|
Ranked the 9th “most livable city for expatriates” in Asia in 2008 by the Employment Condition Abroad Ltd over 254 Asian cities, nominated the second among 44 Places To Go in 2009 by readers of the New York Times and listed as one of UNESCO’s World Heritage Site, Penang has certainly caught the eyes of the world.
Tucked in the northwestern coast of the Peninsular, this Pearl of Orient is more than just another holiday destination or another place for good food. What became a haven for expatriates, foreigners under the Malaysia My 2nd Home (MM2H) program, and tourists in Penang, can be your potential investment grounds, gearing on capital appreciation and rental returns.
According to Juanita Chin, Head of Project Marketing of Reapfield Properties (Penang) Sdn Bhd, potential capital appreciation is almost guaranteed in well-located properties, in particular, the island.
And when you’re in an island, what’s not to have?
“Invest in beach front properties or properties with sea view for excellent rental returns and long term capital appreciation!”
Sharing a few property hotspots in Penang, she testifies that one will certainly not go wrong buying and investing in Tanjung Bungah, as it is neither too near nor too far from the sea. Other hotspots include Gurney Drive, Batu Ferringhi, and the pre-war houses, and on the southern side – near Queensbay area, she adds.
Rewarding Rental
Here, people who buy and invest on the Island mostly prefer condominiums as it gives them better rental returns compared to landed properties, which is usually good for capital gains. Further, landed properties are much more expensive due to the limited land, she says.
“A 1,000 sq ft condominium in Miami Green Resort, Batu Ferringhi was sold at RM230,000 to RM250,000 during construction. Now it has appreciated to more than RM430,000. It is still much sought after by expatriates for rental and purchase.
“Springtide Residence, a beach front project in Tanjung Bungah was launched three years ago at RM400 per sq ft. Today, having just completed and ready with the Certificate of Fitness, its subsale prices are already going for RM650 per sq ft to RM700 per sq ft.“
Another property in Tanjung Bungah, Alila Horizon has also appreciated by 40% in three years and yielding a rental return of 7%, she adds.
The rental property market in Penang will flourish with investors going for buy-to-let properties, supported by the growing number of expatriate community looking for properties to rent and buy, she attests.
In view of the economic situation, “even the expatriates who normally buy to invest here are renting!
“Investors too can look into short-term rentals to tourists and MM2H participants as their target tenants.”
In the short-term rental market, foreigners registered under the MM2H program would most probably want to savor the sight and sounds of Penang to know that they will be able to adapt well to life on the island before committing to a property.
A keen property investor herself, she advises investors to look for low-density projects. A unit priced from RM500,000 to less than RM1 million, with sizes from 1,500 sq ft to 2,500 sq ft is a reasonable investment, just the right size for a comfortable stay and easy maintenance. Coupled with the sea view, excellent unique features, and good finishing, you are bound to reap great returns from your investments.
With property prices in Penang expected to rise in the near future due to the rising construction costs, increasing demand and limited land, “now is the best time to own a property in Penang.
“The longer you wait, the longer the queue, and your dream home may be further away from your best spots!”
Published in the Anniversary Edition (May-Jun) 2009
|
Juanita Chin, Head of Project Marketing, Reapfield Properties (Penang) Sdn Bhd
Returns
Capital Appreciation
Miami Green Resort, Batu Ferringhi.
Condominium, transacted at RM230,000 to RM250,000 in 2003, now selling at RM430,000.
Springtide Residence, Tanjung Bungah.
Condominium, 2006, launch at RM400 per sf. 2009, subsale at RM650 per sf to RM700 per sf.
Rental Yield
Alila Horizon, Tanjung Bungah.
Capital appreciation, launched at RM350,000, now appreciated by 40% to RM490,000.
RM3000 to RM3500 per month, approximately 7% yield.
Coming Soon?
Second Penang Bridge.
International golf course in Batu Kawan.
Guidelines
Beach front or with sea view.
Low-density projects.
For rental units, units ranged from RM500,000 to less than RM1m, sizes ranged from 1,500sf to 2,500sf.
Excellent unique features with good finishing.
Most MM2H participants and expatriates are looking for rental at this point of time.
Magnificent sunset view at Gurney Drive Bay
An aerial view of Paya Terubong mixed development
A beach front view of E&O Hotel with Komtar as the backdrop
An ariel view of Bayan Baru township in the foreground with Hotel Equatorial and Bukit Jambul Golf Club atop Bukit Jambul
Prewar mansion
Alila H orizon, Tanjung Bungah
Springtide Rsidences, Tanjung Bungah
|
