HAVING struggled with the imposition of the movement control order (MCO) in 2020 more than in 2021, Penang’s housing market is poised to recover in 2022 as signs of sales picking up are getting more obvious.
This follows the adaptation of online presentations, virtual showrooms and other advanced technology with most purchasers are willing to attend online presentations and subsequently proceed with a booking.
“Developers have held firm on prices, even though activity has dropped. Rather than drastically dropping their selling prices, developers are providing all sorts of promotional packages to stimulate buyers,” observed Juwai IQI’s co-founder and group CEO Kashif Ansari.
“Is this a good time to buy? Very much so. With lower interest rates, developer incentives, and the ongoing Home Ownership Campaign (HOC), this is perhaps the best time to purchase in several years. The HOC has already been extended twice and may be discontinued after December.”
When economic growth climbs next year, Kashif expects property buyers to face more competition with rising construction costs which also suggests further rises in property prices.
“In 2022, we expect residential real estate in Penang to bounce back more quickly than in any other part of Malaysia except Johor,” he projected.
“By 2Q 2022, we expect borders to fully reopen and international visitor numbers to be trending towards pre-pandemic levels. Economic growth, employment, foreign investment, and tourism will recover. These trends will support further recovery in transaction volumes and prices.”
As one of the smallest and most developed states with a prominent international reputation, Penang is one of the best-positioned states for the post-pandemic recovery, according to Kashif.
“The pandemic is an external shock, and the subsequent drop in transactions and prices does not reflect any inherent weakness in the market,” he reckoned. “With the support of government initiatives and positive economic trends, the property market will recover along with the economy.”
Moreover, the price of luxury condominium in Penang are lower than in competitor cities like Singapore, Bangkok and Jakarta where comparable residences there can be five-times more expensive.
“As for the foreign buyer market, it will take time to gain back their full confidence. However, Penang’s high-tech manufacturing and unique tourism assets make it desirable for second homes, retirement, and investment. We expect foreign buying to come back to prior levels in time,” added Kashif. – Sept 30, 2021
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