Impending mainland magic
THE property market performance in Seberang Prai, Penang, improved in the first quarter of this year after a few years of downturn. Total volume of property transactions increased to 2,518 in the quarter, an increase of 3.45 per cent from 2,434 in the first quarter of 2017 (Q1 2017).
According National Property Information Centre’s sales data for Q1 2018, total transaction value appreciated marginally by 0.58 per cent to RM880 million for the period from RM875 million in the same period last year.
Generally, all the sub-sectors in Seberang Prai recorded positive growth in the total volume and value of transactions with the agricultural subsector marked the highest growth rate.
In total volume of transaction, the agricultural sub-sector recorded 57.45 per cent growth, followed by the development land sub-sector (12.64 per cent), commercial (3.11 per cent) and industrial (three per cent).
For the total value of transaction, the agricultural sub-sector recorded the highest growth of 52.78 per cent and commercial at 2.32 per cent. The residential and development land sub-sectors, however, declined by 5.14 and 35 per cent, respectively.
RESIDENTIAL
The residential sub-sector in Seberang Prai was active but slightly moderated in Q1 2018. Its total volume of transactions declined 9.22 per cent to 1,438 transactions from 1,584 transactions in Q1 2017 while total value of transactions softened by 5.15 per cent to RM405 million from RM427 million.
The central Seberang Prai district continues to be the district of choice, making up 49.1 per cent of the total volume of transactions, followed by the north Seberang Perai district at 26.1 per cent and the south Seberang Perai district at 24.8 per cent.
The most popular type of residential property is the two- to 2.5-storey terrace houses, comprising 24.5 per cent of the total volume of residential transactions, followed by 1.5-storey terraces (17.9 per cent), condominiums and apartments (11 per cent) and low-cost flats (10.7 per cent).
In the primary market, the performance moderated with total overhang units in the whole of Penang increasing 4.5 per cent to 4,092 in Q1 2018 from 3,916 units in Q4 2017.
This was largely attributed to a wait-and-see attitude among buyers during pre-14th General Election period and stringent financing policies to deter market speculation. The major portion of the supply overhang comprised apartments and condominiums, at 2,373 units (58 per cent), followed by two- and three-storey semi-detached houses at 431 units (10.5 per cent) and two- and threestorey terrace houses at 395 units (9.6 per cent).
Some of the latest residential developments in Seberang Prai include Viluxe Designer Bungalows, Palma Residency, The Sky@Hillpark Alma and Metropol. Viluxe Designer and Palma Residency are gated-and-guarded developments in Batu Kawan and Bukit Mertajam, respectively.
Viluxe Designer is a luxurious bungalow development by Aspen Group comprising 133 units with a total gross development value (GDV) of about RM350 million in Aspen Vision City.
The Sky@Hillpark Alma, a luxurious high-rise condominium project by Sunrise Manner Sdn Bhd, comprises three residential towers with condominium facilities that include a sky deck, with a parcel area from 1,054 sq ft selling for RM400 per sq ft (psf).
Metropol is an upcoming mixed development project by Ramana Property in Bandar Perda, Bukit Mertajam. It offers 326 residential units with built-ups from 810 to 1,845 sq ft.
COMMERCIAL
The commercial sub-sector in Seberang Prai improved slightly in Q1 2018 whereby total volume of transactions rose 3.11 per cent year-onyear to 199 transactions, from 193 transactions in Q1 2017.
Total value of transactions increased 2.32 per cent to RM108.27 million from RM105.81 million in the same quarter last year. Central Seberang Prai continued to be the major district for commercial property transactions contributing close to 40 per cent of the total volume of transactions, followed by North Seberang Prai (31 per cent) and South Seberang Prai (29 per cent).
Major transactions include two units of threestorey shop offices at Raja Uda Business Centre with a land size of 1,400 sq ft each sold for RM1.38 million each; a three-storey shop office at Medan Kikik 1, Taman Inderawasih, sold for RM1.2 million and a double-storey shop office at Taman Carissa Villa Bagan Lallang with a land size of 1,300 sq ft sold for RM1 million.
Prices of shops at sought-after locations are expected to remain stable in the second half. Ikea Batu Kawan and Sunway Carnival Mall are key factors to influence the commercial developments in Seberang Prai.
Ikea Batu Kawan is set to open in March next year, allowing access to functional and quality home furnishings at affordable prices in the northern region.
Customers have accessibility via the Penang second link bridge from the island as well as major highways, such as Lebuhraya Bandar Cassia and North-South Expressway.
Sunway Carnival Mall, however, is undergoing major expansion that will double up its gross floor area to 1.45 million sq ft from 780,000 sq ft currently to meet the growing demand for retail space. The expansion is expected to be completed by the fourth quarter of 2020.
In the secondary market, there were active transactions with total volume and value of transactions improving between Q4 2017 and Q1 2018. During the period, total volume of transactions surged 43 per cent while total value of transactions jumped by 65 per cent. The North Seberang Prai district led the pack in total transaction value with 74.29 per cent, followed by South Seberang Prai (43.9 per cent) and Central Seberang Prai (25.4 per cent). The total value of transactions of this sub-sector for Q4 2017-Q1 2018 appreciated by 65.85 per cent with Central Seberang Prai recording the highest growth of 122.65 per cent, followed by North Seberang Prai (42.84 per cent) and South Seberang Prai (4.65 per cent).
Demands for shops remained firm, particularly in hotspots. Active transaction schemes include Taman Desa Damai, Taman Inderawasih and Taman Merak.
Three adjoining units of double-storey shops along Jalan Padang Lallang at Taman Desa Damai with land sizes ranging from 1,743 to 2,109 sq ft were transacted for RM550,000 to RM631,111 each.
In Taman Inderawasih at Perai, a three-storey shop along Medan Kikik 1 with a land size of 1,300 sq ft was transacted for RM1.2 million, while another three-storey shop was transacted at RM980,000. There are several units of double-storey shops at Taman Merak with land sizes ranging from 1,200 to 1,540 sq ft and priced between RM260,000 and RM495,000.
This sub-sector is expected to remain stable in the second half with buying interest remaining firm in hotspots like Raja Uda, Perai, Bukit Tengah, Alma and Simpang Ampat.