Malaysia’s northern and southern regions remain attractive amidst challenging market

THE NORTHERN and southern regions were the more popular property investment hotspots in the country a few years ago. Are these two regions still attractive to investors in the current slow market condition?

Down south, the Johor property market has been rather challenging especially for high-end non-landed residences.

KGV International Property Consultants (Johor) Sdn Bhd executive director Samuel Tan said the market remains challenging as transactions in both the primary and secondary markets are slow.

“The market is still hungry for properties but only at the right price. The bottom line is affordability as seen in the case of Melia Residences in Gelang Patah which is selling from RM550,000. All the units, including bumi lots, were snapped up in one weekend,” he told TheEdgeProperty.com.

He noted that there are still hidden gems in the secondary market waiting to be discovered as some of the deals may be distressed sales in which property owners are urgently looking to cash out.

Tan said the completion of the 5.2km Coastal Highway Southern Link, which links Medini in the northeast to the Port of Tanjung Pelepas Highway interchange of the Second Link Expressway in the northwest, will spur buyers’ interest in the areas accessible via the coastal highway.

Meanwhile, the northern region especially Penang continues to appeal to property buyers.

Henry Butcher Malaysia (Penang) Sdn Bhd director Jason Teoh said medium to long-term investors tend to perceive Penang as an Island state with great potential for growth particularly with infrastructure projects being a significant game changer.

“Various reclamation projects have been proposed and are expected to act as catalysts for further growth in the services and industrial sectors. Demand for more high-value talents will rise and this will have a multiplier effect on the local economy,” Teoh added.

Various developments such as Aspen Group’s project in Batu Kawan, and Ideal Property’s projects in the Southwest District and Northeast District of Penang island will continue to spur buyers’ interest, said Teoh.

Both Tan and Teoh will be speaking at the Malaysian Property Summit Mid-Year Review 2016 which will be held on July 27 at the Sime Darby Convention Centre, Kuala Lumpur.

They will be sharing about the outlook on the southern and northern regions.

The Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector of Malaysia (PEPS) is the organiser of the summit. TheEdgeProperty.com and The Edge Malaysia are the media partners.

In conjunction with this event, readers received the chance to win tickets to the summit by entering an online competition at TheEdgeProperty.com. The competition which ended on July 20 received about 100 entries.

This story first appeared in TheEdgeProperty.com pullout on July 22, 2016, which comes with The Edge Financial Daily every Friday. Download TheEdgeProperty.com pullout here for free.