Penang - minimum property prices
 

I thought I would just clear up some widespread confusion over minimum property prices in Penang since the changes on 1st July 2017.

For MM2H visa holders, the minimum price for strata properties is RM500K and you can buy a maximum of two units at this price. The minimum price for landed properties is RM1M and you can buy a maximum of 1 unit at this price.

For foreigners (and MM2H visa holders buying properties in addition to the maximum specified above) the minimum price is RM1M for strata properties and RM3M for landed properties.

Many thanks to @kebi for getting this information.

Remember the government levy (stamp duty) was recently reduced from 3% to 1.5%

Re: Penang - minimum property prices
 

Dear InVinoVeritas,

Thanks for the information.

Developing the topic, as someone who has an approved MM2H visa but not yet moved to Malaysia I would please appreciate your (and others) comments on the current state of the property market in Penang without the spin of the property agents.

It seems from afar that there are plenty of properties for sale but are there any buyers?

The reduction in stamp duty suggests not.

Penang is my destination of choice so a heads up from those of you "on the ground" would be great.

Re: Penang - minimum property prices
 

This is the $64,000 question and there is probably no consensus amongst MM2Hers except that, up until now, the market has been falling due to oversupply.

Will it carry on or will it bottom out? If sellers think it will carry on then you can negotiate a very good price. If it bottoms then doing so would be very difficult.

For my part, I think now might be just the right time to buy (but then I have been known to be wrong :rofl:).

Re: Penang - minimum property prices
 

Many thanks, very interesting you hear your thoughts.

It seems most of the properties are 3 bed etc which for my circumstances always feels you're paying for something you do not actually need.

Of course the issue is you have to pay at least the minimum set price so that restricts choice.

I wish it was $64,000 :(

Re: Penang - minimum property prices
 

I think the immense supply of new condos in Johor (not just Forest City) will make the market (also in Penang) sweat more. Macsta, think about Ipoh, minimum price is "only" 350k, you get already cool stuff for this.

Re: Penang - minimum property prices
 

Thanks eCdD,

Earlier this year driving from KL to Penang I went through Ipoh but only passing, it did seem an area that a number of people recommended so I will definitely keep it on my list.

I guess its a trade off, Penang seems very expat orientated so for that extra price you get more amenities plus some degree of expat interaction.

Re: Penang - minimum property prices
 

I have had my ear to the ground a while as I was thinking of selling my Penang condo.

Last year put it up for sale. Eventually got a buyer , local family, then it all went cold. They couldn't get a bank loan. I took it off market as busy with life ;)

This year was considering again, though I am treading water at the moment (don't ask it's complicated). Discovered that 2 units in my condo have sold recently at very good prices. Almost double what I paid.

So... answer is Yes there are buyers but by no means a buoyant market.

I also know of a couple of mm2hers in Batu feringhi who sold condo unit earlier This year. I am in tanjung tokong.

Re: Penang - minimum property prices
 

From an investment point of view I don't think it's a good market. Ringgit is all over the show.

But from a stability point of view it is good if you just want a home, retired, and not too worried if market goes up or down. Remember.... you cannot take it with you :sneaky:

I see my renting friends moving every 1 to 3 years. Very volatile. If you don't mind the upheaval every 1 to 3 years that's fine. You get to experience a lot of different places.

Swings and roundabouts. Renting or buying both have their pros and cons.

Re: Penang - minimum property prices
 

Hi Bakedbean, thanks for your comments.

I have never been lucky with property (making tons of money I mean) so having a home is more important.

I am balancing exactly what you state, tying up capital in property (stability) or renting (theoretical freedom).

If I was actually living in Penang and had local area knowledge etc, then I would buy if a place ticked all the boxes.

As I have previously written the issue for me is that I feel the minimum price threshold "forces" (in a buying sense) me to buy potential something I have no need for. I don't need a 3 bed, 3 bathroom all singing and dancing place.

But that seems to be the market so when in Rome...

Re: Penang - minimum property prices
 

Penang is an expensive place property wise, compared with other parts of Malaysia. Sure you can get cheaper down the island I believe.

If you haven't lived in Penang but it appeals, then do rent to begin with. You might just be happy renting long term also. Renting you can get a feel for the place and see if you like the area you have picked. There are many different locations and they are all different. So just try it out and take it from there. My opinion anyway.

Re: Penang - minimum property prices
 

We've only been to Ipoh on holiday but liked it a lot - for a holiday.

Even with the more value for money property there when comparing retirement there to Penang there's only one winner.
And that's Penang by a distance, for us anyway.
BTW we live in Singapore and won't be moving north.

Re: Penang - minimum property prices
 

It depends on the lifestyle you want. If you just want to laze on a beach all day doing nothing much at all, then Thailand is a good place. But I think for most of us retired expats, Penang offers a lot of things to do, to see, to get involved in. Got to keep the little grey cells going in retirement ;)

Would dispute that it is just expat orientated. I was with a group this morning, something I've been involved in for a while, and that is a mix of locals and expats. Mostly Chinese locals.

Re: Penang - minimum property prices
 

I fully agree. In Penang, there is not the expat "us-and-them" culture which you find in other retirement destinations and this is simply because Penang has always been very multi-cultural.

Apart from which, the expats in Penang are most definitely a cut above those living in other countries :thumbup:

Re: Penang - minimum property prices
 

I would not buy a house/condo in Penang now for investment purposes. If you had bought it some 5 years ago and be able to sell it now you would have made quite a nice profit. Prices have risen a lot in those years. But, as BB already mentions, selling seems difficult now as there is a lot of oversupply and because many Malaysians have difficulties in getting their mortgages financed. However, if you prefer to live in "your own place" then buying could be a good solution as there is so much choice available.
I don't know the strategy of real estate developers here. Near to where I live are 3 high rise buildings of which construction seems finished (no activity, no workers to be seen), the swimming pool is already filled with water, nevertheless nobody is moving in into these buildings. Maybe they are afraid that prices will slump once these condo's appear on the market. Nevertheless are several other high rises still under construction in the Tanjung Tokong and Tanjung Bungah area.
Disclaimer: I am renting in Penang because (a) I don't want to have my money stuck in real estate here and (b) I like to have the freedom to move to another place if I don't like my current place any longer.

Re: Penang - minimum property prices
 

Probably waiting for OC ?