When we look at the Penang’s market, we can see the real demand versus supply in real action. The reason I say so is because despite the property transactions declining, the prices of landed properties, especially within the island and especially only in that few hotspots continue to rise. Datuk Jerry Chan, the Real Estate and Housing Developers Association (Penang) said that prices of landed residential properties is rising and there are no signs of distress buyers yet. Land scarcity remains an issue and land prices are moving faster than property prices. Due to this, one can choose to pay EVER HIGHER for prime locations or move away.
Where are some of the ever higher places? According to CH Williams Talhar & Wong’s (WTW) in its 2015 Property Market report, prices of newly launched, landed residential properties in Penang continues to set new benchmark. Older residential units in established neighbourhoods such as Greenland is still very sought after despite the very high asking price. While he did not say but let me say that these more traditionally Penang areas are loved very much by Penangites. It is not necessarily the top choice for the migrants from other states who are working in Penang. For now, majority of landed residential properties are focussed in Seberang Perai due to the much lower land cost in comparison. According to National Property Information Centre, there are only a total of 36,795 units of landed residential in Penang. This simply meant if you own a landed property today, you will do just fine when you need to retire!
From all these reports, one thing is for sure. In Penang, island side remains a great prospect. Within the island, the landed property is even more valuable. If that location is an established one, then that property has now become a hot asset. The simple conclusion for those who just cannot accept high-rise developments and must stay in landed property in an established neighbourhood within Penang island? Be prepared, with lots of money. Happy buying or keeping one today.
written on 27 Mar 2015
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