84 | AREA FOCUS | PENANG
Where is Penang Headed?
The scarcity of land on Penang island have caused residential property prices to soar over the past five years. Let us take a closer look at the trend and examine the areas where property developers are cashing in.
Property prices on Penang island are among the highest in Malaysia, according to real estate valuers. A recent press report revealed that prices for condominium units in Batu Ferringhi, Tanjung Bungah and Gurney Drive are starting from RM2 million for units measuring 1,000 sqft. According to Michael Geh, director of Raine & Horne Malaysia, the increase was among the steepest in the Pulau Tikus, Gurney Drive, Tanjung Tokong and Tanjung Bungah residential neighbourhoods, which experienced a rise of over 25% in prices. In areas such as Bayan Baru, Sungai Ara, Minden Heights and Batu Maung, prices of condominium units and terrace and semi-detached houses have also increased by at least 25%. Geh pointed out that the medium-range housing schemes in George Town neighbourhoods of Perak Road, MacCallum Street, Burmah Road, Jelutong Road and Sungai Pinang have also experienced a similar price increase over the past five years. Although this has driven many people to buy homes in Seberang Prai, where prices are a third of those on the island, Geh observed that prices of property on the mainland are rising as well. As such, he believed that property prices in Penang will continue to rise given the rise of raw materials prices and the scarcity of land.