The Endearing Pearl of the Orient

Unlike faceless concrete jungles elsewhere, Penang is an organic city with a soul

Penang Island is a beloved state that has its roots as an international trading hub that dates back as far back as two centuries ago. A UNESCO World Heritage site, the fusion of its heritage with modern elements makes Penang the place to be.

The Figures Make Sense

Penang has the second highest capital gain in Malaysia after Kuala Lumpur, according to property expert Ho Chin Soon, managing director of Ho Chin Soon Research Sdn Bhd. Surprisingly, Penang’s capital gain trumps Selangor’s.

Penang is the third largest growth corridor after the Klang Valley and Johor. The state also has the second highest urbanisation rate nationwide, and the second highest average monthly household income. Incidentally, this is higher than the national average monthly household income.

Three years ago, Penang was formally accorded Multimedia Super Corridor Cyber City status. The first outside Cyberjaya, the aim was for it to become a high-technology industrial park that conducts cutting-edge research. With that, it brings greater opportunities for property development and the investment market.

Government and Property Developers Work Together

Good government is important, as property industry players would like to be assured of transparent governance. Meanwhile, house buyers want smooth, uninterrupted development so there is no extended waiting time before moving into their dream home.

To meet these requirements, Penang Town and Country Planning and Housing Committee chairman Wong Hon Wai assures developers that the new state government would adopt the kaizen or continuous improvement approach in its civil service. This is in line with its Competence, Accountability and Transparency governance.  This would help create a Penang that is cleaner, less congested and a desirable place to live in. The government has started the ball rolling by making amendments in the land policy, so the processing of land applications is expedited.

According to Henry Butcher (Penang), the residential market is the biggest component in Penang, contributing between 60 per cent and 70 per cent of the total volume of transactions over the years in the real estate industry.

And since land is scarce, SP Setia Bhd executive director and chief operating officer Datuk Voon Tin Yow recommended more mixed-use integrated developments with residential, commercial and leisure components. Such projects would free up land for landscaping and greening purposes.

Extensive Infrastructure on Land, Air and Sea

An effective transportation system and well-planned infrastructure is essential. With that in mind, the Second Penang Bridge is slated for completion in 2011. It will be the longest bridge in Malaysia and Southeast Asia. Penang is exploring various options, including the Aerobus, to cater to the transportation needs of the growing population.

Penang boasts its own international airport located in Bayan Lepas in the south of the island. As Malaysia is the 13th largest exporting nation in the world, Port of Penang plays a leading role in the nation's shipping industry, linking the island to more than 200 ports worldwide.

Popular Tourist Destination

There’s so much to fall in love with in charming Penang. Tourists flock here from far and wide, drawn by its wonderful facets.

Penang street food is famous nationwide. Give Penang Char Kway Teow and Assam Laksa a try and become a fan. Cendol, an icy-cool dessert perfect on a hot, tropical day is another firm favourite.

If culture’s more your scene, explore the old buildings, heritage and a history that stretches back to the 18th century. Otherwise, the beaches and hillside beckon tourists to enjoy nature.

Malaysia, My Second Home

You know how you fall in love with a place on holiday and wish you could stay there permanently? Now you can.

Since it was launched in 2001, Malaysia My Second Home (MM2H) participants have increased from 313 to over 1,500 in 2007. To date, there are more than 10,000 expatriates living in Malaysia under the programme. Interestingly, Penang has the highest number of MM2H participants in Malaysia, bringing a steady inflow of foreign property buyers.

Indeed, Penang has a bustling expatriate community that comprises Japanese and British citizens. As most of the household sizes are between one to two people, developers are tailoring their offerings accordingly. Henry Butcher Malaysia (Penang) has collaborated with national airline Malaysia Airlines to bring in foreigners to invest in second homes.
 
Why Buy?

There is good potential capital appreciation in Penang’s property sector. Despite the current economic circumstances, Ho said the outlook is good. He recommends high-density projects as they take up less land, and more people can then own homes. That way, it is possible to have multi-storey buildings, open spaces and fields.

Location, innovative design concepts, extensive landscaping and right pricing have universal appeal. Developers address security issues by providing gated and guarded living with state-of-the-art security systems.

In fact, established developers like IJM Properties, Sunway City, E&O Property Development, SP Setia and Mah Sing Group have projects in Penang, giving buyers a wide selection to choose from.

All said and done, Penang’s appeal is perennial. Come visit and perhaps, stay.