A piece of land of almost 300 acres on mainland Penang, held for over 60 years by a group of friends, has been put up for sale. If sold, this tract with development potential could fetch more than RM300 million.
Located in Kampung Ladang Sempah, Sungai Jawi, the land is just 20km from Penang’s second bridge — Jambatan Sultan Abdul Halim Muadzam Shah — and 500m west of the North-South Expressway.
Despite the sluggish market, property investors in Penang can take comfort in reports of capital appreciation in the state. Data collected by the National Property Information Centre’s (Napic) Property Market Report 2015 showed that out of 30 condominium projects in Penang, 11 saw price increases from 2014 to 2015.
Of the 11, seven recorded price growth of over 5% year-on-year. The seven were Kondominium Mutiara (17.1%), Sri Pangkor Condo (9.3%), The Straits Regency (8.6%), Desaria or Regency Heights (7.6%), Quayside Seafront Resort Condominium (7.4%), The Peak Residences (5.5%) and Harbour Place (5.2%). The transacted prices of these condominiums ranged from RM125,000 to RM2.15 million. All of them are located on Penang island except Kondominium Mutiara and Harbour Place.
Penang has one of the fastest growing property markets in the northern region of Peninsular Malaysia due to myriad factors. It is one of the most developed states in the country with strong infrastructure, it’s a booming tourist destination and it offers a high standard of living.
However, in Penang Island, elevated prices and rapid urbanisation in recent years have driven investors’ interest to the mainland. With growing demand for properties that offer affordability, accessibility and an enhanced living experience, Penang mainland is primed as the next property hot spot.
Penang Island’s pre-war properties continue to be a favourite among local and foreign investors, particularly Singaporeans, according to Henry Butcher Malaysia (Penang) Sdn Bhd.
In its recent research report, “Penang real estate market: Opportunities despite weak sentiments for 2Q2016”, the property consultancy noted that the pre-war buildings’ unique old charm architectural heritage with eastern and western influence continues to attract property investors.
The current property market slowdown may only recover in 2018 and the market environment may dip further before that.
“Nothing much has changed about the property market recently, at least not the external factors such as consumer sentiments and lending policies,” said Malaysian Institute of Estate Agents (MIEA) past president K Soma Sundram.