Property prices in Penang have significantly increased, especially in
the capital Georgetown, based on the lack of prime land on the island
as well as the skyrocketing land prices.
Notably, prices have increased by more than 500 percent on the island while Seberang Prai saw prices soar by 700 percent.
In
a report, AmResearch Sdn Bhd (AmResearch) underlined that land prices
in Georgetown have already hit rates between RM650 per sq ft and RM700
per sq ft.
“Interestingly, Penang’s residential property
prices have been rising faster than its land value. Property prices have
surged beyond RM1,000 per sq ft as evidenced by E&O’s project at
Andaman Block 2. The project had set a new benchmark within Georgetown,
with an average selling price of RM1,300 per sq ft,” the report noted.
The
announcement of the second link project caused land prices at Batu
Maung, which is situated on the island, to increase from between RM50
and RM60 per sq ft to between RM250 and RM600 per sq ft. Sebarang Prai
witnessed prices increase from RM8-RM9 per sq ft to RM50-RM60 per sq ft.
Penang’s attractiveness would be boosted by IKEA’s entry into mainland Penang at Batu Kawan, in Seberang Perai Selatan.
“Being
the second IKEA outlet in Malaysia, the ground work is expected to
commence by end of the year or early 2015, and to be developed within
five years. This is undertaken by Aspen to Ikano, a joint venture
between Aspen Vision Land Sdn Bhd and Ikano,” explained AmResearch.
Moreover,
the opening of the 24-km long Second Penang Bridge in February, which
will connect Batu Kawan in the southern Seberang Prai and Batu Maung on
Penang Island, is also expected to add to Penang’s vibrancy.
Farah Wahida, Editor of PropertyGuru Malaysia, wrote this story. To contact her about this or other stories email farahwahida@propertyguru.com.my
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