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Introduce policies to suit property market conditions

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The Penang state government should implement clear-cut housing policies that suit the overall property market conditions, real estate agent Michael Geh said today.

The chartered surveyor said the state must consider the effects of the policies implemented on both the primary and secondary markets.

“I hope the state will implement policies that will not negatively affect the housing sector.

“We must remember if there are higher developer levies and higher land prices, it will only lead to higher house delivery costs that the consumers have to bear,” he said at a press conference to announce the Penang Property Summit 2017 slated for March.

The senior partner of Raine and Horne International hoped the state does not only consider developers’ interests when implementing housing policies.

“I hope the policies implemented will also be more sensitive towards the secondary market,” he said.

The primary market refers to new launches by developers while the secondary market refers to properties put up for resale either by house owners or through estate agents.

As for the 2017 property outlook, Geh predicted that the property market will see a slight surge from the final quarter of 2016.

“So, I am predicting an increase in residential property transactions in the first quarter of this year by about 5 per cent,” he said.

He expects Penang to record about RM1.13 billion worth of transactions for 2,527 units within the first quarter of this year.

“The market will remain robust especially in the secondary market which is more active than the primary market with a ratio of five to one,” he added.

State executive councillor Jagdeep Singh Deo who also attended the press launch noted a drop in transactions for the second half of 2016.

“Despite the outlook not looking very bright , we still believe Penang is the place to invest in,” he said.

As for the state’s housing policies, Jagdeep said events like the Penang Property Summit is important to allow the state to gather feedback from stakeholders.

“The last few years, it is because of engagement with developers, we know developers are hit badly so we try to tweak our policies to fit the market,” he said.



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