Friday, 9 March 2012

Secondary property market set to soar

By DAVID TAN davidtan@thestar.com.my

Majlis Perbandaran Seberang Prai Office at Ban...
THE sub-sale prices of landed property in the prime locations of Seberang Prai are expected to increase by 5% to 10% this year.

Henry Butcher (Seberang Prai) senior manager Fook Tone Huat said this was because there was stronger demand for landed property in the secondary market.

“In the secondary market, a terrace property in prime locations such as Bukit Mertajam, Simpang Ampat and Jalan Raja Uda is priced around RM385,000 now, about 10% higher than a year ago but relatively reasonable,” Fook said.

The stricter conditions of bank lending, a weak global economy and a higher pricing of new landed property would see transactions in Seberang Prai rising only slightly in 2012 over 2011.

Fook said: “However, we expect more property transactions in the sub-sales market due to the attractive prices,” he said in an interview.

He added that last year, there were about 18,000 transactions of new and old property in Seberang Prai. About 50% of the transactions were for new property, while the sub-sales comprised about 30%, he said.

Fook said that in general, the Seberang Prai property market for 2012 would be challenging in view of the uncertainty in the global economy and the new set of financing ruling imposed by Bank Negara.

“The take-up rate for those high-end categories is expected to gradually slow down but for those in the medium categories, the sales rate should still maintain,” he said.

Prices would still be on the upward trend for landed houses priced below RM500,000 and for development land in the prime areas, but the rate would be at a slower pace.

“For those high-end property, prices are expected to be flat. Nevertheless, property prices are not expected to decline in view of the relatively resilient domestic economy and the long-term impact from the new economic transformation programmes,” he said.

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