Penang property likely to sustain 5-10% growth

The property market in Penang is likely to see sustainable growth of between five and 10 per cent next year, says Real Estate and Housing Developers' Association Malaysia (Rehda) Penang.

Chairman Datuk Jerry Chan Fook Sing, said the market here will be driven by continuous business activities and the flow of foreign investments into the state.

He said property market in Penang will remain bullish amid rising demand for houses due to the increase in jobs as an impact from foreign investments as well as growing population.

"The population projection for Penang is two million by 2020, therefore more houses are needed. Some 12,000 houses are expected to be built yearly until 2020," Chan told a media briefing here yesterday.

Chan said property transactions in Penang for next year are likely to slow down amid cautious buying ahead of the 13th general elections.

"However, prices are unlikely to adjust downwards due to rising land and construction material costs," he said.

He said the house prices are unlikely to decline amid high land prices and high construction material costs, adding that land prices are likely to rise in the future.

Chan said demand for property will remain bullish as interest rates are likely to stay low despite Bank Negara Malaysia's tightening of housing loan rules. - By Business Times

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