PROPERTY investors should look out for the connectivity of road infrastructure when it comes to securing ideal property, said Zeon Properties chief executive officer Leon Lee in Penang.
He said infrastructure such as transportation hubs and bridges were vital elements that ensured property prices in their surrounding areas would soar.
Citing an example, Lee said the completion of a bridge connecting Shenzhen, China, and the New Territories of Hong Kong, had seen property prices in the surrounding areas escalating by about 155% over a period of 10 years.
He singled out another example in the form of the Malaysia-Singapore second link connecting Tanjung Kupang, Johor and Tuas in Singapore.
“In 2002, the property price in New Territories of Hong Kong was about HKD$29,522 (RM12,154) per sq m.
“It shot up to HKD$75,416 (RM31,049) in 2013, which took only about 10 years.
“My logic is simple, just watch out for those infrastructure. If there is connectivity or the distance between one place and another is shortened, property prices in that area will surely shoot up,” he told the participants during his talk titled ‘Infrastructure Goes a Long Way When Picking the Best Property’ at G Hotel on Saturday.
On a local perspective, Lee said the prices of property in Batu Maung had increased significantly as the second Penang bridge is scheduled to open to traffic soon.
“In 2007, a terrace house in Batu Maung was worth about RM700,000. But now, a similar unit is priced at RM1.4mil. This is evident to my point earlier,” he said.
He added that Penangites should take notice of the recent announcement by the state government, including the 6.5km undersea tunnel project linking Gurney Drive and Bagan Ajam.
The projects also comprise a 4.6km bypass linking Air Itam to Tun Dr Lim Chong Eu Expressway, 12km Tanjung Bungah-Teluk Bahang paired road and a 4.2km stretch between Gurney Drive and Tun Dr Lim Chong Eu Expressway, bypassing the city centre.
“Chances are high that property prices will boom in the surrounding areas,” Lee said.
The talk was sponsored by Hong Leong Bank.
Penang Property Fair a huge success
Seven of the property development companies exclusively marketed by Zeon Properties Sdn Bhd generated RM136mil in sales over the past four days from Thursday.
Masmeyer Holdings Sdn Bhd generated RM50mil in sales from some 50 units of its Marinox condominium in Tanjung Tokong.
Zeon chief executive officer Leon Lee said Singapore-based UOA Group and Magna Putih respectively sold about RM25mil and RM20mil worth of property in Kuala Lumpur and Penang.
“UOA sold about 25 units of its Scenaria@North Kiara Hills condominium project in Mont Kiara while Magna Putih sold 20 units of its Mansion One serviced suites in Jalan Sultan Ahmad Shah, Penang.
“Other developers such as Mayland Universal Sdn Bhd (RM15mil), Mammoth Empire Holdings Sdn Bhd (RM10mil), Malaysian Resources Corp Bhd (RM15mil), and Venn Properties Sdn Bhd (RM6mil) registered RM46mil in sales,” he said.
Lee said the achievement was higher than anticipated in view of the increasing difficulty for buyers to obtain bank financing nowadays, adding that partial payments were received for the sales.
“Among the projects that attracted much attention and enquiries included Venn Signature, a gated terraced project by Venn Properties in Jalan Raja Uda, Butterworth.
“Penang investors were also attracted to the Scenaria@North Kiara Hills by UOA Group, as the units are priced competitively,” he said.
UEM Sunrise Berhad, SP Setia Bhd, Bukit Kiara Properties Sdn Bhd, TPPT Sdn Bhd, and Lone Pine Group achieved RM68.6mil in sales during the event which ended yesterday.
SP Setia sales and marketing manager Susie Loh said they secured RM18.6mil in sales despite many people not being able to make up their mind on the spot.
“But we are hopeful of converting a large number office reservations into sales. Many wanted to check out our project sites before signing.”
UEM sales and marketing senior manager Shamsul Bahari Aini said they managed to hit RM20mil.
“We sold about 15 units and this is one of our best results in The Star Property Fair.
“In fact, I believe we can even surpass our target as there are at least five buyers who looked really interested in our projects,” he said.
BHL Waterfront Sdn Bhd and Bandar Utama Development Sdn Bhd secured RM20mil and RM3mil in sales respectively.
The Star advertising sales and business development manager (north) Simone Liong said about 40,000 people visited the fair.
The official event partner is Zeon Properties and Hong Leong Bank is the sponsor.
By DAVID TAN and TAN SIN CHOW email@example.com/Asia News Network
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