CORE Market Review 2016 – Penang

Penang property market is one of the 3 hottest markets in Malaysia, known for its top economy, tourism and property industries.

malaysia house price indexPenang property prices has been outperforming most of Malaysia consistently since 2003.

Generally speaking, you can see it’s impressive growth rate makes it the most consistent high growth market in Malaysia.

If we count year on year growth, it’s even higher than KL and Selangor!

So how was Penang’s performance from 2015 to 2016?

For starters, we can see compared to first half of 2015, the first half of 2016 average transaction values in Penang are all lower. (Data from Napic)

In some sectors including commercial and industrial, the difference can be more than 30%!

penang transaction changes

Comparing 1st half of 2016 to 2nd half of 2015, we see a slight improvement though the general trend is still heading down.

Residential properties in the price ranges of RM200,000-RM250,000 and RM500,001-RM1,000,000 have the best performance so far.

However, that only means prices are more or less the same compared to the last half of 2015, or even a few percent lower!

So does this mean all the properties in Penang market are dropping in prices?

Well, no.

In fact, for certain properties, they actually rose in prices of more than 14% in less than a year!

Here are some of the residential properties with the highest capital appreciation from 2nd half 2015 to 2016:

Timur Laut – Taman Gambier (12.8%)

Timur Laut – Halaman Krystal (14.3%)

Sebarang Pelai Selantan – Bandar Cassia (12%)

Sebarang Perai Utara – Pangsapuri Sri Mekar (16.3%)

Sebarang Perai Tengah – Taman Cedana Permai (16.0%)

Sebarang Perai Tengah – Taman Juru Indah (17.6%)

penang development map

As you can see, the ones with the highest capital appreciation also tend to be lower to mid cost housing which are increasing in popularity.

Also some of them come from the same area where more than 1 properties experience the same high growth boom effect!

Why is that so?

In property, certain developments or events can act as catalysts that push up surrounding prices. We call this the Boom Factors.

The most common Boom Factors everybody knows are things like shopping malls, Bus Terminals, office buildings, and even amenities like parks or tourist attractions.

Penang Boom Factors

So all you have to do is to buy a property near one of these factors and wait right?

Well, yes and no. Yes, some property prices around the area may rise once the boom factor is complete. But some will not.

The difference here is mainly the price you buy at and the price you can sell.

Sometimes, when building the property, the developer has already factored in the Boom Factor and raised the price accordingly.

Also, 70% of investors when buying a property never think about their “Exit Strategy”, which is who will buy from them, why and when.

So is there a way to buy properties safely near these Boom Factors that can give good appreciation?

In fact, in my CORE Buy & Sell strategy that I teach, I have a Boom Factor analysis that I use to determine which areas will likely experience a boom.

Not only that, I also have 2 formulas I always use to determine what’s my best entry price and exit price for any investment, and in any market, including Penang.

Interested to know more?

I invite you, kind reader, to attend one of my workshops in JB, KL or Penang, where I will show you how to apply my formulas and strategy to buy and make profit from properties near Boom Factors.

Love,

Rachel Lim

Rachel will be sharing about her Buy & Sell Strategy and how she looks at Penang properties in her upcoming 1 day property workshop “Zero To Million Property Journey” on Oct 30. Limited Seats Left, Sign Up Below!

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