Real estate agency still sees strong interest and confidence

November 18th, 2017 No comments

affordable-housing-penangPenang’s residential property transactions is expected to experience more than 5% contraction this year compared to 2016.

Raine & Horne Malaysia senior partner Michael Geh tells StarBizWeek he is projecting a more-than-five-percentage dip in residential transactions in 2018 although there is “still strong interest and confidence” in Penang.

The first half of 2017 saw residential volume of 5,697, compared to 6,698 in 2016, a drop of 15%.

“The value of transactions for residential homes in the first half of 2017 was around RM2.45bil, compared with RM2.65bil in 2016’s first half,” Geh says.

“In the second quarter of 2017, the transaction for all types of properties in Penang was 3,881 units, a drop of about 3% from 4,003 in the first quarter.

“The contraction is slight, which shows that there is confidence still in the local property market,” he adds.

Following the recent Penang floods, he expects fewer projects to be launched in 2018 as developers redraw strategies while awaiting new housing guidelines from the state. This is particularly for those areas near hills and in flood prone zones.

“All this could slow down property transactions over the next 12 months. We may even prices drop below market price near hill slopes and in flood prone areas. This could happen if sellers are determined to let go of their properties,” Geh adds.

Depending on the stringency of the guidelines, he says the cost of developing projects near the hills could be very high as a result of new safety measures imposed.

“Demand for properties on flat grounds would rise, pushing up prices for such properties. Buyers would be extra cautious with hill slope/flood prone areas. This is another factor that could contribute to slower and lower transactions.

The sub-sale price of high-rise properties on the island has either stagnated or contracted slightly since 2014.

In Tanjung Bungah, current prices are between RM720,000 and about RM1mil, depending on the size and location.

In Batu Ferringhi, it is between RM620,000 and RM820,000 for a high-rise unit, while the selling price of a detached landed property could range from RM2mil to RM2.7mil, depending on size and location of the properties.

In Paya Terubong, a high-rise unit was transacted between RM230,000 and RM435,000. In Jalan P. Ramlee, the selling price of a high-rise unit may have a wide range of between RM125,000 and RM405,000.

Henry Butcher Malaysia (Seberang Prai) Sdn Bhd associate director Fook Tone Huat says the floods affected some of the more popular locations.

“The demand for properties in these areas is likely to be impacted during this transitional period as Penangites try to get back to routine.

“However, after a period of time, coupled with the remedial actions taken against the floods, buying interest will normalise,” Fook says.

These include locations in central Seberang Prai such as Sungai Rambai and Padang Lallang, Juru and part of the Alma areas. In north Seberang Prai, the popular area of Sungai Dua has also been affected.

Landed terraces in Taman Pauh, Taman Sejahtera and Taman Bayu Mutiara have risen by between 26% and 29% since 2014, when the slowdown started.

In north Seberang Prai, the pricing of landed terraces has risen by 11% to 33% since 2014.

Land prices in central and north Seberang Prai are now priced between RM50 per sq ft and RM130 per sq ft, about 5% to 10% higher than in 2014. The increase in land costs has translated into higher prices.

“New double-storey terraced units in south Seberang Prai are now priced between RM400,000 and RM500,000, which is 5% to 10% higher than in 2014.

“Double-storey terraced houses in prime locations of central and northern Seberang Prai have also increased by 5% to 10% to RM450,000 to RM650,000,” he adds.



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UPCOMING: Batu Kawan / Aspen Group

November 16th, 2017 2 comments


A newly proposed mixed development by Aspen Vision City Sdn. Bhd. (Aspen Group) at Batu Kawan. This is part of the 245-acres masterplaned development of Aspen Vision City, located between IKEA Store and Vervea commercial precint.

The proposed development comprises 20 units of shop offices and three high-rise towers, offering a mix of condominiums, office suites and hotel rooms:

  • Block A: 34-storey condominium (295 units)
  • Block B: 48-storey condominium (332 units)
  • Block C: 30-storey hotel (308 rooms) & office suites (81 units)

This project is still pending for approval. Details to be available upon official project launch.

Project Name : (to be confirmed)
Location :
 Batu Kawan, Penang
Property Type : Mixed development
Built-up Size: (to be confirmed)
Total Units: 627 (condo), 81 (office suites), 20 (shop offices)
Indicative Price: (to be confirmed)
Developer : Aspen Vision City Sdn. Bhd. (Aspen Group)

Register your interest here

(This information may be used by the developer or their appointed agent to initiate follow-up communications with you on the project.)

Location Map:

Center map



DISCLAIMER: This article is solely based on research done using publicly available data. This is not an advertisement, unless stated otherwise. Any claim, statistic, quote or other representation about a project or service should be verified with the developer, provider or party in question.

Batu Maung units snapped up

November 16th, 2017 12 comments


A total of 100 M Vista apartments have been taken up at a preview held at a show gallery in Batu Maung, Penang.

“This overwhelming response indicates a strong demand for affordable property.

“M Vista comprises 237 apartments located in Batu Maung.

