Interest rate hike likely to affect demand in Penang


THE property market in Penang is expected to contract by at least 10% this year compared with 5% in 2017 as a result of the overnight policy rate (OPR) been raised by 25 basis points to 3.25%.

“You can argue that it is not a lot. If wages increase correspondingly and the cost of doing business remains the same, there won’t be much impact,” says Raine & Horne Malaysia senior partner Michael Geh.

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