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Penang Property Outlook 2019

January 22nd, 2019 4 comments 中文版

It was another slow year for Penang housing market in 2018 with no significant improvement in market sentiment. While the data published by NAPIC indicated a slight increase of 4% in residential property transaction volume, the average transacted price for the residential segments saw a slight drop of 3% in Q1-Q3 2018 year-on-year.

penang-property-outlook-2019

 

2019 is set to be another tough year for local property market with residential property overhang (unsold completed units) at its highest ever. The number is only to rise further as more housing projects are slated to complete this year. Despite the Budget 2019’s National Home Ownership Campaign on the cards, it is not going to be the magic formula that will put to an end the housing overhang situation.

Housing Affordability Woes

Demand for affordable housing will remain strong, the key is how do we supply to the right demand with the right price. A blanket supply of affordable housing will fix nothing but worsen the overhang in long run. One has to recognize that areas where housing is affordable, such as Ara Kuda and Nibong Tebal, may still need some affordable housing for lower income group. But high-density areas where housing is severely unaffordable, such as Tanjung Tokong and Pulau Tikus, may not solve their housing affordability problems by building more affordable houses.

With rapid urbanization taking place across Penang, housing affordability will remain as the government’s key focus in 2019. While the budget 2019’s waiver of MOT stamp duty and loan agreement for residential homes valued up to RM300,000 may see enhanced traction in affordable housing segment, but it is unlikely to give any significant impact to Penang housing market as a whole.

However, the housing ministry’s aim to redefine public housing by modelling Singapore’s HDB may see a change in our affordable housing model and policy. If so, 2019 will be a transformational year for local affordable housing landscape. 

Penang Transport Master Plan

Penang Transport Master Plan, a master plan that aims to make Penang more liveable and sustainable for the future, is also a crucial component in addressing housing affordability in the island. New infrastructure such as highway and LRT provide enhanced accessibility to cheaper housing, and therefore improve affordability.

All infrastructure projects under Phase 1 of PTMP, which include Bayan Lepas LRT and several highways, have been approved by Federal Government and will proceed after obtaining further approvals from relevant parties. This will include social impact assessment (SIA).

Further updates and approvals are expected later this year but it is unlikely to have any significant impact on Penang property market until 2020.

2019 Development Highlights

Projects at Sungai Nibong have been doing very well due to their close proximity to the proposed LRT station and popular schools. In order not to miss the opportunities, a few more projects along Jalan Sultan Azlan Shah are expected to launch later this year. The new launches are expected to be priced around the same price as the existing projects, which is around RM600psf.

Bayan Baru would probably be one of the most happening township in the island with two catalyst development planned for 2019. One of which is the 43-acre Penang International Commercial Centre (also known as PICC), which is launching its first residential component name MuZe. The second project is a 29-acres integrated development dubbed as Bayan Baru City Centre, which we will be sharing more details soon.

If you are scouting for luxury options, stay tuned for the waterfront luxury hotel residence by Runnymede Group – Runnymede Place. The proposed development is located at the vibrant Jalan Sultan Ahmad Shah (Northam Road) nestled along Penang’s famous Millionaire’s Row, just a block away from the E&O Hotel. When completed, the property will be managed by Ritz-Carlton.

ikea-batu-kawan-completing-soonBatu Kawan, being one of the most well-planned townships in Penang, will continue to set a higher benchmark for the property market in mainland. The completion of IKEA in less than 2 months from now is likely to spur the next wave of property investment in Batu Kawan with the spike of commercial activities and traffic flows within the vicinity. It is fast becoming one of the most expensive areas in mainland with an average selling price of more than RM500 psf.

EcoWorld, Aspen Group and Paramount will continue to be key drivers at Batu Kawan with few more phases in the pipeline for 2019. It is also worth mentioning that KDU Penang University College Campus is expected to complete its development this year and will begin operation in 2020.

Conclusion

As we look towards 2019, the market is unlikely to see a broad spectrum recovery across all regions, but certain niche housing projects in a desirable location will continue to draw investors’ attention. It is believed that during slow market, differentiation is the way to make your investment stands out.

As government continues to push for more affordable houses within the same price tag, those who have bought affordable houses for investment will find it difficult to cash out for a profit in secondary market. This is likely to continue for several years until a better affordable housing model and policies are in place to address the oversupply situation.

Nevertheless, Penang property is still a solid investment if you can afford to hold it long enough. The type of property you bought will decide how long your holding period is. Therefore do your due diligence and invest wisely, not blindly.

– Ken Lim
(Founder, PenangPropertyTalk.com)

Categories: Featured Articles, Property News Tags:

Penang Property Sale – Your property marketplace

January 21st, 2019 No comments

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PenangPropertySale.com, a property listing portal in Penang has been available for all home owners, landlords and property agents for more than a year!!

If you have missed our previous announcement, check out the website NOW !

Penang Property Sale is a property marketplace by Penang Property Talk, that provides comprehensive property search for Penang real estate property listings, home for sale and properties for rent. Designed with a stylish look and comes with user-friendly navigation, Penang Property Sale is a FREE listing portal for everyone.

Yes, it’s FREE!

