Thursday, March 18, 2010

Penang property prices expected to improve

Despite the global downturn last year, the Penang property market has not recorded any significant drop in prices and is expected to improve this year in line with the economic recovery.

Henry Butcher Malaysia (Seberang Perai) Sdn Bhd’s senior manager Fook Tone Huat said that development land, especially in Seberang Perai, was still in good demand, particularly near town areas.

‘Although many projects were deferred last year, we are confident that the worst is over and public confidence has begun to come back in the property market,’ he said at a media briefing on the property market in Seberang Perai here yesterday.

The Seberang Perai area is expect to record a 10 per cent increase in appreciation rate due to its high population density compared to neighbouring states like Kedah and Perak, Mr Fook said.

He said that development land in Seberang Perai was two times larger than land in Penang island. ‘The lack of land for development has caused properties in Penang island to be about 40 per cent higher than those in Seberang Perai,’ he said.

According to Mr Fook, now is the time for the public to purchase properties as the base lending rate (BLR) is still below 6 per cent. ‘As long as the BLR is below 6 per cent, it would not affect the number of purchasers in the property market,’ he said.

On the outlook for 2010, Mr Fook said that the residential sector will still be the main player in the property market in Seberang Perai. As for commercial properties, he said Bandar Sunway in Seberang Jaya will continue to be the prime hotspot and there is potential for new shop/office development in the area.

Source: Business Times, 18 Mar 2010

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