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Penang Property Hotspots in 2017

August 3rd, 2017 5 comments

pptalk-2017-hotspots

It’s pretty common for our readers to approach us to enquire about the latest property market in Penang. Here is an infographic on property hotspots in Penang. Hotspots is defined as the location where the top 20 most active projects in 2017 are located, along with the price ranges of the respective properties within that location.

In Penang, any location can be a property hotspot as long as you have the right product in the right location selling at the right price.

* Most active projects are ranked based on the pageviews recorded in Google Analytic web traffic report for PenangPropertyTalk.com.

 

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How much do you think land costs in Penang?

July 13th, 2017 8 comments

Land is the most important asset to a property developer as it enables the developer to sustain and grow its business. The constant rise in land prices is the simplest reason that explains the escalating property price especially those in prime areas.

We have solicited some actual data from reliable sources (mostly from NAPIC) for land transacted in 2016/2017. Hopefully this will shed some lights for those who has been very curious on land prices in Penang. For those who own a land or any landed property in those areas, you can do a quick math to figure out how much your property is worth now.

Land transacted at more than RM10mil in 2016/2017

Land transacted at more than RM10mil in 2016/2017

 

A 12,000 sq.ft. bungalow lot at Macalister Road is so far the most expensive land transacted in 2016 at RM14.5mil, equivalent to RM1,208 per sq.ft.

It is also worth mentioning that the land in Northern and Central Seberang Perai is coming on par with some areas in the Island.

 

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The Park vs Quinton

March 29th, 2017 No comments

Population is the key driver of growth in property market. Here is a comparison between two affordable projects – highly populated area in mainland versus a less populated area in the Island.

Take a look at the comparison between the two projects below. Despite Quinton offers cheaper options in the Island, the response to The Park @ Mak Mandin has been way better as indicated from our analytic report.

The Park Quinton
Developer Silver Channel Sdn. Bhd. (Tamarins Group) Prisma Bumiraya Sdn. Bhd. (Pearl Ocean)
Location Butterworth Balik Pulau
Standard unit size 1,042 sq.ft. 775 sq.ft. – 900 sq.ft.
Price psf.* RM247 onward RM287 onward
No. of carpark 1 1
Selling Price* RM247,000 onward RM223,000 onward
Land tenure 99 years Freehold
Total units 780 383
Expected completion 2020 (estimated) 2020 (estimated)
Highest floor 14 16
5 nearest schools
  • SRJK (C) Mak Mandin (0.5km)
  • SK/SMK Mak Mandin (0.5km)
  • SJK (T) Mak Mandin (0.5km)
  • SRJK (C) Kwang Hwa(1km)
  • SMK Bagan Jaya (1.5km)
  • Titi Teras Primary School (0.2km)
  • Prince of Wales Island International School (3.5km)
  • Sacred Primary & High School (2km)
  • St. George’s School (2km)
  • Chong Teik Primary School (2km)
  • 5 nearest malls
  • Billion Supermarket (2km)
  • Econsave Raja Uda (2km)
  • *Penang Sentral Mall (5km)
  • Sunway Carnival Mall (5km)
  • Tesco Extra S.Jaya (6.5km)
  • Queensbay Mall (18km)
  • Bukit Jambul Complex (15km)
  • Sunshine Square (15.5km)
  • Giant Hypermarket (15.5km)
  • Tesco Hypermarket (20.5km)
  • Web popularity (Past 60 days) 14,300 pageviews 2,230 pageviews
    Travelling to
    (off peak)

    • Penang Bridge
    • 2nd Bridge
    • Airport
    • Komtar
    • FTZ


  • 10km (12 minutes)
  • 30km (24 minutes)
  • 29km (26 minutes)
  • 26km (24 minutes)
  • 26km (24 minutes)


  • 19km (30 minutes)
  • 21km (35 minutes)
  • 17km (26 minutes)
  • 17km (26 minutes)
  • 26km (45 minutes)
  • More about The Park @ Mak Mandin More about Quinton @ Balik Pulau

    *Based on initial soft-launch price

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    20 Most Active Projects in Penang (Jan & Feb 2017)

    March 7th, 2017 2 comments

    Property transaction has undeniably indicated a downtrend pattern for past few years. However, people’s obsession with home ownership did not exhibit any declining effect. In fact, we experienced consistent upsurge in our pageviews. By comparing our Jan & Feb 2017 traffic vs the same period in 2015 and 2016, approximately 22% increase is observed in visitors checking out Penang property development at our website in 2017.

    traffic-increase

     

    Speculating which project has contributed most? Here is a list of 20 most active projects in first two months of 2017.


    20-most-active-jan-feb-2017

     

    Top in the list is Avalon Place – a 209-unit condominium by PLB Land at Air Itam, followed by The Stone, an affordable housing by the same developer. The two projects has a combined pageviews of 14,013 in the past two months.

    To name other new projects in the list are Novus, Senzo Residence, GEM Residences, Scots Pavilion, TreeO Hillside Towers, Imperial Grande.

    Novus, ranked 3rd, is a newly launched development by Prisma Bumiraya Sdn. Bhd. at Sungai Nibong. It is about 10 minutes’ walk to the future Sungai Nibong LRT station.

    Senzo Residence, a 34-storey condominium development by Corfield Development Sdn. Bhd. at Sungai Ara. It is just a mere minute’s drive away from sPICE, with an indicative selling price starts from RM480,000 onwards.

    GEM Residences, part of the 6 hectares mixed development by Belleview Group at Prai, located diagonally opposite Megamall Penang. Next to it, will be the upcoming largest mall in northern region – GEM Mall.

