Penang non-landed residences do well on the island; landed homes on the mainland

PENANG (Sept 23): Non-landed residential projects on Penang island have performed better than landed homes on the island in recent years.

There were more non-landed residential projects that recorded a cumulative annual growth rate (CAGR) of above 20% compared with landed housing projects.

Over on the mainland, however, the reverse was true as landed homes fared better in terms of capital growth compared with non-landed homes.

There were more landed projects with CAGR of more than 30% on the mainland than non-landed homes, according to Alvin Ong, TheEdgeProperty.com director of business and product development.

"Areas such as Ayer Itam, Sungai Ara and Jelutong on the island have multiple non-landed projects with more than 20% CAGR while on the mainland, landed projects in areas such as Kepala Batas and Berapit have more than 30% CAGR," said Ong, who was speaking about the Penang sub-sale market trends and opportunities at the Penang Maspex (Malaysian Secondary Property Exhibition) 2016 today.

The event is organised by the Malaysian Institute of Estate Agents.

He also noted that projects priced at less than RM300 psf tend to have higher CAGR as compared to projects of more than RM300 psf.

"The gains decline with the average price psf of a project. This is because they have lower entry price points which means more people can afford to buy them, which translates to more transactions, "he added.

TheEdgeProperty.com is the media partner and sponsor of Penang Maspex 2016.

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