GEORGE TOWN: Penang's housing and real estate sectors are in the recovery phase post the Covid-19 pandemic with a positive economic growth.
State Housing Committee chairman Datuk Seri S. Sundarajoo said this was based on Knight Frank Asia-Pacific's Asia-Pacific Residential Review Index for H1 2023, which showed that residential prices in the state rose 5.78 per cent in the first half of this year, making it the second best city in terms of performance in Southeast Asia.
He said Singapore displayed a significant increase in residential prices by 7.97 per cent while Bangkok, 4.36 per cent.
"This paints a picture that the housing and real estate sectors in Penang are at the recovery phase post the Covid-19 pandemic with a positive economic growth.
"Besides that, the average household income is also found to have increased while enabling the people of Penang to own houses even if they are above the median property price.
"The increase in house prices in Penang is in line with the increase in household income, which can be translated from data reported in the National Property Information Center (NAPIC). It shows that only 502 units from 2,901 units, equivalent to 17.30 per cent, remain unsold in Penang, priced at RM300,009 and below," he said in response to a question on the matter by state opposition leader, Muhamad Fauzi Yusoff (Pas - Sungai Dua), at the state legislative assembly sitting here, today.
Elaborating, Sundarajoo said the majority of the unsold units was caused by failure to obtain loans from financial institutions.
Sundarajoo said the Home Ownership Campaign (HOC), introduced by the state government in June 2021, provided a surge to the real estate industry in Penang and is seen as being effective and fruitful.
He said through the move, the maximum house prices had been reduced by 10 per cent where the maximum housing price on the island reduced to RM270,000 and RM225,000 in Seberang Prai.
"Through this, the people of Penang have benefitted and managed to own homes.
"The house price ratio of RM270,000 and Penang's middle income (RM6,502 per month) is on (3.4), a figure that shows an increasingly positive trend of ownership compared to RM300,000.00 (3.9)," he added.