by Ken Lim

In Penang, one of the most intense debated topic is the property investment and purchase decision between the properties in island and mainland. The island which is well-known for its “scarcity of land” has always been the top property investment choice for both locals and foreigners, whereas the mainland is always named as the secondary option for a bigger house or an affordable alternative.

Many people told me that they prefer to invest into property in the island due to its limited land, higher-class shopping malls, well-known tourist hotspot, beautiful beaches and not forgetting the good food. I would have to agree that these are some valid reasons. But if we are buying a property for own stay, how much does it really matter to us?

A branded location

The branding of a location can give it a competitive edge. Sometimes this can be one of the most powerful factors in a property investment decision. When we mention “Penang”, the first thing that comes to our mind is the Penang Island – A glamorous location that is well known for land scarcity. To some people, Penang Island is a branded city with pride in its properties, beaches and food.

Georgetown, Seri Tanjung Pinang, Tanjung Tokong and Gurney Drive are some of the top location brands in Penang Island. Properties in those areas are usually at least ~30% more expensive than the properties of similar density in other locations within the Island. RM800k is the sweet spot. Anything around this price range would likely to see a respectable take up rate.

Mainland on the other hand, has always been perceived as an affordable alternative for those who cannot afford a landed in the island. Most people knew Butterworth, Perai, Seberang Jaya and Bukit Mertajam. But none of them is perceived as a prominent brand to the penangites.

However, things has started to change in the recent years. Developers have started to focus into the mainland, taking advantage of the cheaper land cost that they have purchased many years back. For example, Alma, some used to have a certain perception about it. But DNP has changed the perception of that area with series of well planned residential and commercial developments such as AEON mall and Tesco hypermarket along Jalan Rozhan. Landed property at a strategic location in mainland is no longer cheap. Newly launched terrace houses are mostly more than RM600K. If you are looking for something less than RM500K, you would have to go to the southern part of Seberang Perai, namely Simpang Ampat, Jawi and Sungai Bakap.

For Batu Kawan, the upcoming development by Eco World, Aspen Group and PE Land is expected to have a positive and transformative effect on the property market in the region. The rapid development toward urbanization makes location branding an important determinant of its success over the next decade. Desa ParkCity is one unique example how Perdana ParkCity Sdn. Bhd. has transformed a piece of vacant land in Kepong into one of the most sought after self-contained township in Klang Valley. Who knows? May be one day you will feel proud to have owned a property at Batu Kawan.:)

Coming back to the reality, today there is nothing wrong if you were to choose a branded location like Gurney Drive, or a less-branded location like Simpang Ampat, or a new brand at Batu Kawan. Most importantly it fits your budget and suits your lifestyles. At the end, we may be working at the same place, eating in the same restaurant, shopping in the same mall and watching movie in the same cinema.

OTHER TOPICS:
Penang Island vs Mainland (Part 2) – Land scarcity or abundant?
Penang Island vs Mainland (Part 3) – Connectivity & Accessiblity
Penang Island vs Mainland (Part 4) – Population

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

The Oceanus, an upcoming 4-storey mansion by Island Landcap Properties Group at Batu Ferringhi, Penang.  Only 3 units will be built, with an expansive built-up area of 6,736 sq.ft. onward and exclusive assess to the beach.

Features include:

• Master bedroom that encompasses a study cum office, a lung, a vast walk- in wardrobe with a bathroom equipped with a refreshing Jacuzzi that over- looks the Andaman Sea.
• Luxury bedroom suites with adjoining lounge, walk-in wardrobe and a marble-clad bathroom.
• Living room with adjoining pantry
• Spacious family area, dining hall, theater room and games room.
• Spa, steam room, sauna
• Imported marble flooring and pillars
• Solid timber flooring
• Built-in smart air-conditioning systems
• Centralized vacuum system
• State-of-the-art SMART home security systems
• Private lift
• Manicured Mediterranean landscape featuring a Garden by-the-sea
• Private beach with jetty
• 24 hours guarded and gated environment

This project is currently open for registration only. For more details and updates, please refer to the project website.

Property Project: The Oceanus
Location : Batu Ferringhi, Penang
Property Type : 4-Storey Mansion
Built-up Area: 6,736 sq.ft. onwards
Tenure : Freehold
Total Units : 3
Developer : Island Landcap Properties Group

Homes within budgets: (Right) Jagdeep (seated, white shirt) and officials are kept busy answering enquiries at the roadshow at the Tanjung Bungah market in Penang.

