Prai property market heats up

PROPERTY prices in Seberang Prai are expected to rise by an average of 10% this year, says Fook Tone Huat, associate director of property consultants Henry Butcher (Seberang Prai) Sdn Bhd.

Fook said in an interview that the rise in prices would apply to all types of properties across the board, covering residential, office, vacant development land and industrial properties.

The price for a double-storey terraced in Bukit Mertajam is currently RM385,000, compared to RM350,000 a year ago, a rise of 10%.

An office lot in Wisma Pantai in Bagan Jermal is now selling for RM175 per sq ft, an increase of 8% since 2011, while the retail properties on the ground floor of Megamall in Butterworth are priced between RM500 per sq ft and RM600 per sq ft, which is more or less the same as two years ago, due to an oversupply situation.

“The price of industrial land is now RM25 to RM30 per sq ft, about 15% more than two years ago, an industrial semi-detached unit of 5,000sq ft built up area sells presently for RM550,000 or RM110 per sq ft, compared to RM400,000 or RM80 per sq ft in 2011, an increase of 37%.

“Vacant development land is now between RM25 to RM30 per sq ft for suburban areas of Bukit Mertajam and RM40 to RM50 per sq ft for Bukit Mertajam town and Bagan Lalang, which is about 10% more than a year ago,” Fook said.

In 2011, property prices in Seberang Prai soared by about 15%, and last year the appreciation was around 10%.

“We expect prices in Seberang Prai to increase by about 10% this year,” Fook added.

The last three years could have been the best of times for property prices in Seberang Prai.

“Previously, the annual increase in prices was in single digits, below 10%,” he said.

The new property trend in Seberang Prai is the development of condominium projects with facilities.

“New condominiums planned for this year include the RM40mil Camelia Park project in Jalan Raja Uda by Tambun Indah and Condominium Berjaya at Kampung Baru in Bukit Mertajam by Five Star Contract Sdn Bhd.

“The Camelia Park project comprises 127 condominiums of 1,200sq ft with a gross development value of RM40mil, selling at RM250 per sq ft, while the Condominium Berjaya scheme comprises 147 units with built-up areas of 1,412sq ft and 3,798 sq ft, selling at RM290 sq ft.

“There is also New Bob’s RM50mil condominium project, comprising 148 units in Permatang Pauh, which will be priced between RM300,000 to RM400,000 each,” he said.

Older condominium schemes such as the Park View Tower by PJD Eastern Land are now selling for RM230 per sq ft, compared to RM180 per sq ft in 2008.

Newer condominium schemes such as Sea View Tower and Ocean View Tower are now selling for RM280 per sq ft and RM350 per sq ft respectively, compared to RM190 per sq ft and RM300 per sq ft in 2008 and 2010.

The pricing of industrial landed properties in Seberang Prai has appreciated substantially by about 37% since 2011.

“This is due to the limited supply of landed industrial properties in strategic locations,” he said.

According to Fook, the three key reasons for the anticipated surge in property prices are the expected completion of the second link in September this year, the new investments pledged by multi-national corporations over the past two years, and the development of new high-end mixed development projects.

Boon Siew Honda, Bosch Solar Energy, Phison Eectronics Corp, Aviatron, Bose Corp, Malaysian Automotive Lighting and UOP LLC are some of the MNCs that are committed to making investments in Penang.

“Boon Siew Honda Sdn Bhd’s new RM200mil plant in the Batu Kawan Industrial Park, launched recently, is expected to open up 1,100 job vacancies, creating demand for more properties in Seberang Prai,” he said.

He added that projects such as DNP Land Sdn Bhd’s RM1bil BM Impiana township project in Alma, Bukit Mertajam, scheduled for launch in the first half of this year and Tambun Indah Land Bhd’s RM1.64bil Pearl City project are transforming the property landscape of Seberang Prai.

Residential properties in BM Impiana such as semi-detached and super-linked homes are priced from RM1mil and RM578,000 onwards, respectively.

“Tambun Indah’s project comprises the RM640mil Pearl City Business Park and over 5,000 gated-and-guarded residential properties on a 583-acre site in Simpang Ampat.

“Residential properties in the project are priced from RM368,000 and RM568,000 respectively for double-storey terraced and double-storey semi-detached units.

“The business park comprises a controlled tenant mix leisure mall with F&B and retail outlets, a karaoke and a cineplex,” said Fook.

According to the latest National Property Information Centre’s property market report, total transactions for residential properties in Penang hit around 18,316 for the first nine months of 2012, with a transacted value of RM5.2bil.

