GEORGE TOWN, Sept 23 — The secondary property market in Penang and in the country remains bullish despite an overall dip in property transactions, an estate agent here said today.
Michael Geh, a land economist and surveyor, said the overall residential property transactions in Penang had dropped by about 14 per cent in the first half of this year compared to the same period last year.
“Penang recorded a total 6,698 transactions valued at RM2.65 billion for the first half of this year, which is a drop from 7,743 transactions valued at RM3.14 billion in the first half of 2015,” he said in his speech at the opening of the Malaysian Secondary Property Exhibition (Maspex) Penang at Queensbay Mall.
He said the secondary market makes up almost 84 per cent of the total residential properties sold for the first half of this year in Penang.
The secondary market refers to sub-sale properties or second-hand properties sold by owners, either individually or through estate agents, instead of developers.
“In the first six months of this year, the secondary market recorded 5,658 transactions valued at RM2.17 billion.”
“In comparison, only 1,040 units valued at RM478 million were transacted in the primary market,” the Maspex Penang organising chairman said.
Geh admitted that the secondary market also saw a slight drop of about 13 per cent when compared to the same period last year.
Nationally, the total number of residential property transactions had also dipped by about 15 per cent, he said.
The first half of this year saw 102,096 transactions valued a total RM32.7 billion, which is a dip compared to 119,446 transactions valued a total RM36.47 billion in the first half of 2015.
“Out of the 102,096 transactions in the first half of this year, almost 82 per cent were from the secondary market which stands at 83,647 transactions as compared to 18,449 transactions in the primary market.
“This shows that nationally, the secondary market is still thriving despite the overall outlook of a weakening property market and the number of transactions in the secondary market is almost five times that of the primary market,” he said.
Based on these figures, the secondary market takes up almost 80 per cent of the total market share, he added.
This is the fourth year Maspex Penang is being held where more than 5,000 sub-sale properties are put on sale during the three-day event.