23rd March 2012
The value of land, and residential and commercial properties in Seberang Prai is certainly lower. The price for the most expensive landed property on the mainland may be just a fraction of a similar one on the island.
I learnt that a fully-furnished bungalow in the posh and gated Park View Residence near the popular Juru Auto-City in central Seberang Prai was sold for RM1.6 million.
The buyer was a Penang island resident looking for a nice property in which to invest his millions.
A real estate agent told me that a fully-furnished bungalow on the island similar to the one this buyer bought in Juru would have cost him close to RM6 million, if not more.
Many people agree that the property market on the island has gone “crazy”.
The prices and values of properties skyrocket quickly due to high demand and speculation.
The word “affordable” can rarely be used to describe the kind of homes that are being built on Penang Island. Most are only affordable to the rich. Just look at the ongoing modern residential projects around us now and those in the pipeline. I think I do not have to list them down. We know them well enough.
For this reason, many islanders have chosen to migrate across the narrow channel to look for affordable homes on the mainland. There are still many that are within the purchasing means of the average Penangite today.
However, it may take just a few more years before we see a different property market in Seberang Prai. Even now, prices are going up due to growing demand. The new housing projects on the mainland are also said to be moving upmarket, especially in central Seberang Prai.
Henry Butcher Malaysia Seberang Prai recently revealed in its Seberang Prai property market report for the first half of 2011 that the property market there had a huge growth with 9,679 transactions worth RM2.61 billion.
The residential sub-sector recorded 70.1 per cent of the market share. The increases recorded were 74.3 per cent in volume and 66.3 per cent in value compared with the first half of 2010.
Raja Uda, Bagan Lallang, Seberang Jaya, Bukit Tengah, Alma and Simpang Ampat were the hotspots on the mainland with high growth rates due to many apartment and condominium sales.
More of such high-rise residential developments are expected to come up in the near future. The question now is: “How much are they going to cost?”
The asset consultant firm also revealed that some 70 per cent of new residential developments on the mainland now are luxury projects such as three-storey bungalows, instead of the more affordable ones such as single and double-storey terrace homes.
Condominium units in Butterworth such as the high-end Wellesley Residency were being sold from RM258,000, and apartments and three-storey bungalows in Bukit Mertajam from RM268,000 and RM448,000, respectively.
Among the most expensive properties on the mainland were the Park View Residences next to Juru Autocity, where a double-storey semi-detached unit would cost from RM593,000, a three-storey semi-detached unit from RM892,000, and a three-storey bungalow between RM920,000 and RM1.5 million.
In a survey between January and December last year, Henry Butcher also discovered that the prices of new launches in Seberang Prai went up by eight to 21 per cent.
For instance, a double-storey super-link house at the gated Tropicale Residency in Alma, Bukit Mertajam, sold for RM330,000 in January, but the price increased 21 per cent to RM398,000 in December.
A three-storey semi-detached house at the gated Taman Gemilang Permai project at Jalan Song Ban Kheng, Bukit Mertajam, was sold for between RM698,000 and RM748,000 in January but in December, the price was revised to cost from RM890,000 due to strong demand.
To afford an average RM350,000 home in Butterworth and Bukit Mertajam, an average family with a RM4,500 income would have to save their salaries for about 6.5 years without spending, said Henry Butcher Malaysia Seberang Prai senior manager, Fook Tone Huat.
This is not to say that new low- and low-medium-cost residential projects are nonexistent on the mainland.
There are several projects that are being built by government-linked agencies such as the Penang Development Corporation and the Penang Regional Development Authority, but not everybody will be eligible for low- or low-medium-cost units.
For a nice house in a nice area on the mainland, people are expected to pay much more today, even though the property price appreciation in Seberang Prai will still take some more years before it can match the island’s property value.
So, what should average Penangites do to own quality homes, while addressing everyday bread-and-butter issues?
Pray for a big salary increment? Hope to strike big in the lottery? Win a house in some lucky draw? Take a big loan and save up for many years?
Should Penangites consider to relocating even further from the island to less hot places such as Kepala Batas and Tasek Gelugor in the north and Nibong Tebal in the south where land and property prices are cheaper?
Maybe migrating to Kulim or Sungai Petani in Kedah is an option too, while houses in their home state are being bought by rich people, who are not necessary Penangites, for investment and speculation.
Source: High property prices look set to stay - Northern - New Straits Times http://www.nst.com.my/streets/northern/high-property-prices-look-set-to-stay-1.62585#ixzz1pv3C8LOF
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