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Penang airport expansion to provide for 12mil passengers

December 2nd, 2017 3 comments

piaThe capacity of Penang International Airport (PIA) will expand by almost 100% from 6.5 million passengers to 12 million, said Chief Minister Lim Guan Eng.

He said this was according to a written reply by Transport Minister Datuk Seri Liow Tiong Lai to him in Parliament.

The reply on Monday stated that the Federal Government, through Budget 2018 presented on Oct 27, had agreed to upgrade the PIA.

“We are in the midst of discussions with Malaysia Airports Holdings Bhd on the upgrading. As such, the project cost is yet to be determined,” said Liow in his reply.

Liow, in his reply, stated that the total passengers handled by PIA up to October was 449,580 more than the same period last year.

“It increased to 5.92 million passengers compared with 5.47 million passengers in the same period last year.

“This is a growth of 8.2% compared with other airports, which recorded growths ranging from -8.5% to 13.5%,” said Liow.

Source: TheStar.com.my

 

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Is the freeze on high-rise residences above RM1m warranted?

November 26th, 2017 No comments

overhang-fby Previndran Singhe

I must applaud the Malaysian government’s responsiveness in trying to manage the perceived property bubble, with specific focus on the residential luxury market.

When we were in university, we were told that a property bubble is usually preceded with what one calls an euphoria of buying, demand exceeding supply and banks taking massive mortgage risks. Technically, there should also be a marked increase in property prices in the preceding years — all of which is missing in our current situation.

With the help of information from the National Property Information Centre (Napic), we have tried to analyse this perceived threat from high-rise properties of above RM1 million.

OverhangTable

Firstly, in Kuala Lumpur, the total value of the overhang in this category is a mere RM652.9 million. This is just 5.33% of the total overhang value recorded in the entire country!

In fact, the overhang value of high-rise residences nationwide of above RM1 million, compared with the total RM12.26 billion residential overhang in the whole country, is only RM1.5 billion or 12.43%.

In terms of volume, high-rise residenital units of RM1 million and above make up just 4.15% of the total overhang. The balance 95.85% is the problem.

Interestingly, Johor has no overhang of high-rise condominium units of above RM1 million despite a massive residential overhang worth RM3.8 billion, which is about 30% of the total national overhang value.

The state’s overhang of residential properties of above RM1 million — which are all landed properties, mind you — is worth RM1.18 billion, with the majority being 2- and 3-storey semi-detached houses.

Delving into the Napic data further, one begins to realise that the overhang in high-rise residential properties of above RM1 million is predominantly found in six states, namely Kuala Lumpur, Selangor, Penang, Perak, Sabah and Sarawak, with the former three recording the highest amount of overhang.

To tackle the property overhang in the country, I would propose that each state break down the data to see which property segment has the highest overhang and which is having difficulties in being disposed.

This can assist the market to move these particular segments faster while working with the developers or the stakeholder to ensure so.

For Johor in particular, I would encourage developers to release the said unsold semidee units with special promotions. It would also be good if the government could assist in terms of reduced stamp duty or other tax breaks to the developer, benefits which could be transfered to the buyers in this category.

To have restrictive blanket bans on the development as the government has recently imposed on certain properties, without a proper analysis of the right information (we are relying on Napic), may cause a market imbalance in future.

As one of the growing nations in Southeast Asia, high-rise development is the way to go in urban locations — and with land prices rising, it will be counterproductive to have such a policy.

– Previndran Singhe
The CEO and founder of Zerin Properties.

Source: EdgeProp.my

 

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Indefinite freeze on luxury properties

November 19th, 2017 8 comments

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The government today announced an indefinite freeze on the development of luxury properties worth more than RM1 million per unit.

The freeze, according to Second Finance Minister Johari Abdul Ghani, had come into effect since Nov 1.

He said Cabinet had recently scrutinised a detailed central bank report published in June which revealed an oversupply of luxury units.

“The Bank Negara report takes into account high-rise condominiums, shopping malls and commercial units, including those that are worth more than RM1 million,” he said when contacted by theSun.

However, Johari said this was merely a temporary measure until all the excess supply is cleared and there was a rise in market demand for expensive properties.

“We are worried that an oversupply of such development would have an adverse effect on the economy. For now, we want developers to focus on the development of affordable homes, especially those priced below RM300,000 per unit.

“At present, there is a disparity between demand for affordable homes and the supply.”

He said this disparity needed to be addressed immediately as there was still a huge demand for affordable houses.

“However, as soon as demand for luxury homes pick up again, we will review the freeze,” he added.

In its report, Bank Negara said Malaysia’s property market was facing an oversupply of non-affordable homes and idle commercial space, while demand for affordable housing was not being met.

Source: TheSunDaily.my

 

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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.

Source: TheStar.com.my

 

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Batu Maung units snapped up

November 16th, 2017 12 comments

m-vista-southbay-launching-f-cn

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

 

Source: TheStar.com.my

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