Why you should consider investing in Penang properties

Why you should consider investing in Penang properties | Why should you invest in property? Well, for starters the returns will give you enough money to live comfortably after retirement. Also, there are benefits that come from property appreciation, tax benefits, and many others. For those residing in Malaysia or would want to settle there, investing in property for sale in Penang is a great solution.

Not only is Penang city with a rich cultural heritage, but it combines the best of suburban and beachfront lifestyle like nowhere else. The real estate market here is probably the most dynamic in the whole of Malaysia, outside of the Klang Valley. Aside from that, real estate value is also expected to only appreciate in the future.

Need more reasons to invest inproperties? Well, keep on reading to find out.

Penang – Pearl of the Orient and the UNESCO World Heritage Site

Having a density of 2,372 individuals per square km, Penang Island aka Pulau Pinang has the greatest individual density in all of Malaysia. Nevertheless, it's just a 3rd of Singapore’s population density at 7,669 people per kilometer square.

In geographical terms, Penang island consists of a hilly interior mostly shielded by the state government. So, similar to Hong Kong, just a minor section of property can be acquired for development. Much of it is concentrated in the George Town area in the north-east. In terms of weather, Penang is humid and hot as Singapore.

This international accolade recognizes the unique cultural and architectural landscape of George Town, using its abundant multi-ethnic culture, food, art, and tradition. George Town has additionally been recognized as the 8th best city to live in Asia as well as the most liveable city in Malaysia.

Reasons to buy property for sale in Penang

1. New opportunities have popped up near the second Penang Bridge

This bridge came to a completion three years ago, consequently propelling more opportunities on both Island and Mainland areas. The interconnection of the bridge and highway has particularly benefited from this construction. Now, anyone can head up to Ideal Vision Park, which is one of the popular recreational areas in this location thanks to the bridge that connects Batu Maung and Batu Kawan in the mainland area.

2. Niche properties are on a steady capital appreciation

One term you’ll often hear when looking for properties in Penang is “prewar real estate.” But what does this really mean? Well, the prewar real estate is strictly a Penang phenomenon that implies houses having antique value. The real estate in Georgetown have been a choice among many Hong Kong and Singapore real estate investors for a decade now.

You can claim a slice of the pie as well through PropertyGuru, and do so profitably because these properties have been on a steady incline for many decades now. This is perhaps the best time to invest as property markets are opening up to foreigners as well.

3. Properties will get boosting in capital appreciation thanks to master transportation plan

Now, you can look up proposed highways by doing a quick search on “Penang transport masterplan” to see which areas are likely to benefit. As per our records, the sectors that are likely to benefit are the following:

• Road linking Teluh Bahang and Tanjung Bungah (12 km)
• Undersea tunnel that links Bajan Ajam and Persiaran Gurney (6.5 km)
• Bypass roads that link Persiaran Gurney and Lim Chong Eu Expressway (4.2 km)
• Bypass roads that link Air Itam and Expressway of Lim Chong Eu (4.6 km)

These are some of the connections that are supposed to pick up steam even more in the future.

4. The luxury real estate market reaches clang Valley PSF rate levels

Uptown condominiums such as Springtime Residences and Infinity Beachfront are now pushing the RM800 PSF mark, with the Skyhome and Regency fast approaching RM600 PSF. While these rates might still be compared slow in comparison to the KLCC enclave apartments, the current capital appreciation rate could lead to RM1000 PSF being exceeded in 2 to 3 years.

There is also a chance that a concept called branded homes may find their way into the mainstream very soon, in areas like Batu Ferringhi and Gurney Drive.

5. Prices will keep on rising with the upheaval in the rental sector

The demand for housing will remain solid, but supply doesn’t seem to be with the rising demand which implies that the cost increases will continue in tandem. Outside of Klang Valley, there’s tendency of real estate developers to concentrate more on the Iskandar region, and that is understandable – there’s an inherent deficit of big tracts of property for new developments. Regarding ROI and scale, Iskandar is also difficult to beat.

Landed properties (in particular, patio homes) have outmatched others with regards to capital appreciation for the year 2012. Some bungalows have been seen by in Tanjung Tokong, which has appreciatedby some 40% within a period of 4 months. High rise apartments are slightly lagging as few condominiums are registering as low as 6% in capital appreciation terms.

The rental sector will consequently confront turmoil. Rental rates remained fairly flat. On another hand, home buyers who then choose to rent instead may be deterred by the escalating costs driven foreign investment and by speculation.

6. Malaysian government promoting social visit pass

Now, the Malaysian government is promoting a 10-year program going by the name of Malaysia My Second Home (MM2H). This Social Visit Pass will let you stay in Malaysia and renew itself automatically unless you commit a crime. You can even bring along your spouse, kids, and others who are dependent as well.

You’ll also get the benefit of being able to purchase a car tax-free. However, to qualify for the MM2H scheme, you must possess liquid assets in the country that’s worth at least RM 500,000 on at least RM 350,000 (if you’re above the age of 50), and have a minimum offshore income of RM 10,000 per month.

Go ahead and book your spot now

If you’re still wondering why you should invest in real estate in Penang, then you’re only just delaying the matter. The more you delay, the more you have to invest in the future. So the best thing you can do is look seriously into the prospects of buying property for sale Penang right now.