GEORGE
TOWN: Penang’s property prices have risen by quite a bit since the mid-2000s
although the appreciation in prices has been limited to several popular locations
on Penang island, particularly George Town.
However,
since the second bridge project was announced in 2007, vacant land prices on
both ends of the bridge, which connects Batu Maung on the island and Batu Kawan
in southern Seberang Prai, have jumped.
Raine
& Horne Malaysia director Michael Geh told StarBiz the price of vacant land
in Batu Maung on the island which had increased to RM250-RM300 per sq ft from
RM50-RM60 per sq ft. The 24km-long bridge, which is the longest in South-East
Asia, has been scheduled for opening next month. Geh pointed out that the
pricing depended on whether the land had been zoned for agriculture, commercial
or residential usage.
“In
Seberang Prai, prices of vacant land hover at RM50-RM60 per sq ft, compared to
RM8-RM9 per sq ft prior to the announcement of the second link project.
“The
price of vacant land has appreciated 500% on the island and about 700% in
Seberang Prai,” he said.
For
landed properties, new two- to three-storey terrace houses now cost from
RM1.2mil south of the island, compared with about RM450,000 prior to the
announcement.
“The
new condominiums in similar locations are now priced at RM700,000-RM800,000,
compared to RM250,000-RM300,000 prior to the announcement,” Geh said.
Geh
said there would be more housing projects planned for Seberang Prai in view of
the Ikea project to be developed in Batu Kawan and a mixture of commercial and
residential properties.
He
noted that with the island getting saturated, developers and investors would
take more interest in building or acquiring properties in Seberang Prai
especially since new housing regulations for the island to take effect on Feb 1
would restrict the sales of properties priced below RM400,000 for a period of
five years and if disposed within the period, can only be sold to a state
government approved list of first-time buyers.
In
Seberang Prai, the same restriction applies to residential properties priced at
RM250,000 and below.
According
to Malaysia Institute of Estate Agents (Penang) chairman Mark Saw, the
locations in Seberang Prai which could be considered hotspots due to their
proximity to the first and second bridges were Bukit Tambun, Juru, and Simpang
Ampat.
“Cheaper
land cost and property prices will spur the pace of development in Seberang
Prai.
“Gated
landed projects with lifestyle facilities will be the trend in Seberang Prai.
“On
the island, we have already seen the full impact of the second bridge on
property prices, as Penang and Kuala Lumpur-based developers and property
buyers have already invested substantially near the second link,” he said.
Saw
said that in the first half of the year, Penang’s property market would cool
off before picking up again in the second half.
Meanwhile,
Real Estate and Housing Developers’ Association (Penang) chairman Datuk Jerry
Chan said should land prices in Seberang Prai grow at the current pace,
developers may be pressured to build more high-rise properties.
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