Penang Property Investment (Discussion)

This is a discussion page for property investment in Penang. If you want to discuss anything on property investment in Penang, you can post here by leaving a comment.

Let's the expert and helpful people out there to share their experience, knowledge and information with you. Hope everyone here could participate and share your information and also provide a guide for those who have posted their questions here. Thank You.

41 comments

October 11, 2009 at 12:29 PM1st.test

Hi,i'm interest to buy a new apartment in Penag, n there is a new apartment comming up in Farlim ' Melody Home', but some body said that was semi goverment project, and the price is from RM 160k for 700 sq.ft. is that true? how come the price so HIGH for semi garverment projet? it's worth ? I need some advise, Thank You Very Much !!! :)

 
October 31, 2009 at 1:12 PMSee

Interested to own a semi-d house at Juru, Auto city, VILLA CENDANA 2 which is going to obtain the OC soon.... Interested, pls call 017-4809425

 
February 18, 2010 at 3:56 PMChong

hi investors,
what is your expectation of Penang Island landed property (double storey terrace) prices by 2011?

 
February 19, 2010 at 4:14 PMStephen

Due to land limitation in island and land will never growth, once occupied the landbank percentage will be lesser, that's why the mainland property is always cheaper as there are still plenty of lands but appriciation will be lower compare to island. 7 years ago, the original price for Sunway Tunas is only 3XX+ but now is 6XX+, almost double the price. Look at the on-going landed residential is already sell for 800k+, I think it will least go up to 1M by then.

 
February 19, 2010 at 11:37 PMProp

location is still the key, although land is scarse in penang island, doesn't mean that everywhere will share the same glory given the target investment term, short, mid and long term. To me, landed properties are guranteed with a better long term return, but should stick to at least 2 and the half storeys terace, double stoey and below is a thing in the past. You have to remember that landed properties are not in favour of rental return, therefore the target group should be families with own staying, 2 and they half and above is a better option in terms of space consideration. In addtion, freehold is important as chinese people still have the strong mindset of passing belonging to next generation. Nowadays there are alot of landed development in relau and sg ara areas, honestly these properties are already over-priced, although still make sense for long-term perspective. For landed short term, watch out for new projects in jelutong/bayan baru/batu uban areas if any, but will be tough to clinch for reaosnable deal. As for short to mid-term investment, apartment/condo is still the key, stick to a beter one in bayan baru/tg tokong/tg bunga for properties less than 15 yrs old, target tenants are obvously expatriates or overseas students. Do not aim for those anything to do with Pernas, the management is struggling, do not dream that they still have enough sinking funds to maintain the already-aged buldings.

 
February 20, 2010 at 11:43 AMStephen

The freehold property in Setia Pearl Sg Ara could be one of the good choice for investment. The opposite land will be the Penang International City by Ideal Developer, which combine of residential and commercial items and this may booming the surounding areas. There is no upcoming project in Bayan Baru as what I know at this moment. The alternative location could be Southbay in batu Maung which they are now lauching for Bungalo item, the near future will be commercial products that include Service apartment which not really attractive compare to Resdential Condo as I don't think there is market demand for service apartment in that area.

 
February 20, 2010 at 12:14 PMlee

Due to land scarcity in Penang Island, the price of landed properties will continue to grow to a limit where a lot of migration will take place in the near future. A lot of people will shift to main land where the pricing of the property still affordable.

For those who live in Apartment or condominium and have long desired of owning a landed property will move to Main Land where they still can find a reasonably priced landed properties. And the second option available is vide going further down to Balik Pulau.

I always believe that Balik Pulau have the most potential in term of capital appreciation as the price of the house is still 30% to 40% at the discount compared to most part of Penang. Once the upgrading highway linking Teluk Kumbar to Balik Pulau completed, you will see the price of the house in Balik Pulau shooting past RM550k for a unit of Double Storey Terrace.

Another plus point for Balik Pulau is the Government has already planned to develop Balik Pulau into education hub

So for Penangites who choose to remain in Penang and live in landed property , Balik Pulau is the option.

 
February 26, 2010 at 10:02 AMchloe

Any comment for Nusmetro Venture new project -Pulse?

 
March 17, 2010 at 11:27 PMTan

hi,
Any recommendation for any new launch/to be launch condo/landed property in Penang, particularly bayan lepas?

Thanks

 
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April 8, 2010 at 9:15 AMPaul

Hi
I am looking to buy a condo right on the beach in Penang, probably Tanjong Bungah Beach. I have been worried about the recent stories concerning the erosion of the sand on Tanjong Bungah beach. I need to be fairly certain that this would not cause me problems in the medium term or at least will be sorted out by the government and also would not mean a huge hike in maintenance and sinking fund charges to cover future defences against the sea. Does anyone have any views or advice on this matter please?
Thanks

 
April 8, 2010 at 10:52 AMDennis Phoon

Many statements given out by the forumers here saying the properties in Penang Island is over price. May I know how you guys conclude that? Is it by using your annual income as reference or how? Why only compare Penang Island with Butterworth, Kedah etc...Anyone has compared it to KL Properties or Singapore Properties?

