I have always been telling everyone that the reason until today I do not own a single unit of a landed property is because condo is the future. Landed would become so expensive that the current units and even future supply will not be so easily available or even affordable. Thus, growth would not be huge when compared to condo. After you buy one unit, who can you sell to? Well, honestly when I look at just Penang, I am WRONG. Haha. Yes, please take a look at the chart below provided by my good friend, Michael Geh, the senior partner of Raine & Horne International Zaki + Partners Sdn Bhd. It shows that whether it’s 2013 or even 2014, landed terrace homes of 2-3 storey remain the MOST popular in Penang. This is despite the fact that one row may have just 30 units of these but a few acres of land may be housing a few hundred condo units.
Thus the conclusion from this chart is simple. Penangites are VERY rich or if they are not rich, it meant that they are crazy for these landed units. Perhaps Penangites are both. Actually, the supply of these landed units would be very limited because the available land within the island is getting lesser. Even for developers who reclaims land, they have to build a lot of high-rise and not these landed ones because it would not be able to cover their costs or even obtain high profits. Besides a usual 2 storey landed is already easily RM1 million in Penang. How many people can afford to buy one anyway? Refer to some samples of latest listings below:
The conclusion from the chart and these landed properties tells us that I may be wrong for now but I may not be wrong for too long once all the high-rise units bought in 2011, 2012, 2013 and even 2014 are continuously coming into the market. Just assuming the prices increase by 3 percent per year would meant that these terrace houses would be considered ‘super grossly unaffordable’ to majority of the usual full time employees like you and me just a few more years down the road. It is now ‘grossly unaffordable.’ For those who can afford to buy a few and wait, I guess the choice is clear yeah. For Penang, landed would always be a premium, then, now and future. Happy owning one.
written on 30 Apr 2015
next suggested article: Landed in Penang? Be prepared with lots of money