Typing in ‘Penang’s condo for sale’ or ‘Penang’s new condo’ will yield instant results for you. However, most of us will be confused with the deluge of links to read, not to mention clicking in each of the links.
Instead of scouring every link one by one, let this quick guide enlighten you on the latest condo trends in Penang, highlighting important factors to ease your decision-making process.
What’s the Penang property market outlook in general?
January 2020 The Star news article quoted representatives from real estate consultancy Knight Frank Malaysia in saying that the local residential market is making a slow comeback.
The market improvement has also spurred foreign buyer interest in Malaysian properties from Hong Kong, Taiwan, Japan, China, Singapore, USA, Australia, the United Kingdom, Germany and other European countries.
According to Q3 2019 data recently released by the National Property Information Centre (NAPIC), the Malaysian House Pricing Index (MHPI) for Penang was 197.1 (up 1.9 points from 195.2 in Q2 2019).
Penang is ranked below Johor, Selangor and KL among other selected states. Hence, property prices are still holding up.
Photo by Aaron Lee on Unsplash: https://unsplash.com/photos/3bbtjIh50cU
What’s going on with the property overhang?
A September 2019 New Straits Times article stated that according to NAPIC, the property overhang in Penang for all types of housing decreased to about 3,500 units in 2019 and 2018 from more than 3,900 units in 2017. High-rise units (i.e. condos, service residences etc) accounted for about 60% of this figure.
Despite the current market condition, local portal iProperty.com expects the overhang of residential properties in Penang to ease within the next two to three years.
Programs initiated by the government like the Home Ownership Campaign (HOC) last year encouraged more transactions by offering incentives such as a 10% discount on units offered by developers and stamp duty exemptions.
Where are Penang property prices heading?
According to NAPIC, the average housing price in Penang in Q3 2019 was RM441,948, up marginally from RM437,632 in the previous quarter. This average may not be as high as in Kuala Lumpur, Selangor or Johor, but can nevertheless deliver a lot of value. Penang, after all, is home to one of two Malaysian cities listed as UNESCO World Heritage Sites.
The general opinion amongst experts echoes that of Real Estate and Housing Developers’ Association Malaysia (REHDA) office-bearer Datuk Toh Chin Leong. He opined, “We can expect Penang property prices to remain stable in the years to come. Due to the choice for properties in the market, the pricing of the incoming supply will be very competitive.”
What other trends worth taking note?
Perhaps owing to the cost and our multicultural make-up, real estate in Malaysia remains one of the most attractive to nationals of more affluent countries like Singapore and Hong Kong.
Another New Straits Times article in October 2019 noted that Hong Kong investors are shifting cash into Southeast Asian property due to the socio-political and economic situation there.
Online platform Property Guru has seen a 35% increase in visits from Hong Kong, according to its CEO.
In conclusion, the Penang property scene still has a lot going for it and it certainly looks set to thrive in the long term.
Related Article: Top 3 Things to Consider Before Getting Your New Condo for Sale
Mah Sing has strategically positioned offerings for condo-seekers in beautiful Penang with different price points to suit discerning customers. Take a look at M Vista if you’re looking for something within 530 to 1,200 sq ft that starts from about RM650,000. If you prefer opulence over at Batu Ferringhi, there’s also Ferringhi Residence which starts at RM1mil for 1,200 sq ft of hillside cum seaside living.
Ferringhi Residence 2: Seaview resort-style in the heart of Batu Ferringhi