Penang property market slowing down

PEOPLE are more cautious about buying pro-perty with the current economic situation but the market should see a quick recovery when the economy picks up again.

Real Estate and Housing Developers Association (Rehda) Penang branch chairman Datuk Jerry Chan Fook Sing said property sales had weakened noticeably since the third quarter last year following the fuel price hike, and deteriorated further in the fourth quarter when the global bad news came out.

“This has affected the market but the population is still growing and people who need to buy houses will still do so except that they will be more cautious.

“We won’t see a need to rush out to buy houses,” he added.

He said those keen to buy property as investments, however, would take their time.

“The greatest issue is job security. As long as people feel they have job security, they will invest their money. And property is one secure investment.

“Property prices do not crash like other forms of investments, such as shares. While it is true that transactions will be reduced when there is a downturn, prices go up very quickly when there is an upturn because of the reduced supply of buildings during the downturn,” he said.

I have the opportunity to talk to one of the property evaluater from Henry Butcher last week, and according to him with his vast experiences, the market might be slowing down in the first part of the year or even beyond, but however, there won't be any price drop as long as properties in the Penang island are concern. Both of us agreed that, the main criteria for a property selection be it for accomodation or investment will be the location apart from the price. So potential buyers out there, please take into conderations regarding this before making you move... just my 2 cents :)