Penangites flocked to the ‘Mission House-Possible’ roadshow at the Tanjung Bungah market to find out more about the state’s affordable housing projects.

Hotel worker Mohd Nazri Zainon, 31, said buying a house from a private developer was out of the question due to financial constraints.

“My wife and I have been renting a unit for a few years now and we are now looking to buy a house of our own.

“It is a good time for us to buy as we will need a bigger place with our third child coming,” he said at the roadshow on Saturday.

Janitor M. Murugah, 54, said he came to the roadshow to enquire about an affordable housing unit for his 26-year-old daughter who had just started working in Bayan Lepas.

He added that it would be good for her to have her own place.

A woman, who wanted to be known only as Grace, said her family members and in-laws had been staying in a a single-storey semi- detached house for almost 20 years.

“The rental is low as the house belongs to a family friend.

“Owning my own place is out of my budget and having my family staying under one roof is better for me.

“However, I will still apply for an affordable housing unit as there is no harm in trying,” she said.

>> Full list of Affordable Housing in Penang <<

Penang Housing, Town and Coun-try Planning Committee chairman Jagdeep Singh Deo was present at the one-day roadshow.

He said that due to the good response, more roadshows would be organised to brief Penangites about housing projects.

Also present was Tanjung Bungah assemblyman Teh Yee Cheu.

Source: TheStar.com.my

The second phase of Taman Gamelan Ria by New Edition Development Sdn. Bhd. in Sungai Bakap, Penang. It is located off Jalan Gamelan, a mere minutes drive from SRJ(C) Chong Kuang. Other amenities such as convenient stores, banks, eateries and markets are also just a short drive away.

The current phase consists of 32 units 2-storey terrace houses with typical lot size of 20 ft. x 65 ft.. Indicative price starts from RM368,000 onwards.

Other Phases:

• Phase 1 – 2-storey terrace (36 units)
• Phase 3 – 2-storey terrace (46 units)

Property Project: Taman Gamelan Ria – Phase 2
Location: Sungai Bakap, Penang
Property Type: 2-Storey Terrace
Land Area: 20′ x 65′ onwards
Tenure: Freehold
Total Units: 32
Indicative Price: RM 368,000.00 onwards
Developer: New Edition Development Sdn. Bhd.

Location Map:

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by Charles Tan

If you stay in Penang, mainland is considered a secondary choice. Island is the main focus and majority would choose to stay in island over mainland. Well, one major reason would also be due to the employment opportunities in the island. Think of any foreign multinational paying higher than the usual salaries and you would understand why people like to stay in island. They have no need to face jams everyday when they cross the bridge. The jams are also getting worst. One hour is considered usual these days. Batu Kawan potential today is more seafood restaurant related.

This may change. investPenang director Datuk Lee Kah Choon said that there were 6,000 acres of land available for development in Batu Kawan and it is now accessible via the second bridge. Industrial development would comprise 1,500 acres which meant employment opportunities are likely to rise from today. Another 2,000 acres would be for mixed-development projects while residential and eco-tourism developments would take up 2,000 acres. What do you get when you have business, leisure and pleasure at the same place? Well, the boom starts and the price goes up. Fortunately, this summary is also backed up by details. Some confirmed ones include The Aspen Vision City (AVC) which is where IKEA is located, Penang International Technology Park (PITP), RM1bil Penang Designer Village, a golf course, a theme park as well as 12,000 new affordable high-rise units would also be built. The LARGEST shopping mall in the northern region would also be built there by the Belleview Group.

With all these, perhaps it is true that mainland’s price may just catch up with the island in the near future. Eco World said that their new launches in mainland would be priced similar to the island. Read here: Buying Batu Kawan? Same price as island. Anyway, the most important catalyst which is the connection between island and mainland is ready. Once all these planned starts to show progress, the mindset may change. Only then would mainland be secondary to island no more. Don’t buy for investment yet. Please proceed to buy for own stay. If you can truly like it, very soon many would too. Happy waiting.

>> This opinion article comes courtesy of my friend, Charles, the founder of kopiandproperty.com. He is popular for sharing his thought on property investment mostly based on his own 12 years experience as well as from all the readings and conversations with property gurus in the industry. (Source)