Legal and transportation developments are expected to drive Penang’s economy and bring back the lustre in Penang Island’s property developments.
BY MAK KUM SHI
makks@thestar.com.my
A scale model of the Eco Terraces development at Penang Island.
Various legal trends, economic drivers and transportation systems are expected to impact stakeholders in Malaysia and Penang’s property market.
Ho Chin Soon Research chief executive officer Ishmael Ho indicated various transportation infrastructure developments that are planned for Penang.
Such developments include the Tanjung Tokong, Raja Uda-Mertajam/Alma and Ayer Itam monorail lines, Bayan Lepas and George Town-Butterworth LRT, Seberang Jaya-Batu Kawan BRT and tram at George Town.
The development of such infrastructure is expected to improve accessibility for residents and tourists. Improvements in accessibility may improve productivity and drive economic growth within the state.
Chur Associates managing partner Chris Tan recently shared at StarProperty.my Forum 2016 that Penang’s legal trends included possible oversupply of affordable housing and delays in the issue of advertising permits and developers’ licences.
Other trends in Penang included restrictions on foreign purchasers of Penang properties, talent retention-oriented housing policies, curbing of speculation in the property market and the state government taking the lead in developing their housing schemes without the assistance from the Federal Government.
The requirements for affordable housing in Penang were that applicants applying for low-cost, medium-cost and affordable housing should be Penang-born working in the state or that they have been residing there for at least five years from the date of application.
Applicants from the talented and skilled category should be diploma or degree holders with a minimum of two years of working experience, be employed in Penang, and undertake to be in the state for a minimum of five years from the handover of property.
Such policy requirements imply elements of talent retention to facilitate economic development for the state.
Khalil Adis Consultancy Pte Ltd founder Khalil Adis commented that the economic drivers for Penang included tourism, food & beverage, and the free trade zone at Bayan Lepas.
The Bayan Lepas Free Industrial Zone is a high-tech industrial zone on the southern part of Penang island. It has attracted businesses such as ITW Meritex, Sanyo, Lemtronics and Bosch to the industrial zone.
Penang has been ranked eighth in the Top 40 global destinations by The Guardian, and that more tourists have fallen for its charm and see it as an ideal retirement destination.
It is one of the top retirement destinations among foreign retirees under the Malaysia My Second Home (MM2H) Programme.
Penang’s transportation masterplan is expected to enhance accessibility for residents and tourists in the state. -Source: Ho Chin Soon Research
Khalil commented that the housing market in Penang island is driven by Penang residents, foreigners and retirees. Penang residents are very loyal and tend to only buy within the island.
As a result, property prices tend to appreciate due to the ‘island effect’. The average price per square foot ranges from RM350 to RM1,000. Average quantum price exceeds RM500,000, while average income of residents on Penang island exceeds RM5,000 per month.
To make informed investment decisions, investors should check the development and transportation masterplans, budget allocations from the government, economic drivers and job creation events.
Eco World’s 333-unit Eco Terraces freehold strata gated and guarded residential development at Jalan Paya Terubong is expected to benefit from the transportation infrastructure developments taking place on Penang island.
The development is close to Fairview International School, Queensbay Mall, Penang International Airport, the first and second Penang Bridges, and George Town. This is in addition to the proposed Ayer Itam monorail that is expected to pass through its neighbourhood.
This low-density development uses 30% of the development land for Eco Terraces. Seventy percent of 12.79 acres is dedicated to natural elements with undulating green terraces and captivating water elements.
Eco Terraces has five-star facilities, protected existing green slopes and uses Green Building Index (GBI)-certified products.
Eco World Development Sdn Bhd general manager Khoo Teck Chong shared that investors are very choosy when putting their money in. They have to look at the location and background of the developer. Developers have to put value into the development.
“The perspectives that we show and the actual pictures, the objective is that the reality is better than the perspectives. We envision to do, whatever that we show on the brochure, we do better than the brochure,” Khoo stated.
