A ROUNDTABLE forum, organised by the Socio-economic and Environmental Research Institute (Seri) on the housing affordability gap in George Town last week, highlighted not only the scarcity of land but also speculators, strong demand from investors and a low-interest rate environment as reasons for the soaring property prices in the state.

Dr Michael Lim Mah Hui, a senior fellow of Seri, said the investors comprise wealthy Malaysians and foreigners. Read here. This has resulted in making property increasingly out of reach for the average Penangite. “The average annual household income in Penang is RM42,000, while the average house price is RM578,000, or 14.2 times more." Read here.
 

This is despite the global downturn last year. Henry Butcher Malaysia (Seberang Perai) Sdn Bhd's senior manager, Fook Tone Huat, said that development land, especially in Seberang Perai, is still in demand, particularly those near the town. "Although many projects were deferred last year, we are confident that the worst is over and and public confidence has begun to come back in the property market." Read here and here.

Also view here for a video that showcases an interview with Michael Geh, senior partner of Raine and Horne International, on what policy should the state government adopt, the type of housing needed, where they should be located and how to make them more affordable for the average Penangite. View here.

Other news

• Penang looking at ways to increase land bank: The state government is studying various proposals that will help enlarge the land bank in the state. Read here
• Penang to get heritage experts to preserve Chowrasta Bazaar: The state will engage heritage experts to carry out a study on how to preserve the heritage value of the Chowrasta Bazaar in Penang Road which is over 100 years old. Read here
• Handicraft attraction: Souvenirs and handicraft of Penang will soon be available under one roof, said state Tourism Development and Culture Committee chairman Danny Law. Read here
• George Town going to the birds: Did you know that swiftlet breeders, eyeing the lucrative edible nests market, have taken over 8.3 per cent of some 3,500 pre-war buildings in George Town? One concerned George Town resident expresses alarm. Read here

For more news on Penang from March 15 to 21, 2010 , please click here

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