Call for housing review


The Penang Government has been asked to address the lack of affordable housing for the low to middle-income groups, particularly the young wage earners on the island.

Penang MTUC secretary K. Veeriah said the state should convince developers to introduce corporate social responsibility (CSR) practices when they embarked on new housing projects.

Even though the cost of raw materials had risen and there was limited land space on the island, Veeriah said the developers should think of innovative ways to lower the cost of a house so that the middle and low-income groups could continue to live on the island.

“There is a general feeling among this group that property prices have risen beyond what they can afford unless they are willing to live in high-density conditions with limited social amenities,” he said.

“Governments everywhere have a responsibility to ensure affordable and if possible quality housing for the working class.

“We appreciate past efforts but now, we must find new ways to cope with the rising property prices,” he said.

Retired academician and social activist Dr Goh Ban Lee said there was a need for a comprehensive review of the state housing policy.

“If our young professionals cannot afford homes here, then it could result in a brain drain. This could affect the economy,” he said.

The latest property along many parts of the island’s east coast, stretching from Tanjung Bungah towards Bayan Bay, cost between RM500,000 to millions of ringgit per unit, which according to Dr Goh, was beyond average income earners.

He added although residents cannot expect developers to cut costs as their projects are driven by market forces, nonetheless, there must be new measures to help the middle to low-income classes own homes on Penang island.

Penang PKR Information head Sim Tze Tzin claimed that for the past 20 to 30 years, developers were free to build whatever they wished and this resulted in prices rising beyond the reach of average income earners.

He said prices continued to rise because many overseas-based Penangites were purchasing units at inflated rates at the expense of young local professionals who, even with a combined household income of RM7,000, could not afford such units.

“The state must look at policies to compel developers to cater to the local market instead of just foreigners,” he added. - By Ian Mcintyre (The Star)

43 comments

March 29, 2010 at 4:25 PMcraftmodel

end up average income earner work and service the loan. No more extra $$ to enjoy life.. wat a life... sigh!!

 
March 29, 2010 at 4:51 PMProp

This is just the sad fact of life...same problem also being faced in Taiwan and china currently, penang or malaysia is not the worst i would say. The price will continue to go up as long as there is the demand, ask ourselve why there are still so many people willing to pay hefty amount of money to buy bayswater, baystar etc, despite price went up ~50% from launch? For avarege people, just have to start humble and buy what is affordable, upgrade themselve along the way when situation arise, they may become investors one day as well.

 
March 29, 2010 at 6:32 PMTim

In the current biz environment, we should not commit to a property that requires 20-30 year to payback the loan. It is overcommitting.

When the business need arises, the employers (be it a MNC or a local company), will have no mercy to terminate any employee.

At the age of 45+, it is unlikely to get an equivalent job/pay.

 
March 29, 2010 at 7:59 PMlim

Glad that the high house price problem has got the attention of various parties. Hope that our state government will seriously think of ways to overcome it.
Just check the upcoming penang property projects on this website and count how many of them are at affordable prices. How many of them will be fully occupied once they are completed? The problem of mismatch of supply and demand should be redressed.
Perhaps those planners who involve in the state housing policy would like to read the books 'ant tribe' (蚁族)and 'dwelling narrowness'(蜗居). The books depict how the young generation of china people (including young graduates) in beijing and shanghai suffer due to high house prices and how they live as "mortgage slaves".
We dont want to see our young generation to become 'ant tribe' one day and dwell in a very narrow space in penang.

 
March 29, 2010 at 11:47 PMSam

There are still plenty of housing that is very very affordable in Penang. Just go to mainland. Landed houses are huge and priced below RM300k for DST. You can drive from Seberang Jaya/Juru/Butterworth to Bayan Lepas Industrial zone/Georgetown in less than 30 mins.
The problem is, many Penangites wanted to live in prime island areas at dirt cheap prices. Total mismatch of expectations. You cannot expect a person not willing to study to score straight A's.

Fresh graduates and young managers who continue to insist to stay in the island, can get a condo first. Good ones (not the luxury types) are still pretty affordable at below RM400k.

