Penang property saw a drop in both transactions and values during 2015 in data recently released however recent reports say 2016 has seen increasing demand.
In its new Penang Property Market Report, real estate firm Knight Frank recorded the total volume of transactions for all sectors in the State of Penang for 2015 registered a drop of 15.6 percent against 2014.
Similarly, in terms of value of transactions the drop was recorded at 15 percent.
The picture now for Penang property is likely to be different with many agents and developers in the state reporting a buoyant marrket.
Residential transactions in the State of Penang, which made up 70.9 percent (72 percent in 2014) of total volumes, recorded a drop of 16.9 percent and 18.5 percent in terms of the volume and value of transactions done respectively for 2015 versus 2014.
Only the industrial and others sub-sectors registered growth of 25.4 percent and 215.4 percent respectively.
Penang International Airport, which has reached capacity of accommodating 6.5 million passengers per annum, has been earmarked for expansion to cater for increased 10 million passengers per year. Malaysia Airports Holdings Bhd
The first phase that will include the completion of 1,500 parking lots will be operational in the first-quarter of 2017, while the second phase will be opened in 1Q 2018.
New investments and re-investments into Penang’s industrial sector have included Boston Scientific’s new facility in Batu Kawan Industrial Park which will be operational by 2H 2017; SAM’s reinvestment of RM 100 million between 2016 and 2018 – RM 70 million to build a new 120,000 sq ft facility in Bukit Minyak and RM 30 million on its Penang plant for aerospace work; Robert Bosch’s RM 66 million expansion of its Penang plant; and Tek Seng Holdings Bhd, a solar cell maker, RM 237 million to expand its triple its production capacity.
High-end Condominiums
Hunza Group, a well-established and reputable property developer in Penang, has launched ALILA² as a sequel to their successful Alila Horizons and Alila Homes in Tanjong Bungah.
ALILA² is sited away from the hustle and bustle of Georgetown yet is close enough to the city, Batu Ferringhi, international schools, medical facilities, retail outlets and the varied dining choices Penang is known for.
ALILA² is a low density modern resort-inspired condominium development comprising two towers sitting atop a six-storey podium over 9.8 acres of lush landscape.
The two towers have been designed to comply with Malaysia’s Green Building Index (GBI) Certification.
The comprehensive range of recreational facilities includes infinity pool with Jacuzzi beds, seats and aqua gym equipment; a two-storey lounge area with BBQ pit, dining tables and seating, and an entertainment deck; tennis courts, a half-size basketball court and themed pocket spaces with feature shelters, giant swings and cocoon seating.
Expected to complete by 4Q 2017, ALILA² offers 270 large, semi-furnished apartment units with prices starting from RM 790 per sq ft ad rising to RM 1,066 per sq ft for typical units sized from 1,905 sq ft to 3,235 sq ft, and from RM 993 per sq ft to RM 1,000 per sq ft for penthouse and duplex units sized from 3,900 sq ft to 5,789 sq ft.
Optional furniture packages are available and a minimum of two car parking bays are provided for each unit.
Buyers of the high-end condominium sector have higher expectations; thus, developers of many newer launches offer units which are fitted with built-in cabinets to bedrooms, kitchen cabinets, electrical items, as well as light fittings, air-conditioning units and quality sanitary fittings.
There were very few recorded transactions of larger sized condominiums with built-up areas from 3,500 sq ft to 6,000 sq ft in the secondary resale market in 1H 2016.
Transactions in 1H 2016 of such sized units in Tanjong Bungah range from RM 446 per sq ft to RM 626 per sq ft (both at The Cove) and up to to RM 793 per sq ft.
Smaller-sized units at Gurney Paragon were resold at RM 808 per sq ft to RM 1,150 per sq ft, whilst at Quayside, Seri Tanjong Pinang, units were resold at prices varying from RM 768 per sq ft to RM 1,138 per sq ft during the first six months of 2016.
Knight Frank said that asking rents are noted to be slightly lower when compared to last year.
For larger sized units in Tanjong Bungah, asking rents generally range from RM 1.10 to RM 2.30 per sq ft per month, whilst some landlords are still holding onto high asking rents of RM 2.80 per sq ft to RM 2.95 per sq ft per month.
For similar sized units in Gurney Drive, asking rents vary from RM 1.80 per sq ft to RM 2.60 per sq ft per month.
For smaller sized units in Tanjong Tokong and Gurney Drive, asking rents are in the range of RM 2.20 per sq ft to RM 2.90 per sq ft per month, whilst some landlords have higher asking rents of RM 3.50 per sq ft to RM 4.40 per sq ft per month.
Outlook
With the continuing challenging global and national economic environment, Knight Frank reported that the negative Penang property market sentiments has remained.
It said the scenario is not expected to improve in the immediate future.
Further softening and consolidation of the residential sector is expected with increasing supply and poorer take up rates.