Some of the new property development condo projects in Penang were sold out upon their launch – so why are there so many homes now for sale or for rent?
Have a look at this list and note the number of condos for sale and/or for rent.
Of course, some of these ads could be from different agents/brokers for the same unit, or the same unit could be put up for sale or for rent… but still… the numbers look on the high side.
So is the demand for property really genuine or more for short-term ‘investment’ or speculation?
You tell me.
Thanks to blog reader SamG for the alert.
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why can’t the Federal Government follow the Sigapore govt HDB style to provide good and cheap hosuss to the rakyat?
It must be something due corruptions in BN politics?
Look at HK and Singapore. their prices in demanded areas. have been inflated 3 times since 2004. at least twice in other areas. They have been bought from Mainland chinese who have 10% of the transaction. But for Penang? foreigner only 1% of the total transaction. so how can blame foreigners when they have not even come in yet. I foresee more people coming into buy Penang as it is one tenth of the property price in HK and 1/4 of Shanghai and Beijing. You can complain the price to be higher, but HK and Singapore suffers that and govt… Read more »
It is clear that LGE do nothing to stop property speculation. Instead he encourage more high end housing projects for speculation !!! Scarce and precious little land in Penang must be reserved for the local and general Penangites and not RICH foreigners !!!
LGE must stop approving HIGH END condos and other housing projects. Stop sellout Penang !!! Penang for Penangites !!!
Anil, I am puzzled by the current property scene in Pg. On one hand, the large number of vacant units points to speculation but how is it that these kind speculation has been going on for so many years without the bubble bursting? Using current rules, buyers of new units have to start paying off their loans as soon as the project is completed. Speculators often do not have a lot of cash (because they buy up many units at one time) and so they will need to sell of the property as soon as they can. Otherwise they will… Read more »
Kevin
Hav you heard about white collar laundering $ (wanna use black but some call it racist) ?
If you watched TV news for past few months, almost daily there are drug busts or GRO raids == these are also easy money mean no problem buying properties even if left idle no occupancy.
You haven’t mentioned many younger people can afford flashy cars on the road, unless they are smart or have inherited $ then the source of income kind of fi$hy lah….
I’m telling you from the mouth of an agent:- Why is it that each time a project is finished, so many units are up for sale? Agent : “Many of the buyers are investors who are only interested to make fast bugs” Isn’t that’s unfair to genuine buyers who couldn’t get one cos it’s artifically “sold out” ? Doesn’t the 5% tax on property sold within 5 years good enough to discourage investors? Agent: Ha! What is 5% property tax compared to the gains they made once they sell off their investment. How do they have so much money to… Read more »
Yes what is 5% or 2% tax compared tot he gain. I have just make 110k and the 2% RPGT tax is 5k plus. Solutions build more houses. with a glut there will be no speculators
That is what is happening in Pg now, they are building and building and building. There are so many vacant units. But still the prices are high. Ppl in Pg have been waiting for this bubble to burst and prices to fall for the past 40 years and it has never happened. Except for maybe a 10% fall during the asian financial crisis. It just goes up and up and up.
Bottomline – what can LGE or Najib do to have local by-laws or Federal laws to prevent/reduce such activities. For example in stock markets, we have insider trading criminalised, and short-seling is banned.
What about protecting affordable property for locals?
Unless there is sincerity & strong, consistent political will unbridled from corporate political funding, camaraderie & “you scratch my back, I massage yours” understanding, the Rakyat will be left to the fancies of economic misdeeds of (some) developers & housing agents.
Eventually, the victims will be the home buyers regardless of economic status, housing boom or burst.
Can CAP enact or bring about a legal provision for consumers to sue any developer or housing agent of any misrepresentation of sales or soliciting of ‘under table fees’?
Maybe enforce a higher capital gains tax as practice a lot in other countries. This will make speculation unprofitable. For example, if someone intends to sell a second property that they own within the first year of completion, charge them a gains tax of 70%-80&. It will no longer be worth it to speculate and sell. We have remember that speculation is not an illegal activity like insider trading. If you bought a house it is your right to sell it to a willing buyer and make a profit. What the govt can do is to discourage these kind of… Read more »
‘Insider trading’ means unfair, hidden, in advance trading (buying & selling) practice inside one’s corporation before offering to the public for sale. Most of this greed & irresponsible/unfair practice involves more than one unit of purchase to make a fast & exceeding profit at the expense of the buying public. The Registrar of Companies should invoke severe penalties for such ‘illegal’ practice against social needs in our midst. This is no akin to public (not of inside staff) buying & selling to make a profit, whether for speculation or otherwise. In addition to a heavy property gains tax of 80%… Read more »
One more thing: beside dirty tactics of sales & marketing by (some) developers. If you bought a unit, you have to engage from their lists of ‘appointed’ contractors for renovating/furnishing, otherwise you will face hell of an inconvenience to renovate your own home using your own sourced reno-contractors. The price quotes from the developers’ appointed contractors are usually 3 or more times above your own ‘outside’ contractors’ price. Now, who is benefitting (exceedingly) from this social housing need? From buying to renovating to paying hefty interest rate for a yet-to-technically-own home, housing is no more an affordable purchase for the… Read more »
Sometimes these developers purposely hold back some units and urge potential buyers that the units are taken up fast. This is their sales strategy, to hasten the buyer’s decision. Very common tactic during launching period.
