Jalil-Damai

Secondary market remains strong

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

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What’s in 2015?

For the past year, those vested have painted a bullish and rosy picture of the property market. To those who had a good run these past few years, congratulations. For those who are still dreaming of owning their own home, don’t worry. You will find your dream home soon. You may take your time because prices will taper a bit.

Malaysia’s property sector cooled off last year following the introduction of the government’s property cooling measures under Budget 2014, according to REHDA and government data.

Based on the property industry survey for 1H 2014 conducted by Malaysia’s Real Estate and Housing Developers’ Association (REHDA), nearly 90 percent of home builders across the country saw a slowdown in sales due to the government’s curbs.

In fact, affordable residential units priced below RM1 million were hard to sell as buyers were struggling to obtain housing loans.

Also, there is a lack of demand for bumi properties in locations where bumiputras do not traditionally reside while more than 80 percent of the respondents had a ‘neutral’ and ‘pessimistic’ outlook for Malaysia’s real estate sector for 1H 2015. Read more