‘Penang’s property sales likely to decline’

GEORGE TOWN: The transaction volume of Penang’s secondary property market for the first half of this year is likely to decline due to banks’ credit-tightening measures, said Malaysian Institute of Estate Agents (MIEA) Penang.

Committee member Michael Geh said although the volume is expected to decline, the value, however, would not fluctuate amid rising interest in secondary homes due to expensive newly-launched properties.

“MIEA Penang expects the secondary property market to see a 15% decline in volume. However, the activity will remain stable with increasing value,” he told a media briefing on the upcoming Malaysian Secondary Property Exhibition (MASPEX) Penang 2014 here yesterday.    

Geh said the new release of post-developer interest bearing scheme properties for sale as well as affordability factors are likely to boost the secondary property market.

He said the Sultan Abdul Halim Mu’adzam Shah Bridge (second Penang bridge) would also positively impact the secondary market, with demand likely to focus on Batu Maung (on the island), Batu Kawan, Bukit Tambun and Sungai Bakap on the mainland.

Geh said Penang’s secondary property market recorded sales of RM2.63 billion with 7,087 units sold from January to June last year, while some 15,964 units valued at RM5.26 billion were transacted in 2012.

MASPEX Penang 2014, which will be held from June 20-22 at the Penang Times Square will offer houses ranging from RM500,000 to RM3 million. — Bernama

This article first appeared in The Edge Financial Daily, on March 27, 2014.


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