“Very common tactic during launching period.”
Very irresponsible & dirty tactic of sales & marketing.
And have the bloodless bile to cry out loud, the cost of building materials going up, up & up (while still employing cheapo Indon workers) while getting concessions from mentally retarded state gomen for gomen land & landfills, some with 99 years conversion to freehold.
CAP should play more aggressive role in this matter to educate all home buyers about dirty tactics of (some) developers & housing agents.
Do not believe in ‘sold out’ sign by the developers.
Usually they withhold good units to force buyers to take up those less-favorable units (i.e. those facing not-so-good direction/views).
One day the speculators will get burned as maket will crash soon especially after the GE.
Naive Home Buyers don’t joy the rushing herds to push the home prices further UP & UP. Just go to developers’ showrooms. Typically there is a chart showing floor plans with majority filled with round orange stickers indicating units have been booked (meaning sold). The question is if majority being booked why would the developers care to set up showroom ? If you ask further, the sales folks will tell you if you are very keen there is still “lubang” for willing to pay buyers to acquire those with orange stickers units. Speculative trading in the guise of Supply vs… Read more »
Much like “insider trading” of the stock market of Wall Street.
Time for legislation to bring this profiteering from housing to a stop.
Aduns & MPs, what are you doing on this matter?
Or is Parliament just a cushioned/airconed place for pasar malam shouting to nothing?
For high end condo from 2.5 millions onward, many were not sold as local could not afford it. It is marketed to oversea buyer such as Singapore and Hong Kong where the unit per sq ft are very very much higher. Take for example for the same type of condo it would have cost the Singaporean as much as 5 millions Singapore dollar whereas in Penang its only RM2.5 millions and in Singapore dollars its only about 900k +. One recently Singapore launched project of 1200 sq ft cost about 1.5 millions or more if I am not mistaken. The… Read more »
Yang: That is why (certain) developer and their staff are now King in Penang.
That is WHY state gomen / Fed gomen should come out with solution & not kowtow to these irresponsible & greedy (self-serving) developers & staff out to make profit from taking advantage of Penang’s state gomen lack of development fund & in need of development to showcase.
Majority of housing is a social need, not a showcase (only) fit for the rich & famous like Bangsar.
These developers are not stupid when it comes to Cosmopolitan Penang Dream but smell an opportunity to make a kill.
State govt come out with solutions to benefit the rakyat but Federal govt come out solutions to enrich their cronies
To Yang:
Please clarify your statement i.e. “State govt come out with solutions to benefit the rakyat”. What actions already implemented by LGE to stop property speculation ??? As far as I know, LGE did nothing to stop it but keep approving high end housing projects.
Please answer because debating on policies offered by LGE is better than mindless apple polishing.
Batu Kawan bro. Pura pura tak tau pulak. Buang masa nak layan.
GK, Beside high end condo are you so blind as not to see the many LMC projects being implemented. I have already listed it out all in the earlier posting. And LMC projects are not being advertised as they have to go through the govt for vetting and allocation. And I have said it loud and clear that LGE built more LC and LMC unit in 4 years than 18 years of KTK governance. List out the 18 years of KTK LC & LMC and I will list out LGE 4 years of LC & LMC and we shall be… Read more »
Whether that was property speculation or not, we have to ask LGE what he is doing to ensure local people have enough real affordable housing ???
From the look of it, obviously LGE do nothing apart from generously increasing density and more approval for HIGH END housing projects.
We need competent local leader and not that one from Melaka
We need competent PM not one that remains dumb and refuse to answer allegations. PKR Khalid and LGE answer and provide proof to every allegations unlike the cheap PM.
Why are you harping on LGE every time there is an article on Penang. I am from Perak. I respect and congrate what he has done for Penang. I will there is an LGE to run the perak state. I say what you write are all nonsense.
