Economists and the Malaysian Government alike foresee a growth in property development with the proposed Second Bridge Link, monorail, and Penang Outer Ring Road projects, to be implemented soon.
Many foreigners, especially Japanese, Australian and British nationals, have invested in second homes on Penang island. In a recent survey, Penang was voted one of the best Asian cities to live in, by Asiaweek. It ranked 6th in 1998 and 9th in 2000.
In 2007, Penang ranked as the 10th most liveable city in Asia according to a survey involving 255 cities in Asia by Employment Conditions Abroad Limited (ECA International). Some of the barometers by which these cities were gauged include weather, air quality, infrastructure, health services, housing, security and politics. Property prices in the south of Penang have increased by approximately 20%, compared to only a year ago.
Generally speaking, Penang properties generate good investment value because of their location, concept, design and quality.
Investing in property is very rewarding especially when done in Penang, as property prices tend to appreciate over a relatively short period of time. Prime property locations in Penang include beachfront property in Batu Ferringhi, Tanjung Bungah and Tanjung Tokong, which are all located on the Northeast of the island. Along Batu Ferringhi are numerous large hotels, restaurants, transport rental services and souvenir stores. Adjacent vicinities include Teluk Bahang and Tanjung Bungah.
Tanjung Bungah is another popular place for beachfront property. Many hotels in Tanjung Bungah offer rates to suit budget travellers. Indeed, the development of mid-class to high-end apartments and condominiums are rampant in Tanjung Bungah. It is an ideal residential spot for foreigners due to its proximity to the Dalat School and The Uplands International School of Penang. The Penang Branch Campus of Tunku Abdul Rahman College (TARC) is also situated here.
Just minutes' drive away is Tanjung Tokong, where the sea-fronting, exclusive Seri Tanjung Pinang villas developed by E & O Property Development Bhd have just been launched. The group has launched about 500 units of landed residential properties, priced from about RM800,000 onwards. It is now getting ready to launch the new bungalows for the Seri Tanjung Pinang project at the end of 2008, priced from RM2.8 million.
Pulau Tikus - located in Georgetown, central Penang - is also one of the upcoming prime property locations on the island. One of the luxury condominiums is the Silverton situated along Gurney Drive. This freehold property is priced from RM1 million. Lying towards the Southeast of the island is Batu Maung. Around 20 years ago, Batu Maung was only a small fishing village accessible only from Bayan Lepas.
However, in the past few years, Batu Maung has been experiencing rapid development due to its proximity to the Bayan Lepas Free Trade Zone. In 1994, a new four-lane highway - known as the coastal highway - was opened, linking Batu Maung to Gelugor. This shortened the journey from Batu Maung to Penang Bridge to around 15 minutes, from almost an hour previously.
In August 2006, Malaysian Government has announced that Penang's Second Bridge will be built from Batu Kawan, on the mainland, to Batu Maung, on the island. This infrastructure is expected to lend impetus for more development of property in that area. In fact, local developer Mah Sing’s RM1.28 billion Southbay Penang project in Batu Maung registered some 1,500 interested buyers for its first phase - scheduled for launching in early 2008.
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"Investing in property is very rewarding especially when done in Penang, as property prices tend to appreciate over a relatively short period of time."
The economy of Penang is thriving with its growth in the electronics, semi-conductor and high-tech industries, in particular.
In fact, Penang has the third largest economy among the Malaysian states, after Selangor and Johor. In 2000, manufacturing was the most important component of the Penang economy, contributing 45.9% of the State's Gross Domestic Product (GDP). High-tech electronics plants such as Dell, Intel, AMD, Altera, Motorola, Agilent, Hitachi, Osram, Plexus, Bosch and Seagate are all located within the Bayan Lepas Free Industrial Zone.
Penang was declared a Multimedia Super Corridor Cyber City - the first outside of Cyberjaya - in January 2005, with the goal of making the state a high-tech industrial park. Tourism, finance and shipping are among the other important sectors of Penang's economy.
The National Physical Plan of Malaysia envisages a Conurbation of Georgetown, which includes Georgetown and surrounding areas. The Conurbation of Georgetown is designated a Regional Growth Conurbation. The greater metropolitan area of Penang consists of highly urbanized Penang Island, Province Wellesley (Seberang Prai), Sungai Petani, Kulim and the surrounding areas. Under the 9th Malaysian Plan, this entire area is referred to as the Northern Corridor Economic Region (NCER).
