Don’t go overboard CM: Builders must keep their prices competitive
14/07/2007 The Star

PENANG: Developers must make sure that their property prices remain competitive or risk losing potential buyers.

It is acceptable for property prices to increase by between 10% and 30% but it should not be exorbitant, Chief Minister Tan Sri Dr Koh Tsu Koon said.

“It is understandable that with the increase in building material prices, property prices will also rise.

“However, we must make sure that we do not lose our competitiveness by raising the prices too much, like in Singapore,” he said when opening the Malaysian Property Exposition (MAPEX) 2007 yesterday.

Dr Koh said many of the state’s projects especially the RM2.7bil second bridge, which will link Batu Maung here and Batu Kawan on the mainland, Penang Outer Ring Road (PORR), monorail and public transportation system would augur well for the property sector.

In his speech, Real Estate and Housing Developers Association (Rehda) Penang branch chairman Datuk Jerry Chan Fook Sing said the association was optimistic that the property market would see “bullish” times in the next few years.

“We are very pleased with the progress of the state’s major transportation and infrastructure projects as well as the close cooperation given by the Penang Municipal Council (MPPP) and Seberang Prai Municipal Council (MPSP) to our members.

“Those who invested in property during last year's MAPEX would have seen the value of their property increase by 10% to 15% since.

“With more foreign investment and property developers from other states coming in, we expect to see more expatriates and locals making their homes here.

“This is still a very good time to invest in property with land value expected to appreciate by at least 10% per year,” he said.

The exposition at the Chee Hoon Khor Moral Uplifting Society in Macalister Road opens from 10am to 9pm. More than 15,000 visitors are expected at the three-day event which ends tomorrow.