In view of the solid demand for high-rise residence in prime sites, UDA Land (North) Sdn Bhd is eyeing to launch a RM650 million condo development on a leasehold site in Tanjung Tokong by Q1 2013.

Kamarudzaman Mohd Zain, Chief Operating Officer at UDA Land, said that the development will comprise units with built-up areas ranging from 1,400 sq ft to 1,800 sq ft, and priced over RM800,000.

He also noted that residential properties situated in prime locations and with good pricing are still selling very well.

"For example, Brezza, comprising 312 condominium units of between 1,250 sq ft and 1,450 sq ft in the same location as Darra, was sold out in a year to mainly local buyers."

Aside from that, prices of the project's units have "appreciated to about RM700,000 from the initial pricing of between RM350,000 and RM500,000 per unit in late 2010."

Meanwhile, demand for commercial properties in prime locations is still healthy despite the slowing economy.

In particular, the four-storey Vantage Desiran Tanjung business centre, which offers 120 units of shop/offices, is already sold out although it is only 80 percent completed.

"The RM87 million Vantage Desiran Tanjung sold well because of its broadband facilities, ample car park bays. The project's proximity to a hospital, international hotels, botanical gardens, and renowned project Straits Quay mall in Tanjung Tokong were plus points," he added.

Lim Chien Aun, registered and chartered valuer at C.A. Lim & Co., observed that "leasehold properties in prime locations are now appreciating faster than freehold properties in a non-prime location."

Micahel Geh, Director at Raine & Horne Malaysia, said Penangites now give more importance to the property's location than to the status of the land it occupies.

"They are now looking for conveniences and amenities like easy access to shopping malls, food and beverage outlets, banks, cinemas and hospitals."

He added that "some of the leasehold projects on prime locations in the island have been appreciating at over 10 percent per annum over the past two years."

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