Penang is known as the most cosmopolitan city in Malaysia, and for good reason, too. From modern amenities to luxury homes and beautiful beaches, this Pearl of the Orient has foreigners and locals alike eating out of its bountiful hands.
by Allen Phua
Once part of a British colony, Penang stands as one of the most prosperous and culturally diverse states in Malaysia today. Dubbed the Pearl of the Orient, Penang is home to a wide array of metropolitan features, alongside lush greenery and beaches.
Travellers’ paradise
The island of Penang spans a mostly flat 298 square kilometres, with a central hill range topping off at about 823 metres above sea level. Penang’s population is estimated to be 1.7 million, making it one of Malaysia’s most densely populated cities. Its ethnic makeup is a mixture of Malay, Chinese and Indian, and its capital, Georgetown, is one of UNESCO’s World Cultural Heritage Sites.
It is also a favourite among beach lovers, many of whom travel from afar to the pristine Batu Ferringhi for a relaxing vacation, where there is no shortage of accommodation, from hotels to chalets and beach houses. Another main attraction is Penang Hill. At 823 metres above sea level, it has a funicular railway system carrying passengers 2,007 metres up the hill, and at whose peak is a tower from which visitors can enjoy unspoilt views of the entire island.
Eat, shop, get around
The locals’ nickname for Penang is Food Paradise. Penang is well known for some of the most scrumptious fare in the country, thanks to its famous hawker food culture. If you ever visit, do not miss the chance to try its trademark local delicacies, such as char kueh teow, assam laksa, and prawn mee.
Taxis and buses are easily available, and the ease of commuting at reasonable rates is one of the reasons Penang is so popular. In addition, the city’s modern infrastructure and the presence of shopping malls such as Queensbay Mall and Straits Quay Marina Mall cater well to retail needs.
The Penang International Airport, 14 km away from Georgetown, provides taxis and limousines to hotels 24 hours a day. Visitors from neighbouring countries such as Singapore may opt for a road trip, which takes about seven hours.
Ahead of the game
Penang is the first state in Malaysia to be awarded MSC Malaysia Cybercity status. Officially known as Penang Cybercity (PCC), it provides a hi-tech growth platform for industries and businesses. Since its implementation in 1996 and its subsequent roll-out in Penang in 2005, MSC Malaysia has been host to a thriving ICT hub of local and foreign multimedia and communication companies. It is also a medical and education hub with many renowned universities and medical facilities.
In the last decade, property development in Penang has seen a significant rise in luxury residences, beachside condominiums, and even affordable housing. Foreign investors looking to own a property in Penang have a vast number of choices, such as the Ferringhi Residences in Batu Ferringhi, Pearl Villa on Setia Pearl Island, and Rice Miller City Residences at Weld Quay.
Prospering property
The average psf price of condominiums ranges between RM500 and RM800; high-end condominiums can fetch about RM1200 psf and above. There are limitations, however, for foreigners wanting to purchase property in Penang.
State law dictates that foreigners are allowed to purchase only property in excess of RM1 million, and not below RM2 million for landed properties. The transacted price of the purchase will be subject to a three percent levy, but property purchased for industry purposes, which benefits society, or which adds to the city’s international appeal will be exempt from this levy.
Foreigners are also not allowed to purchase agricultural land, properties allocated to Bumiputra (Malays or indigenous aborigines), and low-cost housing for lower-income groups. The rental yield in Malaysia averages a stable four to five percent, and rental return takes only 16 years, shorter than that in neighbouring countries.
The average rate of a mortgage loan in Malaysia is currently between four and five percent, more affordable than in other countries such as Australia. The margin of financing Malaysian banks offer foreigners is 70 percent or higher, depending on the individual’s financial credibility.
As in Singapore, there are freehold and 99-year leasehold properties in Malaysia. In terms of Real Property Gains Tax (RPGT), a foreigner will be in the 30 percent tax bracket should he decide to sell his property within five years. In the sixth year, the tax drops to five percent.
On the whole, Penang is a great place to reside in and presents positive investment potential. If you are considering living and / or investing there, arm yourself with substantial knowledge, and engage a real estate lawyer.
INTERNATIONAL HIGHLIGHT
NEW PROJECT
Botanica.CT
Balik Pulau
Type: Township
Developer: MTT Properties & Development Sdn Bhd
Tenure: Freehold
Facilities: Clubhouse, gymnasium, swimming pool, restaurants and suites
Nearby Key Amenities: Prince of Wales Island International School, Polytechnic Balik Pulau and Bayan Lepas Free Industrial Zone
Nearest Transport: Sultan Abdul Halim Mu’adzam Shah Bridge & Penang International Airport
Indicative Price: RM400 psf
Botanica.CT is a picturesque garden township set on 300 acres of freehold land at Balik Pulau, Penang.
This township offers elegant English-inspired double-storey semi- detached and bungalow units, with built-up spaces varying between 3,000 sq ft and 3,500 sq ft. The units are well-planned with spacious interiors coupled with modern aesthetics.
The land value in Balik Pulau is more affordable than surrounding areas, where it averages around RM400 psf. Other landed properties in Penang are in the range of RM800 psf onwards.
This township boasts many good amenities like the Prince of Wales Island International School, while Georgetown and the Penang International Airport are located nearby.
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