A good news for Penang property market, even if majority of us including myself may not be able to afford it. Eastern & Oriental Bhd (E&O) has gotten a conditional approval from the Department of Environment (DOE) to develop the Phase 2 of its Seri Tanjung Pinang (STP) Project. It was reported that they have gotten this approval only after three years to start their Phase 2 development involving a reclamation of 891 acres of sea fronting land in Penang. For those who do not know, their STP Phase 1 is one of the most expensive in terms of price psf for Penang. Imagine, what’s the price going to be like in Phase 2? I would say the first launch may be cheaper to ensure a smooth start. We shall see.
Every time we hear of projects in Iskandar or even Klang Valley, the GDV would be in double digits. However when it comes to Penang, ahem, a GDV of over RM1 billion is considered huge. Except for selected projects like Penang World City or The Light by IJM. Do not worry, Penang has its own RM25 Billion GDV project now. With the approval in principle from the DOE in the bag, E&O now needs to get clearance from the state government before it can start work on phase two. No issues expected though as STP2 is 21.2% owned by the Penang state government.
Personally, I feel that Penang still have room to continue growing for the next 20 years. The new 2nd bridge has just started. It’s effects will start to drive development but this will easily be another 8-10 years, all the way until IKEA opens and beyond. The number of Singaporeans flying in would only increase and not decrease. In fact, I always believe that Singaporeans would find it more at home in Penang than even Iskandar. If I am a Singaporean and I intend to have a place to retire, between Penang and Iskandar my personal choice remain to be Penang. However, if you ask me, what about for investment? I think both have their own strengths but if both properties are the same price and I have a 5 year horizon, I would take Iskandar but I have none there at this moment.
written on 24 April 2014
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