BUTTERWORTH: The property market outlook in mainland Penang is likely to be bullish in the second half of this year, boosted by rising activities from the new Sultan Abdul Halim Mu'adzam Shah Bridge, a property consultant said today.
Associate Director of property consultants Henry Butcher Malaysia (Seberang Perai), Fook Tone Huat, said Penang's property market, particularly on the mainland, is expected to see a pick-up in demand.
"Demand for properties is likely to improve in the second half of this year, especially in Seberang Perai Selatan, namely Batu Kawan, with the opening of the new bridge. "The new bridge will attract developers, and we will see buyers shifting their purchase from the island to the mainland," he told a media briefing on Property Market in Seberang Perai today.
Fook said there may be speculation on property market on the mainland as investors and big property players from the Klang Valley would be looking for land in Seberang Perai Selatan, especially in Batu Kawan.
In such an event, Government intervention to control lending policies would help "cool down" property speculation, he said, adding that the market was currently still quiet.
Fook said Penang property market is likely to see a boom, especially on the mainland, due to infrastructures linking the island and the mainland. He said Mak Mandin in Seberang Perai Utara to Batu Kawan (Seberang Perai Selatan) was the longest belt of industrial area.
The industrial property segment is likely to see high demand, namely in Bukit Minyak Industrial Park, Penang Science Park and Batu Kawan Industrial Park, he added.
"The new bridge from Batu Maung to Batu Kawan will attract new investors and existing factories are likely to shift their operations to the mainland amid cheaper prices. It costs RM80-RM100 per sq ft in Bayan Lepas compared with RM30-RM35 in Batu Kawan," Fook said.
Overall, the performance of the property market is expected to be moderate, with total volume of transactions likely to decline due to the "cooling measures" and stringent financing policies, he said.
However, prices are unlikely to face any correction, he said.
Demand and prices in the secondary market are likely to appreciate as prices in the primary market would remain cautiously high due to escalating land and development costs, he added. – Bernama
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