Archive for the ‘Property News’ Category

Income eligibility for PR1MA homes increased

January 18th, 2017 No comments

pr1ma-gelugor-illustrationHomeownership has become easier after Projek Perumahan 1Malaysia (PR1MA) enlarged the eligibility pool.

Prime Minister Datuk Seri Najib Abdul Razak said the income cap has been increased from RM10,000 to RM15,000 to allow more people to purchase their own homes.

He said this was part of efforts to lower the entry bar for those wanting to purchase a place they can call their own.

In line with making PR1MA units more attractive, Najib added that the moratorium period – where purchasers are forbidden from selling their units within a given time – has been shortened to five years from 10.

He said this not only gave people the opportunity to own their home but also transferred wealth in the form of properties to the people.

He expressed his confidence the new measures will not only increase the eligibility pool but make PR1MA homes attractive to those looking to own a home.

“The government recognises the aspiration of the people to own a home and we will try to fulfill this wish through PR1MA,” he said at a press conference today after a meet-the-people session here.

PR1MA CEO Datuk Abdul Mutalib Alias meanwhile welcomed the new measures to enlarge the eligibility pool and to make PR1MA homes more attractive.

He said their homes received good response from the middle-income group.

He said those earning between RM2,500 to RM10,000 a month (also known as the M40 group) favoured PR1MA projects as the the supply of homes which fit their budget was in scarce supply.

“The M40 group is very much under-served, they are not able to afford many offerings on the market but are also not eligible for low-cost housing,” he said.

As at January 2017, PR1MA has 231 approved projects, comprising 266,400 units, nationwide.

Sungai Petani presently has 2,700 PR1MA homes under the Residence SP1 and Residence SP2 residential area schemes.

More than a thousand strong crowd turned up to meet Najib in person and he also presented mock keys to 10 new homeowners.

Also present was Kedah Mentri Besar Datuk Seri Ahmad Bashah Md Hanipah and other state government leaders.


Upcoming PR1MA projects in Penang

PR1MA @ Gelugor

One of the first few PR1MA affordable housing approved in Penang. This development is strategically located along Jalan Bukit Gambier, undertaken by Ideal Capital Venture Sdn. Bhd. It’s only less than 2km away from University Science Malaysia (USM), neighbouring communities include Gelugor Customs Housing, Centrio Avenue, Taman Tun Sardon, Mutiara Court and etc.

PR1MA @ Batu Ferringhi

This is one of the three PR1MA affordable housing projects approved by Penang State Government in 2016. The development is strategically located along Jalan Sungai Satu in Batu Ferringhi, just a stone’s throw away from the Ferringhi Residence housing scheme by Mah Sing Group.

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IKEA Penang is really coming!

January 14th, 2017 8 comments

Picture for illustration only

IKEA Penang will be the forth IKEA store in Malaysia and the second one outside of Klang Valley after Johor Bahru. Located in Batu Kawan, the construction of the new IKEA store is scheduled to start in early this year and to complete by Q3 2018.

Despite an official announcement was done by Ikano Private Limited last year, many are still in doubt of whether the plan will really kick-off. Influenced by the disappointing economic performance, some are speculating that IKEA plan has already been shelved.

To shade some light on this matter, we have found a job advertisement in LinkedIn posted by IKEA Southeast Asia 30 days ago. The company was looking for a Store Manager to support the opening of the very first IKEA store in Penang.



Still not convinced? Check out the job advertisement at LinkedIn

If you are interested in the job, you will be very disappointed to find out the position has already been filled. :)

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RM20bil projects in Penang South West district

January 14th, 2017 No comments

picc-illustrationHunza and Ideal to come up with RM13bil schemes

The south-west district of Penang island will attract RM20bil worth of new residential and commercial projects over the next five to 10 years.

About RM13bil worth of projects are new ones planned by Hunza Properties Bhd and Ideal Property Sdn Bhd, which are large-scale schemes expected to generate thousands of fresh job opportunities.