We have only one goal – to connect buyers and sellers in the simplest way, through the most popular property portal in Penang.

Submit your listing now and get noticed by thousands of visitors at Penang Property Talk!

 

Categories: Featured Articles, Property News Tags:

One Foresta affordable home completed

January 18th, 2019 8 comments

one-foresta-completed

One Foresta, a premium affordable home by Penang Condo King – Ideal Property Group, has been fully completed to provide the one-of-its-kind lifestyle and high-quality residence for Penang home buyers.

The Penang State Government launched the affordable home campaign in 2013 to assist Penangites especially the younger generation to buy their first homes. In support of the State Government’s campaign, in 2015, Ideal Property Group launched the I- Condo affordable housing series, comprising I-Santorini and One Foresta. It received an overwhelming response soon after the launch.

ngIdeal Property Group’s Chief Operating Officer Dato’ Ng Tyan Ping pointed out that although One Foresta is an affordable housing, nevertheless Ideal Property Group puts a lot of effort into this project to deliver high quality residence to its purchasers.

“While the price is affordable, from RM300,000 onwards, One Foresta’s leisure facilities are comparable to that medium-high cost condominiums. One Foresta offers affordable homes with well-planned living space and a host of lifestyle amenities for the family.”

Located on a gentle hillslope of Sungai Ara, tranquility and serenity embrace the comfortable surroundings of the residential; a verdant green landscape and club house with full facilities include covered outdoor pavilion, exercise platform, barbeque zone, camping area, resting pavilion, meditation deck, yoga room, zumba dance room, gymnasium and sky terrace.

Dato’ Ng further pointed out that Bayan Lepas is a fast growing district in Penang with more and more people working and living in this area. This increasing rate of population is the reason why One Foresta was designed with 1,343 units with 900 sq ft and three bedrooms and two bathrooms.

For family-oriented purchasers, One Foresta is set to be an attractive purchase as the development is within walking distance to the market and hawker center, Chinese primary school, child care centers, kindergartens and the tuition centres. The market comprises of 72 dry and wet stalls and 57 hawker stalls, as well as a community hall and indoor badminton court. These public facilities within the vicinity of One Foresta are a perfect combination to create a convenient community for residents and long-term benefits to locals.

It only takes a few minutes’ drive from One Foresta to SJKC Chung Shan, Heng Ee High School Bayan Baru branch, Straits International School, and Penang International Airport. For young families who are first-time home buyers, these nearby amenities will prove to be a gem to them.

It is also worth mentioning that One Foresta, recently shines in the StarProperty.my Awards 2018 as the Honours Winner for The Starter Home Award category.

Moving forward, Ideal Property Group will complete its I-Santorini affordable housing in 2019. Current projects that receive high enquiries include Sunsuri Residences – an AirBnb inspired serviced residence; and The Amarene – an exclusively low density resort condominium.

 

Categories: Property News Tags:

UPCOMING: Tanjung Tokong / Regalia Pioneer Sdn. Bhd.

January 18th, 2019 1 comment

proposed-development-regalia-pioneer-sdn-bhd

A commercial development proposed by Regalia Pioneer Sdn. Bhd. at Jalan Tanjung Tokong in Penang. It is strategically located next to the intersection of Jalan Batu Bukit and Jalan Tanjung Tokong. The land is now being cleared for the construction of a 22-storey serviced suites.

The new building is only 5 minutes walk to Island Plaza, will consist of 49 serviced suites. There will also be a facilities floor located at level 15.

This project is still pending for approval. Details to be available upon project launch.

Project Name: (to be confirmed)
Location: Tanjung Tokong, Penang
Property Type: Serviced suites
Built-up Area: (to be confirmed)
Indicative Price: (to be confirmed)
Total Units: 49
Developer: Regalia Pioneer Sdn. Bhd.

Register your interest here

*By submitting this Form, you hereby agree to our PDPA Consent Clause.
(This information may be used by the developer or their appointed agent to initiate follow-up communications with you on the project.)

Location Map:

 

Begonia Villa @ Pearl City

January 17th, 2019 9 comments

pearl-city-begonia

Begonia Villa, the latest addition to Pearl City township development by Tambun Indah. Located next to Pearl Saujana Permai, diagonally opposite Pearl Tropika. Amenities within 5 km include Pearl City Mall, GEMS International Schools, SMJK Jit Sin II and several other shops and facilities.  It is about 10 minutes drive to the North-South Highway, Penang Science Park and Penang Second Bridge.

This is a gated and guarded development featuring a mix of 2-storey terrace and 3-storey townhouses. Indicative price starts from RM400,000 onwards.

Property Project : Begonia Villa
Location : Pearl City, Simpang Ampat, Penang
Property Type : 2-storey terrace & 3-storey townhouse
Total Units: 95 (terrace), 92 (townhouse)
Land Area: (to be confirmed)
Built-up Area: (to be confirmed)
Tenure : Freehold
Developer : Tambun Indah
Indicative Price: RM600,000 onwards (terrace), RM 400,000 onwards (townhouse)

Register your interest here

*By submitting this Form, you hereby agree to our PDPA Consent Clause.
(This information may be used by the developer or their appointed agent to initiate follow-up communications with you on the project.)

Location Map: