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Lending Curbs Hurting Genuine Buyers
showed a flurry of activity by
developers, the secondary market
was also busy.
“There will always be activity in the
property market due to the changing
situations of families,” Geh explains.
“For instance, for an old couple with
a large house, their children have
left and they need to downsize. Or
a couple recently married is looking
for a place to start a family. These
genuine homebuyers will continue to
sustain the market. That is, provided
they can get loans.”
Raine & Horne International Zaki +
Partners director Michael Geh
Bank Negara Malaysia’s policies
to curb property speculation have
been successful but they have also
made it more difficult for genuine
homebuyers to buy houses, says
Raine & Horne International Zaki +
Partners director Michael Geh..
The tighter lending policies, he says,
have resulted in a high loan rejection
rate. For projects he has handled,
the rejection rate is as high as 50%,
compared with about 5% before
2011.
Geh said, “Bank Negara must
distinguish between the real home
purchaser and the speculator”
“Buyers can’t get loans,” Geh says
in presenting The Edge/Raine &
Horne International Zaki + Partners
Penang Housing Property Monitor
for 3Q2013.
“Bank Negara must distinguish
between the real home purchaser
and the speculator. The market
should be differentiated — primary
and secondary market, developer
and second sale, homebuyer and
investor. The market should be
distinct — you can’t group all of them
together.”
He believes the recently abolished
developer interest bearing scheme
(DIBS) should be allowed for
genuine homebuyers. Geh believes
a detailed background check on the
individual should suffice to weed out
speculators.
While the third quarter of 2013
102
www.PropertyHunter.com.my
While the market is still active,
there has been a contraction in the
number of units sold. Based on
National Property Information Centre
(NAPIC) reports, Geh calculates
that between 2011 and 2012, the
contraction was about 15% year on
year (y-o-y). From November 2012 to
November 2013, he estimates that
the contraction was around 10%. The
latest report has yet to be released.
The good news is that Bank
Negara has assured that there
won’t be further policies to curb
speculation. This should auger well
for homebuyers looking for houses
in the Batu Kawan area, which will
be linked to Batu Maung on Penang
island by the Second Penang Bridge.
“Batu Kawan will be the new hot spot,
up to a radius of 5km,” Geh says.
“People with houses there could see
values increase about 10% to 20%.”
According to news reports, the new
bridge will be opened in February.
1-STOREY TERRACED HOUSES
All locations except for Bandar Bayan
Baru and Tanjung Bungah showed
price growth quarter on quarter
(q-o-q). Houses in Sungai Dua and
Sungai Ara rose 8.33%, with prices
hitting RM600,000 from RM550,000.
“The significant rise is due to the lack
of supply for this type of property,”
says Geh. “We note that there is
no longer new incoming supply of
1-storey terraced houses on Penang
island. Thus, this type is the most
affordable landed property to own
and it will continue to increase in
price.”
The lack of supply is the reason for
the healthy growth in all locations
sampled, with Bandar Bayan Baru
(28.89%) and Sungai Dua (28.33%)
homes showing the highest growth
y-o-y.
“This price trend should continue into
2014,” Geh says. “With low supply
and high demand, the price for this
type of property is expected to rise.”
2-STOREY TERRACED HOUSES
For standard 2-storey terraced
houses, only houses in Green Lane
(10%), Pulau Tikus (8.33%) and
Seberang Perai Selatan (2.33%)
showed price growth q-o-q, with
other areas remaining unchanged.
“Pulau Tikus is a high-end residential
area located close to Gurney Drive,
Tanjung Tokong and the city centre,”
Geh explains. “Most of the properties
comprise 2-storey terraced houses,
2-storey semi-detached houses and
bungalows. The 2-storey terraced
houses are more affordable
compared with the other properties,
and thus shows positive growth in
price.
“As for Green Lane, it is
an established residential
neighbourhood in the middle of
Penang island with easy access to the
city centre and the Penang bridge,”
he says.
These property types are much
cheaper in Seberang Perai Selatan
on the mainland and demand is on
the rise due to the close proximity to
the Second Penang Bridge.
There has been strong price growth
y-o-y across the board with Pulau
Tikus (29.17%) and Green Lane (20%)
leading the way.
Geh says there is very little new
incoming supply of 2 and 3-storey
terraced houses on Penang island
as more developers are going for
stratified properties, as well as land
scarcity. “Thus, the price for this type
of property is on the rise, especially
in the northeast region of Penang
island.”
2-STOREY SEMI-DETACHED
HOUSES
Houses in Sungai Dua grew 7.14%
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