GEORGE TOWN: Developers in Penang expect property prices to drop significantly due to the impact of the Covid-19 pandemic and movement control order (MCO).
Penang Real Estate and Housing Developers Association (Rehda) chairman Datuk Toh Chin Leong said the property sector in Penang has always weathered economic slumps, thanks largely to its position as a prime investment destination.
However, he said the current crisis is a greater challenge.
He expects developers to put in extra effort to sell off excess units in their inventory as soon as the MCO is lifted. “For now, we are not allowed to operate because our product is not classified as ‘essential’,” Toh said. To maintain cash flow, he expects some developers to offer huge rebates.
He said the property market has remained in a stagnant position for the last four years due to a variety of reasons and the pandemic has undermined its ability to regain its position as a strong economic performer for the state.
He was responding to state executive councillor Jagdeep Singh Deo’s statement that the state will look into reducing the price of houses and apartments to help buyers and developers.
Jagdeep, who is in charge of the housing portfolio, said Penang is studying how it can provide incentives to developers and buyers to stimulate the market.
He also said the state is looking into property purchasing opportunities for foreigners, hinting that foreign purchase of property may be relaxed as part of efforts to revive the market.
Now, foreigners can buy bungalows valued at RM3 million or more on the island and RM1 million or more on the mainland, as well as apartments at RM1 million and above on the island, or RM500,000 and above on the mainland. Unsold property in Penang totals 4,358 units.
Read the story on our iPaper:
