Planning to start AirBNB business in Penang but wonder where and how to make it? Before moving towards this subject, it is wise to understand on why there is a need to establish Airbnb business in Penang from the economic perspective.
Recent reporting in newspaper, shows concern from Penang Government to Federal Government in the overcrowded Penang airport. Presently, it can handle 6.5million passengers a year, but as at last year the airport reached 7.2 million passenger.
Passenger growth to Penang is expected to grow by about 10% annually. A long-term measure by the state Government for the expansion is to reach a capacity of 12million passengers a year.
Further to the state airport, there is also talk on having a LCCT terminal in Penang to be located at the south island of Penang from the reclaim land with about 36 ha of land. The additional LCCT will use the same runway and hence, it is still to be located around the vicinity of existing airport.
Penang, for the last decade has being in the Electronics manufacturing sector with contribution of 44.1 per cent in 2015, whilst 49.5 per cent by services industry. Tourism industry will spearhead services industry sector, with Medical Tourism on the rise.
In summary of Penang’s economic, in coming 5 years:
- Penang Airport Expansion catering more passenger to Penang, with targeted 12 million passenger
- LCCT Terminal, with AirAsia bringing budgeted passenger
- Medical Tourism on the rise
- Velodrome and Sport complex coming up soon at Queensbay mall site. This will further bring-in more international event, sportsman and tourists to Penang.
- Expansion of Spice Arena for major exhibition and Concerts
All these development are concentrated towards south of Penang which is expected to be the next booming area to support the major development.
So, with all these, do you think Airbnb or short term rental is viable for Penang in the coming years? There are many who invested in Apartments with Residential title, and use them for Airbnb or any short-term rental. There may be objections from Resident Association for those renting out for Airbnb as to protect Residents privacy. This may further escalate to the Government authorities.
Moving forward, and if one is serious in Airbnb business, it is viable to get a commercial title for such business as to reduce the headache from the authorities. PBA/TNB/Assessment/Quit Rent is higher compare with Residential title.
Introducing, the new Sunsuri Residences, located at Bayan Lepas. Build on land area of 3.787 acres, it is strategically located near to Spice Arena. Completion is expected on 2023. Two Towers with sizes ranging from 425sqft, 500sqft, 600sqft and 800sqft.
Unit with 425sqft and 500sqft will be with 1 bedroom and 1 bathroom. Unit 500sqft and 800sqft will have 2 bedrooms and 2 bathrooms. For 800sqft, it will offer a Dual Key concept and tandem car park with ability to park front and back.
Build on Freehold land but with Commercial Title (under HDA). This will remove fear of having complaints from Residents Association.
Packages includes free air-conds, kitchen cabinet with hood and hob as well as Smart lock.
Low down payment to start off and several subsidized documentation fees. 6% per annum Financial Return for 3 years is an attractive package to start off with Airbnb business. This will somehow, partly covered for bank loan repayment.
So why this Residence is so attractive?
- Legal status for Airbnb, Homestay or Short-term rental
- Potential tenants from Exhibitors from Spice Arena, tourist, near to MNC’s renting short-term contracts for Engineers from different countries.
- Hotel like facilities with gym, pool, restaurants and meeting rooms.
- Minimum start-up for Airbnb
- 6% return per annum for 3 years
- Cheaper and able to accommodate more people comparing with renting rooms in Hotel.
- Strategically located at the Growth zone of Penang
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