5 reasons why it is a good time to buy in Penang
With the recent initiative by the PH government to help Malaysians to own a home. The government came up with the Home Ownership Campaign (HOC) 2019 by throwing in many perks like free stamp duty, waiver of foreign levy and etc.
We have read news stating that there are overhang properties especially in Kuala Lumpur, Johor and Penang. However, recently National Property Information Centre (NAPIC) report showed that the number of unsold houses in Penang dropped from 3,916 in 2017 to 3,502 units last year.
This is a positive news as we clearly see that people are still buying in Penang may it for investment, retirement or own stay as it is still a very attractive location despite the overall property condition.
#1 Penang property market condition and correction
A recent data published by NAPIC indicated a increase of 4% in residential property transaction volume while the average transacted price for the residential segments saw a slight drop of 3% in Q1-Q3 2018 year-on-year.
Major states namely Kuala Lumpur, Johor and Pulau Pinang recorded an increase of 6.8%, 7.8% and 3.0% respectively in market activity.
According to NAPIC’s recently launched Malaysian Property Market 2018 report, property market activity in 2019 is expected to stabilize judging from the increase in volume and value of the total transaction at the end of 2018.
The report also clarifies that overhang does not necessarily mean oversupplied. There are other contributing factors such as mismatch, affordability & costs of living. In the case of Penang high-rise market this year, it’s a matter of finding the right location, the right price, and the right type to create a buying opportunity.
#2. Stamp duty waiver for first time home buyer
Stamp duty is a cost with many buyers are not aware and it may cost a bomb. Memorandum of Transfer (MOT) is up to 3% and Bank Loan Stamp Duty is 0.5% of the loan amount.
So grab this opportunity of the Home Ownership Campaign (HOC) which will be ending on 30 June 2019. Residential properties under HOC that are priced between RM300,000 and RM1 million will be exempted from stamp duties
#3. Penang Transportation Master Plan (PTMP)
This is the Penang State Government initiative to ease traffic congestion and to provide effective and efficient public transportation for all. With the announcement of the LRT from the South section of the island connecting to the Northern area will surely be a boost in public transportation not just for now but for the future too.
The 3 Pair Roads will disperse traffic and also provide an alternative route for drivers. Lebuh Raya Thean Teik to Bukit Gambir, Tanjung Bungah to Batu Ferringhi and Jalan Pangkor to Lebuh Raya Lim Chong Eu.
While the Pan Link 1 will be another main road which links Gurney Drive to Batu Maung and it will take only 20 minutes to reach from one end to another.
Where there is an upgrade in infrastructure, property prices will increase as well as it creates demand is all affected location.
#4. South Island Reclamation
To grow the population and economy, job creation and opportunity is the key to growth. With the 3 south islands, it will create more jobs with better pay.
This will retain talent and also draws talent from all over. Thus, when the population grows it will create more demand for the property market.
There will be 4,500 acres of land spread across 3 islands and the first island will consist of 80% Industrial and commercial land which will spur new FDI and job creation which will be the major catalyst for Penang
#5. Developer sales package and promotion
I have been in the property industry since 2011 and in the last 2 years, developers are becoming more innovative by attractive sales packages.
Home buyers do not need to worry about full down payment as many developers are giving zero down payment to own a home.
On top of that developers are absorbing both SPA and Loan legal fees which will cost thousands of ringgit.
Some developers are even giving their own financing for differencial sum and some even have their rent to own package
More and more developers are also throwing in semi or even fully renovated and furnishing packages for buyers.
As the saying goes, opportunity does not wait for no one, only those with foresight will act when opportunity knocks on their door.
There are many great property deals out there for residential, commercial and for those aspiring Airbnb startup. If you are interested to purchase or to know more please contact me at +60 12-427 8545 or email