News & Updates


Penang Property recovery by 2018?

Wednesday, 27 July 2016 00:00

 

Stability in sub-sale prices of properties over the past year indicates

sector still in a healthy state

 

For the past couple of years, Penangites are used to hearing about the soft property market situation in the country. 


Moving into the second half of 2016, it is unlikely that the local property market situation would immediately improve, although there is speculation that the sector, which has slowed down since late 2014, would recover by 2018. 

The Malaysian Property Summit Mid-Year Review 2016 committee is not anticipating a recovery in the second half of 2016 due to oversupply and weak property market sentiments. 

The committee expects the property market to be stable and flat in 2017, projecting 2018 as the recovery year for the property market. 

There are also good reasons why it is not unreasonable to expect a pick-up by 2018 or even sooner. 

Property hunters should take advantage of the low bank interest rates to buy properties now as a hedge against inflation.

Eco World (North) general manager Khoo Teck Chong said the current rates were among the lowest in the history of housing loans in the country.

 

Interest rates on housing loans offered by some banks will likely be adjusted lower in the coming weeks in tandem with the 25 basis points (bps) cut in the overnight policy rate (OPR).

Analysts said while banks in Malaysia were expected to revise their base rates (BR), which are the benchmark lending rates, to reflect the new OPR which has been reduced to 3% yesterday from 3.25% previously, the change will unlikely be significant.