Story by Danny Ooi & Chan Lilian
PENANG Exco for Town & Country Planning Jagdeep Singh Deo said there is a need to cater for the affordable housing market as the current prices in the primary market is beyond the reach of many first-time buyers.
‘This is why the exhibition of properties from the secondary market is very important, as I feel it can achieve the required effect of providing affordable housing for the middle-income group in particular,” he said at a press conference at Komtar recently to announce the Malaysian Secondary Property Exhibition 2014 (Maspex) which was held from June 20-22.
Also present were the Penang branch of Malaysian Institute of Estate Agents (MIEA) state chairman Mark Saw and committee member Michael Geh.
Geh said 2014 will see investors who had bought new properties under the discontinued Developers Interest Bearing Scheme (DIBS) putting up houses for sale (in the secondary market).
He added that the prices in the secondary market (previously owned houses) were based on market demand and negotiations between buyer and seller.
“Post-DIBS properties could make up about 30% of the secondary property market in the near future as speculators continue to ‘flip’ (buy and sell an asset for a quick profit) the property after the scheme was discontinued this year.
“The secondary market is active, and is actually not volatile but stable,” he added.
Geh said 16,939 units valued at RM4.9billion were transacted in 2011, while 15,964 units valued at RM5.26 billion changed hands in 2012.
He added that 7,087 units worth RM2.63billion were transacted from January to June last year, adding that units available on the secondary market in Penang fluctuated between 14,000 and 20,000 units yearly.
“This means some 80% of the units in the secondary market are bought or sold,” Geh said.
Jagdeep who was present at the launch of MASPEX on Jun 20 visited the booths and held a press conference after that. He said, “Since Pakatan Rakyat took over the administration in Penang in 2008 and with a stronger mandate in 2013 by the people of Penang, we have seen Penang bloom into one of the most, if not most, attractive states to invest in Malaysia.”
He also urged the banks to reconsider their interest rates as he claimed that at the moment, the interest rate is a flat rate for both luxury and affordable homes. “There must be a change where the lower income people will find it easier to obtain a loan at a lower interest rates to help them to own homes.” Jagdeep suggested.