Penang’s property prices have risen by quite a bit since the mid-2000s although the appreciation in prices has been limited to several popular locations on Penang island, particularly George Town.

However, since the second bridge project was announced in 2007, vacant land prices on both ends of the bridge, which connects Batu Maung on the island and Batu Kawan in southern Seberang Prai, have jumped.

Raine & Horne Malaysia director Michael Geh told StarBiz the price of vacant land in Batu Maung on the island which had increased to RM250-RM300 per sq ft from RM50-RM60 per sq ft. The 24km-long bridge, which is the longest in South-East Asia, has been scheduled for opening next month. Geh pointed out that the pricing depended on whether the land had been zoned for agriculture, commercial or residential usage.

“In Seberang Prai, prices of vacant land hover at RM50-RM60 per sq ft, compared to RM8-RM9 per sq ft prior to the announcement of the second link project.

“The price of vacant land has appreciated 500% on the island and about 700% in Seberang Prai,” he said.

For landed properties, new two- to three-storey terrace houses now cost from RM1.2mil south of the island, compared with about RM450,000 prior to the announcement.

“The new condominiums in similar locations are now priced at RM700,000-RM800,000, compared to RM250,000-RM300,000 prior to the announcement,” Geh said.

Geh said there would be more housing projects planned for Seberang Prai in view of the Ikea project to be developed in Batu Kawan and a mixture of commercial and residential properties.

He noted that with the island getting saturated, developers and investors would take more interest in building or acquiring properties in Seberang Prai especially since new housing regulations for the island to take effect on Feb 1 would restrict the sales of properties priced below RM400,000 for a period of five years and if disposed within the period, can only be sold to a state government approved list of first-time buyers.

In Seberang Prai, the same restriction applies to residential properties priced at RM250,000 and below.

According to Malaysia Institute of Estate Agents (Penang) chairman Mark Saw, the locations in Seberang Prai which could be considered hotspots due to their proximity to the first and second bridges were Bukit Tambun, Juru, and Simpang Ampat.

“Cheaper land cost and property prices will spur the pace of development in Seberang Prai.

“Gated landed projects with lifestyle facilities will be the trend in Seberang Prai.

“On the island, we have already seen the full impact of the second bridge on property prices, as Penang and Kuala Lumpur-based developers and property buyers have already invested substantially near the second link,” he said.

Saw said that in the first half of the year, Penang’s property market would cool off before picking up again in the second half.

Meanwhile, Real Estate and Housing Developers’ Association (Penang) chairman Datuk Jerry Chan said should land prices in Seberang Prai grow at the current pace, developers may be pressured to build more high-rise properties.

Source: StarProperty.my

Those owning many cars may not be eligible to apply for low-cost and low medium-cost housing if Penang enforces such a ruling.

The state is mulling the idea of placing this restriction on those applying for such dwellings as those who can afford to own many vehicles should not be allowed to have houses reserved for the poor.

State housing committee chairman Jagdeep Singh Deo said the idea came about after it was discovered that an applicant for a low-cost flat possessed three vehicles totalling about RM200,000 in value.

He said the committee aims to ensure the mechanism is efficient so that such residential units would go to those who need them.

“The state wants to ensure low-cost and low medium-cost homes go to those who deserve them,” he told a press conference today with Jelutong MP Jeff Ooi after attending a charity luncheon.

Currently, a household in Penang earning RM2,500 or less per month can apply for a low-cost unit while a household earning RM3,500 and below can apply for a low-medium cost unit, as long as they do not already own any property.

In the affordable price range, which begins at RM200,000 and tops at RM400,000, households earning less than RM6,000 a month qualify for a RM200,000 unit, households earning less than RM8,000 can apply for a RM300,000 unit while those earning RM10,000 a month are eligible for a RM400,000 unit.

Jagdeep added there was no need for people to reapply if the requirement comes into force as he said the system could be linked to the Road Transport Department (RTD) for checks.

He said the present system was linked to the Penang Land Office and the two municipal councils so the committee could check on eligibility.

