Penang

Penang state, located on the northwest coast of Peninsular Malaysia, started life as part of the Malay Sultanate of Kedah. It came under Siamese control for a period before becoming part of the Straits Settlements under British administration in 1826. So many of its early European settlers succumbed to malaria that Penang earned the title of ‘the White Man’s Grave’. After World War II it became part of the Federation of Malaya which gained independence in 1957 and was a free port until 1969. From the 1970s to the late 1990s the state gradually became one of the largest electronics manufacturing bases in Asia. On 7 July 2008, George Town, the historic capital of Penang was formally inscribed as a Unesco World Heritage Site.

The award came as little surprise with the city being regularly cited as one of the most livable in Asia. Penang’s multi-cultural composition ensures a succession of colourful festivals and celebrations and George Town, the state capital of Penang, has one of the largest collections of 19th, and early 20th century buildings in Southeast Asia. It is a living historic city, with inner city communities, places of worship, guilds, wet markets and bazaars, traditional trades and retail shops, trishaw peddlers and hawkers.

Penang is becoming increasingly accessible and a subsidiary of Malaysia Airlines recently opened up a string of popular flights linking Penang International Airport to, among others, Phuket, Samui, Kota Bahru, Langkawi, Kuantan and Kuala Terengganu.

Buying Property in Penang
Malaysia’s Prime Minister, Datuk Seri Abdullah Ahmad Badawi, recently revealed government plans to develop the country’s northern region. Dubbed the Northern Corridor Economic Region (NCER), the plan will introduce a slew of projects to spur growth and boost income levels in the states of Perlis, Kedah and northern Perak. Penang is also included in the masterplan and is expected to play a major role as a logistics and transportation hub and a gateway to the region. More on buying property in Penang.

Condos in Penang
Potential buyers are seeing a surge in condominium developments of various types with most high-end projects targeting ex-pat buyers on Penang’s seafront. The Suites at Waterside serviced apartments overlooking the marina in the Seri Tanjung Pinang integrated development saw over 50 per cent of its 160 units, comprising one and two-bedroom apartments, sold at the launch and foreigners made up about 30 per cent of buyers. More on buying condos in Penang.

Houses and land in Penang
Both foreigners and local investors are subject to similar property regulations in Penang and in Malaysia in general. Malaysia’s land tenure is based on the Australian system of land ownership – the Torrens system. Foreign interests are permitted to acquire residential and commercial properties where the cost exceeds RM150,000 per unit instead of RM250,000. This covers all types of residential property, shop houses, office space and business space. More on buying houses and land in Penang.

Renovating in Penang property
Georgetown has been declared a Unesco World Heritage site and is peppered with architecturally and historically important buildings for which demolition or major alteration is absolutely out of the question. However, it also means there are plenty of options for those looking for a challenging, sympathetic renovation project. The difficulty involved in restoring protected buildings means that most buyers bring a local renovating firm on board rather than tackling it themselves as a hobby of sorts.

There are hundreds of renovation firms in the region which can handle extensive renovation works such as masonry, tiling, carpentry and interior design. As with any restoration project, there is a significant threat that the buyer might bite of more than they can chew and suddenly see development costs for hidden problems spiral out of control. This danger is negated somewhat for those who need financing from banks. Financial institutions will require a report by a valuation firm so that they can ascertain whether the property provides sufficient security for the loan given. It also provides an indication that the property is worth what you are paying. The fees involved depend on the value of the property, although they are normally in the region of RM300 to RM800 for a normal apartment.

Top tips for Penang property
Kuala Lumpur Property buyers guide
Guide to buying Condos in Penang
Guide to buying houses and land in Penang