Then work smart for the next few years. It is common knowledge that outstanding employees, on the average, would earn about RM10k - RM18k by their mid 30s. When both husband and wife started to earn a combined salary of RM20k - RM 36k a month, a RM2Mil property looks very afforable.

When compared to a landed property in China or India, prices in Penang Island is still very cheap.

Just look around new property launches. Most of them were snapped up almost immediately. One Residence project near Sungai Ara (DST - selling at about RM650k) were fully sold out even before the official launch. And most of the buyers are local. What does that tell us? Housing in Penang is still very affordable and highly sought after.

My advice - stop complaining about prices being too high. It will not come down. Even at the height of economic recession in 2008 - 2009, prices in Penang continue to go up.

I used to be a junior engineer in an MNC in Penang. I remember vividly telling myself how can people afford a RM 350k DST in Bkt Jambul or Sunway Tunas area, when I can't even afford a RM220k apartment! The houses were so expensive and they were not big at all. That was less than 8 years ago. Today, if you can find a house in those areas selling at RM 350k, you wouldn't even think twice about buying it - you just jump at it instantly. Why? Because it is so cheap!

Likewise, a RM700k DST would be considered "very cheap" in just a few years from now.

Luckily I learnt my lesson fast. I needed to start making more money to afford the lifestyle I wanted. So, I worked smartly and doubly hard.

As of today, I have 3 landed properties and 1 condo in Penang. Some of them are free of housing loan already. And I am still looking to buy more.

If I can make it, everyone should be able to. I was not a straight As student nor did I have the opportunity to go to an overseas university. My parents were not rich nor did I manage to marry a millionaire. I just committed to a lifestyle I wanted and worked towards it.

So, stop grumbling. Start taking the right actions for yourself. It is not the BN nor PR that is to be blamed. Start taking charge of your own life.

 
March 30, 2010 at 1:38 PMBryan

Sam, you must be one of those "contribute" to the island propoerty price sky high.

My opinion to your reply:

1. Property in mainland.
For people work in island, you suggest they stay in mainland? So they must at least buy a 2nd car and monthly fuel and bridge tol cost additional 500~700. So, poorer people need to spend more?

2. Engineers and young manager should stay in condo first.
Agree, but should not be 400K condo. If I work in KL, I still can get a landed with the same price. Why islander need to suffer more and facing the problems in condo vs our friend in KL with same income? The 400K is speculated price. That's why we need government to act.

3. Work smart.
I am at mid of 30s and worked in MNC, but don't get the salary you mentioned. You must look into the company ratio for manager: engineer/ executive: operator/ direct labor. I think less than 5% can achieve where you are. So, the rest 95% must stay in expensive condo/ apartment/ flat in island, or move to island?

4. New property launching.
This is the problem. Developer launched at a lower price, but always took up by insider or speculator, and resell to engineers with 30~50% higher. So, developer 2nd phase release or new project will follow the so call "market price" (manupulated). The property price in island is speculated, not a real price which reflect general income of the people.

I am sure you have your 3 landed and 1 condo, is also partly because property price/ rental gain. For those just want to have an home, how?

When the average property price exceeded average people income (regardless of smart people or not), won't you think that this is a bubble and this is not right?

The situation now will get rich people richer and poor poeple poorer. I glad I already have 1 condo to stay, so the property price hike will not impact me directly, at least for now.

I have no problem if the property price shoot up because average people buying power increased. Malaysia people already suffer for expensive car, but Penangite need to suffer for the expensive property.

 
March 30, 2010 at 2:19 PMMr.Business

What Penang Government can do to address the lack of affordable housing for the low to middle-income groups, is to ask PDC Properties to build a lot of medium cost apartments (price range between RM200K to RM300K) at Bayan Mutiara.

 
March 30, 2010 at 4:18 PMlim

Agreed. PDC should play a more active role. They perhaps should study the management and policy of HDB of singapore, as suggested by dr. lim of seri.

 
March 30, 2010 at 5:25 PMChong

Sam,
How many can earns $10-18k/month in mid-30?
Even though both husband and wife add up together!
The fact is Only 1 or 2 employee got such income in a SME co., some even not have at all!
and how many got such income in Penang MNC? max up to 50 per MNC the max?
and Those property mostly 500k to 1 mil , with <10k /mth how many people afford for that? (not talk about family support here)

 
March 30, 2010 at 7:45 PMBezbuy

I have to agree with Sam. You have to take charge of your own future. No one owes you a living except yourself, so you can keep blaming the government or blame your lucky stars or you can do something about it yourself and take control of the situation.

