Property overhang in Penang higher than London’s?

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Much concern in London over the wrong kind of housing being built: London’s stock of unsold homes soared to 2,374 at 30 September 2018 from 1,595 at the end of 2017. That’s the highest on record.

Quote: “Some of this excess has built up because it’s the wrong product at the wrong pricing for what people want to, and can afford to buy,” said Tim Craine, founder of the property research firm (Molior London).

No wonder house prices in London have been sliding since mid–2017 and the sales outlook is the worst in 20 years, as few owners are willing to sell at prevailing prices.

Now compare that to the situation in Penang. Check out this report: “In 2017, Penang had 2,271 unsold units; this increased by 990 to 3,261 units in 2018.”

The situation in Johor is even worse: the property overhang there in 2018 was 13,767.

Unless I am missing something, these figures are higher than London’s overhang of 2,374! Bear in mind that London has a population of 8.1 million while Penang has a population of just 1.7 million and Johor 3.5 million.

But both London and Penang face similar problems: too much of the wrong kind of housing – expensive high-end stuff – and not enough of genuinely affordable housing. Yet, over here our planners are so cool about this mismatch.

If that’s not bad enough, the draft Penang Structure Plan 2030 wants to reclaim another 7,700 acres of land until 2030. Why reclaim so much land when you just know that the prices of housing on such reclaimed land are likely to be beyond the reach of most people.

READ MORE:  Fishermen hold #PenangTolakTambak protest in the rain

So why are we doing this kind of nonsensical planning? Who are we planning and building for?

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Archie
Archie
28 Jan 2019 10.37am

More property overhang in Johor Iskandar.
Just look at the Ghost Town in Danga Bay.

tunglang
tunglang
31 Jan 2019 12.01am
Reply to  Archie

So, REDHA should not complain! It’s their own doings! Let the Karma of market pricing takes its course.
To quote one SingLander:
“What has it got to do with planning? This is the free market working and they got it wrong. It happens.”

Shriek
Shriek
3 Feb 2019 4.37am
Reply to  tunglang

Tung land finally concur with sing lander

Song
Song
28 Jan 2019 11.58am

Library In The Park: Penang Digital Library Phase 2 Opens Today http://penangfoodie.com/penang-digital-library-in-the-park/ Composed of two double-story buildings which cover a comfortable reading space at Mansion Library, learning space and discussion as well as children zone, dining space and cafe in the park including an open compartment for reading activities and recreational learning in the ‘ Wisdom Street’, come over and indulge in coffee over a chat from 8 am till 10 pm as approved by the state government taking in consideration and demand from the students and etc! Penang Digital Library Address: No. 135, Jalan Masjid Negeri, Daerah Timur Laut,… Read more »

Derek
Derek
29 Jan 2019 2.33pm
Reply to  Song

Bryan Baru residents are still waiting for their library. No need fanciful one like Digital Library with cafe. YB Sim are you listening?

Albie
Albie
30 Jan 2019 10.41am
Reply to  Derek

BB senior citizens can only loiter around Spice Setia since no library for them to spend time reading.

Ah Keong
Ah Keong
29 Jan 2019 4.16pm
Reply to  Song

Digital library for hipsters not for senior citizens or retirees.

Sad!

Wei
Wei
30 Jan 2019 10.46am
Reply to  Ah Keong

yes, ask those youngster, sons and daughters, grandsons and granddaughters of senior citizen to go fly kite…..senior citizen and retiree are Penang’s future…..hehehe

Song
Song
1 Feb 2019 12.36pm
Reply to  Wei
Roland
Roland
2 Feb 2019 11.46am

Wish all readers happy lunar new year. Lets dont overkilll and overhang issues. Shriek Wei and Tunglang lets all be at Spice cny 1st and 2nd day open houses to rejoice to be gentlemen to bring positive changes to Penang while enjoying taxpayers funded meals.

On next Saturday afternoon PKR cny open house at Sunshine Sq hall those who need a BB library can ask YB Sim no u turn on his promise to set up library. Future PM Anwar could be there to ensure Sim delivers. See you there. Hope Anil can present to witness.

