Work in progress at Andaman Island
The ban on short-term rental in Penang has resulted in an increase in property values and rental yields, according to Eastern & Oriental Bhd (E&O).
E&O executive chairman Datuk Tee Eng Ho said the group’s property development in Penang was never intended to be marketed as an investment play.
“Whichever condominium without Airbnb, their property price goes up, rental even much better,” he told reporters and analysts at E&O’s 2QFY2024 results briefing on Wednesday.
“Our [development in] Andaman Island, we never targeted it for people to do Airbnb,” Tee added.
Tee was referring to the Andaman Island development, an artificial island off the Northeast coast of Penang that is set to be launched in the first quarter of 2024.
Effective May 25 this year, the state government of Penang imposed a ban on almost all types of short-stay accommodation, making it the first state in Malaysia to impose such a ban.
Source: TheEdgeMalaysia.com
“Whichever condominium without Airbnb, their property price goes up, rental even much better,”…..that’s totally false.
Completed E&O condos (namely Tamarind & Quayside) are enjoying better rentals now due to Stonyhurst intl school, not coz of no-airbnb. Any condos within 800m radius of Stonyhurst is enjoying increased demand therefore better rentals, including I-santorini. Having said that, due to high price buyers paid for E&O condos, the increased rental is still not enough to cover purchase cost, while I-santorini owners are already enjoying exceptional rental returns due to low purchase price.
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I also wonder how ban on short term rental can have positive impact on property prices since all residential property will be subjected to the same ban. It is not like some have advantage over the others because they ban it and others not….the higher rental probably because of higher interest rate after the MCO…
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