Saturday, March 12, 2011

Hidden Gem in Penang

Hidden Gem in Penang

Yes, as I told you before, for you to get a property that gives you 8% rental return is almost impossible in Penang. However, recently I noticed  an interesting trend in Penang property market. Yes, there is a hidden gem in Penang area that is left unnoticed for very long time!!

Bandar Tasek Mutiara, Simpang Ampat
If you ask me that next area in Penang that will prospers in the next 5-10 years, I have no choice but to tell you is Seberang Perai Selatan. Yes, this area is long left unnoticed by property developers and investors. And the good news is I think the property price in this area is likely to appreciate very fast in the next 5 years!!

Some of you might know that I come from Seberang Perai Selatan. I bought my first property in 2001. It is a terrace house in Bukit Tambun, Simpang Ampat. The purchase price was RM170K back then and sadly, the price never appreciated for the past 8 years. The good news is the launching price for a terrace house around Simpang Ampat is now around RM220K, That translates to almost 30% capital appreciation in 10 years which is 3% per annum.

But what suprises me most is I rented out my house recently at RM1100 per month!! Wow, that is a solid 7.7% rental return for a landed property!! I think you can't get it anywhere else in Penang except in seberang Perai Selatan!!

2 comments:

StanicBlog said...

I think your did a wrong calculation. You should use current market price to calculate your rental yield, not the price you bought 10 years ago.

Dr Goh HK said...

Thank you for your comment.