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Although Penang is considered a small state in Malaysia, it has been granted the status of world heritage centre by UNESCO back in 2008. With the mixture of heritage city, hilltop, and beachside residences, it has one of the most potent housing markets available in Malaysia. Interested tenants could also opt to rent a house in Penang. It is also reported that more people are keen to invest in Penang rather than in Kuala Lumpur as Penang has overtaken Klang Valley as the most attractive place for property investment. Are you planning to buy a property for investment purpose but have not figure out which state to invest your property yet? Fret not, this article will guide you through the reason why Penang is a great state for you to invest in properties as compared to Kuala Lumpur.

1. Manufacturing sector
Penang is a state with the highest Gross Domestic Product in Malaysia. Penang has more than 40 years of industrial experience with various multinational companies invested and grew, such as Hewlett Packard, Intel, Hitachi, Bosch and Osram. Penang is still considered a popular destination for manufacturing investment projects, especially for Foreign Direct Investment (FDI), specifically the electronic sectors. The manufacturing sector in Penang has since been the backbone to create job opportunities in Malaysia since 1970s. Most electrical and electronic companies have chose Penang as a location to start their direct investment, hence making Penang a great spot for property investment.

2. Well known medical tourism  and tourism spot
Penang is also famous for its tourism and has contributed in the growing economy. Penang has been granted the UNESCO World Heritage Site in year 2008 and has since then experienced a tremendous growth in the tourism sector. This global recognition has acknowledged Penang’s unique architectural and cultural aspect along with its rich multi-ethnic and multi-racial heritage in Penang. Moreover, it is reported that Penang’s international visitors have increased from 7.5% since 2008 to 2014, with around 720,000 visitors visiting Penang in 2014. Both the mainland and Penang island can fully utilize the Second Penang Bridge that plays an important role in creating opportunities in the property market in Penang.

3. Second Penang Bridge
The Sultan Abdul Halim Muadzam Shah Bridge that interconnects the highway and the bridge will generate more job opportunities for people across the mainland and the island. There are also few major developments that are coming up and they will definitely benefit from the bridge as it is easily accessible between Batu Kawan at the mainland and Batu Maung.

4. Upcoming transportation plan
There will be an upcoming Penang Transport Master Plan as well. For properties that are located within close proximities to the proposed highways, they will definitely have an appreciation, therefore, making Penang the best spot for property investment. The highways that should be paid attention to are:

a.                 Undersea tunnel that links Persiaran Gurney and Bajan Ajam
b.                 Road that links Teluk Bahang and Tanjung Bungah
c.                  Bypass road that links Lim Chong Eu Expressway and Persiaran Gurney
d.                 Bypass road that links Lim Chong Eu Expressway and Air Itam

As location plays an important in deciding your property appreciation value, it is suggested that you look out for the right location and right developers with good reputation. Analyse the future possibilities of the land that you are interested in.

5. Tremendous growth for niche properties
It is reported that Singaporean investors have managed to buy many shophouses by rows and the rentals have spiked up by 500% at least, with an average rental amount of RM7,000 to RM10,000 per month. This is 5 times more than the rental amount yield back in 2010, with an average of RM1,300. Prime location such as Chulia Street in Penang is said to be renting out the properties at approximately RM7,000 per month.

That being said, there are also a few things that you should take into account before investing in Penang properties such as:

a.                 Long term objectives
b.                 Emotional or cultural affinity to the island
c.                  Financial situation
d.                 Age
e.                  Location

In conclusion, Penang is no doubt a great place with charm to live in or retire, work and invest in. It is definitely a beautiful city with great deals to offer. Penang has since then developed and transformed from a stagnant and quiet state into a location of choice for investors. In addition, Penang was picked as the 6th “Best Place to Retire Abroad in 2016” by CNN Money in 2016. The demand for properties will be there and will definitely increase in the coming years. Make sure you do your research thoroughly before you decide in making such big decision in property investment. You could also engage with experts and listen to their recommendations before making such huge commitment in property investment that involves a huge sum of money.