THE transactions of residential properties in Penang are expected to increase to 12,517 in 2018 from 12,090 in 2017, due to the increase in the purchasing power of the people following the zerorisation of the GST, according to Raine & Horne Malaysia.
Raine & Horne Malaysia senior partner Michael Geh said the value of the transactions for 2018 was expected to contract slightly to about RM5.2bil from RM5.4bil in 2017, as property prices had softened by about 5% to 10% over the past two years.
On secondary market properties, Geh said there would be a five to ten percent increase in transaction.
“This year we expect to see at least a 5% increase in secondary sales from 10,675 units recorded in 2017.
“The zerorisation of GST should have a positive effect on the buying power.
“The middle-class earners should see an increase of their purchasing power by 2% to 4% following the zero-rating of Goods and Services Tax (GST) effective June 1,” he said.
Geh commented on the four-day StarProperty.my Fair 2018 at Gurney Plaza and Gurney Paragon Mall which started yesterday.
The developers exhibiting are Ivory Properties Group Bhd, Hunza Properties Bhd, Ideal Property Group, Ewein Zenith Sdn Bhd, Bandar Utama Development Sdn Bhd, Kerjaya Prospek Property Sdn Bhd, Mah Sing Group Bhd, BTK Land Sdn Bhd, Sepakat Mewah Sdn Bhd, Hatten Group Sdn Bhd, Bionic Land, East West One Group, GIC Group, Penang Development Corporation, Devoteshens Sdn Bhd, Aroma Development Sdn Bhd, and Cosmopolitan Homes.
Ideal Property (sales & marketing) general manager Nancy Teo said the interest in properties picked up after the general election.
“Among our projects that have received good response is the Queens Waterfront project in Bayan Mutiara.
“The first phase is over 70% sold, although the pricing is from RM770,000 onwards. We are marketing the second phase now.
“The purchasers are mainly locals who are looking for retirement homes in a strategic location,” she added.
Teo added that there was a trend of younger buyers, aged between 35 and 45 years old, interested in buying serviced apartments for long-term investment.
“Our Sunsuri project in Bayan Lepas has attracted a lot of buyers from this age group interested to generate a rental income.
“On a monthly basis, the rental return could range between about 6% and 7% of the unit price.
“For Sunsuri, the selling price starts from RM399,000,” Teo added.
Meanwhile, property hunters took advantage of the market slowdown to score more savings and rebates on top of the zero-rated tax period during the StarProperty.my Fair 2018.
Corporate trainer M. Bushan, 30, who has been on the lookout for properties in the Penang island since last year, said he noticed more freebies and packages thrown in by developers to attract customers.
He is weighing his options between affordable housing and mid-range properties on display during the fair at Gurney Paragon Mall and Gurney Plaza which lasts until Sunday.
“I have been keeping an eye out for a property in Bayan Baru since it would be near to home, which is preferably gated and guarded, and with amenities.
“There are a lot of interesting packages thrown in lately and I think it would be a good time to consider a property,” said Bushan when he dropped by the Hunza Properties booth for their latest projects.
First time home buyers Nur Azimah Mohd Zaini, 23, Siti Nur Dayana Mohd Sabri, 26, and Marlia Jaafar, 28, are on the hunt for properties in Penang mainland.
“Properties priced between the RM150,000 and RM200,000 bracket are still limited despite the market slowdown.
“There are many affordable properties now but they are of a higher range and beyond the means of those who have not been working for many years.
“It is difficult for one person to get a bank loan unless we have a spouse,” said Marlia.
The three friends said their priority is location, which includes easy access to interchanges and Penang bridge as they commute often to island.
“Our preference is for landed property in one of the growing townships of Seberang Prai, which will ensure that we are staying close to amenities,” said Nur Azimah.
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