GEORGE TOWN: Foreigners are snapping up prewar properties in Penang as they are good investments with guaranteed returns.
A foreign landlord, who wanted to remain anonymous, told the
New Straits Times that he and his friends had bought properties along several main lanes within the heritage zone, including Love Lane, a few years ago as they believed they were good investments.
He said he and two friends were looking at investment options when another friend told them that there was a good market for Penang prewar buildings.
“We took a weekend trip to Penang with our families to see the city.
“After seeing the growth potential, we decided to hire a property agent to look for properties along the stretch, which we could rent out or turn into boutique hotels.”
He said they had first purchased two properties and, subsequently, purchased more.
“We have seven properties now.”
He said they did not evict the original tenants, but raised the rentals recently in line with the property prices in George Town.
It was learnt that the rental was initially RM1,800 but was raised to RM5,000.
“For us, this is an investment and a business,” the landlord added.
“We are not here to destroy the heritage enclave, but to get a good return for our investment.
“I believe local landlords also see it that way and had raised their rentals.”
Penang Heritage Trust vice-president Khoo Salma Nasution said foreigners or foreign companies purchasing heritage properties was not necessarily a bad thing but it posed a problem if it was rampant and there was bulk buying.
“This tips the scale when there are more foreigners than locals.
“Penang heritage is touted as a living heritage.
“This status comes from the fact that Penang folks inhabit the cities.”
Khoo said in the past, generations of families lived in the heritage enclave, turning it into a bustling city.
“These days, however, the enclave is a ghost city at night as most of the families had been driven out by high rentals.
“Foreign buyers are driving up property prices and rental rates.
“Many families are cannot afford the rentals and are forced to move out.”
Khoo said the foreign owners would renovate the place, changing it entirely.
“Of course, they must comply with the guidelines such as using lime paint instead of regular paint and such.
“However, they can paint the property in any colour they want.
“In some streets, you can see colourful buildings, which do not reflect the heritage of the city.
“In other places, they build around the heritage building, completely obscuring the heritage building.”
Khoo said the main issue was the identity of Penang and its heritage enclave.
“Is it a living heritage city or a tourist city?
“A place owned and inhabited by locals or a place owned by foreigners and inhabited by whoever pays the most?”