“The units are priced from RM345,800,” said Mah Sing Group Bhd managing director Tan Sri Leong Hoy Kum in a statement.

“Under the campaign, Mah Sing hosted simultaneous previews and unit selections for three projects across Malaysia.

The projects were M Centura in the Klang Valley, Fern in Meridin East, Johor Baru, and M Vista in Penang.

“M Centura and Fern both recorded a commendable average take-up rate of 95%,” Leong added.

M Vista focuses on providing convenience for its buyers from all walks of life.

Residents of the units ranging in size from 536 to 1,201sq ft will enjoy ample facilities.

They include barbeque and outdoor dining areas complete with a herbarium corner filled with edible herbs available for use.

There will also be an indoor play area and reading corner for children, relaxation area, secret garden and gym.

The development is strategically located only 1km from the second Penang bridge and about 9km from the Penang Bridge.

It is also near the Tun Dr Lim Chong Eu Expressway.

Find out more about M Vista @ Southbay



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Columbia Asia Medical Centre

November 15th, 2017 No comments

Columbia Asia

Columbia Asia, an upcoming private medical centre at Batu Kawan. The brand offers 29 medical facilities across Asia with 12 in Malaysia. It provides healthcare services at affordable price with facilities of international standards. The full-service hospital at Aspen Vision City is the only Columbia Asia facility in Penang and the second in the northern region.

Located opposite the upcoming KDU University College and Utropolis development by Paramount Group, adjacent to Vittoria Financial Centre. The medical facility will occupy a site measuring approximately 3 acres, to be equipped with 150 beds.

Location Map:

Center map



Categories: Batu Kawan Tags: ,

Condominiums and apartments overhang worsens in first-half 2017

November 14th, 2017 9 comments
Picture for illustration only

Picture for illustration only

The overhang in stratified properties or apartments and condominiums has worsened, with the number of unsold units rising 40% to 20,876 units in the first half of the year (H1 2017) from 14,792 units in H2 2016.

Deputy Finance Minister II Datuk Lee Chee Leong said the 20,876 units are worth RM12.26 billion and are dominated by apartments and condominiums priced between RM500,000 and RM1 million.

“It is an issue of pricing and affordability as well. Whether this will result in reduced prices, that will depend on the location of the supply, whether the residents around there can afford it or not,” he told reporters at a briefing on the Property Market Report for H1 2017 today.

According to the report published by the Valuation and Property Services Department (JPPH), Kedah surpassed Johor in overhang numbers, with nearly 21% (4,363 units) against the latter’s 18%, followed by Selangor with 17%. Kuala Lumpur made up just 3% of the total overhang.

Residential units that were unsold and under construction also increased, rising 6.5% to 68,245 units in H1 2017 from 64,077 units in H2 2016. The majority of these units too were stratified properties.

Due to the challenging market condition, new residential launches fell 9.1% to 28,397 units in H1 2017 from 31,257 units in H1 2016. Most of the launches were in the RM400,000 to RM500,000 price range with sales performance of 28.9%.

On the construction front, more housing starts were recorded, increasing 16% to 67,662 units in H1 2017 from 58,348 units in H1 2016. Completions and new planned supply reduced to 43,132 units and 43,133 units respectively.

“As at end June 2017, there were 5.35 million existing residential units with nearly 0.49 million in the incoming supply and 0.42 million in the planned supply,” said Lee.

JPPH (operation) deputy director general Dr Zailan Mohd Isa said the 16% increase in residential starts shows that investors are confident in the economy.

“These are investors, billions involved. So if you look at property as an indicator of the economy, it is a good sign of our property industry,” she said.

On whether the market will be able to absorb the new supply of homes, National Property Information Centre (Napic) director Khuzaimah Abdullah said the impact is yet to be seen.

“I am sure the developers are very prudent people. If there are no takers, no buyers, I’m sure they would hold off construction because once you are into the construction stage, there’s no turning back. If you have not started then you can hold on,” she said.

In the office and retail sectors, occupancy rate was above 80% but unoccupied space remained high, with 3.4 million square metres of unoccupied private office space.
Kuala Lumpur recorded the highest unoccupied space with more than 1.62 million square metres, followed by Selangor with 0.87 million square metres.

The retail sector recorded more than 2.79 million square metres of unoccupied space, reflecting an increase of 2.6% from the preceding half. Selangor and Penang Island recorded higher unoccupied space of more than 0.5 million sq metres.

“I must emphasise that both issues – residential overhang and commercial space vacancy are pertinent issues that must be addressed by all parties, particularly local authorities and property developers. Both must exercise due diligence before arriving at development decisions to avoid oversupply,” said Lee.

Overall, the property market continued to soften in H1 2017, recording 153,729 transactions, a decline of 6% from 163,527 transactions recorded a year ago. However, the overall value of transactions rose 5% to RM67.82 billion from RM64.60 billion a year ago.

Lee said the property market is expected to remain soft in the next couple of years but will be supported by various property-related incentives and accommodative monetary policy.


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