PDC will be selling a 190.2ha land in Batu Kawan to Eco World for development into a golf course and a mixed development project. The RM1.02 billion will be offered to PDC within 2 weeks at RM50 per sf. Eco World was the only bidder for that piece of land. Eco World also intends to build landed properties on the hilly portion of the land as well as a waterfront city, overlooking the Penang island. Currently, Eco World owns a 24.28 ha land in Bukit Tambun for which it will be building the Eco Meadows next year. Before you question why only one developer bid for the project, please do look at the price tag. RM1.02 billion. Unfortunately, not that many developers have such deep pockets. Thus, there is no surprise here.
I have yet to personally see any significant launchings in Batu Kawan yet and thus I think this one by Eco World may set the standards for all other developers to follow. Of course, for the smaller developers who is following this, I think they are now starting to look at smaller pieces of lands next to or nearby the Eco World’s piece. According to Henry Butcher’s associate director, the prices in south of Seberang Perai is now hovering at around RM 40 and RM 50 per sf. I remembered just three years ago, a friend said he was selling some land in mainland for RM12 per sf. Even the land prices in Batu Maung was also in the same range before a huge development was undertaken by Mah Sing right after the second Penang Bridge.
Besides this, some other notable land deals include Tambun Indah’s 200 acres RM16.40 per sq ft agriculture land in Simpang Ampat. Aspen Holdings also bought 99ha of land from PDC to build the Aspen Vision City. Of course, not to be forgotten would be IKEA which is said to be conducting its survey and if everything goes according to plan would open in 2018. Read it here: IKEA opening in 2018. It does seem that mainland is poised for continuous growth right? Today, a reader asked, ‘should he buy a landed development in Simpang Ampat. Seriously, for own stay, landed and affordability, SImpang Ampat is a good choice. If however it’s for investment, I personally still prefer KL for a faster turnaround and the rental potential too. Last week, another friend asked if there are any good deals in the island for RM500,000. I told her that mainland is better bet for her budget and family of 4. I think that sums up my current view of Batu Kawan. Stay, sure!
written on 15th Sept 2014
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