Its confidence stems from the shortage of landed property projects on the island.
"Developers are now returning to high-rise development projects since it is no longer viable to build landed properties in prime locations where land prices have increased by 50 per cent over the past few years," One Asia Property Group's chief operating officer Lim Ewe Tatt told Business Times.
He cited a plan by the state authorities to raise the density for property developments in certain parts of Penang as one likely reasons that there will be a decreasing supply of landed properties on the island.
Ahead of its launch today, a total of 32 Asia Hills bungalow units have been sold.
The units, which are priced from RM1.5 million to RM2.2 million each, are sprawled over 2.24ha along the upmarket Bukit Jambul residential enclave.
Lim said 80 per cent of the buyers live in Penang and the remaining 20 per cent are Penangites now residing overseas.
"The locals are made up of industrialists and businessmen who work in the Bayan Lepas area or in Seberang Prai," he added.
The gated Asia Hills project is located near the Penang International Airport and Penang Bridge.
Among the features of the development are a cascading waterfall into a swimming pool, concrete imprinted roadways, round-the-clock community closed circuit television monitoring and a guardhouse at its entrance.
On how RM1 million properties such as Asia Hills remain sellable to investors, Lim said: "A project of this nature would have appeal to those wanting to upgrade their property investments."
"Those who bought their properties for RM400,000 have probably seen their units appreciate and are now worth between RM600,000 and RM700,000, so they simply need to top up on their new purchases."
Since its inception last year, One Asia Property Group in Penang has been involved in marketing three property developments.
Early this year, the company represented a public-listed property developer in selling off en-bloc retail units worth RM40 million.
By Business Times
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