Work hard, work smart and then make your money work for you. I recommend a good book called Rich Dad Poor Dad by Robert Kiyosaki. Sure, it's easier said than to put into practise, but true success does not come easy.

Anyway, I too realize early on that if I don't buy properties now, it'll be more expensive later. So, years ago, I have already started investing in my 1st home and then more properties and now, I am enjoying the appreciation in their values. Eventhough I am a small timer, but, nonetheless, I did it on my own and without anyone's help.

 
March 30, 2010 at 7:52 PMBezbuy

I would like to add another suggestion to those who think the property prices in Penang is too high...

Consider the more remote areas in Penang where property prices are still quite affordable such as Teluk Kumbar or Balik Pulau in the island. Otherwise, consider BM, Juru, Seberang Jaya etc.

OK..so if you want to stay on the island. Then, there are many condos that are still affordable for your picking as long as you are not being unreasonable in your expectation.

 
March 31, 2010 at 12:55 AMjack

After viewing certain comments above, I would like to add in some words: If you would like to enjoy your life, you have to work hard to obtain it. It is simple and easy. It is not only penang properties keep raising, everything in penang is also raising in terms of price. A piece of "ba chan kuih" has relatively increased as much as our properties nowadays. The only difference people do not notice is that everybody is affordable to buy the "ba chan kuih" even though the increment is more than the properties in penang. Don't you all agree? So, all of us have to work hard so that we can keep abreast with our economic growth.
Be realistic, this is real life.

 
March 31, 2010 at 7:39 AMBryan

Bezbuy & Jack,

If this is the case, Penang no longer a good place for living. Many people can easily move to KL for same income and position, while still able to enjoy a landed property, or event a semi-D/ corner unit. A lot of so call "affordable condos", you have to go inside and you will see the condition. My point is, why islander need to work harder compare to friend in KL and JB for the same living standard?

If government built a good traffic link to Teluk Kumbar and Balik Pulau, I think I will move there. Now, many people buy property there and finally find out it took them a lot of time and fuel to go to work, or even to get a daily needs. The living conditiona there is not up to par.

 
March 31, 2010 at 8:38 AMtycoon

Kalau mampu beli mahal, belilah. Tiada orang yang halang. Syukurlah kau mampu, belilah banyak banyak. Orang lain tak mampu.

Kalau anak2 sengsara, dia minta duit kita. Kalau jiran kita sengsara, dia minta tolong kita. Kalau kawan2 kita sengsara, juga minta tolong kita. Orang miskin-kaya pun ada yang sengsara. Kalau tak tolong, hilanglah semua. Yang lain, yang lapar dan sengsara tak dapat tolong, curi ... rompak kita. Harta tak selamat, nyawa tak selamat, jiwa tak tenang. Hakikatnya, sengsara kita juga.

Janganlah terlalu tamak duit sangat. Orang baik, kita baik. Orang baik, kehidupan kita aman, damai dan mesra. Isn't that wonderful?.

 
March 31, 2010 at 11:07 AMHio Hwi, Audrey

Ya land so limited ofcoz price will escalate.If cant afford to buy then can live in Bukit mertajam.

 
March 31, 2010 at 11:52 AMTim

We are in a very simple situation - Gap in expectation. It has nothing to do with land cost, labor cost and material cost because those properties are already completed.
The speculators ask for high profit of RM100K-RM150K upon obtaining OC (i.e. SP Setia, Spring, DPiazza, Vista Gambier...etc)
But, majority of the buyers are not willing to let the speculators earns this amount of profit.
There will be a time when the gap is brigded - who can wait longer?

