KUALA LUMPUR (Feb 24): Kedah, Perlis and Penang will see a 5% growth in transactions for residential properties despite the overall property market slowdown, according to Raine & Horne International Zaki + Partners Sdn Bhd.
“With more PR1MA units coming up and with a financing scheme for civil servants, it will translate into figures and see a rise in transactions for residential properties. So, my projection for the three northern states of Kedah, Perlis and Penang for this year is a 5% growth in transactions for residential [properties] given that more loan approvals are expected,” said Raine & Horne senior partner Michael Geh.
Geh was one of the speakers at the 10th Malaysian Property Summit 2017 organised by the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia yesterday at the Sime Darby Convention Centre.
During his presentation titled “Northern region market performance and outlook”, he cited PR1MA data. “There are some 11,664 PR1MA residential units being offered in Penang, 6,406 units in Kedah and 771 units in Perlis,” he said.
Early this year, PR1MA had also launched a step-up end-financing scheme to help PR1MA homebuyers in getting their end-financing.
“Besides believing more loan applications will be approved this year, I also see optimism in the real estate industry and it will be high this year despite a decrease in residential property transaction figures last year. I also expect the value of properties to remain similarly high,” Geh shared.
Last year, Penang recorded 9,899 units of residential property transactions valued at a total of RM4 billion.
Commenting on the catalysts, Geh said the proposed Transport Master Plan will be a catalyst to spur the property market in the state.
“We can also expect a boom in the northern states when the proposed Isthmus of Kra project commences work,” he said.
The Isthmus of Kra project refers to a canal which will cut through the southern isthmus of Thailand. It would provide an alternative to transit through the Straits of Malacca and shorten the transit for shipments.
Geh believes hotel and commercial shoplots and shophouses will be good property investments in the mainland Penang area, such as Batu Kawan, in the short future.