Changing trends in Penang
A host of new trends has evolved and made its mark in the Penang housing property market, moving in tandem with a new wave of Penangites who are becoming more discerning in their tastes and preferences.
Consequently, developers that are proactive in conceptualising and offering products that meet the market's wants are enjoying good sales, offers Raine & Horne International Zaki + Partners director Michael Geh when presenting The Edge/Raine & Horne International Zaki + Partners Penang Housing Property Monitor (July – September 2004).
Geh identifies once such developer as Ideal Property Sdn Bhd, which launched its 2-storey Krystal Suria apartments in Bukit Jambul in mid June. The 49 duplex units with a built-up area of 1,378sq ft and priced between RM238,000 and RM273,000 were 95% sold within a month of the launch, says Geh, adding that while 2-storey stratified units are not new in Penang, there are usually limited supply in any one development.
Another trend that is unfolding is the draw towards inner-city living. Meeting such a demand are developers such as the Ivory Properties group, which is developing the Penang Times Square just 500m away from the Komtar shopping complex. The first phase of the Penang Times Square comprises 308 serviced suites and 92 retail units in a 19-storey tower block.
A spokeswoman from Ivory Properties tells City & Country that the serviced suites will be sized from 1,010 sq ft to 1,180 sq ft, with indicative pricing of between RM281,800 and RM307,800 or averaging RM260 psf. Pending building plan approvals, these are scheduled to be put on the market next August. However, following a sales preview in August this year, 70% of the serviced suites have already been booked. Early registrants enjoyed discounts of between 5% to 10%.
The entire project will feature four phases over about 13 acres with completion scheduled for 2008.
The attraction of Penang as a second-home destination among foreigners under the Malaysia My Second Home Programme is also building up, says Geh, adding that in the last two months there have been numerous enquiries and transactions.
"Foreigners, mainly from the UK and Australia, are on the lookout for condos priced from RM350,000 to RM500,000 lined along the famous beachfront stretch beginning from Gurney Drive right up to Batu Ferringhi," he adds.
Active demand
As for the general property scene in Penang, both the rental and sale markets were active during the third quarter of the year.
Observes Geh: "Many properties are transacted at new highs every day. For example, standard 2-storey terraced houses in Sunway Tunas in the Bayan Baru area are transacting at between RM400,000 and RM430,000 in the sub-sale market, recording about 45% to 55% hikes in capital appreciation from the developer's price of RM275,000 onwards."
The interest in the market is captured in the sampling for The Edge/Raine & Horne International Zaki + Partners Penang Housing Property Monitor. The values of most homes surveyed either moved up or remained unchanged during the quarter under review. There was no dip in values.
Price hikes were seen in the popular 2-storey terraced homes in areas like Green Lane, Sungai Nibong, Sungai Ara as well as Seberang Perai Utara and Seberang Perai Tengah, which recorded increases ranging from 1.2% to 10%.
Values of 1-storey terraced homes stayed mostly unchanged from the previous quarter, with price hikes recorded only in Jelutong and Seberang Perai Selatan, by 1.7% and 5.9%, respectively.
Increases in price of 2-storey semi-detached homes were also palpable, with values of those in Island Park, Sungai Ara, Sungai Nibong and Sungai Dua improving from a marginal 0.95% to 3.4%. Values of 2-storey detached homes, however, stayed mostly unchanged, with only those in Island Glades moving up a marginal 1.1% to RM900,000.
Of the stratified homes sampled, the only price improvement was seen in the 3-bedroom flats in Relau and Green Lane; by 2.7% to RM113,000 and 3.7% to RM140,000, respectively. Values of the flats in Bandar Baru Air Itam, Paya Terubong, Sungai Dua and Lip Sin Garden as well as apartments/condos in all areas sampled remained unchanged from the previous quarter.
Rental
Across the board, rents generally remained unchanged or dipped over the previous quarter, with the exception of 1-storey terraced homes in Seberang Perai Utama, which saw rents move up marginally by 5% to RM420 per month.
Geh attributes the dip in rents in Sungai Dua and the vicinity of Bukit Gambier to reduced demand for accommodation from Universiti Sains Malaysia undergraduates, following the completion of the university's own campus. The excess supply is expected to worsen with the onstream of new supply resulting from the completion of a condo development in the area.
Rents of flats in Paya Terubong, Relau, Sungai Dua and Lip Sin Garden retreated by 1.85% and 2.4% while apartments and condo units around Tanjung Tokong, Batu Ferringhi, Cantonment Road and Batu Uban also saw downward movements of between 3.2% and 9%.
Yield
No upward movement was captured in the period under review. Instead, stagnant rents and value hikes pressured downwards yields of 2-storey terraced houses in Sungai Ara, Seberang Perai Utara and Seberang Perai Tengah from 0.1% to 0.3%. Similarly, falling rents and stagnant values resulted in yields declining between 0.2% and 0.5% for the condos in Tanjung Tokong, Batu Ferringhi, Cantonment Road and Batu Uban.
Yields of 2-storey detached houses in Island Glades, Tanjung Tokong, Minden Heights and Green Lane also retreated by 0.1% to 0.2%.
- THE EDGE DAILY
|
Print This Page 
E-mail This To A Friend