 
April 2, 2010 at 8:27 AMtycoon

Kalau kamu pasti kamu beli2 tu Louis Vuitton dan pasaran kamu tu tuan2 dan puan2 Louis Vuitton dari luar negeri, pasal apa kamu suka cakap biadab mengenai kemampuan orang tempatan dan bangkang-membangkang usaha kerajaan untuk menemui keperluan orang tempatan?. Kebanyakan orang tempatan tak mampu/ada yang tak mahu beli Louis Vuitton. Kamu mampu, kamu mahu, kamu belilah, syukurlah. Siapa yang halang?.

Orang yang mampu, tak mestinya orang kaya. Orang yang tak mampu, tak mestinya orang miskin. Orang yang miskin orang juga. Semua anak2 ibubapa, salir darah jika dicucuk, tertawa jika digeletek.

Janganlah hina2 orang yang tak mampu. Memang tak patut orang bangsa cina disuruh balik ke China. Janganlah hina2 orang Penang pergi keSeberang Prai, atau orang Tanjung Tokong keTokong Ular. Penangite First. Jelas orang luar negeri, orang diluar atau dari luar negeri. Dah orang luar nak ganyang Malaysia, kalau Penang diganyang, bukan orang luar negeri yang tolong. Sembunyi LVs dan keluarga mereka diluar negeri.

Janganlah sebab duit lupakan diri dan orang2 sendiri. Kekayaan dihati tak dapat dibeli duit.

Niat yang jujur iklas sokong usaha kerajaan membina perumahan bawah RM500,000 untuk orang tempatan. Setiap anak2 Penang yang berkerja keras patut diberi kesempatan yang berpatutan dan kehidupan yang bermaruah. Apa yang kita harap ialah 'international city' bukan 'millionaire slum'. 'Millionaire slum' diIndia.

 
April 3, 2010 at 7:34 AMvoice

Syabas, tycoon. I sokong.

Penangites is Penang. Penang for Penangites. Penangites First!!.

The speculators can wait. While waiting, do something good for the environment. Swat flies.

Greed + Arrogance = Downfall

 
April 4, 2010 at 3:11 PMMO

tycoon,

I wish most of the penangites will think like you...but it is always not easy in todays society. Everybody also have greed. Talk is one thing , do is another thing ( just like our politician ). Hopefully penang state government will take the lead by showing some good example as well as implementing some policy that will benefits us.

 
April 5, 2010 at 9:13 AMjohn

I am not greedy. Most of the people I know are not greedy.

Syabas, tycoon. I sokong juga.

 
April 11, 2010 at 12:14 PMshawn

Dear fellow malaysians

Its time to wake up and stop complaining. If you think Penang properties are expensive at RM500psf, properties in neighbouring countries such as Singapore cost 10 times as much.

 
April 14, 2010 at 10:04 AMKoay Choo Chin

As a local island grow up penangtist and is about 6 years I work after I received my degree, my salary could not afford all the new condo which cost more than 350k. This is the max range I afford without car loan or other commitment, but in fact I do have other commitment. This really struggle me a lot. Not to say I am not willing to stay at mainland/butterworth but the island is my home. My families, relatives, friends all here. Intruder don't really have to war with you. The buy all your houses then they can chase you out from your homeland. The wages in penang we can make is so little. We don't even stand a chance against foreign earning power. The government second home plan really up sad me a lot. Want to do second home, please build it at the place that got more land. Not on the island. Island average worker's salary without a degree is just below RM1000. I urge that government should do some constrain, give the house priority to local penangtist with a better price.(like Singapore, only married and local or PR are eligible to purchase a house) Limit the 1 house per investor. Set a ratio to force the developer to build more cheaper condo.

 
April 15, 2010 at 1:18 PMAw Yong

Yes. Government need to do something. Nowadays, terrace house price at least 600k... Condominium will also cost about 400k per unit. What is this??Meaning those ppl earning less then 3k can only choose to stay in a flat or rent himself a house. (With the requirement of No other commitment) Please don't compare us with our neighboring countries like Singapore or HK, our salary range is different. Their pay is higher then us.

 
April 17, 2010 at 12:31 AMAndrew

Its about supply and demand. Prices cannot rise forever, especially when income has not risen as fast as property prices. People have already started making career decisions - change job to companies like First Solar and Honeywell, so that they can live cheaply on the mainland. I myself am thinking about buying a landed property on the mainland. The Penang bridge is not as jam as before and the mainland has developed very well. Equilibrium will eventually be reached.