Is it Properties price too high or Income too low...never grow? Malaysia government has clearly stated that our income too low....and they want to build high income society..right?

When we are complaining the petrol price going up...our neighbour Thailand continue to come to pump petrol at Malaysia...

Penang as a big modern city....and if want to continue to be....should be benchmark with other big cities (in other country)...not kampung.....which means Penangites income must go UP....

 
April 12, 2010 at 6:42 PMcondomana

Dear Mr Dennis Phoon,
you are dead right. penang properties are very cheap compared to KL and singapore.

however, you are dead wrong when you try to compare earning power of penangites to singaporeans, coz they will make penangites look like kacang putih sellers (comparatively speaking).

and you are a bit confused when you rojak together the gov's intention of building a high income society and property price. coz you need the income first, before property price kicks in, and then you think you can just transform a country into high income country by just announcing NEM? then every country in this world would be a high income country (therefore we have a povertyless world).

friend, do yourself a favour, buy yourself a cheap jetstar air ticket and fly to singapore and see how things are getting done there, then you come back to this sad island, and see how we are still struggling with basic things like GST, contraband ciggy, corruption, low level of education, taxi meters, racial oppotunists etc.

 
April 14, 2010 at 3:32 PMPaul

Hi

This is an open question that I hope someone out there can answer and justify. Why do some agents charge the 'buyer' a 1% fee if you purchase a property via them and is this standard practice in Penang?

Surely the vendor/seller pays the agents, not the buyer?

If I had to pay an agent 1% and the agent was also receiving a fee from their vendor, surely there is a conflict of interest. I would want the person I had to pay to get the price for me as low as possible, and the seller would want to get as much as possible - who would the agent be working for?

Thanks

A quick answer would be appreciated

 
April 14, 2010 at 4:54 PMameer

Paul,the reason being is agents supposed to collect total of 2% comision from vendor,but because vendor is not paying 2 but only 1%,thus the 2% is divided among vendor and buyer..i remember my dad used to pay 2% comision when he sold his house 30 years ago.

 
April 14, 2010 at 5:34 PMPaul

Thanks Ameer

I understand what you are saying, however when I looked at the Malaysian Institute of Estate Agents website, (www.miea.com.my) under the 'Code of Ethics' it states the following:

A registered estate agent shall not accept fees from more that one client in any one transaction.

Therefore if I have to pay a fee then I'll want to negotiate, for example a set fee of 5000rm, irrespective if the purchase price. Does that sound reasonable?

 
April 14, 2010 at 6:13 PMcondomana

Paul,

I have bought several properties through different agents over the years, and i have never had to pay a single sen for brokerage fees.

when you (a buyer) ask an agent if you have to pay fees, surely they will say yes (1% seller & 1% buyer). the next thing you should say is - "i will not be paying fees to agent, do you still want to be my broker?"

if the answer is "yes", then you can continue to deal with him. if the answer is "no", then you say bye bye to him lah.

the reason is very simple. malaysian property sellers are very smart. they rarely ( practically never) assign an exclusive agent. meaning all agents know that other agents are also selling the same properties. therefore the bargaining power is on the buyer's side.

 
April 14, 2010 at 6:38 PMPaul

Condomana

Thank you for the excellent advice, I will do exactly as you have suggested. I'm going to buy either a supercondo or 2 mid sized properties so 1% works out at quite a lot for doing nothing. If you have any other advice then it would be much appreciated. We will be moving to Penang in 2 weeks.

Regards

Paul
paulg@streamyx.com

 
April 15, 2010 at 11:16 AMFence

From my experiences and through few transactions (non-direct), I paid fees whether buy or sell.
Buy new direct from developer if u do not wish to pay (actually build in already by developer).

When you buy property you need to know what is the objective? Buying property is different from buying shares.
You wanted to find the best and most suitable property right (even more critical if for own stay). So I don’t mind paying a bit of fees to get a better one as the agent will work harder to help me. If the agent know that the buyer is stingy he/she may still help but definitely on bottom of the list after the rest of the reasonable buyers rejected it. After all they all “cari makan” only….surely they know how to place priority.

Another things some bad agents even start to curse the property you buy…..then very “sui” beginning.

Don’t be “A Penny wise and a pound foolish”

Just my humble opinion...

 
April 16, 2010 at 11:27 AMDexter

Anyone has any opinion on Farlim property? Are they a good investment as well? Property like Boulevard or All Season Parks?

 
April 16, 2010 at 10:49 PMcondomana

dexter, if you're talking about "investment", never buy anything in that area. because :-
(1) bad neighbourhood
(2) no foreigner buyers
(3) bad location, with terrible traffic jam
(4) historical data shows the slowest value appreciation.

