The first thing that strikes you about Penang is the island's old world charm. Lining the streets of George Town, are well-preserved heritage buildings and shophouses each with its own history. The streets come alive at night with inexpensive and delicious local fares that can be found at every nook and cranny. A few streets away, however, symbols of capitalism and progress are apparent. Next to Peranakan influenced shop houses and colonial buildings are shopping malls and modern skyscrapers. This unique architectural and cultural townscape that combines both the traditional and modern is what makes Penang so charming. In recognition for this unique trait, George Town was accorded a listing as a UNESCO World Cultural Heritage in July 2008. This has further boosted Penang as an attractive tourism destination.
However, Penang is not just banking on its tourism industry to keep its economy afloat. It is also home to various high-tech electronic plants located within the Bayan Lepas Free Industrial Zone, in the southern part of the island. In recent years, however, the state has been experiencing a gradual decline of foreign direct investments due to cheaper labour costs in China and India. As such, Penang has been repositioning itself as a hub for medical tourism to further improve its attractiveness as an investment destination. Besides perennial favourites like Kuala Lumpur and Johor, Penang is fast emerging as popular real estate investment destination among foreigners and Malaysians looking for a second home.
According to the Malaysia Property Incorporated (MPI), a trade body that promotes Malaysian properties internationally, in 2008, Indian investors was the fourth largest in residential property investments in Malaysia after Singapore, the United Kingdom and Korea in the three states. Today, Penang has the third-largest economy, after Selangor and Johor.
The island is irregularly shaped like a tortoise with a hilly and forested interior that divides the island into two. Balik Pulau which is located on the west coast, is the sleepy part of Penang that is served by only one main road cutting through hilly terrains and scenic reservoirs. The main buzz, however, lies on the east and north coast. In the Batu Ferringhi and Tanjong Bungah vicinity, luxury hill top condominiums and villas can be found with breathtaking views of the Andaman Sea. These areas are considered prime locations.
Being an island, land prices come at a premium due to the scarcity of land versus the limited number of high quality developments. Local building regulations here also limit hill top developments for safety reasons. Anything built 250 feet above sea level is not allowed. As such, most high-end residential developments are built in Batu Ferringhi, Tanjung Bungah, Gurney Drive and Queensbay.
The growing popularity of Penang as a retirement home for foreigners and the rising affluence of Penangites are helping to fuel demand for high-end homes. And developers in Malaysia have been quick to act on consumers' appetite for luxury properties. Market watchers are confident of Penang's real estate sector saying there is still plenty of room for growth, judging by the influx of quality developers here.
Although Penang's infrastructure has yet to be fully developed, the island offers a slower pace of life and a rich culture. Foreigners also find Penang very affordable. Unlike Bali and Phuket which are too tourist centric, foreigners get to enjoy the same cost of living as Penangites. Perhaps, it is for these reasons, Penang has the most number of Malaysia My Second Home retirees.
Based on the article by Khalil Adis.
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