Panoramic view of Penang from Kek Lok Tzi Temple
Aerial view of Tanjong Tokong, Penang
of Gurney Drive has
been soaring ever since
with more than a dozen
high-rise condominium
complexes. High rise
luxury condominiums
are also becoming the
trend in historic seaside
neighbourhood, Tanjung
Bungah and resort costline
area, Batu Feringghi.
Yeoh commented that high
rise buildings are gaining
popularity in Penang due
to land scarcity. He said,
“This has got to do with
demand and supply. In
Penang, most developments
are concentrated along
the coastline as the central
areas are hilly and expensive
to build property on.”
He continued: “Because of
the scarcity of land, most
developers launch high rise
developments to maximize
their profits. Landed
properties are not cheap
because supply is limited.
In order to free more land
space the state government
has allowed developers
to reclaim more land for
development. This is the
sign of a growing city.”
Price Boom
The real estate market is
booming in Penang with the
average house price rising
by almost 54% between
2005 and 2011. , the basic
economic fundamentals
of demand and supply are
driving the buoyant property
market here. However, there
are still many affordable
developments on the island,
but in less-popular areas.
In view of the high pricing
of residential properties
in Penang, the sub-sales
market has now become
important. More people
are going after secondary
property because of the
pricing which ranged
Pinang Peranakan Mansion
between RM72,000 and
RM350,000. Strategically
located affordable
apartments with built-up
areas of 700 sq ft to over
800 sq ft have increased by
twice the price since 2005.
Yeoh said, “This is what
happens when demand
outweighs supply. One of
the main reasons is property
speculation. We have more
property investors today
compared to couple of years
ago. They do not only invest
in one property. When there
are good bargain price
launches in Penang, you can
see purchasers lining up to
buy one night before. The
increase in price also has
to do with limited supply of
land.”
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