Your statement made me sad:
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I say what you write are all nonsense
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And you are coming from Perak and LGE from Melaka. Both are non-Penang local guys.
Why my point i.e. “to ensure local people have enough real affordable housing” is NONSENSE ???
See, only local Penang people caring for local Penang people. We really need local competent leaders.
Where we come from it does not matter as long as we are Malaysian and show concern for the people of the country from the remote of the country for the Indian, Chinese or Malay to the far end of Sabah and Sarawak for the indigenous people. Unlike your bluff 1 Malaysian who is only Malay we are all Malaysian. And yet you are so naive and stupid when you are being treated as second.
Gerakan K is just one of those annoying pests. Writes and speaks without engaging his brain,
PR has been gradually cleaning up the mess left behind by the previous BN admin. slowly but surely, the positive results will be seen.
Unfortunately the intellectually challenged like GK will nitpick and pass the buck. He conveniently forgets these housing problems have their roots decades ago. Yet he has the gall to demand instant fixes.
In 4 years LGE has built more LMC house than KTK Geelakan in the past 18 years. LGE LC & LMC units are now 800, 720 & 650 sq ft compared to KTK pigeon hole unit of 500 & 600 sq ft. To many there is no problem with the slight increase of density but there is definitely problems with pigeon hole units. LGE is doing the right thing. And definitely there is a problem with Ah Cheap 1Malaysia home that provides 100% loan for 300k homes for those earning less than 3000/= per month. Not a single loan was… Read more »
Please stay on-topic. Quoting stupid figures but still irrelevant to our discussion.
Its definitely relevant. Only idiot people are not being able to see that with more and bigger units being built only than can speculation be curbed even if high end condo are being built and the figures show it. Figures are very important but to idiot they will not be able to apprehend. But one things is for sure. We are not stupid like some who believed in the 1Malaysia 100% loan figure when it cannot be approved. Even if it can be approved the poor will not be able to afford it. With zero and unrealistic figure of loan… Read more »
You are a nut. Within 4 years with little to no fund allocation from Federal you expect LGE to address so many rubbish left behind by BN’s 50 years of administration. Present government has done in 4 years what BN cannot. Say something encouraging ans support changes done.
Gentleman, please be nice. Little or no fund from federal is irrelevant to our discussion. We are talking about property speculation. Can LGE stop property speculation if the state receive a lot of fund ??? No need to find excuses for LGE. Local Penangites first, performance now.
Frankly some is just no brainer. Little or no fund is definitely relevant. With more fund the govt can built more home and with more home available it will definitely curb speculation. I wonder how idiotic one can be.
And LGE is doing well with limited fund unlike the (leader) that will provide 100% loan fund but no one will get it and with no poor able how will it able to curb speculation against the rich. Simply moronic
GK: Only an idiot will assert that federal funding is irrelevant. Projects require funding. Penangites pay federal taxes. Therefore they deserve fair allocation.
Simple enough for you? Comprende?
Actually just put BN back in charge so they could destroy everything. Then u surely get cheap property.
Platino Units For Rent Ads @propwall.my = 300 ads!!!
A sign of desperation?
Soon, many of this type of wildebeest speculation will burn fingers & hoves, O’Blady banks will call for foreclosure & many otherwise potential (affordable) Penangite home buyers already suffer b’cos of high rentals until the day the bubble burst.
Time for sensible Kopi-O kau kau, a lifestyle of contentment without the nightmares of covetousness & greed > suffering day & night.
Correction: Platino Units For Rent Ads @propwall.my = 300 ads!!!
tunglang have you tried Ah Huat Kopi o kau kau ? A packet with own boiling water can save a drinker RM0.50-RM0.60 compared to traditional kopitiam prices (more savings if compared to Starybuck or BeanieKopi) ?
let’s get high drinking kopi while waiting for speculators get burnt then serious home buyers can cash in to acquire units at affordable prices !
cheers
Yeah, drink a lot more Ah Huat White Coffee, save more & wait for the eventual bubble burst to buy an affordable apartment in Penang island!
And if can sue a few developers for misrepresentation of sales, can use money to renovate new home! (This CAP must expedite legal provision for consumer protection).
Cheers, Pek Kopi kau kau:
Ah Huat White Coffee TVC
http://www.youtube.com/watch?v=EkcRPhF2gO0&feature=player_embedded
Ah Huat kopi is made by PowerRoot, which formerly launched AliCafe kopi successfully targeting Malay community now use Ah Huat icon to reach out to Chinese Community. Later Gopal kopi etc.
whatever kopi stay alert wait for property market crash hard to salvage cheap cheap deals in Penang island lah.
heng ah, huat ah !!!!