Penang’s property market is slightly different from the overall Malaysian property market. Instead of hitting the peak in Q2 2011, the Penang property market reached its peak only in Q4 2011. Perhaps this is due to the lag factor? Maybe it’s just because Penang market is more resilient? Well, the peak was 9,667 units but by Q2 2015, it is only 3,909 units! Average price per transactions is RM407,753. Read a more in-depth report below. Thanks to the chart from Raine&Horne and statistics from National Property Information Centre (NAPIC).
In Penang, the residential property market had contracted by almost half since the market hit its peak in 2011. The market recorded total transactions of 9,667 in the last quarter of 2011 which is the highest number of transactions in the past four years before it saw a drastic drop of about 48.47% in the first quarter of 2012 to only 4,981 transactions. The corresponding value of transactions also dropped from RM2.27 billion in the fourth quarter of 2011 to RM1.5 million in the first quarter of 2012.
The market saw fluctuations in 2012. In the second quarter, the transactions increased by about 38.68% to 6,908 transactions valued at RM1.92 billion in the second quarter. It dropped slightly to 6,398 transactions in the third quarter. The market plunged again by 22.17% or to 4,979 transactions in the last quarter.
The market continued to contract in 2013 where transactions dropped slightly by 786 transactions to 4,193 transactions (with a total value of RM1.55 billion) in the first quarter and it remained stable with slight increases throughout the year bringing the total transactions to 17,700 units with a total value of RM7.1 billion for the year.
In 2014, the transactions dropped slightly by about 8.66% from 4,598 transactions in the last quarter of 2013 to 4,291 transactions in the first quarter of 2014. The second quarter saw an increase of about 10.27% to 4,732 transactions valued at RM1.89 billion.
The transactions dropped in the third quarter by 538 transactions to 4,194 units (with a value worth RM1.75 billion) and then by the fourth quarter, it increased by 23.82% to 5,193 transactions with a value of RM2.06 billion.
By 2015, the market contracted again by about 26.17% to 3,834 transactions worth a total RM1.55 billion compared to the last quarter of 2014. If compared to the same quarter of last year, the market also saw a contraction of about 10.65% or a by 457 transactions.
In the second quarter of this year, the market improved slightly from the first quarter by only 75 transactions to 3,909 units with a value of only RM1.59 billion. When compared to the second quarter of 2014, the market contracted by 17.39% or by 823 transactions.
Geh also believed that the contraction in the market in Penang could also be due to the strict loan requirements with lesser loan approvals.
He added the long delay in the issuance of advertising permit and developers license (APDL) had also taken a toll on the Penang residential property market.
“I believe the demand for projects in the pipeline in Penang is good but the sales process cannot commence due to the delay in the APDL,” he said.
Developers must obtain the APDL from the Housing Ministry before the sale process and the signing of the sales and purchase agreement for any development project.
The issuance of the APDL in Penang for many projects by local developers have been delayed for more than a year.
published on 1st Nov 2015
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