If you are thinking about buying or selling a Penang Residential Property
in 2019, or find the perfect rent, it helps to know what to expect in 2019. New housing developers in Penang are very optimistic about the outlook in the coming year.
Because the property sector is the biggest winner of Malaysian Government Budget in 2019. With a variety of measures that include specific allocations for supply of affordable property developments
, stamp duty exemptions and property crowdfunding to help the industry clear the supply overhang, the government has placed the property industry on a path to sustainable growth.
These new measures will make it easier for Malaysians to reduce property speculations and make it easier for individuals to finance a home.
The Malaysia Government will kickstart a national Home Ownership Campaign
that will last for six months on 1 January 2019. Among the initiatives that will be carried out is a waiver for all stamp duty charges on unsold properties priced between RM300,001 and RM1 million. In return, developers will offer a minimum price discount of 10%
for these residential properties
The Government is also thinking about new housing developments, which will be exempted from SST charges on construction and building materials. This will lead to a 10% price reduction on the prices of houses that are not price controlled.
To assist people who earn less than RM2,300 a month to own a house for the first time, the Government is introducing a new RM1 billion fund to help them buy affordable houses priced up to RM150,000.
This measure will also be available starting 1 January 2019. The participating financial institutions are AmBank, BSN, CIMB Bank, Maybank and RHB Bank. They will be offering a concessionary rate from as low as 3.5% per annum. Just keep in mind that this fund will only be available for two years or until its allocation is used up.
In 2019, the Government will continue to explore and implement property crowdfunding, the first in the world. It will serve as an alternative source of financing for first time home buyers.
The property crowdfunding will be regulated by the Securities Commission as a peer to peer financing framework. Under this initiative, buyers will be able to purchase a property for a fraction of its value, while the remaining balance can be funded by investors who are looking to invest on a property for potential appreciation in value. This initiative is expected to go live in the first quarter of 2019.
Property Market Demand in 2019
The property market in 2019 will be characterized by millennial demand. The majority of millennials will be turning 29 years old next year, entering the home buying age, and contributing to the increase in first time buyer demand.
Millennials are the largest segment of buyers next year, accounting for 45% of mortgages, compared to Boomers with 17% and Gen Xers with 37%. And this will be true for the next decade as the millennials housing needs adjust over time.
So new housing developments in Penang will need to know exactly what the millennials are looking for, if they want to be competitive in 2019. Smart homes tend to be very attractive to this type of buyers.
The Penang property market is expected to improve in 2019, with better sentiment to give the market a boost. Penang occupancy rate has been increasing in the last couple of years and is expected to continue this way in 2019.
The property market in Penang is not just residential, there are new office supply coming to the market. Offices with well designed floor layouts and good infrastructure will enjoy a good occupancy rates in 2019, with rents going between RM2.5 to RM4 psf.
Another sector that is growing and is expected to grow even more in 2019 is hospitality, with international hotel brands looking at the Penang market. With more tourists and locals living in the area, the retail sector will remain very competitive, with shopping centers constantly upgrading to attract shoppers.
So forget 2018 and get ready for 2019. Because the property market in Penang and in Malaysia will remain active and very attractive to investors and buyers. And to answer the ultimate question ‘Penang Property Trend for 2019: Buy, Sell or Wait?’, we would say that buyers should definitely get ready to obtain their dream property in 2019.