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       Penang is one of the most popular destinations for property buyers and investors in Malaysia, thanks to its strategic location, rich cultural heritage, and vibrant lifestyle. However, the Penang property market has faced some challenges in the past year due to the Covid-19 pandemic, rising material and labor costs, and higher interest rates. How will the Penang property market perform in the last quarter of 2023? Here are some key trends and insights to look out for.

According to the PropertyGuru Malaysia Property Market Report Q3 2023 (PropertyGuru, August 2023) home asking prices in Penang increased by 2.1% QoQ in Q2 2023, following a 1.6% QoQ growth in Q1 2023. This indicates that sellers are cautiously hiking up prices as the cost of replacement homes escalates. However, this also leads to a decline in demand, as buyers are hesitant to purchase properties due to higher borrowing costs and economic uncertainties. The report also shows that there was a significant growth in transaction volume and value in Penang’s residential property market between January and September of 2022, with a 37.8% increase YoY.

The residential market will continue to focus on affordable and mid-range segments, with high-rise condominiums in the price range of around RM500k being the main focus. “Some of the most popular projects in this segment are Ideal Residency, Ideal Venice Residency, and Foreshore Residence There will also be some niche high-end projects launched in good locations, such as Sunway Dora and an upcoming residential project near Codrington Avenue at Pulau Tikus. For affordable housing projects, Setia Miracca and The Millennia at Bayan Lepas are some of the projects to watch out for”. (Penang Property Talk, February 2023). 

According to Pillai.D (Mar 2023). The Penang property market is expected to improve in line with a moderate economic growth projected for 2023. The National Property Information Centre (NAPIC) expects the performance of the property market to improve as the vaccination rate increases and the lockdown measures ease. The Penang REHDA also expects the property market performance to improve in 2023, with more activities taking place in some of the major developments such as Senze@PICC, The Light City, and Eco Horizon.

In conclusion, the Penang property market is expected to continue its gradual recovery phase from the pandemic-induced slowdown in the last quarter of 2023. The market will be driven by affordable and mid-range segments, with some niche high-end projects also attracting buyers. The market will also benefit from the economic recovery and the easing of lockdown measures. However, there are still some challenges that need to be overcome, such as rising material and labor costs, higher interest rates, and economic uncertainties. Therefore, buyers and investors need to be cautious and prudent when making their property decisions.