“If this goes through, the system can be connected to the RTD to check on vehicle ownership,” he said.

Source: TheSunDaily

Scarlet Villa, strategically located along Jalan Baru in Pari and is within close proximity to major amenities such as Polytechnic, eateries and hypermarkets. Another development by UDA Land that set a new benchmark in mainland with an indicative price of more than RM850,000 for a 3-storey terrace house.

3-storey bungalow (Bouvadia)

• Total Units: 17
• Indicative Price: RM 1,900,000 onwards
• Land Area: 60′ x 90′

3-storey semi-detached (Begonia)

• Total Units: 12
• Indicative Price: RM 1,300,000 onwards
• Land Area: 40′ x 100′

3-storey superlink (Wisteria)

• Total Units: 17
• Indicative Price: RM 850,000 onwards
• Land Area: 22′ x 80′

Property Project : Scarlet Villa
Location : Jalan Baru, Prai, Penang
Property Type : Bungalow, Semi-D & Superlink
Tenure : Freehold
Developer : UDA Land

Arcaria, located in the vicinity of Taman Pauh Jaya in Prai, Penang. This is a development by UDA Land, comprises 3-storey bungalow, semi-detached and terrace houses. It is close to Jalan Baru, with easy access to eateries, hypermarket, schools and major expressways.

3-storey bungalow

• Total Units: 1
• Indicative Price: RM 2,500,000 
• Built-up Area: 4,272 sq.ft.
• Land Area: 5,132 sq.ft.

3-storey semi-detached

• Total Units: 12
• Indicative Price: RM 1,121,000 onwards
• Built-up Area: 3,032 sq.ft.
• Land Area: 2,655 sq.ft.

3-storey superlink

• Total Units: 13
• Indicative Price: RM 910,000 onwards
• Built-up Area: 2,866 sq.ft.
• Land Area: 1,609 sq.ft.

Property Project : Arcaria
Location : Taman Pauh Jaya, Prai, Penang
Property Type : Bungalow, Semi-D & Superlink
Tenure : Freehold
Developer : UDA Land

Batu Kawan, which was once a quiet backwater in Penang, will see its real estate booming because of new developments and the opening of Second Penang bridge, says property analysts.

They expect more medium to high-end residential and commercial projects from developers, and prices to move up gradually.

Currently, besides Penang Development Corp’s (PDC) Dedaun bungalow project, almost all other property developments in Batu Kawan are low-medium cost homes with no major commercial elements.

Things are slowly changing in the sleepy suburb with new projects, such as the planned theme park and golf resort development at Bandar Cassia by PDC, and One Auto Hub.

One Auto Hub, a project by PKT Logistic Group, consists of United Kingdom’s University of Hull campus, a hotel, automotive logistic facilities, warehouses, jetty and an animal sanctuary.

Mercury Securities head of research Edmund Tham said the opening of Swedish home furnishing store IKEA in Batu Kawan will further boost the town’s real estate.

“IKEA will just be one of the contributing factors to attract new crowds and population to Batu Kawan. This should be an interesting up-and-coming area to look at for both developers and prospective house buyers,” Tham said.

The IKEA store is part of a 98ha integrated shopping mall development also featuring offices and residences.

Ikano Pte Ltd, the franchisee for IKEA in Malaysia, Singapore and Thailand, formed a joint venture with Aspen Vision Land Sdn Bhd to develop the project over five to 10 years.

Tham expects property developers in the Batu Kawan area to benefit from improved infrastructure, inflow of population and workers, and demand for property.

Current listed developers in Batu Kawan and its surrounding areas include Ivory Properties Group Bhd, Malton Bhd, Paramount Corp Bhd, Tambun Indah Land Bhd, Eco World Development Group Bhd, Mah Sing Group Bhd and IJM Land Bhd.

According to a property agent, the value of a two-storey terraced house in Batu Kawan, which is 45 minutes from George Town, has increased from RM80,000 to around RM140,000 in over three years.

“Land price also costs about 30per cent more now, depending on the location in and around Batu Kawan, and developers are buying,” he said.

Source: Business Times