THE Penang secondary property market continues to perform well as developers hold back launches due to new and unbudgeted infrastructure charges, says Raine & Horne International Zaki + Partners Sdn Bhd director Michael Geh in presenting the Penang Housing Property Monitor for 3Q2014.
“Activity in the market is limited to people who really need to buy a house … Short-term investors, speculators and flippers have left the market, allowing serious long-term players to come in,” he says.
Based on National Property Information Centre figures, Geh points out, secondary transactions accounted for 84% of the market last year while newly launched products made up only 16%.
He also highlights that developers have been hit by a new infrastructure charge that he noticed being implemented at the beginning of the year, resulting in some of them holding back their launches and most likely adjusting their selling prices. “Developers have to pay an infrastructure charge of about RM15 psf on the gross area. Some of them will have to pay maybe RM3 million to RM7 million extra up front. This is an unbudgeted expense.”
Thus, the primary market may soften in the coming months while the secondary market keeps climbing steadily. Read more