Published in NST Property, July 20, 2017
PROPERTY experts predict that residential property transactions in Penang will improve slightly from the final quarter of this year, but they expect the luxury market to remain sluggish because of cooling measures and tighter credit control.
“The cooling measures have brought down property prices in Penang, so we do expect people who have been holding on to their money to start buying, both from the secondary and primary markets.
“With the PTMP (Penang Transport Master Plan), connectivity will surely improve, but this is a long-term project so we cannot expect improvements in the property market overnight,” they said.
The PTMP, which is the biggest infrastructure project in Penang’s history, will be the biggest catalyst to move the market.
The PTMP, which will improve access to projects and townships, is a comprehensive plan formed by the Penang government to improve transportation in the island and mainland.
The project will be fully completed in 2030. It will involve an integrated transportation system comprising a highway and railway network, bus services, ferries, water taxies and an undersea tunnel.
Mah Sing Group Bhd group managing director Tan Sri Leong Hoy Kum was bullish on prospects in Penang, adding that it was a resilient market with strong fundamentals.
He said buyers had more choices now as new projects were being implemented in Penang.
“We are carefully planning all our launches in phases so that the market can absorb while maintaining the company’s target sales. Each phase has added value through our focus of reinventing spaces and enhancing life,” said Leong.
Mah Sing currently has five on going projects in Penang, but the developer is looking at having more on its plate, albeit cautiously.
Leong said Mah Sing was investing in good locations with strong potential for growth and stability.
“Mah Sing, as an established developer, is having a long-term view on Penang market and always looking out for good parcels of land for development.
“We are mainly looking for land to develop affordably-priced residential products and, if possible, landed properties on the mainland as we are currently focused on the island,” he said.
Leong said currently, the market was excited about affordable apartments priced below RM500,000, built in a high-density environment.
However, there was demand for quality homes priced above RM500,000 and purchasers were happy once they saw value, he said.
“We are careful in planning the launches at the most competitive price points. An example here is our Ferringhi Residence 2, which is very attractively, priced from RM570 per sq ft.
“This development is strategically situated at the tourist belt of Batu Ferringhi with an unblocked amazing sea view and is the best value in our opinion for its location.
“We are sensitive to market demand and hence will be launching attractively-priced products with great value soon in our South Bay development,” said Leong.
For industrial developments, Leong said Mah Sing was looking forward to launching a parcel of land in Bukit Mertajam, which had a gross development value of RM150 million.
He said the industrial product launch would compliment Mah Sing’s sectoral portfolio to the Penang market.
GLUT OR NO GLUT?
Penang has quite a number of property developers, reflecting its vibrant real-estate market.
However, according to the Malaysian Property Market Report 2016 released by the Valuation and Property Services Department two months ago, Penang reported the worst sales performance of newly-launched homes last year.
The report showed developers sold 9.9 per cent, or 561 units, of the total 5,646 units put on the market.
Leong said market take-up rates varied for various price categories and were low for the higher-end categories.
“We are careful in launching projects in phases that the market can absorb. Our projects are lower density and provide a better living environment for the residents,” he said.
Leong also said the market was cautious and buyers had become more aware of the offerings, taking more time to study and compare them before committing to a purchase.
He said because of that, sales were at a slower rate.
“Prices do affect the sales and buyers are particular about value in such instances. We, at Mah Sing, maintain a good balance between design and functionality to ensure the best value is delivered to the purchasers.
“By seeing value, our purchasers are happy and we manage to achieve a higher than market average sales rate.”
For potential buyers and first-time purchasers, Leong suggested anytime was a right time to invest in one’s dream home, even more so now as there were choices and attractive packages offered by the developers.
“Buyers should look for value offered by established developers to ensure that it is maintained and appreciates over time.
“Quality living in a lower-density environment is also a premium to be considered,” he said.
PROPERTY experts predict that residential property transactions in Penang will improve slightly from the final quarter of this year, but they expect the luxury market to remain sluggish because of cooling measures and tighter credit control.
“The cooling measures have brought down property prices in Penang, so we do expect people who have been holding on to their money to start buying, both from the secondary and primary markets.
“With the PTMP (Penang Transport Master Plan), connectivity will surely improve, but this is a long-term project so we cannot expect improvements in the property market overnight,” they said.
The PTMP, which is the biggest infrastructure project in Penang’s history, will be the biggest catalyst to move the market.
The PTMP, which will improve access to projects and townships, is a comprehensive plan formed by the Penang government to improve transportation in the island and mainland.
The project will be fully completed in 2030. It will involve an integrated transportation system comprising a highway and railway network, bus services, ferries, water taxies and an undersea tunnel.
Mah Sing Group Bhd group managing director Tan Sri Leong Hoy Kum was bullish on prospects in Penang, adding that it was a resilient market with strong fundamentals.
He said buyers had more choices now as new projects were being implemented in Penang.
“We are carefully planning all our launches in phases so that the market can absorb while maintaining the company’s target sales. Each phase has added value through our focus of reinventing spaces and enhancing life,” said Leong.
Mah Sing currently has five on going projects in Penang, but the developer is looking at having more on its plate, albeit cautiously.
Leong said Mah Sing was investing in good locations with strong potential for growth and stability.
“Mah Sing, as an established developer, is having a long-term view on Penang market and always looking out for good parcels of land for development.
“We are mainly looking for land to develop affordably-priced residential products and, if possible, landed properties on the mainland as we are currently focused on the island,” he said.
Leong said currently, the market was excited about affordable apartments priced below RM500,000, built in a high-density environment.
However, there was demand for quality homes priced above RM500,000 and purchasers were happy once they saw value, he said.
“We are careful in planning the launches at the most competitive price points. An example here is our Ferringhi Residence 2, which is very attractively, priced from RM570 per sq ft.
 |
| Artist impression of Ferringhi Residence 2 |
“This development is strategically situated at the tourist belt of Batu Ferringhi with an unblocked amazing sea view and is the best value in our opinion for its location.
“We are sensitive to market demand and hence will be launching attractively-priced products with great value soon in our South Bay development,” said Leong.
 |
| Southbay- Aerial view |
For industrial developments, Leong said Mah Sing was looking forward to launching a parcel of land in Bukit Mertajam, which had a gross development value of RM150 million.
He said the industrial product launch would compliment Mah Sing’s sectoral portfolio to the Penang market.
GLUT OR NO GLUT?
Penang has quite a number of property developers, reflecting its vibrant real-estate market.
However, according to the Malaysian Property Market Report 2016 released by the Valuation and Property Services Department two months ago, Penang reported the worst sales performance of newly-launched homes last year.
The report showed developers sold 9.9 per cent, or 561 units, of the total 5,646 units put on the market.
Leong said market take-up rates varied for various price categories and were low for the higher-end categories.
“We are careful in launching projects in phases that the market can absorb. Our projects are lower density and provide a better living environment for the residents,” he said.
Leong also said the market was cautious and buyers had become more aware of the offerings, taking more time to study and compare them before committing to a purchase.
He said because of that, sales were at a slower rate.
“Prices do affect the sales and buyers are particular about value in such instances. We, at Mah Sing, maintain a good balance between design and functionality to ensure the best value is delivered to the purchasers.
“By seeing value, our purchasers are happy and we manage to achieve a higher than market average sales rate.”
For potential buyers and first-time purchasers, Leong suggested anytime was a right time to invest in one’s dream home, even more so now as there were choices and attractive packages offered by the developers.
“Buyers should look for value offered by established developers to ensure that it is maintained and appreciates over time.
“Quality living in a lower-density environment is also a premium to be considered,” he said.
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