Selangor move over, because the next dawn of the property wave has arisen in Penang.
Recent news reports by StarProperty have indicated that property prices in Penang have continued to rise for the past seven years owing to the launch of the second Penang Bridge in 2006.
Michael Geh, director at Raine & Horne Malaysia commented that prices of vacant land on the island have increased 5 fold to RM300 per sq ft from RM250 per sq ft in Batu Maung. Before the launch of the second bridge, land prices in the area only recorded a price range of RM50 per sq ft to RM60 per sq ft.
Two to three storey terrace houses are now fetching price of over RM1.2 million compared to RM450,000 prior to the launch of the second bridge while condos similarly continue to record prices of RM700,000 to RM 800,000 from RM250,000 to RM300,000 previously.
The action in the Penang real estate market has also spilled into the mainland with Seberang Prai land prices recording RM40 per sq ft to RM 50 per sq ft compared to RM8 per sq ft to RM 9 per sq ft prior to the second Penang Bridge announcement.
While the property outlook for the Seberang Prai is expected to soften this year due to lower transactions, Henry Butcher associate director Fook Tone Huat expects prices to remain pretty much the same.
Local developers are said to be undertaking a total of RM4.5billion worth of residential and commercial projects in Penang next year with the bulk of the properties launches targeted towards the island.
Despite a shortage of land and higher land costs, the island’s outlook remains attractive as it seems to be still drawing the attention of property developers.
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