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Penang is top with approved investments worth RM7.7b

January 30th, 2018 Leave a comment

napic-frank-researchPenang is top on the national list with approved investments worth RM7.71 billion in the manufacturing sector for 1H17, said Knight Frank Malaysia in its “Real estate highlights for 2nd half of 2017” report launched today.

“This accounts for 45% of the total RM17.02 billion investments approved nationwide and which has also surpassed the total investments for 2016 at RM4.29 billion. Some major developers have still been launching projects, albeit at a slower pace. These augur well for a possible medium-term improvement in public sentiment,” the report said.

The report looks into the market performance across the various property mix — residential, office and retail — and highlights the trends and outlook in key markets of Malaysia, namely Kuala Lumpur, the Klang Valley, Penang, Johor Bahru and Kota Kinabalu.

However, the report noted that overall, 2H17 did not witness improvement to the overall property market as sentiments are still very much subdued owing to the overall financial/economic situation as well as political uncertainties.

“This is reflected in the overall volume of property transactions in the state [Penang] which continues to decline and similarly the value of transactions, although there is some slight improvement for 3Q17 compared to 2Q17,” said the report.

According to the latest figures released by the National Property Information Centre for 3Q17, there was an upturn of 10.5% in the total volume of transactions for all sectors in Penang q-o-q and a slight drop of 2% y-o-y. In terms of the total value of transactions, there was a 85.3% increase q-o-q and a 76.6% increase y-o-y.

As for the high-end residential market, there were less sub-sale activities in the secondary market for condominiums sized from 3,500 sq ft to 6,000 sq ft although prices continued to hold steady in 2H17, the report noted, adding that the condominium sub-sector is still consolidating.

“Sub-sale transactions are more brisk for developments in Tanjung Bungah as compared to areas like Pulau Tikus and at prices ranging from RM596 per sq ft (The Cove) to RM764 per sq ft (Infinity Condo and 1 Tanjong). A 2,537 sq ft unit at the newer Andaman at Quayside in Seri Tanjung Pinang was transacted at RM1,285 per sq ft whilst the latest two transactions for the larger sized units of 10,775 sq ft at 8 Gurney indicated an improvement from RM600 per sq ft to RM740 per sq ft,” said the report.

As for the office market, asking rents of upper floor space for three of the buildings monitored ranged from RM2.80 per sq ft to RM3 per sq ft per month in George Town while passing rents at the newer Hunza Tower was higher at RM3.80 per sq ft per month.

For buildings located out of George Town, the asking rent for the only lot (459 sq ft) available for rent at SunTech, Bayan Baru was RM4.10 per sq ft per month and at One Precinct, a 7-storey office building with MSC status located in Bayan Baru, asking rents for upper floor space were RM3.50 per sq ft per month, exclusive of charges for air-conditioning usage, the report said.

“The office sub-sector continues to remain relatively healthy with both occupancy rates and rentals holding steady. This is expected to continue over the next few quarters as future supply is not forthcoming for the time being,” the report explained.

Meanwhile, for the retail market, occupancy rates for the prime shopping malls on the island ranged from 80% to 99% while for the secondary shopping malls, the range was from 70% to 90%.

“In prime shopping malls, rental rates for ground floor retail lots generally range from RM13 per sq ft to above RM35 per sq ft per month, depending on the mall, location and size of the units,” the report said.

The report also said that the retail sub-sector is expected to face further challenges with additional incoming supply poised to enter the market in 2019.

Source: TheEdgeMarkets.com

 

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  1. Jeff
    January 30th, 2018 at 18:56 | #1

    It’s kinda funny that the exorbitant land prices of Penang are still being considered as “cheap” by almost all outsiders. May be it’s because of the island is mainly consist of mountain lands with little space left.

  2. MrChow
    February 1st, 2018 at 09:47 | #2

    In Hong Kong, a 20 year-old 350sf apartment located 15 MTR stops away from the CBD cost an average of RM 1.8 mil. What do you expect?

