KUALA LUMPUR: Penang, which has already seen drop in property prices on properties above RM300,000 in the last 24 months, is expected to face further drop in prices despite the recent floods there.
Far Capital Sdn Bhd chief executive officer Faizul Azwan Ridzuan said he expects the situation to continue, especially premium-priced properties.
"Flood tends to have short term impact towards property prices but only for short term, under 24 months," he told NST Business in a telephone interview.
For example, property prices near to flood areas in Kelantan, Terengganu and Pahang have remained flat today two years after the last major flood.
Asked on whether he foresees consumer sentiment and property market in Penang would be dampened, he said Penang has already experience transaction slowdown in the last three years.
The trend is expected to continue due to slower economic growth.
"Penang is the only property market in Malaysia where the growth of highrise properties prices outpaces the landed property, which is an anomaly so the flood should have limited impact towards property values in general,” he said.
"Moving forward in the next 24 months, there will be greater interest for highrise properties from those thinking to buy a home," he added.
He urged Penang state authorities to re-look at the environmental study prior to approving projects and developments there.