Sunday 11 September 2011

Can Condominiums Flourish in Butteworth?

Recently there are quite a lot of so-called "luxury condominiums" being built in Butterworth area. Is there really a demand for them? 

Previously there are already lots of  residential apartment in Butterworth area which are only slightly better than low cost apartment. Among the first few "higher quality" ones include Cassia Resort Condo and Affina Bay near Raja Uda. Then a few years back came PJD's Harbour Place, which kick starts the "luxury condo" boom in this area. Currently, Tambun Indah Group take over and has already launched 5 condo projects in this area within 2 years time.

    Harbour Place

Mainland Penang people prefer to stay in landed property because it is relatively cheap compared to penang island. Ten years back if you buy an apartment here, people may question you and tell you that apartment has no land and thus no value. 

However, new double storey terrace here cost well above RM400,000 now. Young working people find it harder and harder to buy a landed property, and they don't want to stay in lower-cost apartment without facilities and proper security. Is this the reason why there are so many condos being launched here recently?

     Pinang & Palma Laguna

Similar condos in Penang island will easily cost more than RM350psf at the moment. For example, D'piazza, The Spring, Summer Place are between RM350-450psf, and The Brezza, Bayswater, Platino, Putra Place are about RM450-550psf. New condos at Southbay, Setia Pearl Island and Seri Tanjung Pinang cost even more than that. Even the old high density E-park & N-park are put on sales at average RM350psf.

What should be the proper condo price in Butterworth area? Some say it should be roughly 50% of island's price. A few years back, "better" apartments in Butterworth are sold at RM130-150psf. Now the average price has come to RM200psf, which is about 50% of island's equivalent.

Penang island and mainland is better connected now. Bayan Lepas FIZ is kind of saturated. Most new factories will be built at Penang Science Park and the new Batu Kawan Industrial area at mainland in the future. 

     Tanjung Heights

More people who work in island start to look for landed property in the mainland. Some of them may prefer condos at Butterworth area as the price and rental is a lot cheaper than the island. Will the condo demand in the island spill over to Butterworth in the future?

There are also some people who work in Kulim High Tech park prefer to stay in Butterworth rather than Kulim. Both places are connected by the Butterworth-Kulim Expressway (20 min drive) and the toll rate is RM3.20 per trip. Besides, travelling between Butterworth and Batu Kawan is also easy (15-20 min drive) via the North-South Highway which cost RM1.10 per trip.

Here is a list of "more luxury" or "better" condos in Butterworth, some of them are still under construction.

Condo/Apartment Location Total unit Total Floor From (sf)
Kelisa Heights Seberang Jaya 140 11 1200
Kelisa Residence Seberang Jaya 142 10 1097
Carissa Park Bagan Lallang 144 10 1210
Centro View Bagan Lallang
10 1070
Tanjung Heights Raja Uda 148 13 1313
Cassia Resort Raja Uda 273 13/17 1130
Capri Park Kg Jawa 148 15 1334
Pinang Laguna Perai 350 27 935
Palma Laguna Perai 382 38 1100
Dahlia Park Kg Benggali 134 18 1395
Telaga Emas Kg Benggali 144 11 1330
Vista Bay Kg Benggali
15 1256
Affina Bay Kg Paya
Park View Harbour Place
Sea View Harbour Place 354 19/23 670
Ocean View Harbour Place 386 27 938
Wellesley Residences Harbour Place 401 27/30 650

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