GEORGE TOWN: The outlook is bullish for the Penang property market over the next three-four months, says the Real Estate and Housing Developers' Association (REHDA) Penang.
This optimism is based on the encouraging sales recorded by property developers in the first two quarters, said its deputy chairman, Toh Chin Leong.
He said property launches in Penang had not only attracted locals but also foreigners due to the low cost of living, stability, healthcare and security.
The market was also supported by continuous demand from locals, as purchasing properties for the next generation is a tradition for Penangites. he told Bernama after the launch of the Malaysia Property Exposition (MAPEX) 2012, here Friday.
The event was officiated by Chow Kon Yeow, the State Exco for Local Government and Traffic Control.
Toh said the property market in Penang was not only doing well on the island but also the mainland, due to the second Penang bridge, that is scheduled for completion in September next year.
The trend of capital appreciation is also happening on the mainland due to the second bridge, with land prices rising rapidly in Batu Kawan, Batu Maung, Gertak Sanggul, Teluk Kumbar, Bukit Mertajam, Seberang Perai Tengah and Selatan.
Asked is Penang is facing an oversupply issue, Toh said the problem is unlikely, due to the encouraging take-up of new launches with the state too being small with scarce land resources.
Toh said Penang property prices are unlikely to decline due to rising construction raw materials, continuous foreign direct investments in the industrial sector and the state's improved image with the UNESCO World Heritage Site status.
Asked about REHDA Penang's plans to address the shortage of low and medium cost properties in Penang, he said the association is meeting with the state government over this.
He suggested that there should be some incentives for property players to encourage low and medium cost housing developments, based on the Public Private Partnership (PPP) initiative.