Penang Turf Club- Prime Land in Penang

Penang Turf Club- Prime Land in Penang

After vanishing for almost 20 years from Penang Property Scene, Tan Sri Vincent Tan of Berjaya Group is finally back again in Penang.

Penang Turf Club

Vincent Tan has bought a 57-acre prime land near Penang Turf Club for RM459 million  which translate to about RM185 per square feet. However, it is almost not possible for you to fully utilize all the land for buidling houses, therefore the 'real' cost for this piece of land is ceratinly above RM300 per square feet.

I think Vincent Tan is planning big again in Penang and certainly if he is only building low rise condominium, Bungalow, Semi D together with low medium cost housing according to The Edge, he has no choice but to sell the future high cost houses for at least RM600-700 per square feet!!

So I think houses near Medan Lumba Kuda will appreciate soon to about RM300-500 per square feet and once the final plan of Berjaya Land is finalised, they might go even higher to RM600-700 per square feet!!

Homestay Business in Penang

Homestay Business in Penang

Georgetown, Penang

Yes, homestay business seems to be growing rapidly in Penang especially in Georgetown. Due to UNESCO status and recent influx of tourists to Penang, I forsee that hospitality business to be the next 'big money' business in Penang.

I did a bit of research on the net and I was quite shocked that even a tiny small apartment in Penang is charging RM150-RM200 per day even the location is not so good.

Yes, I am venturing into this business and I have an extra condominium unit at Batu Uban that I have converted into a small B+B with full facilities. If you drop by in Penang one day, come and visit my unit at Batu Uban.

Visit my site at http://www.eparkpenang.blogspot.com/

Jump in Penang Property Prices

Jump in Penang Property Prices

Yes, you hear me right! Penang Property prices recorded a huge jump last year according to a report by The Star. I would say that it is now almost impossible for average workers to purchase a landed property in Penang Island. What is happening now in Penang is also happening in many cities across Asia- namely in Singapore, Hong Kong, Beijing and Shanghai in China as well as in major cities in Taiwan such as Kaoshiung and Taipei.

Pudong Skyline in Shanghai, China

So will the trend continues?? Due to the record low interest rate in many Western countires, we have been seeing outflux of hot money from these countires to Asian markets since the subprime crisis in US back in 2008. The issue is whether this buying trend in major Asian cities by foreigners will continues in 2012??

I am not sure! I am not sure should the support by overseas buyers ceases in future, is it possible our property market in particular the Penang property market will continue to have the upward trend in 2012?

But I still strongly believe that without the support from local buyers, this bubbling prices of Penang property will soon come to a halt once the economies in the West recover! There won't be any susbtainibility of high Penang property prices if average Malaysians and in particular Penangites are getting very low wages as compared to their counterparts from Singapore, Taiwan or even China!

Penang Island or Seberang Perai?

Penang Island or Seberang Perai?

Penang Island or Seberang Perai? If you have extra RM20k to invest in a property, will you choose a property in Penang Island or Seberang Perai?

E Park Condominium in Penang Island

That's a difficult question! I will just share with you a story, I bought my first property in 2001, a landed terrace house in Simpang Ampat. My brother in law also bought his first property that time,a 1000-square feet condominium in Sungai Ara, Penang Island. What is interesting about these two properties is they were same price in 2001- RM170K. I was quite confident that I made the right choice because what I had learned so far that time was landed property always appreciates faster than condominium. But I am totally wrong. In 2011, his Sungai Ara condominium has appreciated to RM380-400K but my ' LANDED PROPERTY' in Simpang Ampat is still just RM230-240K and the worst part is you just can't find any buyer in Seberang Perai Selatan.

So, am I hinting that you should buy a property in Seberang Perai instead of Penang Island? I think it all depends! It depends on a few factors, how much money you have and the time frame you can hold to that property.

Certainly we are not talking about buying property for own stay, I am talking about buying investment property. If you have enough funds ( more capital) and hoping to get return in short team, then buy Penang Island property. However, if you have less money but can hold on that property longer, I would suggest you to buy Seberang Perai Property.

I was suprised last week to find that a bungalow in Raja Uda, Butterworth is now selling more than 1 million. And I can assure you that the Semi D I bought in Simpang Ampat about 4 years ago has appareciated for more than 40%!!

Yes, you are right! When everyone is greedy ( and aiming for Penang Island property), why can't you just look beyond and find other oppoturnities in Seberang Perai!