George Town’s historic homes present a unique opportunity for the real estate investor: They offer not only stunning architectural features you’re unlikely to find in newer builds or in other cities, but also the chance to own a piece of the past.
There are very few of these, and buying one is like making an investment in a piece of art.
But it’s a unique investor who will be drawn to such homes, as along with one-of-a-kind aesthetics and an aura of history come hurdles that require an extra degree of patience, time, and expense.
That’s because properties that are “listed” —that is, legally protected for being of special architectural and historic interest—cannot be altered as newer developments can. Instead, owners must navigate complex bureaucratic channels with the assistance of experts to ensure that they maintain their home’s historic value whenever they renovate.
One of the few remaining heritage shophouses along Muntri Street, that has retained all its original fittings and fixtures >>more
Over 4000 buildings in Penang are listed. The Historic City of George Town, as nominated by the Malaysian Government for World Heritage Listing, covers a 109.38 hectare site on the north-east of Penang Island. This is what is regarded as the core zone. Surrounding the core zone is a 150.04-hectare band called the buffer zone. Only land area is counted - the sea is excluded.
Prewar Heritage Shophouses usually fall into Category II of the conservation guideline. Category II buildings, places and sites, make up the majority of the built cultural landscape of George Town. Humble and vernacular in style, they tell of the everyday lives within the eclectic cultural landscape of George Town.
This heritage home is located on Kimberly Street, with complete structural and cosmetic renovation, retaining as many original parts of house as possible >>more
As Penang Island is only slightly more than 1⁄3 the size of Singapore with a population density of 2,372/km2 (6,140/sq mi), George Town has one of the highest population densities of all Malaysian cities.
Recognised as having a "unique architectural and cultural townscape without parallel anywhere in East and Southeast Asia", George Town contains one of the largest collections of pre-war buildings in Southeast Asia.
This postwar building is set back off China street & it was redesigned and reconstructed in the late 1940's or early 1950's >>more
The Pros and Cons of Listed Buildings
There is certainly a big appeal to listed properties from an aesthetic perspective. They’re invariably stunning, and one of the benefits is high ceilings, which a lot of buyers are interested in. The flip side is that there are restrictions as to what you can change. For a lot of buyers who want that beautiful-fronted property with all the usual mod cons of a new home, it can sometimes be a little tricky to get that.
A property’s listing generally covers the entire home, both facade and interiors, and in order to renovate any part of it, homeowners must first get approvals. The council lays out the process for making alterations to a listed home, which includes applying to a local planning authority to ensure the proposed changes won’t diminish the home’s historical character.
A petit pre-war heritage shophouse on Muntri Street, tastefully refurbished into a residence with an attic >>more
The process can be complex enough that listed homeowners typically will hire a planning consultant/architect to help them navigate their renovations.
The actual costs associated with refurbishing a listed building are generally pretty much in line with refurbishment costs for all similar-sized building. What differs is the amount of time required to obtain planning permission for any refurbishment work.
The potential hurdles associated with listed homes dissuade some investors, particularly those from overseas who lack insider knowledge of Penang real estate, in addition to the time to go through its bureaucratic channels.
These heritage properties on King Street and Church Street are elegantly refurbished with modern interior and glass panel extension, while the heritage facade is preserved >>more
It’s a certain type of investor, who will be drawn to listed buildings, one who craves a unique property that is unmistakably George Town, with an aura of history that can’t be found elsewhere. Another advantage of listed properties is that that historic feeling is often not just limited to the home, but extends throughout the surrounding neighbourhood.
The nature of Penang’s built heritage means that if one house is listed, the whole terrace or street, even surrounding treats could be listed or protected in some way. On this basis, a listing often not only protects the character of a single home, it can also maintain the character of a neighbourhood.
Potential for Appreciation
Given the unique character of listed buildings, prospective buyers might expect that such properties would offer better returns than newer developments.
Two adjoining three-storey heritage properties on Church Street which have been refurbished as a home-stay for travellers >>more
Ultimately, the value is always going to be driven by location. If a building is listed, it’s not so much the listing itself that will increase saleability, though it certainly will increase the number of people that would be interested.
A combination of historic charm and a central location is likely to attract the most interest from prospective buyers.
Finding a Balance Between Old and New
Occasionally, there are opportunities for investors to buy property that has both historical significance and modern interior, which offers them the freedom to make updates without any bureaucratic hurdles.
