As we step into 2023, the Penang property market is expected to continue its gradual recovery phase from the pandemic-induced slowdown. The year 2021/2022 was a good time to buy property in Penang, thanks to the Home Ownership Campaign (HOC), record-low interest rates, and developers offering freebies, discounts, and rebates to clear their overhang stocks. Looking back, yesterday is always the best time to buy property, and that still holds true for the Penang property market in 2022.

However, as we move forward, the Penang property market is set to face some challenges in 2023. Increasing material and labor costs have made it challenging for developers to keep property prices low. In addition, the 1% increase in the Overnight Policy Rate (OPR) since its record-low in 2022 has led to higher borrowing costs, potentially impacting the demand for property.

Despite these challenges, Penang’s property market is expected to be exciting enough, with several launches in the pipelines. The residential market will continue to focus on affordable and mid-range segments, with high-rise condominiums in the affordable price range of around RM500k being the main focus. The trend is expected to continue in 2023, with some niche high-end projects also expected to be launched in good locations.

As indicated in the National Property Information Centre (NAPIC) transaction data, Penang’s residential property market has started its gradual recovery phase, with an upward trend in transactions post-pandemic. Between January and September of 2022, the residential property market in Penang experienced significant growth, with transaction volume increasing by 46% and transaction value increasing by 44% compared to the same period in 2021.

Taking a closer look, there was a comparable upswing in transaction volume on both Penang Island and the mainland. However, during Q3 2022, transactions on the mainland saw a more significant increase. This trend is further evidence that there has been a continuing rise in the number of properties being transacted on the mainland.

2023 Development Highlights

Some of the most popular projects in 2022 and expected to garner significant attention in 2023 are The Meg at Andaman by E&O Property, along with Ideal Residency, Ideal Venice Residency, and Foreshore Residence. Notably, most of these projects are affordable housing projects. For those looking for new niche high-end projects, stay tuned for an upcoming residential project near Codrington Avenue at Pulau Tikus, launching soon. Sunway Dora, located in Bayan Baru, is also expected to launch soon in 2023.

Some other noteworthy developments to mention are Senze@PICC by Hunza Group, The Light City by IJM and Eco Horizon by EcoWorld, which are set to have many activities taking place this year.

For upcoming affordable housing projects, Setia Miracca, and The Millennia, both at Bayan Lepas, are some projects to wait for. Several additional affordable housing developments are slated to launch this year in various locations, including Jelutong, Tanjung Tokong, Sungai Ara, and Teluk Kumbar. Make sure to stay up-to-date on the latest launches by checking our website regularly.

The housing ministry’s plan to revamp public housing by drawing inspiration from Singapore’s HDB has the potential to alter our affordable housing model and policy, which could lead to a significant transformation in the affordable housing landscape in 2023 and beyond.

Batu Kawan: A Flourishing Township with Potential Challenges

Batu Kawan is now a major economic zone for Penang. As the demand for property in Batu Kawan increases, so does the price. The prices of landed houses and condominiums in the area are now comparable to those in the southern part of Penang Island. With the continued influx of foreign investment and new multinational corporations, the trend is expected to continue, making Batu Kawan one of the most expensive areas in Penang mainland.

However, while good sales performance in the primary property market at Batu Kawan may indicate a flourishing economy, it does not necessarily translate into the same demand in the secondary market. This means that those who buy property in Batu Kawan for investment purposes may find it difficult to resell their property at a profit in the short term due to the area’s lack of essential amenities.

Despite the potential challenges, Batu Kawan remains a prime location for property investment. Its strategic location, combined with its proximity to key employment hubs, makes it a promising area for long-term investment.

Is now the best time to invest in property?

Assuming there are no further pandemics, 2021/2022 was likely the nadir of the property market, and we have now entered the recovery phase. It is possible that the best time to buy property may have come and gone, but it’s worth keeping in mind that the current period can still be considered the second-best opportunity to make an investment.

Despite the persistent complaints about rising property prices, it is important to be realistic and acknowledge that developers are in the business of building houses for a profit. With the scarcity of land in Penang and the increasing costs of materials and labor, it’s improbable that property prices will drop in the future, except in the case of affordable housing projects.

Given the government’s ongoing efforts to boost the supply of affordable housing, there is no need to rush if you’re in the market to purchase such property for your own stay. With a variety of options expected to be available, take your time and carefully consider your choices before making a decision. Additionally, it’s worth noting that these projects are likely to remain priced at RM300k or below for the foreseeable future.

– Ken Lim
(Founder, PenangPropertyTalk.com)

Heritage advocates are concerned over plans to build a 38-storey condominium at Gat Lebuh Nordin here, less than 200m away from the George Town Unesco World Heritage Site western boundary.

Planning permissions were submitted to the Penang Island City Council last week for approval.

It is learnt that the proposed project is in direct sight of the Lebuh Acheh Mosque minaret, which is supposed to be gazetted as a heritage vista.

George Town Heritage Action (GTHA) co-founder Mark Lay first broke the news on GTHA’s Facebook page.

“There is an application for planning permission sitting at Penang Island City Council, seeking approval to built this 38-storey luxury condo just 150m from the western boundary of the George Town World Heritage Site.”

