5 REASON THAT PENANG BEATS KL IN PROPERTY INVESTMENT
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.
tq for sharing
ReplyDeleterumah kt penang mmg mahal....salam drpd PEnang
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