Challenging 2015 but more affordable offerings and rise of mainland

My good friend Ken Lim of penangpropertytalk.com recently wrote an article which helped to summarise Penang’s property market for 2015 and the property outlook for 2016 within one article. I think this is worth sharing because majority of all my readers may not be well versed with the Penang property market. Actually, Penang may not be a huge property market but due to its strategic size, location and even the latest Penang Transport Master Plan (PTMP), it’s with a look. This is especially for those looking to diversify beyond buying just one market his far.
A summary of his article as follows: (You can also read the full article here: Penang Property Outlook 2016
Overall basis, 2015 was a challenging year indeed. Residential properties in terms of transactions dropped every quarter since 2013.
Residential market is considered cool. The reasons are similar, the strict cooling measures, tighter credit environment, the sluggish rental market and the less than stellar economic factors meant the appetite to buy disappeared.
2015 was a good year for first-time home buyers. Plenty of affordable housing were launched even if it starts from RM200k onwards. To those who secured a unit, the first batch of these would be ready by 2018.
Market is slow but prices remain resilient and for some types of residential properties such as condo, 2-3 storey terrace & semi-D, the price is still increasing.
Property market outlook in 2016 is expected to be similar to that in 2015. No signs of cooling measures being eased or a better economic situation. The expectations are however for a recovery beginning Q3/Q4 2016.
Based on penangpropertytalk’s own stats, upcoming mid-size condominiums located in the north-east District of Penang Island have invited the most attention. The top three places these visitors are coming from would be Penang, Kuala Lumpur and Selangor.
There are more affordable housing but the loan accessibility has been a hindrance. Banks are more stringent in their assessment for the power income group as well.
Even more affordable housing are coming within 2016. This would have to be supported by easy credit.
Mainland is getting hotter. In fact property prices have been increasing over the past few years and the prices currently even for landed properties have started to reach the ‘unaffordable’ level now.
Penangites love landed. Read here: Landed in Penang? Be prepared with lots of money This meant that for the landed in prime locations, prices would continue to flourish. Even landed in the mainland is a target. For example, EcoWorld has achieved 80% take-up rate for their 2-storey terrace houses in Eco Meadows.
Some recommendation based on budget within Penang would include the following: Affordable schemes located in Georgetown, Gelugor and Bayan Mutiara. For those with slightly higher budget, try condominiums by SP Setia at Jelutong, and Queens Waterfront Residences by Ideal Property Group at Bayan Bay.
Penang Design Village in mainland will be ready towards the end of 2016 for shoppers. Vertu Resort Condominium by Aspen Group at Batu Kawan would also be another upcoming one.
Last but not least, he gave a piece of advice which is real and direct. “Plan realistically, know your affordability and buy within your means.” To those who wants to read his whole article with additional charts, please refer here:  Penang Property Outlook 2016. Happy thinking about Penang, whether it’s island or mainland. My personal preference remains to be island for now.
written on 6 Jan 2016
Next suggested article: Penang is getting bigger. 3,398 acres or bigger?