Penang Heritage Trust vice-president Khoo Salma Nasution, who shared the posting, said: “Another monstrosity spoiling the vista from the World Heritage Site. A slice of delicious cake for metal-chomping aliens or a giant chopper about to hack up Komtar (Tun Abdul Razak Complex).”

She added that the George Town Special Area Plan gave examples of what should not be allowed and that the vista of the Lebuh Acheh Mosque should not be spoilt or compromised by allowing a tall development even beyond the World Heritage Site.

Others expressed worry that the latest development might cause Unesco to remove George Town from the former’s list of World Heritage Sites.

They said it was the job of the George Town World Heritage Incorporated (GTWHI) Board to reject any development proposal that threatened George Town’s outstanding universal value (OUV).

Pengkalan Kota assemblyman Daniel Gooi Zi Sen, the assemblyman of the area where the proposed project is expected to sit, told the New Straits Times that he had yet to see the detailed application for the project

“The project sits outside of core and buffer zones of the World Heritage Site. I need to get more details of the application before I can comment on the matter, whether it will impact the world heritage site.

“There are existing rules and regulations for (development) planning. If all conditions and regulations are adhered to, I think the Penang Island City Council should consider the project,” he said.

Gooi, who sits on the board of the GTWHI, said it was too early to confirm that the proposed project would be in direct sight of the minaret.

He acknowledged that according to the Special Area Plan, the vista of the minaret must be preserved.

Meanwhile, GTWHI, as the site manager for the George Town Heritage City Unesco World Heritage Site, confirmed the proposed project would be located outside the property and buffer territory of the George Town Heritage City Unesco World Heritage Site.

According to GTWHI general manager Dr Ang Ming Chee, it had conducted site visits since last week to study the project.

“We will comment further after we received the project detailed plan and development design from the Penang Island City Council.

Read more: NST Online

About Sunshine Central

A re-development of the old Sunshine Farlim site into a new commercial complex with business hotel and serviced residence. The entire project will be over 3.7mil sq ft of gross area, spread over three blocks of 38-storey buildings, comprises 270 units of serviced apartments, 144 units of small home offices (Sohos), a hypermarket, 300 retail outlets, a medical specialist centre, a 320-room business class hotel, and cineplexes.

Find out more about Sunshine Central

Source: Facebook

The Chief Minister of Penang has welcomed the announcement by Prime Minister Datuk Seri Anwar Ibrahim in the 2023 Budget that the Penang International Airport expansion project will be implemented. The Chief Minister expressed his hopes that with the expansion of the airport, it can cater to around 20 million passengers annually.

The airport expansion project is expected to boost the socio-economic development of the Northern Corridor states, as well as Penang’s tourism and industry. The Chief Minister assured that the Penang government will provide full support to the Ministry of Transport (MoT) and Malaysia Airports Holdings Berhad (MAHB) in the implementation of this project. He also expressed his hopes that the project can commence this year and be completed within three years.

In addition to the airport expansion project, Penang also welcomes the RM50mil allocation to help George Town and Melaka in heritage conservation works. The state government will collaborate with the relevant ministry to finalise the best projects and programs to be implemented in George Town. It is noteworthy that the last allocation provided to Penang by the Federal Government for heritage work was when George Town was listed as a UNESCO World Heritage Site.

The Chief Minister acknowledged that the Federal Government has shown its concern for Penang, which has long been neglected. He appreciated the Finance Minister’s good gesture towards Penang, and noted that there are still many infrastructure projects that need to be implemented to help the state overcome its development constraints. The state government will continue to work with the various ministries to obtain approvals for their applications.

REHDA Malaysia president Datuk NK Tong

The Real Estate and Housing Developers’ Association (REHDA) Malaysia has welcomed the measures announced in Budget 2023 by the Unity Government on Friday. In particular, the association supports the government’s plans to build 12,400 units of low-cost houses under Program Perumahan Rakyat (PPR) and 4,250 Rumah Mesra Rakyat under Syarikat Perumahan Negara Bhd (SPNB), with allocations worth RM367 million and RM358 million respectively.

REHDA also commends the government’s decision to increase Syarikat Jaminan Kredit Perumahan (SJKP) allocation to RM5 billion, which is expected to benefit 20,000 borrowers without fixed income. The association believes this move will increase the ability for more Malaysians to buy a home and improve their quality of life.

However, REHDA is concerned that the pressing issue of the continuous increase of building materials prices, highlighted in the association’s Budget 2023 Memorandum, has not been addressed. The association emphasizes that if left unaddressed, the issue will have an adverse impact on house prices in the open market. Nonetheless, REHDA will continue to engage with all relevant industry players, including the government, to find a solution to this issue in the near future.

In a press statement, REHDA Malaysia president Datuk NK Tong stated that the government’s approach in the budget may seem bold and aggressive but is in fact prudent given the concerns of slower global growth for 2023. He is hopeful that some of the measures announced towards alleviating the burden of the less privileged will help them navigate their day-to-day life amidst the high cost of living, especially in urban areas.

Tong reiterated the association’s pledge to continue with its nation-building role of providing quality and affordable homes for the rakyat while providing employment to the 180 upstream and downstream industries. He hopes that the government will continue to give their full support to the industry.