Next to Kuala Lumpur, Penang is probably the most highly urbanized island in all of Malaysia. It is home to more than 1.7 million Malaysians who enjoy high standards of living but with considerably minimal costs than that of KL. Although a haven of development, Penang still houses the charm of the old-world – breathtaking coastlines, lush greenery, nature parks, wild animals, to name a few. This is primarily the reason why both foreign nationals and locals are drawn to getting their prized properties in the region.
Realty developments in Penang are mostly centred in its capital city, Georgetown. The possibility of property offers is boundless – restored houses, boutique serviced apartments, waterfront condominiums, and luxury high-rises. Any purchase must be coursed through the State of Penang as some laws are being mandated to acquire a property in the area. For example, locals and foreigners will be allowed to get a condominium unit only if the price of the unit reaches a total of RM 1,000,000 (USD$238,000). For land properties, on the other hand, the benchmark is at RM 3,000,000 (USD$713,000). Additionally, for foreign buyers, an additional 3% levy tax is added to the purchase price as a processing and consent payment that is directly paid to the Penang local government.
The required purchase amount may seem stiff for locals, but foreigners seem to see this as a reasonably great buy. Compared to other city and coastal properties in other areas such as Europe and the Americas, Penang properties are seen as a great deal for retirement and holiday destinations. With temperature and climate that is ideal for an everyday beach getaway, with economical water and electric utilities that are probably less than a quarter of what is paid in other countries, with great world-class medical facilities but only for the price of not even a tenth of what is spent abroad, and with food that costs less than triple of what foreigners pay for in their hometowns, Penang is certainly a great destination for those who would like to have the best and yet the cheapest in the world.
