Raine & Horne International Zaki + Partners Sdn Bhd is upbeat on Penang's property market outlook, given the astounding transaction of 3,446 residential property units worth RM1.3 billion in the third quarter (Q3) of last year.
Senior partner Michael Geh said this trend would likely continue as the property market sentiment in Penang is boosted by the current low interest rates, good portfolio of affordable housing, Real Property Gains Tax (RPGT) exemption, as well as upcoming developments such as the Penang Transport Master Plan (PTMP).
"Transactions of residential properties in Penang more than doubled to 3,446 units worth RM1.3 billion in the Q3 last year compared with 1,545 transactions worth RM620 million in the Q2, albeit being under the movement control order period.
"We believe Q4 figures will be higher than Q3 because the market presents a good opportunity for first time homebuyers to invest, especially with the overnight policy rate (OPR) currently at its lowest level of 1.75 per cent," he told a press conference on Penang's property market here on Monday.
Also present was Housing, Local Government, Town and Country Planning Committee chairman Jagdeep Singh Deo, who said that a big chunk of the property sales was of the affordable housing segment worth less than RM300,000.
Jagdeep said the state would continue to develop this segment and it has identified five parcels of land measuring a total of 29.54 hectares that has the potential to develop at least 10,000 units of affordable housing.
"These five parcels of land were supposed to be developed under the People's Housing Programme by the federal government but we have yet to get any feedback from them.
"Therefore, we have come to a decision in principle that we, Penang Housing Board, will move forward on our own. We will tender out the project to develop affordable housing by mid-year," he added.
Since 2008, the state has completed about 38,149 units of affordable housing, and 18,519 units are currently under construction and 57,292 more under planning. - Bernama