by Charles Tan
In Penang, the electronics sector is a very important sector for property market. The reason I say so is because more often than not a lot of these manufacturing companies would hire engineers as well as other functions to support operations and these are the potential buyers of properties. This is especially so when these professionals got married to each other and thus, the combined income allows them to support the property market for the above RM500,000 properties. That’s one key reason why many of these high-rise properties which are not above RM650,000 are normally well sought after. In fact, when you ask around, a lot of these engineers who are just reaching 30-35 are still without a property to their name. Of course whether they buy or not depends on individual preference and the property prices because even these professionals could not buy if the property prices becomes totally unaffordable.
According to a recent report in an English daily, the electronics industry in Penang will have a very good first quarter of 2015. This is despite the fact that the first quarter is normally a slower period. For 2014, the electronics segment which covers the industrial electronic components, flex-circuited, printed circuit boards (PCB) and PCB Assembly (PCBA products) would be announcing better results compared to 2013. For 2015, the growth would continue with the following products which are becoming popular in the market. They include wearable smart devices, portable health equipment, light-emitting-diode (LED) automotive lighting, energy-saving home appliances, box-built medical and touch-screen display products. I think we can identify some of these products easily as we can see them being used or sold in many places.
Of course, as usual, when there are good news there are also the downside. What if there’s a slowdown in the industry? Well, truth is, all these companies that are reporting better results would just have to continue understand their business and their industry and keep themselves up to date with the latest needs from the market. A more pertinent question to the property market vibrancy would be how many of these companies are moving up the value chain and hiring even more engineers instead of labour intensive which is going to be too competitive in the near future anyway. There’s really no way that Malaysia can compete with much bigger countries on this account. For now, I think the support from the electronics sector to the Penang property market is very strong and it is very much related. If the whole electronics sector go down, it will definitely have a bearing on the Penang property market’s continuous growth. For the engineers, keep up the great work. 
>> This opinion article comes courtesy of Charles, the founder of kopiandproperty.com. He is popular for sharing his thought on property investment mostly based on his own 11 years experience as well as from all the readings and conversations with property gurus in the industry. (Source)
what is the main point of this article. I can’t catch it.
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main point is : if the business in the electronic industry is good, the nerdy hardworking engineers will continue buying overpriced properly built using substandard quality materials
Developers justify by saying that “price of land is going up”
For property investors , just watch the news in the electronics firms , if they start firing workers , it means that they have to sit tight … because it is gonna hurt
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Meaning penang bunch of engineers are only afford below RM500k, property doom is coming as now lot of property launch above RM600k
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If I were an inexperience property buyer, this article would have given me the impression that property prices in Penang are well aligned to the fundamentals and would not see a price correction.
If I were an experience property buyer, I would have laughed my lungs out at this amateurish article.
And as world oil price tumbles like no one has ever seen before, let’s all pray that it won’t snowball into an economic crisis for us.
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How many engineers are there in Penang ? We don’t need all engineers
to buy such property.
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He try to say professionals get married to each other and automatically afford to by property pricing 500k.
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Property Price is too high and bring alot of burden for married professionals too. Need to consider increase of living cost “GST, petrol”. All red colour in bursa now and RM had drop 3%? Great i hope things getting even worst ^.^
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Yes. I think he said must keep elctronic sectors moving in order to enjoy bull market for properties.
Any idea how’s Penang properties doing lately? It seems slowing down.
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market flatten for whole year…….completed supplies keep pouring in…….rental yield keep dropping…..asking price trending down……got price no market
that’s the observations…
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Good for buyer now….!!
For those cash rich and affordable, please get ready next year…..
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@Joe
Asking price trending down?For new or sub sale?
I just cancelled the PWC booking, after rebate, ~800/sq ft. Came with only 1 car park. If purchase extra car park ~850/sq ft, and only left few units.
Instead I proceed to booked Setia sky vista, ~560/sq ft for lower floor. That is early bird package some more, and only for short period.
This is the real case, not observation.
What say you?
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Looking forwards to 400psf.. patient.. patient..
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@Ranee
Asking price trending down -> I refer to those newly completed sub-sale, some owner cannot hold therefore asking price go down.
for new launch, yes launching price PSF still going up, but selling at snail’s pace…. u see Solaria, Imperial Resi, Skycube all still selling despite launch for more than 1 year. Last time all new launch project will snap up within weeks or 1-2 mths.
this is real case too…
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Unless both earn above average, otherwise only if both willing to drive cheap car, cook/eat at home, no kids, spend all money paying mortgage.
Need to give money to parents, wife shop like no tomorrow, treat restaurant like canteen, want go vacation. 500k house slow slow wait la… /depressed.
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@Chris
Same situation here…..so stressed and depressed. Really hard to fulfil all the 101 things
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Time to turbo-charged your career! Move out to other country for better pay. Penang is undeniably good for start but not many will move up the ladder and get higher pay.
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Guys, please think positively.
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