When it comes to investing in real-estate, seafront properties are considered a “gold standard” for discerning investors. Despite varying property market landscapes around the world, seafront properties typically showcase greater increase in valuation, yielding higher rentals and resale value. This explains the ever-growing demand globally for such highly valued properties.
In Malaysia, prime seafront property locations, such as Penang, have consistently been leading the charts and statistics, particularly related to property valuations and demand. In fact, the Pearl of the Orient has been a popular “playground” for real-estate and property investors, not only within Malaysia, but from abroad. This bears testament to the unparalleled demand commanded by property within the island state.
Penang’s year-round tropical climate, rich heritage, eclectic architecture, colourful art, street food and UNESCO World Heritage Site classification have all created a perfect mix that makes it shine as one of Asia’s leading property investments. The island gained more prominence in recent times being ranked the top Asian city in which to retire by International Living and was placed within the top 22 locations around the world to visit in 2022 by CNN.
Positive outlook for investors
As Malaysia slowly but surely shows signs of recovering from the pandemic, sentiments within the local property industry paints a hopeful picture of growth. PropertyGuru’s latest Malaysia Property Market Index (MPMI) reports an uptick in property prices, with Penang observing one of the highest year-on-year growths in property price increases.
Similarly, an analysis by real estate technology group Juwai IQI also indicated growth in Penang’s property market in 2022.
“With the support of government initiatives and positive economic trends, the property market will recover along with the economy. Luxury condo prices in Penang are lower than in competitor cities Bangkok and Jakarta. Prices in nearby Singapore are even higher. Comparable residences there can be five-fold more expensive,” said Juwai IQI’s co-founder and CEO, Kashif Ansari.
He also said that Penang’s high-tech manufacturing and unique tourism assets make it desirable for second homes, retirement, and investment, which will also see increase in foreign investors as the country emerges from the pandemic. We expect foreign buying to come back to prior levels in time.
Meanwhile, Knight Frank Malaysia’s Real Estate Highlights for the 1st Half of 2021 (IH2021) indicated that the Penang property market remained active despite the pandemic. It also said that the residential sub-sector continued to dominate the property market and is expected to remain resilient, supported by a number of recent government initiatives including the Penang Green Agenda (PGA) 2030, Digital Transformation Masterplan and Penang Tourism Masterplan 2021 – 2030.
Besides these factors, Penang’s unique appeal to investors, be they local or foreign, lies in some of its well-planned seafront developments by reputable developers, such as Eastern & Oriental (E&O) Berhad, which has established a strong position and track record creating highly desirable developments. These include the award-winning 240-acre masterplanned seafront development in Seri Tanjung Pinang (STP), which was built on reclaimed land on the foreshore of Tanjung Tokong, on the north-east of Penang. This first-of-its-kind masterplanned integrated seafront development houses the largest waterfront community in the country. With the first phase of the development launched in 2005, STP is now home to a thriving community comprising both locals and expatriates from over 30 nationalities.
Prime seafront location with holistic appeal
The development is located right next to Gurney Drive, a thriving stretch in Penang synonymous with street food and hawker centres, while accommodating a good number of hotels, condominiums and office buildings. Gurney Drive also serves as a pit stop between Penang International Airport and the famous Batu Ferringhi beach, and is in close proximity to affluent suburbs of Pulau Tikus and Tanjung Bungah. All these have also given rise to the vicinity’s popularity amongst locals and visitors alike who have come to delight in Gurney Drive as their hotspot of choice in Penang .
Meanwhile, Eastern & Oriental Berhad Managing Director, Kok Tuck Cheong said that aside from its unique location, STP also benefits from the developer’s unique track-record which focuses on a holistic appeal for investors.
“When you invest in STP, you are investing in more than just a home. It is an investment into a holistic living environment and a closed knit community, in homes that offer luxurious seafront living and an impeccable attention to detail and craftsmanship,” he said.
Adding to this is the very well-thought-of design and infrastructure of STP, which appeals to a large base of investors with everything from majestic sea-facing villas, to luxury condominiums, spacious jogging paths along the promenade, luscious green parks, and a 4.5-acre private Quayside Waterpark that comprises seven distinct activity areas.
Aside from benefitting from luxurious heritage and timeless elegance synonymous with the E&O brand, properties within STP boast extensive built-up areas with ample open spaces and designs that reinvent an age-old formula to invoke nostalgia and charm of the original 19th century Straits-eclectic homes. A majority of the homes in STP feature air wells, high ceilings of up to 11-feet, open concept courtyards, large windows and very generous house dimensions starting from about 3,800 sq ft for its terraces as compared to the more standard sizes which measures way below 3,000 sq ft.
Current owners of property within STP are never short of praises for their prime piece of real estate. One of them is Tan Keat Keat, who said, “This is our weekend home where we come to relax and enjoy the facilities. For the kids, it is the playground and swimming pool whereas for my wife it is working out at the gym. As for me, I love the outdoor spaces, especially the promenade and cycling together with my mother-in-law.
Meanwhile, Penang-born photographer Song Boon Keat, who works in Kuala Lumpur, said that he did not think twice about investing here. “To me, it’s not just about buying a house but buying into a whole community. The ease of access around STP is a winning factor,” he said.
All in all, STP certainly has all the workings of a prime investment within a prime seafront located. There is an old saying that goes, “the best time to buy a property in Penang was yesterday”. This certainly rings true as property prices within Penang have shown an upward trend in past years, and will only continue increase in value in time to come, even as land within the state becomes scarcer. And with a seafront development by an acclaimed developer such as E&O, investors can certainly rest assured that it was perhaps one of the best decisions they could make.