 
April 17, 2010 at 9:54 AMBezbuy

Actually, there is a lot of land in Penang island. The problem is not the land, but the infrastructure around the island. The federal government is to be blamed here. With proper road access around the island and good public transport (systematic monorail, bus and taxis), then we can have many little satellite townships in Penang. Each township will have clinics, schools, shopping centers, wet market, hawker centers etc etc. Once that happens, we will not have to worry about trying to cram every new little houses and apartments in the already overcrowded townships we have today.

The BN government holds the power to the funds we get in Penang and for the last 50 years, they have done very little to help Penang. Koh Tsu Koon did not do anything to help. Now, BN is holding back the funds because we voted them out in the last GE.

So the solution is to kick BN out and then allocate more funds to build better infrastructure in Penang so that we can develop more lands/townships in Penang. The solution is NOT building low cost condos, low cost houses, stop investors from buying....these are all the wrong solution. It is like taking panadol for a pain when you have a real problem in your heart.

Throw BN out of the federal government and we have a good shot at developing Penang properly.

Yes, I support PR because I am sick of the BN government.

 
April 22, 2010 at 11:45 PMHKMa

I have great sympathy for the plight of Penangites who are cast aside in the merciless property price hike. I agree absolutely with what Bezbuy said about improving the infrastructure so that untapped land could become accessible and attractive for development.

Inproving the infrastructure is how you could make inaccessible land today to become valuable land tomorrow when convenient transportation and other amenities are in place. Surely, Malaysia cannot keep relying on just building more roads to serve her ever increasing number of cars. You can never keep up. It is also environmentally destructive where the final victims are yourselves! All the major cities in Malaysia including Penang must improve its public transporation system, before the dead end for development is reached and the place chokes itself to death.

I am a Malaysian who live in Hong Kong where the infrastructure is hundred times better than those in Malaysia. Why? because the place better managed and more efficiently run by a responsible and accoutable government. I think the whole of Malaysia is a mismanagement of its wonderful resources. Malaysia is a beautiful country and I hope to return to live some day. However, I don't think the Malaysian goverment works hard enough for the commom good of her people. Everyone is for himself and the public amenities are not good. There is plenty of corruption and the public fund is misused or channeled into some official's pockets. Hong Kong government is clean, spends its money much wisely and a lot of it goes into infrastructure/public amenities/public services etc for the common good of the people. Every resources is treasured and every inch of land is maximised in its use to serve all the people. I truly believe that if the same rigourous approach to management is applied in Penang, Penang will become a most wonderful place. Penangites will have more opportunities, wealthier and happier. Hope to share more later.

HKMa

 
May 27, 2010 at 1:42 PMAnglo Wax

I am sure many had read from newspaper "what is a good living city"

A good living city should have a good communication, less traffic on the road and good public transport.

 
May 27, 2010 at 2:23 PMameer

If we throw BN out,who is going to spend money to develop? Believe me,DAP are not having billions in funds

 
May 27, 2010 at 5:49 PMconcern

Yes you guy say above all correct but msia won't develop and always behind for now and forever if compare to other nation, you guy want to know why because of DNA problem, I no need to write further. You guy tell me which country manage by these specific DNA successfully? None.

 
September 17, 2012 at 1:17 AMrosy periwinkle

it is becos of certain greedy idiots tht prices hv gone up.they buy cheap but sell at higher price.what bout middle income earners? banks will nopt release loans on the whims of sellers. i saw a 700 sq ft apartment the other day priced at 280k but the bank valued it at 180K ! how to get loan? greed will only reserve you greedy lot a place in hell.
A buyer and sellers market?? more like a greedy lots market.
i'll vote for BN next,at least they take care of the poor.DAP caters to the rich,helping only one ethnicity.

 
September 17, 2012 at 3:22 AMCK

Hi rosy winkle,

Cheers up ok :) ... If things have not been so rosy for you and doesnt turn out your way, dont take it so hard ok... Make peace not war :)

Greedy investors have to fork-out out front investment capital also friend, its not FOC.... Contrary to what you have said, i think most of them is in seven heaven now ... :) ...

