Ikea is coming to Penang! Today, Penang CM Lim Guan Eng announced a good news for Penang. IKEA is opening in Penang. In fact, it is a good news for Perakians, Kedahans and ‘Perlisians?’ too. This is because they no longer need to drive like crazy, buy a few things in IKEA and then drive until half dead to reach home. Now, they can drive over and does not even need to pay toll though unlikely because if you arrive in mainland but does not want to visit the Penang island, then there is something wrong with you. 🙂
Before you now rush to any Batu Kawan developer’s office to book all the units there, please note that the IKEA store is slated to open only in 2020. Yes, it is true, if your property happen to be right next to IKEA store, I sincerely believe that the price would be increasing substantially by then. However, should you now rush to snap up properties in Batu Kawan? If you believe that with IKEA about to open, the property prices would continue to rise, thus you should buy, then go ahead but first question. What type of property? Landed? Do look at the availability for landed properties in Batu Kawan. As at now, choices are still limited. Condo? Unless there are new ones being launched, I have yet to know of any prominent developers building condos over there.
Second question, after you buy, will you be renting out? If yes, what would the rental be? Or would you be holding for capital appreciation? If yes, don’t you think buying 3 years later or nearer to when IKEA is about to open would seem more reasonable? Are there no other better property investments in Penang worth looking at. Third question, how much would the capital appreciation be? 100% up? Would it better than buying in hot areas in Penang? Would it be better than buying in not so favourite areas like Relau / Batu Maung instead? Batu Maung really would be just ‘a bridge away’ from IKEA and yet it is still within the island.
Please do not get me wrong. I think if you are able to answer a lot of the questions and after thinking slightly more thorough, then you should proceed to buy. Never buy because of sudden euphoria. IKEA is coming….. only in 2020. For property investments, do you typically buy and wait for 7 years before selling? Do note also that the highest appreciation should only be many months after IKEA opens and definitely not months before IKEA opens or even years. Personally, I would buy when more details are revealed. Especially on other plans besides just IKEA. Do remember that Damansara Mutiara did not rely on just IKEA. There are also The Curve, 1 Utama, TESCO and many more other catalyst such as LDP.
Wrriten on 10 Jan 2014
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