Expensive areas would include pulau tikus where only the rich or the super rich can afford. Even the condos are very expensive. For example, Desa Melor, Bellisa Court, Villa Indah, just to name a few. I think price psf is over RM1,000. However, in terms of ‘expansive’, pulau tikus have no huge tracts of land to build more and more. In fact, typically new developments are built on small pieces of lands and may even be taking over car park grounds etc. If you look at the price psf, do you think it can grow to RM2,000 psf? 100% up from current price? Maybe it will. Maybe a sudden happens where everyone just wanted and must stay in Pulau Tikus. 🙂
What is ‘expansive’? These are the areas which still have more / larger tracts of lands which can be developed, compared to the expensive areas. Newer areas, typically which Penangites feel ‘ulu’ or ‘not so hot’ areas. Secondary places that comes to mind include Bayan Baru, Sg. Ara, Relau etc. These areas still have more lands to expand as compared to Pulau Tikus. The good thing is, the price psf is also much lower. Typically between RM400 – RM500 for majority of the 1,000 sq ft condos. Can the price go up 100%? to RM800 – Rm1,000 psf? It may not happen so fast but in terms of probability, I think you have the answer.
Penang island is still an island. When the population continues to grow, it no longer make sense for one area which is just 30 minutes from one another to be priced so much different. The premium will still be there but over 100%? My personal opinion, buy in ‘expansive’ areas. Meaning still have continuous growth. Not in expensive areas where you need huge capital to invest and in terms of actual return based on your capital invested, the % is likely to be very much lower. I don’t like to speculate, thus I prefer to buy in areas where the prices would grow because more people are staying, not because it’s a favourite place for a few.
written on 13 dec 2013.
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