    Scots Pavilion,  strategically located next to Scotland Road, offering a 22-storey condominium with 89 residential units. A project by M Summit Group, designed to provide one-stop wellness destination. Indicative selling price starts from RM600 psf onwards.

    * Projects are ranked based on the pageviews recorded in Google Analytic web traffic report for PenangPropertyTalk.com.

    – Ken Lim
    (Founder and Principal Reviewer, PenangPropertyTalk.com)

    Penang Property Outlook 2017

    January 4th, 2017 25 comments

    It has been a quiet year for the Penang housing market in 2016. The cooling measures and tighter credit environment have continued to negatively influence the local market. While many are hoping to see a recovery soon, recent disappointing economic performance has further dampened market sentiment. Buyers are adopting a “wait-and-see” strategy as they remain uncertain of the economy’s future.

    The delay in the issuance of advertising permit and developers license (APDL) has also contributed significantly to the decline of property transactions in Penang. Without the APDL, developers are not able to sell and promote their projects, nor can they finalize sales and purchase agreements.

    penang-property-transactions-14-16

     

    The chart above makes it clear that home sales have slowed down over the past three years and are expected to continue that trajectory in 2017. To get a sense of just how much sales have dropped in the past two years, consider the latest data from NAPIC, which indicates that the total housing transactions in first half of 2016 have dropped 13.5% and 25.8% compared to the same period in 2015 and 2014 respectively.

    Prices rise despite slower market

    Unfortunately, slowing transactions don’t mean that home ownership will become more affordable. PenangPropertyTalk.com experienced record website traffic in 2016 with over 1.79 million visits, beating 2015’s record of 1.61 million by approximately 10%.

    There is actually a straightforward explanation for this: People’s obsession with home ownership is not fading, but they are adjusting their risk appetite and waiting for the right deal.

    The figures below show the average transacted value for the three most common residential property types (condo, two-to-three storey terrace and semi-detached) in Penang. Undeniably, house prices have generally seen an upward trend, with the exception of condominium and terrace houses located in south-east district of Penang Island.

     

    The landed house prices on the Mainland have shown steady growth over the past two years as upgraders are looking for bigger space for their growing family. The average transacted value for a semi-detached house in Penang Island also registered double-digit quarter-on-quarter growth in Q3 2016.

    Deep-pocketed investors look at investing in landed houses as solid investments not only because it comes with a solid land, but also because it is less speculative as many make these their homes. Certainly, the scarcity of land will continue to drive up property prices, particularly for landed houses.

    Opportunities during slow markets

    The supply of affordable housing has influenced a fundamental shift in the Penang high-rise market, moving it out of rapid recovery and into a new normal where slow growth will stay for the long run. Thus, first home buyers can look forward to a more stable market with ample time to make the right decision. If none of the existing projects appeal to you, keep a lookout on the upcoming affordable houses located in Bayan Baru, Gelugor and Jelutong this year.

    Concerns about further depreciation have also kept many people from buying houses during slow markets. However, by recognizing the opportunities that slow housing markets present, prospective buyers can break away from the pack and take advantage of good deals. If you scout around, you will find almost all the developers are now sweetening their deals with freebies, discounts, rebates and other innovative financial assistance schemes.

    Penang Mainland – Full of possibilities

    As land becomes more expensive on the island, developers are moving to build on the mainland where the abundance of land offers greater opportunities. Exclusivity and lifestyle will be the key development theme — a differentiation strategy which influences the expectation of a new living standard.

    EcoWorld’s maiden project at Simpang Ampat, Eco Meadows, is a perfect example of how differentiation plays a vital role in influencing a buyer’s perception of value, setting it apart from the neighboring projects. Prices start from RM700k when it was first launched in late 2015, almost double the price of the surrounding houses and on par with the houses in a remote area of Penang Island. The project is nearly sold out now.

    Infrastructure plan is too early to assess

    The Penang Transport Master Plan (PTMP), the biggest infrastructural undertaking in Penang’s history, was one of the hottest topics discussed in 2016. It will be the greatest catalyst for the property market in the northern region, and it will help to create a more equitable housing situation for all by making remote township more accessible. Unfortunately, these plans are still too nebulous to have any material effect on the housing market in 2017.

    Highlights in 2017

    For first home buyers, keep a lookout on a few more affordable options coming up at Bayan Baru, Gelugor, Jelutong and Batu Ferringhi, including two projects by PR1MA.  Choose wisely within your means. A branded location does not necessary mean the right location for you.

    Properties in a prime location with a price tag of around RM700k-RM800k are expected to enjoy good take up rates. If you have that budget, stay tuned for the upcoming condominium by IJM — 3 Residence and Waterside Residence, and the mixed development by Temasek — BPO Prime at Bayan Baru. Looking for high-end options? Check out the upcoming Marriott Residences at Gurney Drive, Penang Straits Residence at Seri Tanjung Pinang or wait for the new launch of landed properties by E&O property.

    Gated and guarded communities on the Penang Mainland remain the ideal lifestyle choice at relatively affordable prices. Check out some of the existing projects before they get out of reach. The upcoming gated and guarded development by EcoWorld (Eco Horizon) and Aspen (Viluxe) at Batu Kawan will set a new price benchmark for properties in Mainland.

    Still wondering would the property market recover in 2017 or 2018? Let’s put aside the word “recovery” and recognize the current market as a new normal. New growth will start from here.

    – Ken Lim
    (Founder, PenangPropertyTalk.com)

     

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