Wei
Wei
28 Jan 2019 9.53am

hehe..am still waiting for the heroes in Penang forum to let go their properties at price level of 20 year ago, take the lead and help to bring down property price…

Shriek
Shriek
3 Feb 2019 4.40am
Reply to  Wei

Tung land himself buy condo rather than helping to continue to stay in heritage shophouse

tunglang
tunglang
4 Feb 2019 3.31pm
Reply to  Shriek

You still spinning nonsense to this day? No more Niao Kong lah!

bigjoe
bigjoe
30 Jan 2019 11.52am

What has it got to do with planning? This is the free market working and they got it wrong. It happens.. You think if they do not approve and allow too many high end projects that somehow automatically many more affordable house in great location will pop up? You are delusional..All that will happen is less projects will be done and there still will not be more affordable housing..

tunglang
tunglang
29 Jan 2019 9.34pm

A WAKEUP CALL to State Housing, Town, Country Planning and Local Government Committee chairman Jagdeep Singh Deo: Housing industry trapped in its own folly LETTER | What is made out to be good news is not going to be any good. Truth be told, the RM22 billion property sale which will be held come March 2019 will be another hot-air balloon fall. The truth is, a dwelling averaging RM300,000 requires a monthly salary of RM6,000. Now tell me how many of the graduates who truly need a roof over their heads can afford an RM300,000 property, given a monthly pay… Read more »

Albie
Albie
30 Jan 2019 10.40am
Reply to  tunglang

How to blame developers when low priced properties also overhung cannot find buyers?

tunglang
tunglang
2 Feb 2019 7.02am
Reply to  Albie

How low should prices of properties be in the first place?
I saw a billboard ad (on the flyover in front of Mesjid Negeri) advertising ‘cash ang pow’ of 20%!
This begs a question: How big is profit margin of developers which actually appreciated the high price of properties causing affordability problem? 20%, 30%, 50% or more?
And which also caused Bank Negara to institute measures to protect buyers from possible loan default.
Now the developers are crying to fool us? Or are you crying for them?

Jasni
Jasni
30 Jan 2019 10.47am
Reply to  tunglang

Why blame developers?

Problem is due to stagnant wages making people with low purchasing power. Stagnant wages for decades due to high reliance on cheap foreign labour suppressed wage growth among the locals.

tunglang
tunglang
2 Feb 2019 7.07am
Reply to  Jasni

Now to blame wages when it was not the case (of low demand) 10 years ago?
Not when the frenzied prices of properties were non existence in the 1990s?
Even those with stagnant wages during the 1997 crisis were able to afford properties compare to now! REDHA then did not complain!

Johan Khun Pana
Johan Khun Pana
29 Jan 2019 8.00pm

isn’t it good to have a glut/over supply situation? Under such “perfect condition ” , pricing will have to be reduce. But it very mean this lead to less prestige , a downgrade & less money flowing-in. There are fast, effective & profitable ways to sell out such vacant units. And with our ringgit so low, sell them to China . However, Malaysian govt seems to be giving a very cold shoulder to China these days. PH govt wants the money but don’t want the China’s Chinese coming in. Double jeopardy there. Getting difficult to attract rich foreigners as Malaysia… Read more »

Jasni
Jasni
30 Jan 2019 10.48am

Why blame China?

It was MO1/BOSSKU who gave away lopsided deals like ECRL to PRC. Now PH cannot cancel ECRL for fear of backlash from PRC not buying palm oil then affect livelihood of Felda folks!

Song
Song
29 Jan 2019 3.00pm

Rehda Penang’s former chairman Jerry Chan says the affordable home sector is seeing a more serious overhang than other types of homes.

https://www.themalaysianinsight.com/s/129390

Albie
Albie
30 Jan 2019 10.38am
Reply to  Song

Why so?

Cannot complain cannot afford high end properties.

How cheap you want affordable home to be?

tunglang
tunglang
2 Feb 2019 7.10am
Reply to  Albie

Developers started the frenzied high prices of properties & built mostly high end properties to join the maxi-profiteering bandwagon.
Did the people asked for these?
Now they want to complain when the problems are theirs to begin with.

Wei
Wei
30 Jan 2019 10.42am
Reply to  Song

thought hater said Penang only built for “rich and famous”….hehe

Shriek
Shriek
30 Jan 2019 6.09pm
Reply to  Wei

Hater, now quiet2 and bust bodoh.

tunglang
tunglang
2 Feb 2019 7.11am
Reply to  Shriek

The stupidest consumer to love high prices!

tunglang
tunglang
2 Feb 2019 7.12am
Reply to  Wei

You now only begin to understand? Go fix your brain!

tunglang
tunglang
28 Jan 2019 9.06am

Did CM Sin Chow study Economics of Supply & Demand, Product, Price, Distribution (of 4Ps) & Consumer Behaviour?
Here in this blog, is a golden opportunity to learn the simple basics of Economics if he has absolut vodka no time but to gaze out of the 28th Floor Komtar in 360 degree still dreaming of Cosmopolitan Penang for the rich + famous.

