The bridge that kicked off a 500% property boom 12.03.2014 moneyweek/new-world-the-bridge-which-kicked-off-a-500-property-boom/ Penang’s ( Malaysia ) first bridge was built by Hyundai Engineering of South Korea in 1985, at a cost of RM800m (USD$243m). At that time, it was the longest bridge in Southeast Asia. It was an icon of modernity in this part of the world – it even hosted 8.4 miles of the Penang marathon every year. Well, on 17 November, the Penang marathon took place on Penang Bridge for the last time. From now on, the annual competition will take place on the recently completed Penang Second Bridge, which, at 24km, is the longest link in Southeast Asia. The first bridge, which was state of the art not long ago, can’t handle the volume of traffic. This weekend, over 10,000 people descended on Penang to celebrate the opening of the bridge. The people of Penang have a lot to celebrate right now. This fishing village and the surrounding area on the island and the counterpart on the mainland, Batu Kawan, are buzzing with building cranes competing to put up office blocks, shop lots, condominiums and industrial parks. Penang is pulling up its socks and things are starting to happen. Since the announcement of the bridge project in 2006, land prices in Batu Maung have leaped from RM50-60 per sq ft to around RM250-300 per sq ft. New apartments, which used to cost between RM250,000-300,000 each, now cost between RM700,000-800,000. And there’s a lot more to come from the infrastructure boom in this part of Asia. * * * * * This construction boom is just getting started * * * * * 12.03.2014 * * * * * Last month, Ikea announced it had, together with a local partner, acquired 245 acres in Batu Kawan in mainland Penang. Starting construction in 2015, the Ikea store and the first phase of the shopping mall will take up 30 acres while another 45 acres have been set aside for the second phase. The remainder will be used for mixed development. The new Ikea store is likely to open in 2020. Bullish tell sign. We wrote in a previous issue that opening new Ikea stores is a good indicator of cheerful markets. Looking ahead, there are plans to build a 6.5km undersea tunnel between Penang Island and the mainland. The project, due to be completed by 2025, is said to cost RM6.5bn ($2bn) and be undertaken by China Railway Construction Corporation International (CRCC) and Beijing Urban Construction Group (BUCG). CRCC will undertake 70% of the construction work while BUCG handles the remaining 30% .
Posted on: Wed, 12 Mar 2014 18:15:18 +0000
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