penang market: mainland vs island? where …myevents.theedgemarkets.com/sites/default/files/mike...

PENANG MARKET:MAINLAND VS ISLAND?

WHERE ARE THE HOT SPOTS NOW?

PRESENTED

B Y

SR. MICHAEL GEHS E N I O R P A R T N E R

R A I N E & H O R N E I N T E R N A T I O N A LZ A K I + P A R T N E R S S D N . B H D .

m i k e g e h @ m a c . c o mF a c e b o o k : M I K E G E H

STATE OF NORTHERN REGION

• Total population in Malaysia was estimated at about 32 millionpeople in 2016.

• In 2016, total population in Perlis, Kedah and Pulau Pinang wasestimated at:

State Estimated Population

Perlis 0.25 million

Kedah 2.1 million

Pulau Pinang 1.7 million

Total 4.05 million (approx. 12.8% from total population in Malaysia)

Johor 3.7 million

Source: Department of Statistics Malaysia

STATE OF NORTHERN REGION

Source: Department of Statistics Malaysia

State Population (%)

Selangor 19.9

Sabah 12

Johor 11.5

Sarawak 8.7

Perak 7.8

Kedah 6.7

Kelantan 5.7

WP Putrajaya 5.6

Pulau Pinang 5.4

Pahang 5.1

Terengganu 3.7

Negeri Sembilan 3.5

Melaka 2.8

Perlis 0.8

WP Kuala Lumpur 0.3

WP Labuan 0.3

Country Estimated Population Area (sq. km) Population Density(per sq. km.)

Singapore 5.6 million 719 7,789

Philippines 104.2 million 300,000 347

Indonesia 258.8 million 1,904,569 136

Thailand 69.0 million 513,120 134

Malaysia 31.7 million 330,803 96

DEMOGRAPHICS OF NEIGHBOURING COUNTRIES

Source: World Economic Outlook Database, October 2016, International Monetary Fund (IMF) & Wikipedia

• Malaysia has the lowest population per square kilometres.

Sub-Sector Residential Commercial Industrial AgriculturalDevelopment

LandOther Total

Number of Transactions 6,698 776 197 871 593 23 9,158

Value of Transactions(RM Billion)

2.649 0.539 0.464 0.266 0.770 0.013 4.70

Source: NAPIC Source: NAPIC

Residential; 73.14%

Commercial; 8.47%

Industrial; 2.15%

Agricultural; 9.51%

Development Land; 6.48% Others; 0.25%

Number of Property Transactions in Pulau Pinangby Sub-Sector, 1H 2016

Residential; 56.34%

Commercial; 11.47%

Industrial; 9.88%

Agricultural; 5.66%

Development Land; 16.38% Others; 0.27%

Value of Property Transactions (RM Billion) in Penang by Sub-Sector, 1H 2016

Source: NAPIC

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2012 2013 2014 2015 2016

Number of Transactions 7,007 8,866 8,302 6,802 5,748 5,703 6,460 6,435 6,416 6,513 5,757 6,869 5,637 5,564 5,060 5,294 4,278 4,879 4,382

Value of Transactions (RM Billion) 2.63 3.46 3.32 3.49 2.70 2.92 4.11 3.76 3.78 3.44 3.15 3.40 3.58 2.84 2.39 2.89 2.26 2.44 2.15

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Number and Value of ALL Property Transactions in Pulau Pinang,Q1 2012 - Q3 2016

Source: NAPIC

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4e Q1e

2012 2013 2014 2015 2016 2017

Number of Transactions 4,981 6,908 6,398 4,979 4,193 4,290 4,519 4,698 4,291 4,732 4,194 5,193 3,834 3,909 3,815 3,733 3,110 3,588 3,201 2,297 2,527

Value of Transactions (RM Billion) 1.49 1.91 1.88 1.80 1.55 1.71 1.80 2.04 1.88 1.89 1.75 2.06 1.55 1.59 1.43 1.61 1.21 1.44 1.35 1.03 1.13

