13 March 2015, 11:11

BUTTERWORTH, March 13 — The property market outlook in mainland Penang is expected to further consolidate this year as a result of cooling measures and the impact from the Goods and Services Tax (GST), a property consultant said.

Fook Tone Huat, associate director of property consultants Henry Butcher Malaysia (Seberang Perai), said general market sentiment would remain cautious particularly during the first half of the year during the period of digestion of the GST.

“We foresee the GST, to be implemented by April 1, to have some impact on property prices, but the impact would be minimal,” he told a media briefing on the Seberang Perai property market here today.

He said new house prices, even with GST exemption, would increase slightly by three to five per cent due to the GST on building materials.

“Medium category houses priced below RM500,000 would continue to appreciate in view of high demand,” he added.

Fook said commercial and industrial properties which are subject to GST will see an increase in overall acquisition cost, while residential properties which are tax-exempt should, in theory, not see any increase in cost particularly in the secondary market.

He said things would return to normal when the people get used to the GST.

Property values in Seberang Perai would hold and are unlikely to see any correction although the high gallop of the past few years would slow down to a more leisurely trot, which may not be a bad thing for the property market in the long-term, he said.

Fook said major growth areas would still be Batu Kawan and Simpang Ampang (in Seberang Perai Selatan), Alma, Bukit Mertajam and the Bukit Tengah corridor (Seberang Perai Tengah), with Teluk Air Tawar, Bagan Ajam (Seberang Perai Utara) and the Byram/Changkat neighbourhood in Seberang Perai Selatan as potential growth areas.

Fook said affordable properties which are resilient to an economic downturn should be given priority over large-scale high-end products.

“More in-depth research should be carried out before a development project is committed as the market would be more competitive with consumers having more choices and the cost of doing business increasing,” he added.

He said a more lenient home financing policy should also be tailor-made for buyers of affordable homes particularly first-timers. — Bernama

- See more at: http://www.themalaymailonline.com/money/article/minimal-impact-on-penang-property-prices-this-year-says-analyst#sthash.rDuMZX49.dpuf

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