Wei
Wei
28 Jan 2019 12.58pm
Reply to  tunglang

tunglang’s Economic 101 never teach economic cycle and thing called downturn…

tunglang
tunglang
28 Jan 2019 9.44pm
Reply to  Wei

The smart businesses know when to cash in & cash out in any economic cycle BUT here we see greedy developers transfixed on forever high price + surreal high demand (which never comes) for unaffordable properties regardless of real depth of pockets of real consumers.
Don’t blame the economic cycles when ye fools continue to hehehehe like there’s no tomorrow of howling & cursing the economists!!!

Wei
Wei
29 Jan 2019 2.55pm
Reply to  tunglang

these are brick and mortar business not your type of kill and run, cash in cash out speculator……you no understand ?

tunglang
tunglang
29 Jan 2019 9.38pm
Reply to  Wei

You still fancy building B&M properties taking 3 or more years?
Get real! There are others who can assemble one in 6 months & ready to cash out.

Wei
Wei
30 Jan 2019 10.51am
Reply to  tunglang

wah…never knew that die hard fan of NGOs is so fond of fly-by-night business….hehehe

tunglang
tunglang
30 Jan 2019 11.15pm
Reply to  Wei

Nothing better to say but spin again? Go drink Sg Pinang Black Tea!

Shriek
Shriek
31 Jan 2019 9.18pm
Reply to  Wei

Vampire blood sucking at night or volka bootlicker moonlight

Shriek
Shriek
31 Jan 2019 9.17pm
Reply to  tunglang

Still thinking of tree top houses built and furnished in 6 days?

tunglang
tunglang
1 Feb 2019 11.42pm
Reply to  Shriek

Still the same old habit of spinning since your early comments. Pls try harder!

tunglang
tunglang
30 Jan 2019 11.28pm
Reply to  Wei

Go ask greedy developers like those of REDHA why they still insist on building more high end properties when the signs of deteriorating demand are there 3 yrs ago?
Go ask why they can’t build like the China builders who build smart & fast & cheaper?
It’s a no brainer that Malaysian greedy developers like it that way (B&M) so as to charge more! Of course you won’t understand from too much hehehe!!!

Shriek
Shriek
1 Feb 2019 8.20pm
Reply to  tunglang

Build like china? Ah chans orso shiver with gdp down to 6% and below. There are also many over build taman2 in China. China but prices can buy 2 in peng land

tunglang
tunglang
3 Feb 2019 2.38pm
Reply to  Shriek

Technology of smart (modular) building is the way to go, not for your spinning of over build as an excuse to hold on to outdated brick by brick building Malaysian developer style.
Still stick to roadside telephone or get a smart mobile phone?

tunglang
tunglang
30 Jan 2019 11.56pm
Reply to  Wei

Construction businesses as speculators? Speculators (esp. from the currency market) don’t have the appetite to dabble in construction business waiting with nightly tears for a cycle which normally takes 10 years. Malaysian developers buy land waiting for it to appreciate in higher value, build slow & sell high (not affordable), not speculate like what you think. Even property speculators (not developers) don’t go the more than 5 yrs of risk taking. Herein lies the difference of cash in, cash out in the building business: China developers do it differently due to technology of building smart (modular), fast & cheaper. All… Read more »

Shriek
Shriek
31 Jan 2019 9.29pm
Reply to  tunglang

Ask Hongkies as how they get burnt with their deals in China. China is only good in mass production. Who wants to dump money if no critical mass?

tunglang
tunglang
2 Feb 2019 7.15am
Reply to  Shriek

Why spin when China developers are more smart to do business?
Differentiate or Die – Jack Trout

Song
Song
4 Feb 2019 5.16pm
Reply to  tunglang
tunglang
tunglang
31 Jan 2019 7.44am
Reply to  Wei

Meaning of Cash out: convert an investment (built properties) into money.
That’s business practice, not speculating.
Are you in business? Or just a desktop troll-speculator!
Ask yourself “do I understand?”

Wei
Wei
28 Jan 2019 1.23pm
Reply to  tunglang

In singapore they attract talent and rich investor, here in penang tunglang want to attract low talent and B40 by having more Riffle Range and Majestic Height type high living….what a fantastic land for lazy to work, work 2 days rest 3 days B40 group envisioned by tunglang..

tunglang
tunglang
28 Jan 2019 9.38pm
Reply to  Wei

Simply assume gets you to no where but makes your hehe sounds cunning. Pls troll harder!!!

