Many investors are investing in Penang properties. One year ago, when the economic crisis came to Penang’s shore, the property price did not drop at all – not even 5%. In fact, many investors start to pick up properties at a very good bargain. In order to sell their properties that are already under construction, most developers are giving out unbelievably great promotions. Instead of the 10% down-payment (booking fees) that buyers used to pay, they only need to pay a mere 5%. Not only that, legal fees, stamping duties and transfer fees are all borne by the developer! There properties have since appreciated 7% of the initial purchase price in only one year.
Why is Penang such a popular place for property investors? There is sufficient demand from the population and the developers are providing steady supply. The young entrepreneurs are learning to invest in properties to earn monthly rental income as well as for capital appreciation. Penang is an industrialized state; many young graduates from outstation who migrate to work here require a roof over their head. Some, who decides to settle down, will eventually buy their own property to start a family. When the family numbers increases, they will buy a bigger property to accommodate the additional numbers. The “old” property will either be rented out or sold at a profit.
Penang is also island. Land here is getting scarce. With the increasing demand, the property price here is sure to increase with time. The demand not only comes from the local dwellers. Foreigners are also investing in Penang properties. Foreigners consider it cheap to invest in Penang, when compared to countries like Shenzhen, Singapore, Hong Kong, Shanghai and Xiamen. The property prices in these countries are so much more expensive. These foreigners are composed of retirees who participate in the Malaysia My Second Home Programme (MM2H). They find the cost of living in Penang much lower compared to where they come from (Australia, Europe, Japan and Korea), the food is delicious, and the people here friendly and the medical facility here are also advanced.
Article written by Vivienne T