Over the first weekend of the Chinese New Year period, many discounts, lucky draws and freebies were given out at property fairs all over Penang.

Rebates, free furnishings, car park lots for ready-to-move-in units and financing of up to 95 per cent were offered however property agents said sales were slow even with all of the incentives. Just a few years ago, Penang's market was booming.

Their once booming market is starting to slow due to a mismatch between the properties that are offered and what buyers are looking for, along with unfavorable economic conditions.

To address this issue, banks and developers are developing innovative solutions to help buyers secure loans much easier. There is also hope for foreign investors and overseas Malaysians to enter the soft market which will help boost the economy.

According to the National Property Information Centre (NAPIC), Penang has among the highest figure for property overhang in Malaysia.

In the third quarter of last year, some 3,216 units were unsold after completion.

These make up 24 per cent of properties launched, with the bulk of the overhang comprising units worth RM500,000 (US$122,963) or more.

Back in the third quarter of 2013, only 342 units were unsold after completion.