House prices up in selected areas only
The Real Estate and Housing Developers’ Association Malaysia (Rehda)’s immediate past president Datuk Ng Seing Liong has ruled out that house prices are increasing by double digits.
Reports of rising property prices are not reflective of the entire market situation as prices are increasing only in selected areas due to strong liquidity in the market, scarcity of land, and a mismatch between demand and supply, Ng said.
There is an increase in labour and construction costs but it is minimal and not reflected in existing housing projects.
“Construction cost has increased by between one and three per cent recently, but it is still negligible.
“The key here is a mismatch between demand and supply which is causing house prices to increase in some locations,” he said.
Ng was speaking to Business Times here yesterday after a briefing on the Malaysia Property Exposition (Mapex), which will be held at the Mid Valley Exhibition Centre from October 25
to 27.
Ng said there is strong demand for gated communities and the more affluent groups are willing to pay higher prices for such properties.
“Properties in gated communities can cost between 30 and 50 per cent more than basic houses because of value-added privileges.
This is where, I believe, there is a misconception that property prices are increasing,” he said.
Source: Business Times
how to say house price only up only in selected area, they only talk for ppl ‘syiok’. In the end developer will increase the price as well.
Wait, does that mean condo, which is also gated then will increase its price between 30 to 50%?
Furthermore construction cost not reflected in existing housing project. So future ones will have 3% increase?
Hi patrickhcm,
I think it is generally true that housing price is only excessive in certain areas, and penang is one of the areas. Datuk Ng has surely clarified the MYTH (or rather intentional confusion created by developers and speculative agents) that the rise in property prices is caused by escalating material cost…:)
To address excessive pricing in a place like Penang, the local gov (state gov) has to play an active role. Not only has our state gov not done anything to address the issue, they have on the contrary done some blunders (or was it intentional?) that result in the further escalation of property price in Penang…:)
I think Penang government has to limit the developement of condo. This is just based on my observation, but I think Penang has too many condos.
All the area such as tanjong tokong, tanjung bunga,pulau tikus, gurney drive and Georgetown area sure can not run from the escalating price after budget 2014 been anounce..minimum will have 5 –to 10% price escalating in those area…
Good luck to all the buyer again!!!
@Lee
Majority was the condo which near to the new project such as gurney paragon,penang time square and those condo from gurney drive coast line till up to batu ferringhi. All those condo will up and up again..Even the SP setia V residence condo was launching price starting from RM1200++psf. Those condo near that particular condo sure will up again. And penang time square condo price as well will up again and again especially for phase 1..after “The wave” kick off the job.
Those area like tanjong tokong such as mutiara villa even now was appproaching to 900k already..
@Bryant
@KKtan
@Lee
Simple to say. After budget 2014 announce next month and the RPGT announce with planning and revise. All the penang property basically will experience at least a 10% average increase in price for all the area in penang for 2014 especially for prime location georgetown and Gurney drive..pulau tikus..tanjong tokong..
All area will be impacted include bayan baru, bayan lepas, georgetown, @Angie
State government has done a lot of wounderful job…dun tell me yu want to rely on Putrajaya??
@ali
Mainland property so weak meh?? No one mention about mainland property de???
@Chocolate
Actually mainland have plenty of opportunity..but to compare with island property still far away with some gaps..With prime location at mainland like butterworth..BM..Juru(Hunza new project coming)..Seberang jaya..all this place actually have plenty of potential in next few year probably…especially for landed property..
@luo
Basically average 10% we can see for next year..As for condominium i still feel that Georgetown,Gurney drive..tanjong tokong…will experience the most regarding the escalating of price..Other location like mah sing project south bay is another advantage as the launching price was around RM800++psf now.
Regarding town area..all the new project we can see launching price was from RM1000+psf. Those old condo..which near to new lauching project will experience the most.
@Angie
agreed
Looking at all ur comments, Prai area most mainland property is going to be hot cake now, how can I Bliv that price increase only happen at “selected area”?
My friend in a property development told me that property is not doing so good. Don’t imagine the worst case like crashing or burst. He was telling based on the subsale market in KL, and based on what gov will do to further cool down the price increase. RPGT might inrease to 30%… BanK Negara might impose BLR+x%, rather than -x%.
I think REHDA was trying to say, not all property is going to increase. The keyword is gated (as in gated and guarded) and houses (which would mean landed).
“Properties in gated communities can cost between 30 and 50 per cent more than basic houses because of value-added privileges. This is where, I believe, there is a misconception that property prices are increasing,” he said.
Gated houses are popular for its known feature as more secure for safety. Thus prices will increase. But for those landed gated houses which are known or prone to have safety or quality issues such as sinking or cracking, the prices will not be affected or could be even lowered instead or increased.
Developer which are known for their track records in delivering good quality homes in hot spot areas like penang will see such increase in prices and maybe demand and vice versa.
More secure and more safety are the feature of Guarded residential. You have security guards to look after your residential area day and nights.
Gated and Guarded or GnG, on top of more secure and more safety, it also have a lot of extra features like clubhouse, gymnasium, playground, swimming pool, barbeque pits, nursery for kid, well kept garden and a lot more. These are the so called value-added privileges.
house price all ki, no matter island or mainland ! island no more lands liao and having lot of sky high condo too, each condo having lot of unit also, so foresee the condo price will be impacted later. Mainland differetn, got lot of empty lands for development, now can see lot of branded developer start switching their focus to mainland instead island, that mean house price in mainland especially those in strategic areas will ki in near term no matter you like it or not !
@all ki la
That’s a good news. The people in mainland can enjoy better appreciation. Can you share with me, the hot spot now in mainland? Would it be around Batu Kawan where the 2nd bridge will be?
DNP and IJM already landing in Alma area. EcoWorld coming to Bukit Tambun soon.
I can see state gov want to development Batu Kawan as next boom city.
Another latest news that ILM just acquired 70 acres land in Jawi.
@kotun
batu kawan might need around 15-20years to shoot up, not the near term.
i think the strategic area will be off “Song Ban Kheng” road as that place got lot of chinese schools. ie: Jit sin secondary school, Beng Teik primary school, Zhiao Kwang primary school.. and near to auto city and penang bridge too.