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Number and Value of RESIDENTIAL Property Transactions in Pulau Pinang,Q1 2012 - Q3 2016 & Forecast for Q4 2016 – Q1 2017

e = estimate

Source: NAPIC


2012 2013 2014 2015 2016

Number of Transactions 776 743 722 585 464 523 643 610 708 539 517 633 675 553 478 434 320 455 377


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Number and Value of COMMERCIAL Property Transactions in Pulau Pinang,Q1 2012 - Q3 2016

Source: NAPIC


2012 2013 2014 2015 2016



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Number and Value of INDUSTRIAL Property Transactions in Pulau Pinang,Q1 2012 - Q3 2016

Source: NAPIC


2012 2013 2014 2015 2016



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Number and Value of AGRICULTURAL Property Transactions in Pulau Pinang,Q1 2012 - Q3 2016

Source: NAPIC


2012 2013 2014 2015 2016



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Number and Value of DEVELOPMENT LAND Transactions in Pulau Pinang,Q1 2012 - Q3 2016

Source: NAPIC

1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2He

2010 2011 2012 2013 2014 2015 2016

Number of Transactions in Primary Market 855 1,659 5,934 7,801 3,605 3,697 1,448 1,302 1,841 2,254 1,418 1,530 1,040 640

Number of Transactions in Secondary Market 7,446 8,273 7,898 9,041 8,284 7,680 7,035 7,915 7,182 7,133 6,325 6,018 5,658 4,858

Total Number of Transactions 8,301 9,932 13,832 16,842 11,889 11,377 8,483 9,217 9,023 9,387 7,743 7,548 6,698 5,498

Value of Transactions in Primary Market 0.21 0.29 1.10 1.72 0.76 1.08 0.62 0.58 0.77 1.03 0.59 0.69 0.48 0.43

Value of Transactions in Secondary Market 1.96 2.38 2.30 2.61 2.65 2.60 2.63 3.26 2.99 2.78 2.55 2.35 2.17 1.95

Total Value of Transactions 2.17 2.66 3.39 4.33 3.41 3.68 3.25 3.84 3.77 3.81 3.14 3.03 2.65 2.38

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Number and Value of Residential Property Transactions by Category in Pulau Pinang,1H 2010 1H 2016 & Forecast for 2H 2016

e = estimate

Source: NAPIC

1H 2H 1H 2H 1H 2H 1H 2H 1H 2He

2012 2013 2014 2015 2016

< RM100,000 3,775 3,442 1,677 1,852 1,662 1,798 1,571 1,734 1,497 1,264

RM100,001 - 200,000 3,316 2,946 2,121 2,133 1,888 1,952 1,603 1,442 1,354 1,100

RM200,001 - RM500,000 3,170 3,020 2,828 2,981 3,178 3,359 2,782 2,668 2,227 1,814

RM500,001 - RM1,000,000 1,154 1,381 1,307 1,503 1,620 1,625 1,222 1,169 1,205 990

> RM1,000,001 474 588 550 748 675 653 565 535 415 330

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Number of Residential Property Transactions by Price Range in Pulau Pinang,1H 2012 – 1H 2016 & Forecast for 2H 2016

e = estimate

Source: NAPIC

< RM100,000; 22.35%

RM100,001 -200,000; 20.21%RM200,001 -

RM500,000; 33.25%

RM500,001 -RM1,000,000;

17.99%

> RM1,000,001; 6.20%

Percentage Share of Number of Residential Property Transactionsby Price Range in Pulau Pinang, First Half of 2016

PUBLIC TRANSPORT NETWORK

Source: pgmasterplan.penang.gov.my

HIGHWAYS & ROADS

Source: pgmasterplan.penang.gov.my

NEW LAUNCHES IN PENANG

Project Location Developer Property TypeNo. of Units

Built-up Area(sq. ft.)

