When we look at the Penang’s market, we can see the real demand versus supply in real action. The reason I say so is because despite the property transactions declining, the prices of landed properties, especially within the island and especially only in that few hotspots continue to rise. Datuk Jerry Chan, the Real Estate and Housing Developers Association (Penang) said that prices of landed residential properties is rising and there are no signs of distress buyers yet. Land scarcity remains an issue and land prices are moving faster than property prices. Due to this, one can choose to pay EVER HIGHER for prime locations or move away.
Where are some of the ever higher places? According to CH Williams Talhar & Wong’s (WTW) in its 2015 Property Market report, prices of newly launched, landed residential properties in Penang continues to set new benchmark. Older residential units in established neighbourhoods such as Greenland is still very sought after despite the very high asking price. While he did not say but let me say that these more traditionally Penang areas are loved very much by Penangites. It is not necessarily the top choice for the migrants from other states who are working in Penang. For now, majority of landed residential properties are focussed in Seberang Perai due to the much lower land cost in comparison. According to National Property Information Centre, there are only a total of 36,795 units of landed residential in Penang. This simply meant if you own a landed property today, you will do just fine when you need to retire!
From all these reports, one thing is for sure. In Penang, island side remains a great prospect. Within the island, the landed property is even more valuable. If that location is an established one, then that property has now become a hot asset. The simple conclusion for those who just cannot accept high-rise developments and must stay in landed property in an established neighbourhood within Penang island? Be prepared, with lots of money. Happy buying or keeping one today.
written on 27 Mar 2015
Next suggested article: Penang mainland property – 2nd Bridge effect
Landed in Penang? Be prepared with lots of money
Comments
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Hi Charles,
I think the Land Office also had an influence in determining the property price in Malaysia, are they? Recently I sold my property for RM110,000. The deals went through smoothly but the lawyer warned me if I put my property price too low despite the current price, the Land Office will push the price higher. This is to avoid anybody from paying less stamping fee by lowering the price.
So they pushed up my property to RM120,000 as their value price. My buyer seem pleased with the value he bought my property. How can the government implementing the cooling measures in one part but forget the other part from Land Office by pushing up the price? Are they so sincere to lowering the property price for rakyat or BNM just want to lowered the debt ratio?-
Hi im, I am not sure what transpired but I do not think Land Office influences property prices in such a way. As for property prices too low versus market price, I think should not happen unless something is wrong with the property or there are some other reasons such as trying to sell it below market price and then settle the remaining prices ‘under table’. I think Land Office would be more concerned on these potentials. Perhaps you may want to check with your lawyer again. Cooling measures are to stop prices from going up further. It’s primary purpose was not meant to lower property prices. In fact no countries in the world which implement cooling measures to lower property prices as their goal. cheers.
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[…] >> This opinion article comes courtesy of Charles, the founder of kopiandproperty.my. He is popular for sharing his thought on property investment mostly based on his own 12 years experience as well as from all the readings and conversations with property gurus in the industry. (Source) […]
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