Penang In For Property Boom

The Star: Friday July 27, 2007


PENANG: The state’s property market will experience bullish times under the Northern Corridor Economic Region (NCER).

With major developments and mega projects on the island and mainland,  more investments are expected to flow in, said Real Estate and Housing Developers Association (Rehda) Penang branch chairman Datuk Jerry Chan Fook Sing.

“The effect of the NCER is akin to having five MNCs suddenly investing here. What we are seeing is 20 years of development activities and infrastructure expenditure being compressed into a five-year time frame.

“The widening of the Penang Bridge, construction of a second bridge and Penang Outer Ring Road (PORR), expansion of the Penang International Airport and North Butterworth Container Terminal, the implementation of the monorail and integrated bus service will make the state more accessible, and attract more businesses and foreign investors.

“With more k-workers and Malaysia My Second Home residents coming in because of the improved integrated transportation system and job opportunities, property prices will rise by at least 10% to 15% annually within the next five years.

“There will be more jobs created and wages will increase as employers are keen on keeping their staff at a time when labour shortage is expected.

“I do not believe that Penangites will be priced out of owning property because the economy will improve as will their spending power,” he said, adding that the NCER had brought back investor confidence to the state due  to “the federal government’s strong backing”.

“People go where the jobs are. And for now, it is Penang. Expatriates who come here to work will invest in property and even if they leave, it is very likely that they will return as holidaymakers – which augurs well for the tourism sector,” he said, adding that the coming years would see a mix of projects ranging from low-medium to very high-end housing in the state.

Besides attracting an influx of foreign investment, the slew of projects would result in “economic spin-offs” that would also benefit those not directly linked to the NCER, Penang Chinese Chamber of Commerce president Datuk Khor Teng Tong said.

“The local business community will see better days ahead but even service providers like taxi drivers and food operators will enjoy better business because we will have more tourists and expatriates coming here,” he said.

Khor who is also the Fiabci (International Real Estate Federation)-Malaysia chapter’s Penang branch chairman, agreed with Chan that employees would see better benefits and salary increases “all around”.

Malay Businessmen and Industrialists Association (Perdasama) Penang advisor Datuk Waris Ali Abdul Carrim said the NCER would help the state regain its status as “the country’s logistics hub”.

Malaysian Indian Chamber of Commerce and Industry president N. Gobalakrishnan said the association’s 481 members “welcome the NCER” because the development projects would benefit businessmen of all races.