Shriek
Shriek
30 Jan 2019 6.11pm
Reply to  tunglang

Try harder with your econs

tunglang
tunglang
31 Jan 2019 10.19pm
Reply to  Shriek

Why copycat? No vocabs to say it better? You should try harder now since no more Niao Kong to feed you dedak!

Shriek
Shriek
1 Feb 2019 8.22pm
Reply to  tunglang

China no copy cat? Here kopy o and copy anging

tunglang
tunglang
3 Feb 2019 2.40pm
Reply to  Shriek

You just proved what I said! TQ!!!

Shriek
Shriek
3 Feb 2019 4.48am
Reply to  tunglang

Your niao kong and tokong is no cm of peng land but you have been working much harder at this chow mein. You are now addi g this dish to your favourite? One ton mee, lim kopi and now peng land chow mein?

Jasni
Jasni
30 Jan 2019 10.50am
Reply to  Wei

Singapore already started to demolish old HDB blocks built 50 years ago to build new ones for new generation.

Next time Singapore TV or movie productions may have to come to Penang Rifle Range to film shows of early Singapore?

Shriek
Shriek
31 Jan 2019 9.21pm
Reply to  Jasni

Singland willing to demolish community centre swim pool too. Malaysia willing to add more chlorine to keep it running

tunglang
tunglang
2 Feb 2019 7.16am
Reply to  Shriek

You are still spinning stupidity!

Song
Song
29 Jan 2019 10.43am
Reply to  tunglang

Non-Penangites will now be able to buy affordable housing units here in a move by the state government to address the overhang situation.

State Housing, Town, Country Planning and Local Government Committee chairman Jagdeep Singh Deo said affordable units that fall under the open market category would be up for sale at market rate and not bound by affordable housing pricing.

https://www.thestar.com.my/news/nation/2019/01/29/penangs-overhang-addressed/#ZXeX0kmEmawUUEuC.99

Ah Keong
Ah Keong
29 Jan 2019 4.17pm
Reply to  Song

Why Penangites not buying those affordable homes? Don’t blame buyerd from other states.

Song
Song
30 Jan 2019 2.02pm
Reply to  Ah Keong

They want landed properties at low cost?

tunglang
tunglang
30 Jan 2019 11.17pm
Reply to  Song

Landed properties? Get real before you spin like that hehehe!

tunglang
tunglang
30 Jan 2019 11.19pm
Reply to  Ah Keong

What is affordable price? 150K? 200K? 300K? Get real with Penang wage levels of B40 & middle class.

Wei
Wei
31 Jan 2019 3.34pm
Reply to  tunglang

so you ready to sell your house at RM100k? so much complain and whining from you about high prices..am sure you would not want to sell at “high end” price..like those evil greedy developer…hehe

tunglang
tunglang
1 Feb 2019 11.46pm
Reply to  Wei

A Stupid Question: “so you ready to sell your house at RM100k?”
Ask the developers, not the house owners who stay in their own homes.
Try more spin & look more stupid! Hehehehehe!

Shriek
Shriek
3 Feb 2019 6.02pm
Reply to  tunglang

U buy over than 15 years ago chip chip. But you want to sell at market value? Greedy house owner make more than 200% ptofit

Wei
Wei
4 Feb 2019 10.16am
Reply to  tunglang

so you also want to gain from the current inflated price?….talk so much.. you are no difference from those evil greedy developer lar..your house short of mirror ar?…hehehe

tunglang
tunglang
4 Feb 2019 3.38pm
Reply to  Wei

Most people buy properties to stay, not like you who hehehe when property prices are unaffordable, kow-peh-kow-bu when prices go down. Up or down doesn’t concern us as we have a nice shelter to stay in.
Pls try your hard luck as speculator or troll like that Naik Jeep.

Shriek
Shriek
31 Jan 2019 9.25pm
Reply to  tunglang

What you expect with pg Lang investing on backpackers, rumah tumpangan and wing fei hoong inn? Built any hotel complex, yet kau beh kau bu.

Shriek
Shriek
1 Feb 2019 2.49pm
Reply to  tunglang

Get real, try harder to buy cheap one ton mee and lim kopy o.

tunglang
tunglang
1 Feb 2019 11.48pm
Reply to  Shriek

Very boring spin. Pls try harder! And also pls don’t copycat. Niao Kong is no more in Penang for you to shiok him!

Shriek
Shriek
3 Feb 2019 4.50am
Reply to  tunglang

Tokong no more for you and now you are promoting chow mein? Try harder.

tunglang
tunglang
4 Feb 2019 3.39pm
Reply to  Shriek

You are not trying any harder! Why not shriek louder???