With an abundance of newly built high-rise condominiums, is Penang facing a property glut?
Malaysia’s population crossed the 30 million mark in February 2014. According to the Population and Housing Census 2010, about three in 10 people fall in the 20-40 years old age group – the one most likely to be first-time home buyers. By 2020, that group is projected to grow to 11.3 million. In Penang, the current estimate for this age group is at 0.6 million, or 36% of the state population. The average property price in Penang currently stands at RM336,521. Even with the 50% stamp duty cut, middle income earners with two dependents can only afford houses priced at RM300,000 and below1,and looking at the current national average price for all types of properties, RM300,000 is well below the average (Figure 1).