 
September 17, 2012 at 3:27 AMCK

Also, are you BN cyber trooper? By the way, i will vote PKR anytime.... :)

 
September 17, 2012 at 7:11 AMPenang Fan

Those who still vote for Barisan are blind. After 55 years where is Malaysia now. Compare with Singapore a small nation with no natural resources and they rang top 5 riches nation in the world. Haven't we had enough. Time for change or Malaysia will go bankrupt soon with so much corruption under BN.

 
September 17, 2012 at 3:29 PMtwyeow88

i would rather m'sia stay at where it is now.

top 5 richest nation for what, unless i m the top 5% in that nation, otherwise i will be worse off than now. can't even afford govt housing.

 
September 17, 2012 at 10:58 PMcondomana

The article above was published 2 years ago, and we can safely say the situation today is much worse.

Other than a stricter lending criteria implemented by BNM, we haven't seen much done by the authority to moderate house price, especially Penang state gov (fair statement?), a state whereby the middle income group is most affected. I can't even recall an occasion where the state expresses concern or tries to formulate strategy to tackle this issue (fair statement?).

Don't get me wrong, I voted for DAP few years ago, despise the act of throwing red paint, and surely not a BN cybretrooper. But I just have a question to ask LGE.....What is his viewpoint on penang property affordability? Does he think the state has responsibility to address the issue? And if so, what is his strategy?....:)...Fair questions you guys reckon?

 
September 18, 2012 at 8:25 AMjeremy tan

Condomana,

I don't think Penang is the only state that is experiencing a hike in property prices beyond people's affordability.

It is best to leave politics out from economics.

It is a free market that revolves around supply and demand.

The world is printing money like never before. Inflation is unavoidable with the cheap money flooding the system.

QE3 is here.

I believe LGE has been taking efforts to address these issues by setting aside a piece of land in Batu Kawan for the HDBs.

I have always believe that not all people can afford to live the American Dream.

it is not sustainable given the limited resources that we have

Everybody wants a car but not everyone can afford one.

It is just life and the fundamentals of this economic model that we follow called capitalism

The fundamentals of capitalism are Individualism, Greed, Competition etc

People should not aspire to recreate the aspiration of American capitalism.

It is just not possible.

The middle income group will have to do with land at locations which are cheaper. Balik Pulau, Bukit Mertajam, Seberang Prai.

Penang's population has rise substantially in the past 3 years to 1.7 million. Has our land increase substantially too?

Let's keep it real. I do know it is a huge problem that prices have sky rocketed above affordability but the real question you should be asking which country under good governance hasn't experience such wealth creation? Look at Singapore and Hong Kong.

Why aren't we getting a higher salary to match the current prices of assets?

Why can't we settle for something further away but cheaper?

The change starts with you.

I believe in free markets, government involvement should be kept at minimal because if the market really wants to boom, not even the government can do anything about it. They can probably make the situation worse because the market will eventually correct itself.

What they can do at a micro level would be to regulate speculation. However, the basic tools for this lies with BNM. There must be a hike in interest rates and some new measures to tighten liquidity.

Please do understand the situation before getting emotional and getting politics involved because at the end of the day that is what the politicians wants you to believe in.



Cheers.














 
September 18, 2012 at 6:18 PMCK

There's valid point in what Condomana have just said.
I do not think it is emotional at all.

Also, i do not think you can leave politics out of this because it's tangible...

