Penang Properties Update, Eco World, PDC and theme park

Many have asked me about Batu Kawan. My replyremain the same, what’s your investment purpose and horizon. For rental? Impossible. 5 year is okay for you, then yes I think Batu Kawan is indeed good for you. I no longer wish to repeat that IKEA will only open in 2020. Few days ago, end June, Penang Development Corp will be awarding the development of two projects to two famous developers. These two projects comprise of a theme park with a resort and golf course. Golf courses may not attract that many people. After all, why would I need a golf course view if I am not even playing golf in the first place? However, theme park may be a good catalyst for the new area which is near the Second Bridge.

As usual, there are still no formal announcement but sources said that one of them would be Eco World Development Group Bhd which is now already very famous with their spectacular growth, both in brand and in the projects they are undertaking everywhere in Malaysia, all at once. Out of the 190hs, Eco World would use 60ha for the golf course and the balance 130ha for a mixed-residential property project. With regards to the adjoining land measuring 121.4ha, a large Kuala Lumpur based resort and theme park operator would be taking it up together with an overseas developer which specialises in theme park development.

It does seem that Batu Kawan or even the mainland part of Penang is starting to heat up. The only issue is, there are at this moment, plans, awards, announcements but none are really building yet. Personally, I think Batu Kawan would be a good place if you have the right strategy in mind, which is to buy and wait. If you intend to buy the secondary property and rent out, I can safely tell you, not yet. Not even next year or 2016. Oh yeah, with the boom in transactions in 2011 and 2012, the new stock is starting to flood the markets. Thus we can see all new projects are facing pressure unless they sell at a lower price. Fortunately, I think they can sustain with a lower margin. No matter how great the economy may be, anything above RM500,000 needs a longer decision making process.

written on 3 July 2014

Next suggested article:   Butterworth property is BETTER WORTH.


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