Selling Price

Queens Residence @ Queens Waterfront

Bayan Lepas(near

Queensbay)

Ideal Property

GroupCondominium

Phase 1: 500

950 – 1,650From

RM787,900

Amaris Terraces By The Sea @ Seri Tanjung Pinang

Tanjung Pinang, Tanjong Tokong

Eastern & Oriental Bhd

(E&O)3-storey Terrace 29 5,262 – 6,056

From RM3.78 million

Waterside Residence @ The Light

Gelugor (beside Penang Bridge)

IJM Land Bhd Condominium 256 1,055 – 1,270From

RM749,000

Marriott Residences Gurney Drive BSG PropertyHotel and

CondominiumCondo: 294

Condo: 850 – 2,500

N/A

Meritus Residensi Jalan Baru, Prai Hua Yang BhdService Apartment

and Retail Unit

Service Apartment:

480945 onwards From 364,500

NEW LAUNCHES IN PENANGProject Location Developer Property Type

No. of Units

Built-up Area(sq. ft.)

Selling Price

Beacon Executive Suites

Sungai Pinang,Georgetown

Aspen Group SoHo 227 980From

RM613,000

SummerSkye Bayan Lepas

Ideal Property

Group

Condominium 507 1,100 – 1,200From

RM589,000

Forest Ville Bayan Lepas Condominium 991 1,000 – 1,050RM459,000 –RM626,000

One Foresta Bayan Lepas Condominium 1,343 900RM300,000 –RM400,000

i-SantoriniTanjung Pinang, Tanjong Tokong

Condominium 2,155 850RM300,000 –RM460,000

Setia Sky Vista Relau SP Setia Condominium 426 1,100 – 1,400From

RM650,000

Vertu Resort Condominium @ Aspen Vision City

Batu Kawan Aspen Group Condominium 1,282 1,030 – 1,800From

RM418,000

STRENGTHS

• Pg: Silicon Valley of Malaysia.

• Pg : Renowned Tourism Destination.

• Pg : World Class Education HUB.

• Pg : Billion Dollar Medical Tourism Center.

• Pg : International Airport Gateway of Northern Malaysia.

• Pg: Top Global Retirement Destination.

WEAKNESS

• Pg : Over dependent on Industrial SMI / SME / MNC.

• Pg : Secondary International Airport. No Direct Flight to Australia, Europe & Middle East.

• Pg : Depends on Self-Help on Important Infrastructure.

• Pg : Strong Presence of Neighbourhood NGO.

OPPORTUNITIES

• Pg : Strong Services and Tourism Sector Supporting The Strong Tourist Arrival.

• Pg : More air charter flights and cruise ship Connecting and Arriving.

• Pg : World class Developer has Penang on Radar and Participates in RFP.

THREATS

• Strong Competition from Iskandar Region & Klang Valley.

• Sensitive to Industry Sector Slumps.

• Higher Land Prices & increased developer levies lead to HigherHouse Delivery Cost.

• High Speed Rail By-Passing K&P&Pg.

CRYSTAL BALL GAZING INTO2016 - 2017

• Transaction Figures are down BUT Value & Optimism is High.

• When Bank Negara Malaysia (BNM) relaxes Housing Sector loans, Market will Move Again.

• Transport Masterplan Will Be Catalyst For the Penang Property Market.

• World Optimism On Penang.

• Retirement, Food & Lifestyle Heaven.

CRYSTAL BALL GAZING INTO2016 - 2017

• The Estimated Number & Value of Residential Property Transactions for Q4 2016 is 2,297 Units Worth RM1.03 Billion.

• The Estimated Number & Value of Residential Property Transactions for 2016 is 12,196 Units Worth RM5.03 Billion

• The Estimated Number & Value of Residential Property Transactions for Q1 2017 is 2,527 Units Worth RM1.13 Billion.

Mainland• Bertam

• Penang Sentral• Iconic City• Batu Kawan

Island• Georgetown• Batu Maung

• Karpal Singh / Sungai Pinang• Bayan Baru

• Tanjung Tokong

Property Hotspots in Penang

CRYSTAL BALL GAZING INTO

2016 - 2017

VS

Bertam

Iconic City

Penang Sentral

Batu Kawan

Batu Maung

Bayan Baru

Karpal Singh /

Sungai Pinang

Georgetown

VS

Tanjung Tokong

ATTRACTIONS & ACTIVITIES IN PENANG

THE END

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