 
September 30, 2012 at 5:36 PMBryan

Like it or not, policy does affect the property price. From macro view, "$ lady" has the mandate to spur economy with low interest rate and our banks take advantage of that to give out loan easily. meanwhile our property developer takes advantage of low interest rate to build more and more expensive houses as response for new houses looks great.We all know who is in control of our banks and property companies nowadays in the market and our "ah kong" policy does support that as it's the fastest way to spur economy as every house owner would feel richer with escalated house price which they hope would spur GDP with higher spending power from our people.Problem only kicks in when the younger generation or low income owners who come in late to the market and have to bear the higher cost for owning a property. So far, the response for "ah kong" housing affordability program in the market does not get much support from banks either due to lower returns and higher risks involved and "ah kong" has agenda to slowly work out a policy to help housing affoardabilty program for lower income earner and younger genration as the affected states are mostly "25 Kia" states. Like it or not, problem today is due to different "Tao ke" btw "ah kong" and "Lao peh". Else, "ah kong" can channel back the gain from property or corporate tax to "lao peh" to provide subsidized housing program for the needed groups. Meanwhile, "lao peh" can do little to correct macroeconomy impact but property price escalation does help state economy either. The new housing by "lao peh" effort in batu kawan is a new program that has yet to prove if it can work and times would tell if this is going to be successful but it's definately a good start n risk taking behavior taken by "lao peh". Meanhwile, although "lao peh" cannot influence the policy from "$ lady" and "ah kong" on property market, "lao peh" needs to work out a smarter and long term housing affordability program for low income earner and younger generation at home. Perhaps some collaboration with property owners that's not owned by "ah kong".However, the issues would be challenging as smaller property players can be bought over easily by "ah kong" thru many channels...few examples demonstrated recently in the market takeover...or tax the bloody property player to boost "lao peh" pocket n start his own builder program. So, this is just part of game that played btw "ah kong" n "lao peh". It's challenging to move "Lao peh" projects without financial support from "ah kong"....anyway, soon we would know if this game would continue or not...

 
September 30, 2012 at 11:59 PMcondomana

Hi Bryan,

Wah, your ah kong ah mah story very interesting ah!...:D...So far I am not very clear what lao peh is going to do to fulfill penangites housing aspirations, apart from something's going to be done in batu kawan. But one thing is for sure right now, that ah kong is not serious in curbing speculations....:)...15%?? C'mon!!

 
October 1, 2012 at 2:52 AMDerick Corithians

in fact, there are many affordable apartment around Penang island. But most of them 2XXK, for 700sft. Its happening now, and we have to accept that fact. I came across some young couples, who keep looking for house, 2XXK, want 800-900sft, good location, good facility..where to find. So the problem is not that ppl cannot afford, but too choosy and doesn't want to accept the fact. so end up, they are still searching every years..

How to control property price? It is a free market. Let say one day IJM launch a project, 1000sft, 400k. Do you think you ll get it? Even if you get it, the market will counter offer the price till 700k, can you say, I m good citizen, i m good Penagite..you offer me 1Million also I dont want sell.

I think there is no gov who want their property in their country to be stagnant, or go downtrend. If this happen, the economy activity is not positive.

Look at Najib budget,do you think he wants to control the property price? What he proposed is to build more low cost.
Because the main purpose is to let those who does not afford to buy property, has a place to stay. Not stop price from increasing or decreasing, so that everyone can stay in prime area with cheap price.

Instead , Penang gov should come out with a way how to revive the low cost apartment, so that, those will have a better living enviroment.

 
October 1, 2012 at 5:35 AMAlan

Well said derick. It's a supply and demand. If you don't want to buy then no one is forcing you. You can always buy at not so strategic locations at low prices but you want the best. There's always supply and demand and if you are demanding quality housing at strategic locations then you have to pay premium prices. Any other country in the world is like this. The fact that the ringgit is lower than other countries just makes this more prominent on locals. Every country I go I hear the same story. Property prices too high etc. look at the property cycle and trend over 100 years. Like every other asset class it has always been trending upwards. Please don't moan when you have just missed the boat. You can always combine family friends to purchase a property or pay 90% loan. If you don't want to then please don't keep on moaning. Sooner or later you will want everything like uk and the country will go bust.

 
October 1, 2012 at 12:18 PMjeremy tan

Derrick and Alan speaks the truth.

 
October 1, 2012 at 9:31 PMBryan

Hi Condomana,
give "Lao Peh" a break lar...4years 1big project....50 years mah 12 big projects?? Beh bai lar...:-) given the challenging environment n limited resources by "ah kong".
Free market needs to be supported but i support certain degree of govt interference during market irregularity in order to prevent financial system collapse, at least to minimize the financial impact. Like all the financial cycles, Property market become commodity market if unregulated n would impose great risk to our financial market. I wouldn't surprise the group of people who would curse the govt was the same persons who supported free market during the hot market. :-)

 

↑ Back to top