According to a recent article by The New York Times, a nineteenth-century shophouse in George Town, which was purchased by a couple in 2009 for nearly RM595,000 and cost approximately RM298,000 to renovate, is now valued at over RM2.75mil.1
In nine years, the price has more than quadrupled. The average transaction price for such properties is now at about RM1,800 per square foot, from RM300 pre-2008.2
Many buildings in George Town are used for commercial purposes, and certain activities in specific areas are highly encouraged under the implemented George Town Special Area Plan (SAP) – for instance, the gold and gem trade, as well as the restaurants catering to the Indian Muslim community, around the Kapitan Keling Mosque and the gold bazaar area.
However, not all buildings can be converted for commercial use. Such a procedure can cost a huge sum – we’re talking about thousands of ringgit. Setting up shop in George Town is no small matter. Natalie*, for instance, found renting in George Town to be exorbitant: on Lebuh Love, monthly rental ranges from RM6,000 to RM8,000.
