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Pinang Peranakan Mansion
Slowing Down
Penang’s property market
is expected to slow down
in the short term as it
experiences knee-jerk
reaction to measures in the
2014 Budget. The market
sentiment for upper-end
properties is expected to
consolidate. The upward
revision of the real property
gains tax (RPGT) and
removal of the developer
interest bearing scheme
(DIBS) are measures already
expected by home buyers,
around RM200,000 and
below.
The NAPIC report also
says the planned supply
(projects with approved
building plans) comprises
46,610 units residential
properties, of which 27,579
are two and three-storey
terraced and semi-detached
and detached properties,
serviced apartments, and
condominiums, while the
remaining 19,031 are in the
lower category.
Because of the scarcity of land, most
developers launch high rise developments to
maximize their profits. Landed properties are
not cheap because supply is limited.
investors and developers
to “cool off” the property
market in Malaysia.
The latest National
Information Property
Centre report (NAPIC)
shows that more than
half of the 48,076 units
of incoming residential
properties, 28,000 to be
exact, comprise higherend properties of two
and three-storey terraced
and semi-detached and
detached properties,
serviced apartments, and
condominiums, while the
remaining 20,076 units are
in the lower-end category,
where the prices are
54
In 2012, total transactions
of residential properties
in Penang fell by 23% to
23,266 from 30,674 in 2011,
while the total value of
transactions was down 7.5%
to RM7bil from RM7.7bil in
2011.
The Future
Despite all of that, the
Penang’s property market is
relatively strong, given that
the state is underpinned by
healthy fundamentals, such
as its young population
demographics, shrinking
average household sizes,
low unemployment rate,
www.PropertyHunter.com.my
vibrant local and foreign
investments, state income
levels and bright job
opportunities.
The Penang government
plans to impose a 3% levy
on properties bought by
foreigners from this month
onwards in a bid to curb
speculation. However, it is
not a deal breaker, since
the stamp duty imposed
on foreign buyers of
properties is still lower than
neighbouring countries like
Singapore and Hong Kong.
The proposed levy is
reported to apply to
residential, commercial and
agricultural units. As one
of 31 emerging business
process outsourcing
locations in the wor