The whole of 2011 saw the state registering some 30,674 residential property transactions valued at RM7.7bil.

“The total property transactions for Penang during the nine month period of 2012 registered 24,203 with a RM9.1bil value, of which about 40% of the transactions are in Seberang Prai,” he said.

Source: StarProperty.my

  1. Buyer_007
    March 29th, 2013 at 21:28 | #1

    Happy to hear that… Now not only Penang property is increased, Mainland property increased as well…

  2. CY Fong
    March 30th, 2013 at 01:32 | #2

    Yes! We all can be happy property investors, for years it has been proven this sectors is promising, penangites shall consider to be fulltime property investors.
    Thanks for the invention of DIBS, soft-launching rebate and 40 years loan tenure, now with a little down payment (higher leverage) we can start invest, 3 years later upon completion we can sell higher price, easy profit with peace of mind.
    We should not consider letting out instead of selling the property at higher price, this is because renting yields is too little (rental 1.5k a month, 18k or given 20k a year for landed house calling 1million on price tag, it is only 2%) compare to capital gain (assuming 10% down payment, and 10% a year rise on property price – 3 years later it increased 33.1% compounded, it is a 231% net gain of invested capital – annualised profit 49% a year). This is why we all should immediately without delay determined to be a bold property investor, is there any other business venture can make such a good comparable margin, yet it is just need to be waited out 3 year for sure-fire profit, further more RPGT is lower than company tax (RPGT highest 15%, company tax lowest 20% for small SME). Why should we ever consider to do something else other than property investment?
    How? What is more easier than sell it higher to next person to buy it? Penang has approximately 1.5million population combined island and mainland, although there is not much growth in population in a decade but there must be a greater optimist will buy furthermore we all have been educated since childhood we must buy own property.
    Don’t have money? Salary we earned definitely does not increase fast enough to cope the rise of property price. You make the money you need from property investment, never too late to start.
    We can’t depend on export so much as once we did because of EU economic looms, and weaken USD killing our exports and OEMs will move back to US. Property investment could be the biggest economy and our nation’s main income(stamp duty & RPGT), so our government should embrace continuous development of the industry, and our minister also (in gesture sound encouraging to me) citing our property price will rise due to cost increment, after all it is still cheaper compare some other countries in ASEAN such as Singapore.
    Penang is just a small island like Singapore, property price rise due to scarcity of land. However, Singapore island has 5.46million population over 697km2 of land area, population/area density is 3 times higher than Penang island has population of 0.75million over 293km2 of land area, that’s mean we have relative 3 times more land available to be sold/developed, more investment means more transactions and we make more money, the price rises every time we sell higher. One day our property price will be as high as Singapore’s and we will be as rich as Singaporean through property investment.
    Although the income and GDP per capita of Singapore is higher than us, makes it property more affordable even with higher price. We will catch up by more property investment, the multiplying effects of investment will make up our GDP. Higher GDP, more affordability, price rise; higher price, more economic function, GDP grow higher….and one day we will catch up by property development.
    After over more than a decade of budget deficits, other than oil we can sell more property to foreigner to make money and improve our economy!

  3. homebuyer
    March 30th, 2013 at 04:05 | #3

    @CY Fong
    wow…a long essay? anyone mind to summarize?

  4. John Wu
    March 30th, 2013 at 07:22 | #4

    Summarize – pls invest properties in Penang.

  5. J
    March 30th, 2013 at 07:42 | #5

    DIBS should not be there as it enables too much speculation at the expense of others than investment. Somemore, DIBS does not really come for free, developers are not stupid.

  6. Mr Ng
    March 30th, 2013 at 12:06 | #6

    after reading the long long summary,

    the most primary thing
    – no work how to get loan is not even included.

  7. John Wu
    March 30th, 2013 at 16:38 | #7

    Work to gain more money then buy properties!

  8. DVD
    April 2nd, 2013 at 13:06 | #8

    Mr Ng :
    after reading the long long summary,
    the most primary thing
    – no work how to get loan is not even included.

    buy toto!!!

  1. No trackbacks yet.
(You can also Login/Register to submit your comment using unique ID)

Comment Guidelines
  • Avoid political discussion.
  • Comments with inappropriate wordings or personal attack may be moderated or deleted.
  • Developer must register before comment. All anonymous comments claimed to be from developer without registration will be deleted.
  • All advertisement in the comment will be deleted. Please contact us for advertising details.

To advertise your property in this page under "Related Properties for Sale/Rent":
 1. Submit your property at PenangPropertySale.com, it's FREE!
 (Please do not advertise your property in the comment)