Known as Seberang Prai or Province Wellesley, the 756sq km land mass, separated from the island by a 13.5km bridge, is the only area in Penang where landed properties are still attractively priced.
The cost to build a three-storey terraced property, taking into consideration land and construction cost, is between RM200,000 and RM230,000 while launch prices for such properties are usually from RM280,000 onwards, depending on the location of the project.
On the island, the combined land and construction cost to build a three-storey house of about 3,200sq ft on the is between RM700,000 and RM750,000, while launch prices start from between RM800,000 and RM900,000.
The combined land and construction cost to build a 1,000sq ft high-rise unit is over RM280,000, and the property is priced in the market at RM400,000 and above.
Developers are not only attracted to build homes in Seberang Perai due to its lower cost but also because of the new manufacturing activities that have located there thereby creating jobs and demand for affordable housing.
While a recession might be around the corner, developers are still planning to launch residential properties although they are more cautious.
The growth areas for property projects are in Juru, Bukit Mertajam, Alma, and Seberang Jaya in Central Seberang Prai, Simpang Ampat, Bukit Tambun, and Jawi in South Seberang Prai, and Jalan Raja Uda and Butterworth town in North Seberang Prai.
Several developers said the Central Seberang Prai was attractive to them due to the industrial estate located within the district. DNP Land Sdn Bhd, a subsidiary of DNP Holdings Bhd, is focused on developing its landbank in the area, which saw the fastest population growth on the mainland.
Tambun Indah managing director Teh Kiak Seng told Starbiz that the type of project a developer would launch in the area depended on location. “For example, in Juru, where it is close to the factories and to the Auto-City, we launched the Juru Heights, which has a gross sales value of RM250mil.
The Real Estate and Housing Developers’ Association Penang chapter chairman Datuk Jerry Chan said there would be a slowdown in the launching of new development schemes next year, due to the global recession.
He said banks would be stricter in providing financing to developers or home buyers.
By The Star
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