  3. MrChow
    February 1st, 2018 at 09:50 | #3

    Yes, 350sf, while you’re sitting in the living room watching TV, you can actually stretch your hand into the kitchen to cook instant noodles without having to leave the sofa.

  4. NgSoonHeng
    February 1st, 2018 at 11:22 | #4

    @Jeff
    maybe you not really rich to consider it cheap leh.
    think think about it.

  5. Oh nice
    February 1st, 2018 at 16:31 | #5

    @Jeff
    no ,it is not funny..it is actually quite sad when you think it is expensive when others think it is cheap…

  6. MrChow
    February 1st, 2018 at 17:57 | #6

    Actually, I think it is neither sad nor funny. Foreigners with higher income level in their home countries think it’s cheap, only because there is a difference in per capita income between various countries, and that’s perfectly normal. At least in Msia we have a choice of staying in a 1st tier city for which housing is generally more expensive, OR we always have the option of staying in smaller towns like Kulim or Butterworth whereby properties are less expensive. People don’t have the luxury of choice in countries like Spore or Hong Kong.

  7. ==
    February 1st, 2018 at 18:54 | #7

    Pg property cheap untill unreasonable, u can see alot empty unit right? Pg lang ezly can own more than 2 property, can buy for their child, for invest and rent, but spore and hongkong full occupied, even hongkong star cool mo chilam after work 20 years only can buy his dream house cost RM5000 mil condo.

  8. Jeff
    February 1st, 2018 at 19:30 | #8

    After seeing the replies here I start to “blame” myself for earning less than 3K per month. I am just a silly chef/cook !

  9. fiona
    February 2nd, 2018 at 06:59 | #9

    Talk Hong Kong for what? This is Penang, not Hong Kong, OK?? siao lan#%!

  10. ==
    February 2nd, 2018 at 08:34 | #10

    In hongkong fiona even cant afford 350sf unit, have to provide special service to earn siao lan money haha

  11. JiewJiew
    February 2nd, 2018 at 10:53 | #11

    @Jeff

    Hey at least you are earning an honest living as a chef.
    Worry not, as you work at it or try out more stuff to increase your income, you will also be able to afford a home of your choice.

    In face of adversity, it comes as a challenge for us to improve ourselves, to diversify, to innovate to achieve what we truly want in life.

    Keep at it.

  12. edisongan
    February 2nd, 2018 at 15:43 | #12

    In Penang, average income RM3500 VS RM550/sqf
    In Hong Kong, average income RM10000 VS RM 7500/sqf
    In Singapore, average income RM 12000 VS RM 4000/sqf

    Above is for the private property prices.

    So, Penangites are considered lucky to stay in Penang.
    If not satisfied, still have condos at Butterworth, Prai and Bukit Mertajam at RM350/sqf to choose

    So, what’s to complain..?

  13. KL
    February 2nd, 2018 at 17:20 | #13

    Why must always Penang get compared with “well-known” Hong Kong n Singapore? Does this state look much alike the rich nations? Look around here we seem poorer than them…

  14. O.O
    February 2nd, 2018 at 22:59 | #14

    Pg island RM400/psf only, The clover luxury new condo cheapest in mudah list, let go urgently 1600sf pool view mid flr, contact pje5262@hotmail.com direct owner, no agent pls

  15. ==
    February 2nd, 2018 at 23:02 | #15

    KL :
    Why must always Penang get compared with “well-known” Hong Kong n Singapore? Does this state look much alike the rich nations? Look around here we seem poorer than them…

    Only u, not us, pg lang so rich keep continue goreng property

  16. JJ
    February 7th, 2018 at 22:55 | #16

    Just let the market speaks for itself. With increasing empty commercial lots and low pick up rate of housing units, see how well the developers are handling them for years to come. Gone are the days of property booming.

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