Penang real estate to benefit

Penang real estate to benefit
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Penang's real estate industry will gain from the state's position as hub for the proposed northern development region

By ANGIE NG

PENANG'S real estate sector is set to benefit substantially from the Government's upcoming initiative to designate it as the hub for the northern development region that also encompasses Perlis, Kedah and Perak.

The state's tourism and manufacturing sectors will benefit from the initiatives that will also see Penang taking on the role as the region's new transportation hub.

The Government is expected to unveil the new northern development region later this month.

Wong
Industry players lauded the proposed Government initiative and called for greater efforts by both the private sector and the Government to optimise the benefits and growth sustainability for the region.

Although Penang is endowed with various advantages, including an idyllic old world charm that makes it a natural tourist haven, more efforts are needed to enhance the state's potential in the real estate arena.

According to Sunway City Bhd senior managing director Datuk C.K. Wong, concerted efforts to promote Penang as a destination for property investments will raise its profile as an international real estate hub.

Given the many supporting factors such as a conducive environment for foreign purchasers and good capital appreciation of the state's residential properties, he said, Penang should take advantage of its role as the regional hub.

The presence of more Klang Valley-based developers in Penang will create greater competition among industry players, encouraging more quality and international-class developments to meet the market's changing needs.

“It is important to sustain the demand side by attracting high value add and environment-friendly industries as well as to promote the state's services sector. More jobs will eventually lead to more home purchasers,” said Wong.

Liew
Penang is already a favourite tourist destination and the top choice among participants of Malaysia My Second Home programme.

“There is a lot of potential to be tapped in the various property sectors, including more creative residential products, hotels, shopping complexes, offices and industrial facilities,” Wong said.

He said more incentives, such as those at the Iskandar Development Region (IDR), should be introduced for the northern development region.

“For a start, Penang could do with some upgrading of its existing infrastructure to enable it to catch up with the fast paced developments that are taking place.

“Improved safety and security measures for visitors and residents should also be given priority.”

SP Setia Bhd group managing director Tan Sri Liew Kee Sin concurred that the initiative would provide more employment opportunities and increase demand for houses both on the island and the mainland.

Coupled with the mega projects already announced such as the second Penang Bridge, Penang Outer Ring Road and the monorail project, strong demand from local and foreign buyers are expected.

Mah Sing Group Bhd president Datuk Leong Hoy Kum said the Government's northern development region initiative would rekindle Penang’s heyday when it enjoyed a free port status.

Similar incentives such as those enjoyed by the IDR, including exemptions from corporate tax and withholding tax would be helpful in developing the northern development region, he said.

“The property sector should see almost immediate benefits similar to what IDR has experienced, namely a resurgence of interest in industrial and commercial properties.

More iconic residential projects such as Ivory Tower condominiums will be sprouting in Penang
“This will have a positive spill-over effect on the demand for residential properties and may transform Penang into an international hotspot like Singapore,” Leong added.

E & O Property Development Bhd marketing and sales director K.C. Chong said all parties should look seriously into creating a first-class quality environment that would place Georgetown on par with some of the major cities around the world.

“Issues such as public transportation, public toilets and quality in delivery systems must all be looked into,” he added.