From Ideal Property, the projects are a RM2.4bil mixed development project on Pulau Jerejak, the RM520mil Imperial Grande in Bayan Lepas, a RM300mil condominium development known as The Rain in Sungai Ara, the RM486mil Queens Residence 2 at Persiaran Bayan Bay Indah, and a RM1.4bil landed property scheme in Balik Pulau.

The projects from Ideal Property will be developed over a five-year period till 2022.

Hunza Properties plans to develop the RM8bil Penang International Commercial City (PICC), a mixed development project comprising condominiums and serviced apartments, a shopping mall, retail outlets, hotels, a business process outsourcing (BPO) tower and a medical centre.

The PICC project will be developed over a 10-year period on a 43.35 acres in Bayan Baru.

The other projects are from IJM Land Bhd and Mah Sing Group Bhd.

IJM Land will start construction work for the second phase of the Light Waterfront project in March 2017.

The second phase has a RM4bil gross development value, which includes the RM240mil Waterside Residence condominium, a convention centre, a four and five-star hotel, retail mall and an office tower.

Mah Sing will continue to develop and launch future phases for its RM3bil Southbay City project on 83 acres in Batu Maung.

Mah Sing has recently completed the Trends Mall@Southbay shopping mall at Southbay City.

It is not surprising that the location continues to draw interest from developers for large-scale projects amid uncertain times.

“The lower pricing of vacant land in the south-west district compared to other parts of the island is a key attraction.

“Development land in the prime location of the district is priced at RM250-RM450 per sq ft (psf), compared to RM800-RM1,200 psf in the prime location of the north-east district,” says Raine & Horne senior partner Michael Geh.

The stability of housing prices in the south-west district provides a compelling reason for house buyers to invest in the area.

“When an investor looks for a property to buy, a top consideration is always in the stability and the potential of property prices to appreciate in an area.

“High-rise residential properties with a built-up area of 1,000 sq ft and above are priced from RM450 psf to over RM600 psf, which is more or less the same as in 2013.

“Similarly landed residential properties with a land area of about 1,400 sq ft are priced from RM1.2mil to RM1.4mil and above.

“The interest to launch on the island will ensure that there will be sufficient supply to hold property prices from spiralling upwards,” Geh adds.

Ideal Property executive chairman Datuk Alex Ooi says the Pulau Jerejak mixed development project and Queens Waterfront development at Queensbay are the biggest projects the group plans to launch in 2017.

The Pulau Jerejak mixed development scheme is on 75 acres, while Queens Waterfront sits on 26 acres reclaimed land.

“Local buyers are looking for sizeable residential units within a strategically located well-planned scheme.

“From our feedback, high-rise residential units should have a built-up area of over 1,000 sq ft and a price tag of over RM850 psf.

“The masterplan of our new projects is based on the need to have easy access to amenities, sizeable living space and competitive pricing.

“As landed properties are scarce on the island, we plan to launch single-storey terraces on 100 acres with competitive pricing in Balik Pulau over a five-year period,” Ooi says.

Ideal Property plans to inject some of its affordable and medium range properties which will be launched next year into Ideal United Bintang Bhd (IUBB), subject to approval from relevant authorities.

IUBB, which is part of Ideal Property Group, is involved in developing medium-range properties.

Hunza Properties managing director Datuk Khor Siang Gin says the PICC masterplan caters to the population growth of the southern part of the island, which is expected to experience 60% growth by 2020, according to the Penang Institute.

“The masterplan incorporates thousands of residential units within a commercial development to be developed in three phases, incorporating businesses that complement the needs of various individuals within the area.

“Upon completion, this self-sustainable city will create about 20,000 jobs within the BPO offices, hotels, shopping mall, retail outlets and medical centre,” Khor adds.

IJM Land Bhd (North) senior general manager Toh Chin Leong says the group expects to complete the entire second phase by 2021, four years after construction work starts in 2017.

“By that time we expect the excess supply of housing to ease and purchasing activities to pick up again,” Toh adds.

