Penang property market regains its lustre
Monday, September 7th, 2009The Edge has reported over the weekend that prospects are looking up for the Penang property market. This could mean that the Penang property market has bottomed out in 1Q 2009. There is no longer a sense of gloom as people are buying properties in Penang. This little property boom could continue for the next few months.
There was a big property rush in 2Q 2009, mainly for higher-end properties on the island. The sought-after projects include Setia Visa in Relau by SP Setia, Southbay Residence in Batu Maung by Mah Sing Group, Summer Place Condominium in Georgetown and The Light Waterfront Penang both by IJM Land.
Penang Property Prices Table
Although the article is a compilation of recent projects and launches in Penang, it is surprising that demand for properties from the third largest property market in Malaysia after the Klang Valley and Johor has been as strong, if not stronger than, in the Klang Valley. Penang landed property prices in 1H reached new records for certain locations. The global credit and economic crisis hardly made a dent in property prices during that period. This shows the resilience of the Penang property market, buffered probably by a relatively finite supply of land on the island.
Similar to the property markets elsewhere in Malaysia, strong demand in Penang is, to a large extent, boosted by the innovative financing schemes offered by developers which provide indirect discounting to buyers. An added difference to the Penang market, however, is the emergence of strong Klang Valley developers in recent years including E&O, SP Setia and Mah Sing. Although it is also a Klang Valley developer, IJM Land has been in the Penang property market for many years and is not a newcomer.
These aggressive Klang Valley developers have introduced new forms of marketing and products that appeal not only to Penangites, but also to buyers from the Klang Valley as well as internationally. New appealing properties and Penang’s status as the Pearl of the Orient and a tourist haven are creating a larger market than the local population would support.
