Penang: The Rising Star of Investment and Relocation for Hong Kong Investors Seeking a Dream Holiday Home, Retirement or Living Destination

Hong Kong’s housing market has long been considered the least affordable in the world, with the median property price being 23 times greater than the median household income. As a result, many investors are turning to overseas property markets to diversify their risk and obtain better yields at lower entry prices. Malaysia has emerged as a top choice for property investment due to its impressive economic growth. In 2022, Malaysia recorded a robust GDP growth of 8.7%, making it the fastest growing economy in Asia. This growth is particularly noteworthy considering the challenges faced by other economies, such as the rising worldwide energy prices that have resulted from the conflict in Ukraine. As one of Asia’s major exporters of oil and gas, Malaysia has managed to maintain relatively low inflation rates when compared to countries in Europe, the UK, and the US.

Moreover, with China’s international borders remaining closed for an extended period, many companies are looking to secure their supply chains by turning to neighbouring Southeast Asian countries. Malaysia plays a vital role of contributing 13% of the global supply for semiconductors. Penang alone accounts for 80%, making it an attractive destination for investors looking to capitalise on the region’s remarkable economic growth and invest in the country’s real estate market. Key Reasons Why Malaysia’s Real Estate Market is Particularly Attractive for Investment • Foreigners can purchase both freehold apartments and land under your own name • Foreigners can obtain mortgage loans easily • Common law legal system • Zero inheritance tax policies Strategic Location in Southeast Asia Malaysia’s location along the Straits of Malacca, one of the busiest shipping lanes globally, has made it a vital transhipment hub for goods transportation between Asia, Europe, and the Middle East. With easy access to major markets in the region, including China, Taiwan, Thailand, Vietnam, Japan, and South Korea, Malaysia is an attractive destination for foreign investment. With a direct Cathay Pacific flight taking only 3.5 hours, and no time difference, Penang’s proximity to Hong Kong makes it an attractive destination for investors.

Key Reasons Why Malaysia’s Real Estate Market is Particularly Attractive for Investment

• Foreigners can purchase both freehold apartments and land under your own name
• Foreigners can obtain mortgage loans easily
• Common law legal system
• Zero inheritance tax policies

Strategic Location in Southeast Asia

Malaysia’s location along the Straits of Malacca, one of the busiest shipping lanes globally, has made it a vital transhipment hub for goods transportation between Asia, Europe, and the Middle East. With easy access to major markets in the region, including China, Taiwan, Thailand, Vietnam, Japan, and South Korea, Malaysia is an attractive destination for foreign investment. With a direct Cathay Pacific flight taking only 3.5 hours, and no time difference, Penang’s proximity to Hong Kong makes it an attractive destination for investors.

Penang’s 59% Chinese population – making for ease of communication and cultural similarities

Malaysia’s large Chinese ethnic population makes it attractive to people from Hong Kong looking to invest or live there. Penang Island in particular has the highest concentration in the country, with a whopping 59% of the population being of Chinese descent. With Cantonese and Mandarin widely spoken among Chinese Malaysians, communication is a breeze, and cultural similarities make Malaysia a comfortable environment for those looking to relocate.

Affordable property prices and relatively higher rental returns

Penang’s property market offers relatively affordable prices compared to Hong Kong. The average price per sq.ft. in Penang is around HK$2,000, which is significantly lower than the HK$20,836 on Hong Kong Island (according to the Global Property Guide). This price difference means that investors can get more for their money in Penang, allowing them to invest in more properties or purchase larger spaces for the same price as a smaller space in Hong Kong. Furthermore, Penang’s rental yield is 4 to 5%, which is higher than Hong Kong’s 1 to 3%. Penang is an excellent option for investors looking to diversify their portfolio and maximise their return on investment.

High quality of life

Penang, Malaysia’s most liveable city according to ECA International, is also a culinary hotspot, ranking first among the world’s top culinary destinations by Lonely Planet. Penang also boasts a range of activities and attractions that appeal to all ages. Shopping enthusiasts can indulge in retail therapy at Gurney Paragon Mall, while thrill-seekers can get their adrenaline fix at Escape Theme Park with its water park and land activities like zip lining. For a more relaxed outing, visitors can take a ferry to the famous resort area of Langkawi or enjoy outdoor activities on Penang’s famous Batu Ferringhi Beach. Foodies will also be delighted with the variety of options available, from the famous Gurney Drive Hawker Centre to seafood restaurants, while those looking for a night out can visit the bars along Chulia Street in the historic centre of George Town.

Penang – Dubbed “The Silicon Valley of the East” by BBC

Penang’s Bayan Lepas Free Trade Zone (FTZ), the city’s economic lifeblood, was Malaysia’s first FTZ created in 1972. Today, there are over 350 multinational corporations and 4,000 small and medium-sized enterprises operating in Penang, specializing in the manufacturing of vital semiconductor technology. In the midst of the covid-19 pandemic in 2021, Penang recorded the highest GDP growth of 6.8% among Malaysia’s 13 states. In the same year, Penang received a record-breaking investment of MYR76.2 billion, a surge of 440% year-on-year, with a notable Foreign Direct Investment by Intel of USD7 billion to expand its existing facility in the FTZ, which will create a further of over 4,000 jobs. These developments are set to have a positive impact on Penang’s real estate market, with increased demand for commercial and residential properties from both locals and foreign investors looking to capitalize on the city’s economic growth.

Muze at Penang International Commercial City (PICC) – a landmark smart city development

Penang International Commercial City (PICC) is a masterpiece crafted by the renowned Penang-based developer, Hunza Properties Group. With 45 years of real estate development experience, Hunza has created a project that offers unparalleled accessibility, convenience, and luxury. PICC offers direct access to a shopping mall, 5-star hotel, park, medical centre, and A-grade offices, making it a perfect location for those who crave convenience. And with a seamless LRT connection, the Convention Centre is only one-stop away