The land and landed property in prime areas of Butterworth & Bukit Mertajam are getting more & more expensive over the years. Thus, developers and buyers start to switch to high-rise property.
As a result, the price of apartment in this area rises from RM100+ psf to over RM300 psf in just 5 years time. However, the higher price tag also comes with better facilities.
Some people may still argue that it is unwise to buy condos in mainland Penang either for investment or for own stay, as there are still a lot of land available.
This is true if the landed property price in prime area here is cheap (not compared to Penang island but according to affordability). But is it the case?
It is very clear that Penang island property price is increasing to a record level that most middle income people cannot afford. For example single storey terrace at RM700k & condos at above RM500 psf.
When potential buyers can't afford to buy in the island, what will they do? Will they rent to stay? Will they buy nothing? Will they move to other states? Or will they look for cheaper option which is mainland?
After the completion of second bridge, the connectivity between mainland and island will be further improved. Going from Seberang Perai to Penang island is like from Bayan Lepas to Georgetown or Bukit Mertajam to Butterworth.
It is undeniable that Bayan Lepas FIZ has provided a lot of job opportunities in the island, especially skilled workers & engineers. However, this industrial area is fully occupied and probably there will be no more new industrial zone on the island.
Whereas in mainland, the old industrial areas in Perai & Mak Mandin are already larger than Bayan Lepas. Now there are large new industrial zones coming up in Bukit Tengah, Penang Science Park & Batu Kawan.
Recently Ibeden Co Ltd, a Japanese electronics & ceramics producer has announced to invest RM1.3bil to increase capacity at its second building in Penang Science Park. This will create another 1,500 job opportunities. A lot of engineers are needed for sure.
I believe that in the near future, especially when Batu Kawan starts to develop, there will be more influx of people into Seberang Perai because of job opportunity, shorter distance to work or better home affordability, either from the island or other states. So the demand for housing will be higher, and condos will be able to survive as well if the location is good.
That's why I have high confidence in Tambun Indah since it was publicly listed. Other notable active mainland developers include Asas Dunia, WingTai, PJD & GOB.
For Penang island, it will be only for the rich in few years time.
Below is the progress of some new or under construction condominiums & apartments in mainland Penang. All photos taken in mid Nov 2013.