More affordable housing making its way to market
Kenanga Research says the property sector continues to improve based on what it sees dissipating concerns over affordability...
It is normal to expect property transactions to dip during the pandemic as people become wary of the economy and adopt a “wait-and-see” approach.
But for those familiar with the property market and who enjoy financial stability, it is a good time to capitalise on the caution of others and take your pick of the oversupply in the market.
Property Advisor analysed property transactions carried out last year and identified locations that saw an increase in transactions. Here are two areas in Penang that stood out.
Areas in Penang with the highest price increase (percentages).1. Perai
Located on the mainland and home to several Port of Penang facilities, Perai houses an industrial estate that includes Malaysia’s oldest steel mill and largest sugar refinery.
The Perai Industrial Estate is also home to several multinational companies like Pensonic, Hitachi and Chevron.
This provides job opportunities for thousands, making it a good place to purchase a property, especially for those looking to invest and gain returns through the rental market.
Investors last year seized the prospects, evident through an increase of 114.15% in transactions compared with 2019. They were also willing to spend more, with the median price increasing by 43.11% from RM125,775 in 2019 to RM180,000 in 2020.
First Home Buyers (FHB) were also willing to spend more last year – despite a 56.85% drop in transactions, the median price increased slightly from RM185,000 to RM195,000, an increment of 5.41% compared with 2019.
Overall, property transactions in Perai increased by 15.08% compared with 2019, with the median price seeing a small increase of 7.35%.
The Arulmigu Karumariamman temple in Seberang Jaya is a popular tourist attraction. (Wikipedia pic)2. Seberang Jaya
Adjacent to Perai, Seberang Jaya boasts various commercial and retail developments.
Originally built in tandem with the Perai Industrial Estate, the goal of this township’s development was to provide a housing area near Perai’s newly built industries, as well as to eliminate the social and economic disparity between urban and rural residents.
Seberang Jaya also contains the Penang Bird Park, which was Malaysia’s first aviary when it was established in 1988, and the Arulmigu Karumariamman temple, a popular tourist attraction.
Like Perai, Seberang Jaya witnessed an increase in investor transactions, skyrocketing by 111.9% last year compared with 2019. The median price also increased by 45.83% to RM175,000, proving that investors are not reluctant to spend money in areas they feel hold potential.
The same, however, cannot be said for the FHB segment, which saw a median price drop of 22.47% compared with the year prior, after a transaction drop of 61.64%. Originally standing at RM158,00 in 2019, the median price fell to RM122,500.
Nonetheless, despite the decrease in transactions and median price in the FHB segment, the overall median price of Seberang Jaya saw an increase of 11.11%. The total transactions last year were also 1.74% higher than those reported in 2019.
