Sunday, October 28, 2012

Realtors rubbish CM’s claim of decreasing house cost


PETALING JAYA: Real estate agents are shocked over Penang ChiefMinister Lim Guan Eng's claim that the price of a detached residential unit in Penang had decreased to RM415,000.
Malaysia Institute of Estate Agents (MIEA) Penang chairman Danny Ooisaid the figure quoted by Lim was far below the actual price of detached property on the island.
“It is surprisingly far below than the current price on the market, which is about RM2mil on average,” he said, adding that it was possible to get such prices on the mainland but not on the island.
He said this in response to Lim's claim that the price of a detached unit had fallen from RM469,000 to RM415,0000.
Lim had quoted the figures when denying reports in The Star that the property price of condominiums or apartments had increased by as high as 499%, flats by 339%), low-cost flats (157%) and detached units (103%) within a year.
The Star had reported that property prices shot up three-fold in Penang because of an increase in surcharges imposed by the state government.
Former Penang Municipal Council's Town Planning Department actingdirector Khoo Boo Soon said the additional cost imposed on developers were eventually passed on to buyers, hence the drastic increase in property prices.
A real estate agent, who only wanted to be known as Chong, said even a semi-detached unit was priced at over RM900,000.
“Even the cheapest single-storey terrace unit in Bayan Baru is above RM450,000. And that is leasehold property,” said Chong.
Another agent, who wanted to be known only as John, also said it was impossible to get detached units on the island at the price quoted by Lim.
“We don't know where Lim got the figures from. On the ground, we cannot find detached units on the island at that price,” he said.
Another agent, who declined to be named, agreed that the price on Penang island had skyrocketed.
“The price of property on the island is crazily high. People have been talking about a burst in the property bubble for years but it never materialised.
“People continue to snap up properties although the price is steep as it keeps going up within months.” - The Star

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