Mah Sing executive chairman Tan Sri Leong Hoy Kum says the group’s Southbay City still has unbilled sales of RM3bil, which will be able to sustain the group’s growth in Penang for the next few years.

Property review for 2017

The housing industry is facing the possibility of banks imposing higher interest rates, according to Toh, who heads the Real Estate & Housing Developers’ Association (Rehda) Penang.

“Interest rates for housing loan is hovering around 4.6%, which is expected to rise in the near future in response to the rate hike in the US and to the higher yield of Malaysian government bonds.

“Since the subprime crisis in 2008, the property market has been propped up by a low interest rate regime.

“Although the banks have tightened the loan conditions, the fact that interest rates are still low makes it possible for borrowers to service the loans.

“Any upwards adjustment in interest rates will have a crippling effect on the whole property market, impacting also foreign interest in local properties,” Toh says.

Since the recent budget didn’t provide any significant stimulus for the housing industry, Rehda expects transactions for 2017 to remain low.

“Prices of landed properties are expected to hold on.

“Properties within an integrated scheme will continue to capture the attention of investors.

“We are seeing new high rise properties with slightly over 1,000 sq ft of built-up area being launched nowadays,” Toh says.

According to Toh, Rehda expects the interest to rent to increase as property prices are high and remain beyond the reach of wage earners due to tight loan conditions.

“To make housing prices affordable, Rehda had proposed to the state government last year to increase the density to 128 units from 87 presently.

“The current density of 87 units per acre entitles developers to build larger apartments with average built-up areas of 1,400 sq ft.

“The proposal of 128 units per acre will allow developers to construct smaller units with built-up areas of 950 sq ft, thus making them more affordable.

“The total built-up per acre will remain at 2.8 times the land area of development.

“The total number of units is still lower than that for the affordable housing schemes, which is 143 units per acre, priced at RM300,000,” Toh adds.



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New route through the hills

January 12th, 2017 4 comments

new-route-hillWork on the alternative road linking Lebuhraya Thean Teik in Bandar Baru Air Itam to Lebuh Bukit Jambul in Penang is progressing on schedule.

The 6km-long paired road via Jalan Bukit Kukus is 27.5% complete, said state Local Government, Traffic Management and Flood Mitigation Committee chairman Chow Kon Yeow.

“The project, which began on Jan 15, 2016, is slated to be completed on Jan 14, 2019.

“It will comprise a dual carriageway with a bicycle lane, walkway and LED street lights along the whole stretch,” he said during a site visit yesterday.

The current access linking the same two points via Jalan Paya Terubong is 5.2km long.

According to Chow, the number of vehicles using Jalan Paya Terubong now is 60,000 per day.

Once the alternative route is completed in 2019, there will be a reduction of 30% of vehicles using the existing road. Chow said this would eventually reduce to 50%.

He also said that on a normal day, travelling time on the new road would be shorter by 15 minutes compared to the old route.

On another matter, Chow said the revival project of the market-cum-hawker complex in Paya Terubong, developed by Patsifit Construction Sdn Bhd, was 25% complete.

“The four-storey complex will have a community hall on the ground floor, a wet market, dry market and a hawker centre.

“The wet market will have 60 stalls while the dry market will consist of 50 stalls and the hawker centre will have 51 stalls,” he said adding that the complex would also have over 80 parking lots.

Chow said the complex, which will be completed at the end of the year, would be disabled friendly.


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Westlite Juru

January 11th, 2017 No comments

All art renderings shown are artist’s impressions only.

Westlite Juru, another proposed workers village in mainland Penang, also undertaken by Westlite Dormitory (Juru) Sdn Bhd.

The proposed housing is well located along the major thoroughfare of Jalan Juru in the Central District of Wellesley. It provides easy access to the Penang Bridge as well as established industrial parks such as Prai and Bukit Minyak, which houses numerous MNCs and large corporations.

This development comprises see six blocks of 5-storey buildings, offering 339 units of dormitories for foreign workers. According to the developer’s website, it will be able to accommodate up to 6,100 workers.

Location Map:


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