 
April 19, 2010 at 3:51 PMhssf

Condomana and all,

I am looking for a new launch residencial property (condo or landed) in Bayan Lepas/Bayan Baru/Green Lane/Batu Uban/Near USM are/George town. Budget is below RM600k.

Any recommendation? Thanks.

hssf

 
April 19, 2010 at 10:15 PMcondomana

hi hssf,

sorry, i am not familiar with the southern part of the island. so no comment.

 
May 2, 2010 at 3:25 PMstefan8

Hi all,

Any commments/advice regarding the Central Park High-end Condominium (2620sqft) at Batu Lanchang, as an investment and also own stay?
Developer is Insa Properties. The same developer as The Cove high-end condos at Tanjung Bungah.
How about the Cove owners, how is the quality of your condo? Did the developer deliver what they promise?

Hope someone out there can help me with my questions.

Thanks.

 
May 2, 2010 at 4:06 PMcondomana

stefan8,

this developer has bad reputation, always deliver property with inferior quality. i have heard various complaints from the cove owners regarding the quality.

however, I do have a few good things to say about the cove.

a) close proximity to dalat international school.
b) there's a beautiful beach in the back yard.

As for central park, it's not near to international school and it doenst have a beach in the back yard (meaning no expat would want to live there).

however, i heard it's very cheap (<RM300 psf). so if you are looking at just the price, then maybe can consider, but must remember, it will be difficult to rent out or sell to ang moh next time (meaning not good for investment).

 
May 5, 2010 at 2:02 PMstefan8

Thanks Condomana.
I think that CP is more for the local market, because of its centralise location on Penang island, and close proximity to local schools, markets & foodcourts.

Anyone else got any input?
Thanks.

 
May 5, 2010 at 3:05 PMLim

compare between fettes residences vs icon residence. which would be better for investment. anyone can advise, pls?

 
June 2, 2010 at 8:43 PMJin

LittleDragon, If cash is not a concern, I think you should keep it for a little longer. Tanjung Bungah area is still growing and I think the price of your condo will appreciate further. Why not rent it out for the mean time.....Just my 2 cents of thoughts :)

 
June 3, 2010 at 12:04 PMLittleDragon@Ranong

Thanks a lot Jin for your valuable advice. I will try to stay on a little longer. :)

 
June 4, 2010 at 12:19 PMJin

you're most welcome :)

 
June 9, 2010 at 5:14 PMLittleDragon@Ranong

Thanks Wee for your advice too. I am eyeing for landed property too. Any idea where to get a decent 2ST in penang island ranging from RM400 to RM500K? I personally feel it is very difficult.

Hence, I am wondering in the near future normal working employees will find it difficult to own a single property in Pg island.

 
June 25, 2010 at 11:27 PMOsaka

Hi,

Is it advisable to purchase the terrace house at Beverly Hills Penang?

 
June 25, 2010 at 11:32 PMOsaka

Hi,

Anyone can advise whether Sri Pangkor condominium will depreciate price in future due to leasehold?

 
June 29, 2010 at 12:31 AMsky

THe Golden triangle relau already open for booking last 2days.... 2 tower fully booked.
anyone can comment is good for investment or not?

 
July 3, 2010 at 11:03 AMTan H.H.

LittleDragon : you can find RM400k - RM500k single storey terrace at air itam, bayan lepas and tanjung bungah. But need to spend quite some $$$ to renovate.

Osaka: Tg Bungah property appreciation is high. beverly hills developed by Ratu Mutiara. As u can see this developer develop almost the whole "mountain".
Regarding leasehold high rise property, the price will become stagnant after 30 yrs. Most bank will not finance a leasehold property when the tenure is less than 50-60 years, or your margin of finance is only 70%-80%.

Sky : you can refer to the TGT thread. i saw someone comment that this project is JV with Ideal, land own by KTM. So, take the risk or not is up to u.

my 2cents opinion, forgive and correct me if i'm wrong.

Tan H.H.
012-4945211
Property Negotiator

 
July 7, 2010 at 5:29 PMOsaka

Many thanks for your invaluable feedback, Tan H.H

 
October 11, 2010 at 5:48 PMhssf

hi all,
May i know how is RPGT of 5% is being calculated?

Thanks
hssf

 
October 17, 2010 at 7:50 PMeLaiNe

Hi, may i know if it is still a good time to buy a property (condo) in Tg Bungah? will the price still appreciate? And how about value for renting out?
thanks.

 
November 1, 2010 at 6:19 PMhssf

hi Condomana, Tan HH, and all,

Do you have any recommendation of any new upcoming projects (condo or landed) in pg island?
plan to get 1 for investment.

thanks
hssf

 
February 1, 2011 at 9:28 AMPoh Neo

I just placed a booking fee for two units at Quayside and realised that the price is very high.
Is this a good project?
what is the growth potential of economy in Penang

 
August 1, 2012 at 2:04 AMmaogen bai

Any one interested in 3 stores terrace. Sungai Ara, limited units. big size. Price 1.4m