effects on Penang property market – Dato Jerry Chan, REHDA Penang’s chairman said that the impact of the proposed goods and services tax (GST) on the property sector would directly/indirectly increase costs as the construction materials were not exempted.
Increase of assessment rates in 2015 – Chow Kon Yeow said that MPPP has started the revaluation exercise and it will affect some 274,000 commercial and residential owners. This is in addition to the 20% surcharge on water announced earlier.
Possible transaction slowdown for Penang properties – Henry Butcher Malaysia Penang Sdn Bhd director Dr Teoh Poh Huat said that while there would be knee jerk reaction, “Penang’s property market is relatively strong, given that the state is underpinned by healthy fundamentals, such as its young population demographics, shrinking average household sizes, low unemployment rate, vibrant local and foreign investments, state income levels and bright job opportunities.”
Levy of 3% on foreigners – Penang government is planning to impose a 3% levy on properties bought by foreigners to curb speculative property buying activities in Penang. Nevertheless, according to Dato Jerry (REHDA Penang chairman), this measure is not a deal breaker since it is much lower than stamp duties in regional markets like Hong Kong or Singapore.
 
Next article suggested:  Why buy Penang Property – my personal reasons