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This article features insights from our real estate negotiators, Mohd Saiful, on why the state is ideal for homebuyers seeking to experience urban development and rich in natural resources.
Welcome to Pahang! Malaysia’s hidden gem tucked away on the lush, green side of the country. Known as the third largest state in Peninsular Malaysia, the city is not just big in size—it’s also big in charm.
From the cool hills of the Cameron Highlands to the pristine beaches of Cherating, Pahang offers a delightful mix of natural beauty and cultural richness.
With its strategic location, affordable property options, and ongoing development projects like the East Coast Rail Link (ECRL), here’s how Pahang is quickly becoming a hotspot for both living and investment.
What to know about Pahang property?
- 1. What is the current property like in Pahang?
- 2. Why do people buy/invest in property in Pahang?
- 3. What are the housing trends like in Pahang?
- 4. Which area of Pahang has good potential for property?
- 5. What are the main opportunities for people to invest in Pahang?
- 6. What areas are identified as Pahang’s hotspots?
- 7. What are the differences between project and sub-sale?
- 8. Why is Pahang a good place to live?
- 9. Advice for people who want to invest in Pahang
1. What is the current property like in Pahang?
1. Affordable housing
The rising cost of living has created a greater need for affordable housing in Pahang, especially for the B40 income group. To address this, the Pahang State Government has started projects like PRIYA Kuantan.
Private developers, such as Lagenda Properties, are also providing affordable homes priced below RM200,000, competing with government programs like Priya and PR1MA. Other developers are offering homes in the RM250,000 to RM300,000 range as well.
2. Infrastructure development
Recent infrastructure developments have further influenced property values in Pahang. Notable projects include the LPT2 (Lebuhraya Pantai Timur 2) highway and the East Coast Rail Link (ECRL).
The ECRL has significantly boosted property demand and values, particularly seen in the new township in KotaSAS, Kuantan. These infrastructure upgrades are linked to higher property prices due to better connectivity and easier access.
2. Why do people buy/invest in property in Pahang?
According to Saiful, residents are seeking opportunities, often referring to it as passive income. For locals, purchasing property in their own area makes it easier to keep track of and manage. Investors from other states are targeting a more affordable option since property prices are lower compared to Kuala Lumpur, Selangor, and Penang.
Typically, there is a high rental yield, and investors are interested in the potential returns. In Kuantan, the return on investment (ROI) ranges from 7% to 14% annually.”
Mohd Saiful
Additionally, Pahang is developing new urban areas, expanding city centres into smaller towns. New developments include KotaSAS in Kuantan and Bandar Putra and the KWRC Kuantan Waterfront Resort City in Tanjung Lumpur. By 2024, Pahang’s population is projected to reach 2.7 million, representing 79% of Malaysia’s total population.
3. What are the housing trends like in Pahang?
Single-story terraces, two-story homes, and semi-detached houses are in popular demand. Additionally, buyers are leaning towards greener and eco-friendly township developments, such as Aman Plus in Taman Kuantan Jaya, Tas Plus in Batu 10 Kuantan, and the Marina in Tanjung Lumpur.
4. Which area of Pahang has good potential for property?
Kuantan, Genting, and Cameron Highlands are well-known destinations for property investment, tourism, and entertainment. Additionally, Temerloh has been experiencing growth in residential property purchases.
Jengka, home to the largest Felda settlement in the peninsula, is also an attractive area for residential development.
In Pahang, we have seven ECRL stations: Cherating, Gebeng, Kotasas, Gambang, Maran, Temerloh, and Bentong. These stations are prime for investment, as there’s a good chance people will want to rent nearby.”
Mohd Saiful
5. What are the main opportunities for people to invest in Pahang?
For those interested in seaside living, the Sea Crestz project by Exsim is a great opportunity for generating passive income through Airbnb without the hassle of managing guests or being on-site.
On the tourism front, Pahang is making waves in Japan (yes, Japan!) with attractions like Cameron Highlands, Genting Highlands, and the National Park. Investors can also dive into agriculture by purchasing land for crops like oil palm, durian, tea, pineapple, rubber, and coconut.
They also have retail and commercial spaces available, including shop lots and corner buildings. These can be perfect for nurseries, colleges, or other educational institutions.
6. What areas are identified as Pahang’s hotspots?
Kuantan, the capital of Pahang, serves as the state’s number one hotspots. It has earned the title of ‘Event City’ due to hosting 10-11 events per week.
Next, Saiful noted that Cameron Highlands is the go-to place for those who enjoy cooler weather. You can visit tea and strawberry farms, and Highland Tiles is a favourite spot for both locals and tourists.
Heading in the opposite direction, Pekan is known as the Royal City, rich in historical and cultural significance. Raub is famous for its Musang King durian farm, while Jerantut boasts the National Park, home to some of the oldest rainforests on the planet.
7. What are the differences between project and sub-sale?
Projects primarily target residential and commercial sectors are more budget-friendly and ideal for individuals with limited savings. Additionally, the designs tend to be more contemporary and align with current trends.
In contrast, the demand for sub-sale properties is lower than for new projects. However, sub-sale options are suitable for those with sufficient financial resources, as they can often be acquired at prices below market value.
8. Why is Pahang a good place to live?
Two words: natural beauty.
By now, you have learned a lot about amazing residential spots in Pahang like Kuantan, Cameron and Genting Highlands, and why they’d make a solid investment choices.
Beyond the development projects like LPT2 and ECRL, Pahang boasts natural treasures like farms, plantations, and rivers, including the Pahang River, the longest in the peninsula; ideal for nature lovers. And let’s not forget the stunning beaches in Kuantan, Pekan, and Rompin.
The cost of living here is balanced—not too high, not too low.
9. Advice for people who want to invest in Pahang
According to Saiful, research plays a key role in determining market value. Always consider future developments.
Verify the value, whether you plan to take a loan from a bank or LPPSA. Focus on value rather than just price!”
Mohd Saiful
So there you have it, Pahang is set to become the next-big-thing in terms of property development!
Based in Kuantan, Pahang, Mohd Saiful is a Team Leader, Top Project & Buddy Manager IQI iRealty Group. His commitment and resilience in the real estate industry have earned him several accolades, including the ‘Top 10 Project Performer HI 2024’ award.
For more real estate updates, be sure to follow Saiful Property’s Facebook page and the Kuantan Daily News Facebook page.
You’ve discovered the key factors that position Pahang as a prime property investment opportunity! With its stunning scenery, and ongoing urban development, now is the perfect time to connect with our experts to explore your property purchasing options.
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